FAC Explorer

Finding 397158 (2023-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-05-17
Audit: 306504
Organization: Antwerp Housing Development Fund Company, Inc. (NY)
Auditor: Dimarco Abiusi & Pascarella PC

AI Summary

  • Core Issue: The management company failed to make required monthly transfers to the reserve account.
  • Impacted Requirements: This violates RD regulations that mandate proper reserve account balances for project capital needs.
  • Recommended Follow-Up: Management should ensure monthly transfers are made to the reserve account and follow up with Rural Development for guidance.

Finding Text

STATEMENT OF CONDITION: The management company did not make required monthly transfers to the reserve account in accordance with RD regulations. CRITERIA: RD regulations require that the owners must maintain proper reserve account balances for project capital needs in accordance with 7 CFR 3560.302. EFFECT: The projects reserve account is underfunded. CAUSE: The management company did not make transfers to the reserve account. RECOMMENDATION: Management should make monthly transfers to the reserve account. RESPONSE: Management is in contact with Rural Development regarding this finding and will proceed based on Rural Development’s recommendation.

Corrective Action Plan

Finding 2023-001 Replacement Reserves Underfunded: Recommendation: We recommend that management make monthly transfers to the replacement reserve. Action taken: Antwerp Housing Development Fund Company, Inc. agrees with the auditor’s recommendations and has been in contact with USDA Rural Development and will proceed based on Rural Development’s recommendations. For questions regarding this corrective action plan, please contact Kristi Dippel, Executive Director, at 315-686-3212 x2.

Categories

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Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $962,244
10.427 Rural Rental Assistance Payments $21,105