FAC Explorer

Finding 388129 (2023-001)

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Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299944
Organization: Taylor Brown Hdf CO (east Main Street Apartments (NY)
Auditor: Bonadio & CO LLP

AI Summary

  • Core Issue: East Main Street Apartments failed to transfer $6,393 in surplus cash to the residual receipts account within the required 60 days 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 the 60-day window to maintain compliance with HUD regulations.

Finding Text

Finding 2023-001: Mortgage Insurance – Rental Housing (Section 207), federal assistance listing number 14.134 Criteria: East Main Street 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 $6,393 for the year ended December 31, 2022 was not made within the 60 day timeline. Context: We reviewed the residual receipts deposits during the year. Cause: East Main Street Apartments’ surplus cash was not performed timely. Effect: East Main Street Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: East Main Street 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: East Main Street 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 Taylor Brown Housing Development Fund Company, Inc. (East Main Street Apartments), FHA Project No. 014-11145 respectfully submits the following corrective action plan for the year ended December 31, 2023. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #60 Syracuse, New York 13204 Audit period: January 1, 2023 – December 31, 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 – Rental Housing (Section 207), federal assistance listing number 14.134 Recommendation: East Main Street Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Action Taken: East Main Street Apartments made the required payment was made after the 60-day timeline. Completion Date: March 2024 Name of Contact Person Responsible for Corrective Action: Kyle Lyskawa, CFO (315) 424-1821

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.134 Mortgage Insurance_rental Housing $1.42M
14.195 Section 8 Housing Assistance Payments Program $348,648