Finding 1165714 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-19

AI Summary

  • Core Issue: Bishop Harrison Apartments failed to transfer $96,667 in surplus cash to the residual receipts account within the required 60-day period after the fiscal year-end.
  • Impacted Requirements: This delay violates the HUD Regulatory Agreement regarding the management of residual receipts.
  • Recommended Follow-Up: Ensure timely deposits of residual receipts within 60 days of year-end to maintain compliance with HUD regulations.

Finding Text

Housing Projects, Federal Assistance Listing Number 14.155 Criteria: Bishop Harrison 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 $96,667 for the year ended March 31, 2024 was not made within the 60 day timeline. Context: We reviewed the residual receipts deposits during the year. Cause: Bishop Harrison Apartments’ surplus cash was not performed timely. Effect: Bishop Harrison Apartments was not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: Bishop Harrison 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: Bishop Harrison Apartments agrees with the finding and the required payment was made on June 27, 2024.

Corrective Action Plan

U.S. Department of Housing and Urban Development Pond Street Housing Development Fund Company, Inc. (Bishop Harrison Apartments), HUD Project No. 014-11248 respectfully submits the following corrective action plan for the year ended March 31, 2025. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #60 Syracuse, New York 13204 Audit period: April 1, 2024 – March 31, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2025-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Our auditors recommended that we ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Action Taken: Bishop Harrison Apartments made the required deposit on June 27, 2024. Name of Contact Person Responsible for Corrective Action: John Lutz, Vice President of Finance, (315) 424-1821. Completion Date: June 27, 2024

Categories

HUD Housing Programs Cash Management

Other Findings in this Audit

  • 1165715 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $1.82M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $407,112