FAC Explorer

Finding 500172 (2023-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-09-30
Audit: 323017
Organization: Minford Gardens Housing Development Fund Company, INC (NY)
Auditor: Novogradac & Company LLP

AI Summary

  • Core Issue: Residual receipts were not deposited as required by HUD regulations.
  • Impacted Requirements: Owners must deposit these funds into a separate account within 90 days after the fiscal year ends.
  • Recommended Follow-Up: Ensure timely deposits of residual receipts to comply with HUD requirements.

Finding Text

Finding No. 2023-1 Statement of Condition Residual receipts were not properly deposited into an account in accordance with HUD requirements. Criteria Owners must deposit residual receipts into a separate account within 90 days of the end of the fiscal year. Questioned Costs $586,006 Effect or potential effect The Company is in non-compliance with specific requirements of a major federal program. Cause Controls and actions were not taken to ensure that the residual receipts were properly deposited in a separate account. Recommendation We recommend that owners take the specific actions of depositing the residual receipts into a separate account in accordance with HUD requirements. Reporting views of responsible officials Auditee agrees with the auditor. Auditor Noncompliance Code: B – Failure to make required residual receipts deposits.

Corrective Action Plan

Finding Reference Number: 2023-1 Recommendation The Company must deposit $586,006 into the residual receipts reserve. Reporting views of responsible officials Auditee agrees with the auditor and management will be responsible for depositing surplus cash into the residual receipts reserve. Completion date or proposed completion date: December 31, 2024 Action(s) taken or planned on the finding Management will make the required deposit to the residual receipts reserve.

Categories

Questioned Costs HUD Housing Programs Cash Management Reporting

Other Findings in this Audit

  • 500173 2023-002
    Material Weakness
  • 500174 2023-001
    Material Weakness Repeat
  • 500175 2023-002
    Material Weakness
  • 1076614 2023-001
    Material Weakness Repeat
  • 1076615 2023-002
    Material Weakness
  • 1076616 2023-001
    Material Weakness Repeat
  • 1076617 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $1.06M