FAC Explorer

Audit 7553

FY End
2023-03-31
Total Expended
$1.90M
Findings
2
Programs
2
Organization: Pompei Housing Development Fund Company, Inc. (NY)
Year: 2023 Accepted: 2023-12-19
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
5640 2023-001 - Yes N
582082 2023-001 - Yes N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.46M Yes 1
14.195 Section 8 Housing Assistance Payments Program $445,699 - 0

Contacts

Name Title Type
V2ZUNW6M8EN3 Kyle Lyskawa Auditee
3154241821 Bettina Lipphardt Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Basis of Presentation This schedule of expenditures of federal awards includes the federal grant activity of Pompei Housing Development Fund Company, Inc. (Pompei North Apartments), HUD Project No. 014-11249, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Insured Mortgage Pompei North Apartments obtained from HUD a guarantee of its mortgage payable. The outstanding balance of this mortgage at March 31, 2023 was $1,425,644. Indirect Costs Pompei North Apartments has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect Costs Pompei North Apartments has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: Pompei North Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the Project’s fiscal year-end. Condition: The required deposit of $53,845 for the year ended March 31, 2022 was made four days after the 60 day deadline. Context: We reviewed the residual receipts deposits during the year. Cause: Pompei North Apartments’ surplus cash was not performed timely. Effect: Pompei North Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: Pompei North Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: Pompei North Apartments agrees with the finding and the auditor’s recommendations have been adopted.
Finding 2023-001
Finding 2023-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: Pompei North Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the Project’s fiscal year-end. Condition: The required deposit of $53,845 for the year ended March 31, 2022 was made four days after the 60 day deadline. Context: We reviewed the residual receipts deposits during the year. Cause: Pompei North Apartments’ surplus cash was not performed timely. Effect: Pompei North Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: Pompei North Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: Pompei North Apartments agrees with the finding and the auditor’s recommendations have been adopted.