FAC Explorer

Finding 369963 (2023-002)

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Requirement
P
Questioned Costs
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Year
2023
Accepted
2024-02-21
Audit: 291428
Organization: The Pavilion Housing Development Fund Corporation (NY)
Auditor: Withumsmith+brown PC

AI Summary

  • Core Issue: Security deposits for 2 tenants were not placed in the required separate bank account.
  • Impacted Requirements: This violates HUD regulations for handling tenant security deposits.
  • Recommended Follow-Up: Transfer the funds from the operating account to the security deposit account promptly.

Finding Text

Criteria Audits of financial statements of HUD projects are required to deposit security deposit funds received from tenants in a separate bank account, apart from all other funds of the Project. Condition The security deposits received for 2 tenants were not deposited or transferred to the security deposit bank account. Cause The security deposits were deposited into the operating account and the funds were not transferred to the security deposit account. Questioned Costs None noted. Effect The non-profit Organization is noncompliant with the requirements of HUD. Recommendation The non-profit Organization should transfer the funds from the operating account to the security deposit account. Views of Responsible Official and Planned Corrective Action Management agrees with the finding.

Corrective Action Plan

Name of auditee: The Pavilion Housing Development Fund Corporation HUD auditee identification number: 012-EE247 Name of audit firm: WithumSmith+Brown, PC Period covered by the audit: Year Ended September 30, 2023 CAP prepared by: Name: Brother Ronald Giannone Position: Executive Director Telephone: 646-996-4234 1. Current Findings on the Schedule of Findings, and Questioned Costs a. Finding 2023-001. Delinquent deposits into the replacement reserve account. i. Comments on the Finding and Each Recommendation: Management concurs with the finding and the auditor’s recommendation to transfer the funds to the replacement reserve account. ii. Actions Taken on the Finding: Management will transfer the funds as soon as cash flow permits. 2. Status of Corrective Actions on Findings Reported in the Prior Audit Schedule of Findings, and Questioned Costs. a. Finding 2022-001. Delinquent deposits into the replacement reserve account. Required deposit in the amount of $29,109 was not made. Finding still open. Management will transfer the funds as soon as cash flow permits.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $471,000