FAC Explorer

Finding 529420 (2024-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-22
Audit: 347416
Organization: Cicero Commons Senior Housing Development Fund Company, Inc. (NY)
Auditor: Bonadio & CO LLP

AI Summary

  • Core Issue: Lucille Manor Apartments missed the deadline for transferring surplus cash to the residual receipts account.
  • Impacted Requirements: The transfer of $7,387 was made 9 months late, violating HUD regulations.
  • Recommended Follow-Up: Ensure timely calculations and transfers of surplus cash within 60 days of fiscal year-end.

Finding Text

Finding 2024-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Criteria: Lucille Manor 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 $7,387 for the year ended June 30, 2023 was made in March 2024, which is after the 60 day deadline. Context: We reviewed the residual receipts deposits during the year. Cause: Lucille Manor Apartments’ surplus cash calculation was not performed timely. Effect: Lucille Manor Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve. Recommendation: Lucille Manor 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: Lucille Manor Apartments agrees with the finding and the auditor’s recommendations have been adopted.

Corrective Action Plan

U.S. Department of Housing and Urban Development Cicero Commons Senior Housing Development Fund Company, Inc. (Lucille Manor Apartments), HUD Project No. 014-EE070-NY06-S941-009 respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #60 Syracuse, New York 13204 Audit period: July 1, 2023 – June 30, 2024 The findings from the 2024 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 2024-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Condition: The required deposit of $7,387 for the year ended June 30, 2023 was made after the 60 day deadline. Recommendation: Lucille Manor Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement. Action Taken: The required deposit was made in March 2024. Completion Date: March 2024 Name of Contact Person Responsible for Corrective Action: Kyle Lyskawa, CFO, (315) 424-1821.

Categories

HUD Housing Programs Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Section 8 Housing Assistance Payments Program $1.73M
14.157 Mortgage Insurance_rental Housing $125,707