FAC Explorer

Finding 388130 (2023-001)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-28
Audit: 299948
Organization: Loretto Apts at O'Brien Road Hdfc, Inc. (o'brien Rd SR Appts 2) (NY)
Auditor: Bonadio & CO LLP

AI Summary

  • Core Issue: O’Brien Road Senior Apartments 2 failed to transfer $7,479 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: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Criteria: O’Brien Road Senior Apartments 2 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 $7,479 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: O’Brien Road Senior Apartments 2’s surplus cash was not performed timely. Effect: O’Brien Road Senior Apartments 2 was not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: O’Brien Road Senior Apartments 2 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: O’Brien Road Senior Apartments 2 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 Loretto Apartments at O’Brien Road Housing Development Fund Company, Inc. (O’Brien Road Senior Apartments 2), HUD Project No. 014-EE287/NY06-S101-004 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: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 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: O’Brien Road Senior Apartments 2 made the required payment in August 2023. Name of Contact Person Responsible for Corrective Action: Kyle Lyskawa, CFO, (315) 424-1821. Completion Date: August 2023

Categories

HUD Housing Programs Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $44,186