FAC Explorer

Finding 2623 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-11-28
Audit: 4425
Organization: Minford Gardens Housing Development Fund Company, INC (NY)
Auditor: Novogradac & Company LLP

AI Summary

  • Core Issue: Residual receipts were not deposited correctly, violating HUD rules.
  • Impacted Requirements: Owners must deposit residual receipts into a separate account within 90 days after the fiscal year ends.
  • Recommended Follow-Up: Ensure timely deposits of residual receipts into the correct account to achieve compliance.

Finding Text

Section III - Findings and Questioned Costs-Major Federal Award Program Audit Finding No. 2022-2 Statement of Condition Residual receipts were not properly deposited into an account in accordance with HUD requirements. Criteria Owners must deposit residual receipts into a separate account within 90 days of the end of the fiscal year. Questioned Costs $53,053 Effect or potential effect The Company is in non-compliance with specific requirements of a major federal program. Cause Controls and actions were not taken to ensure that the residual receipts were properly deposited in a separate account. Recommendation We recommend that owners take the specific actions of depositing the residual receipts into a separate account in accordance with HUD requirements. Reporting views of responsible officials Auditee agrees with the auditor. Auditor Noncompliance Code: B – Failure to make required residual receipts deposits.

Corrective Action Plan

Finding Reference Number: 2022-2 Recommendation The Company must deposit $53,053 into the residual receipts reserve. Reporting views of responsible officials Auditee agrees with the auditor and management will be responsible for depositing surplus cash into the residual receipts reserve. Completion date or proposed completion date: June 2023 Action(s) taken or planned on the finding As of June 2023, management has deposited $53,053 into the residual receipts reserve.

Categories

Questioned Costs HUD Housing Programs Cash Management Reporting

Other Findings in this Audit

  • 2622 2022-001
    Significant Deficiency Repeat
  • 2624 2022-003
    Significant Deficiency Repeat
  • 2625 2022-001
    Significant Deficiency Repeat
  • 2626 2022-002
    Significant Deficiency
  • 2627 2022-003
    Significant Deficiency Repeat
  • 579064 2022-001
    Significant Deficiency Repeat
  • 579065 2022-002
    Significant Deficiency
  • 579066 2022-003
    Significant Deficiency Repeat
  • 579067 2022-001
    Significant Deficiency Repeat
  • 579068 2022-002
    Significant Deficiency
  • 579069 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $1.06M