Finding 382330 (2023-001)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-20

AI Summary

  • Core Issue: St. Luke Apartments failed to transfer $4,419 to the residual receipts account within the required 60 days after the fiscal year-end.
  • Impacted Requirements: This non-compliance violates the HUD Regulatory Agreement regarding the management of surplus cash.
  • Recommended Follow-Up: Ensure timely deposits of residual receipts within 60 days of year-end to maintain compliance with HUD regulations.

Finding Text

Finding 2023-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Criteria: St. Luke 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 $4,419 for the year ended September 30, 2022 was not made within the 60 day timeline. Context: We reviewed the residual receipts deposits during the year. Cause: St. Luke Apartments’ surplus cash was not performed timely. Effect: St. Luke Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: St. Luke 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: St. Luke Apartments agrees with the finding and the required payment was made after the 60-day timeline.

Corrective Action Plan

U.S. Department of Housing and Urban Development St. Luke Apartments St. Luke Housing Development Fund Company, Inc. (St. Luke Apartments), FHA Project No. 014-11157 respectfully submits the following corrective action plan for the year ended September 30, 2023. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #60 Syracuse, New York 13204 Audit period: October 1, 2022 – September 30, 2023 The findings from the 2023 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 2023-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: St. Luke Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Action Taken: St. Luke Apartments made the required payment was made after the 60-day timeline. Completion Date: February 2024 Name of Contact Person Responsible for Corrective Action: Kyle Lyskawa, CFO (315) 424-1821

Categories

HUD Housing Programs Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.60M
14.195 Section 8 Housing Assistance Payments Program $642,391