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Home My WebLink About1997 North Fork Housing Alliance NORTH FORK HOUSING ALLIANCE, INC. ' FOR THE YEAR ENDED DECEMBER 31, 1997 PART II INTERNAL ACCOUNTING AND ADMINISTRATIVE CONTROLS AND COMPLIANCE INFORMATION ' IN ACCORDANCE OMB CIRCULAR A-133 ' Deans • Archer 1 Deans • Archer ' CERTIFIED PUBLIC ACCOUNTANTS 265 East Merrick Road Valley Stream, New York 11580 (516) 872-6922/FAX: (516) 872-6925 ' INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL ' OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 ' The Board of Directors North Fork Housing Alliance, Inc ' Greenport, New York ' Compliance We have audited the compliance of North Fork Housing Alliance, Inc., with the types of ' compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended December 31, 1997. North Fork Housing Alliance, Ines., major federal programs ' are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of North Fork Housing ' Alliance, Inc's., management. Our responsibility is to express an opinion on North Fork Housing Alliance, Inc's., compliance based on our audit. ' We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133,Audits of States, Local ' Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance ' with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about North Fork Housing Alliance, Inc's., compliance with those requirements and ' performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of North Fork Housing Alliance, Inc's., compliance with those requirements. In our opinion, North Fork Housing Alliance, Inc., complied, in all material respects, with the ' requirements referred to above that are applicable to each of its major federal programs for the year ended December 31, 1997. ' Internal Control Over Compliance ' The management of North Fork Housing Alliance, Inc., is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In planning and performing our audit, we ' considered North Fork Housing Alliance, Inc's., internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to ' determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on the internal control over compliance in accordance with OMB circular A-133. ' We noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over ' compliance that, in our judgment, could adversely affect North Fork Housing Alliance, Inc's., ability to administer a major federal program in accordance with the applicable requirements of laws, regulations, contracts, and grants. Reportable conditions are described in the accompanying ' schedule of findings and questioned costs as items 97-1 through 97-3. A material weakness is a condition in which the design or operation of one or more of the internal ' control components does not reduce to a relatively low level the risk that non-compliance with the applicable requirements of laws, regulations, contracts, and grants that would be material in relation to a major federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters ' in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe that none of the reportable conditions described above are material weaknesses. ' This report is intended for the information of the North Fork Housing Alliance, Inc's., Board of Directors and management, and the Department of Housing and Urban Development. However, ' this report is a matter of public record and its distribution is not limited. &,.A . A A'A"" ' Valley Stream, New York May 26, 1998 ' Deans • Archer NORTH FORK HOUSING ALLIANCE, INC. ' SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 1997 ' A. SUMMARY OF AUDIT RESULTS 1. The auditors' report expresses an unqualified opinion on the financial statements of North Fork Housing Alliance. 2. One reportable condition disclosed during the audit of financial statements is reported in Independent Auditors' Report on Compliance and on Internal Control Over Financial Reporting Based on the Audit of Financial Statements Performed in Accordance with ' "Government Auditing Standards". This condition is not reported as a material weakness. ' 3. No instances of noncompliance material to the financial statements of North Fork Housing Alliance, Inc., were disclosed during the audit. ' 4. One reportable condition disclosed during the audit of the major federal award programs of North Fork Housing Alliance, Inc., is reported in the Independent ' Auditors' Report on Compliance with Requirements Applicable to each Major Program and Internal Control over Compliance in Accordance with OMB Circular A-133. These conditions are not reported as material weaknesses. 5. The auditors' report on compliance for the major federal award programs for North Fork Housing Alliance, Inc., expresses an unqualified opinion. ' 6. Audit findings relative to the g mayor federal award programs for North Fork Housing Alliance, Inc., are reported in Part C. of this Schedule. 7. The programs tested as major programs included: ' (a) Department of Housing and Urban Development - Housing Assistance CFDA No-14.857. ' (b) Department of Housing and Urban Development - Housing Assistance CFDA No-14.855. ' 8. The threshold for distinguishing Types A and B programs was $300,000. ' 9. The risk criteria was waived for the determination of major programs for North Fork Housing Alliance, Inc. 11 ' Deans • Archer i 1 NORTH FORK HOUSING ALLIANCE,INC. 1 SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 1997 1 B. FINDINGS - FINANCIAL STATEMENTS AUDIT 1 Condition 97-1 Test of Controls - Payroll: 1 We selected thirty-five (35) employees for testing and noted that on one (1) occasion a new hire's application form was not approved by the Executive Director. 1 R mm eco en ation 1 We recommend that the required forms for new employees be properly approved. ' Management Response Management concurs with the recommendation. 1 i 1 1 1 1 1 i 12 1 Deans Archer ' NORTH FORK HOUSING ALLIANCE, INC. ' SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 1997 ' C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT ' Questioned cost Department of State ' 1. Housing Assistance - Section 8 Certificate CFDA No.-14.857; Grant No.-NY1045E; ' Grant Periods 01/01/97-12/31/97. ' Reportable Condition: ' Condition 97-2 Single Audit - Tenants Eligibility: We selected twenty- five (25) tenant's files for testing, and noted that on one (1) occasion, the ' inspection form for a newly leased unit was dated after the effective lease date. Recommendation ' We recommend that management enforce the policies and procedures in place for the inspection of newly leased units. ' Management Response ' Management concurs with the recommendation. 2. Housing Assistance - Section 8 Voucher CFDA No.- 14.855; Grant No.- NY1045V; Grant Period 01/01/97-12/31/97. ' Reportable Condition: - ' 13 Deans • Archer ' NORTH FORK HOUSING ALLIANCE, INC. ' SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED DECEMBER 31, 1997 Questioned cost ' Condition 97-3 ' Single Audit - Tenants Eligibility: We selected twenty- five (25) tenant's files for ' testing, and noted that on one (1) occasion, the inspection form for a newly leased unit was ' dated after the effective lease date. Recommendation ' We recommend that management enforce the policies and procedures in place for the inspection of newly leased units. ' Managcment Response Management concurs with the recommendation. 1 14 ' Deans • Archer NORTH FORK HOUSING ALLIANCE, INC. ' FOR THE YEAR ENDED DECEMBER 31, 1997 ' PART III ' PRIOR AUDIT REPORT AND EXIT CONFERENCE Deans • Archer 1 ' NORTH FORK HOUSING ALLIANCE,INC. SINGLE AUDIT FOR THE YEAR ENDED DECEMBER 31, 1997 RESOLUTION OF PRIOR YEAR COMMENTS Condition 96-1 General Ledger: (i) During the audit we noted that journal entries were made that: (a) Were not adequately supported, and ' (b) Were not authorized prior to recording. ' (ii) It was noted during our audit that the general ledger was not properly maintained: (a) The general ledgers are not being updated in a timely manner. ' (b) The general ledgers are being maintained on a cash basis. (c) No analysis is being done on significant accounts. Recommendation (i) We recommend that management examine the controls in place over updating the general ledger system. All entries must be adequately documented, authorized, reviewed and maintained. ' (ii) We recommend that an accounting policy and procedures manual be developed which sets forth the responsibilities for each level of staff along with written procedures and instructions for each transactions cycles. The manual will ensure that similar transactions are treated consistently, that the accounting principles used are proper and that records are produced in the form desired by management. One of the most ' important elements that the manual should contain is a review process so that transactions are entered correctly and consistently in the general ledgers. ' 16 ' Deans • Archer ' NORTH FORK HOUSING ALLIANCE, INC. ' SINGLE AUDIT FOR THE YEAR ENDED DECEMBER 31, 1997 RESOLUTION OF PRIOR YEAR COMMENTS We also recommend that the check writing function be integrated with the general ' ledger system so that duplication of effort is reduced. Laser printed checks can be generated from information input to the system and the same information can then be posted to the general ledger. In addition, an edit listing of the information ' inputted can be obtained and reviewed for propriety and proper account coding before posting. Follow-up low-up ' This finding was substantially the same in the current year. 1 17 ' Deans Archer ' NORTH FORK HOUSING ALLIANCE, INC. ' SINGLE AUDIT FOR THE YEAR ENDED DECEMBER 31, 1997 RESOLUTION OF PRIOR YEAR COMMENTS EXIT CONFERENCE ' The audit findings and recommendations were discussed with Edward Reale, Executive Director, Bessie Swann, ormer Executive Director and Tanya Palmore, Associate Director. 1 1 18 ' Deans Archer 1 t NORTH FORK HOUSING ALLIANCE, INC. REPORT OF CERTIFIED PUBLIC ACCOUNTANTS ' IN ACCORDANCE WITH THE SINGLE AUDIT ACT ' AND OMB CIRCULAR A-133 ' SUPPLEMENTARY INFORMATION ' AND OBSERVATIONS AND RECOMMENDATIONS For the Year Ended December 31, 1997 ' Deans Archer NORTH FORK HOUSING ALLIANCE, INC. TABLE OF CONTENTS 1 PART I - REPORT OF FEDERAL AWARDS PAGE ' - Independent Auditors' Report on Financial Statements and Supplementary Schedule of Expenditures' of Federal Awards . . . . . . . . . . . . . . 4-5 - Schedule of Expenditures of Federal Awards . . . . . . . . . . . . . . . . . . . . . . . . . 6-7 ' PART II - INTERNAL ACCOUNTING AND ADMINISTRATIVE CONTROLS AND COMPLIANCE INFORMATION IN ACCORDANCE WITH OMB ' CIRCULAR A-133 ' - Independent Auditors' Report on Compliance with Requirements Applicable to each Major Program and Internal Control Over Compliance in Accordance with OMB Circular A-133 . . . . . . . . . . . . . . . . . 9-10 ' - Schedule of Findings and Questioned Costs . . . . . . . . . . . . . . . . . . . . . . . . . 11-14 PART III - PRIOR AUDIT REPORT AND EXIT CONFERENCE ' - Resolution of Prior Year Comments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-17 - Exit Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 ' Deans • Archer NORTH FORK ORK HOUSING ALLIANCE, INC. ' FOR THE YEAR ENDED DECEMBER 31, 1997 ' PART I REPORT OF FEDERAL AWARDS 1 Deans Archer I 1 Deans • Archer CERTIFIED PUBLIC ACCOUNTANTS ' 265 East Merrick Road Valley Stream, New York 11580 (516) 872-6922/FAX: (516) 872-6925 ' INDEPENDENT AUDITOR'S REPORT ON FINANCIAL STATEMENTS AND ' SUPPLEMENTARY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS ' The Board of Directors North Fork Housing Alliance, Inc. ' Greenport, New York We have audited the accompanying statement of financial position of North Fork Housing ' Alliance, Inc. as of December 31, 1997, and the related statements of activities, functional expenses and cash flows for the year then ended. These financial statements are the responsibility ' of North Fork Housing Alliance, Inc's., management. Our responsibility is to express an opinion on these financial statements based on our audit. ' We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the ' audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles ' used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. ' In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of North Fork Housing Alliance, Inc., as of December 31, 1997, and the ' changes in its net assets and its cash flows for the year then ended in conformity with generally accepted accounting principles. ' In accordance with Government Auditing Standard, we have also issued our report dated May 26, 1998 on our consideration of North Fork Housing Alliance, Inc's., internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, ' and grants. ' The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits ' of States, Local Governments, and Non-Profit Organizations, and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material ' respects, in relation to the basic financial statements taken as a whole. • mAmw� ' Valley Stream, New York May 26, 1998 t ' Deans Archer r r r r rr r ■r r r r r r r r r r r r r ECONOMIC OPPORTUNITY COUNCIL OF SUFFOLK,INC. SCHEDULE OF FEDERAL FINANCIAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 1997 1 of 2 Unexpended or Unexpended or (Overexpended) Unexpended or Federal Grantor/ Federal Pass-through Grant Period Program (Overexpanded) Receipts at (Overexpended) Pass-through Grantor CFDA Grantor's Beginning/ or Awards Receipts at 12/31/96 Receipts at Program Tide Number Number Endine Dates A o n 12/31/96 Adiustments As restate Receipt Disbursements 12/31/97 U.S. Department of Housing and Urban Development Housing Assistance 14.857 NY1045E 07/01/93-12/31/95 1,009,834 132,678 (43,917) 88,761 88,761 - Housing Assistance 14.857 NY1045E 01/01/96-12/31/96 1,056,902 115,561 60,101 175,662 - 175,662 - Housing Assistance 14.857 NY1045E 01/01/97-12/31/97 1,105,127 - - - 1,105,127 895,136 209,991 Housing Assistance 14.855 NY1045V 07/01/93-12/31/95 1,241,828 5,571 (71,924) (66,353) 66,353 - - Housing Assistance 14.855 NY1045V 01/01/96-12/31/96 1,505,530 242,126 112,542 354,668 - 354,668 - Housing Assistance 14.855 NY1045V 01/01/97-12/31/97 1,529,921 - - 1,529,921 1 213 313,708 Total Department of Housing and Urban Development 7.449.142 495,936 56.802 552.738 2.701.401 2,730, 523,699 Department of Housing and Urban Development Passed-through the State for New York-DHCR Greenport Revitalization Project 14.239 C403073 05/06/93-10/30/97 1,060,266 (22,799) (3,782) (26,583) 67,184 62,312 (21,711) Passed-through the County of Suffolk CHDO Projects-Home Program(SCCD) 14.231 08579 FY94 120,750 (18,199) 3,070 (15,129) 68,642 53,513 CHDO Projects-Home Program(SCCD) 14.231 08579 FY95 120,750 - - - CHDO Projects-Home Program(SCCD) 14.231 08579 FY96 130,500 CHDO Projects-Home Program(SCCD) 14.231 08579 FY97 142,500 - - - - Passed-through the Town of Southold Home Investment Partnership Program 14.218 10/14/96-09/30/97 40,000 10,000 10,000 20,000 30,000 - Home Investment Partnership Program 14.218 08/01/97-09/30/98 40.000 - - - 40.000 14.588 25.413 Total Department of Housing and Urban Development 1.654.766 (30.998) (712) (31.712) 195.826 160.412 3,701 See accountants'report on supplementary information 6 w w ■w ■w w w� w w� ww ww ww �w w� w w ww ww ww ww NORTH FORK HOUSING ALLIANCE,INC. SCHEDULE OF FEDERAL FINANCIAL AWARDS FOR THE YEAR ENDED DECEMBER 31, 1997 2of2 Unexpended or Unexpended or (Overexpended) Unexpended or Federal Grantor/ Federal Pass-through Grant Period Program (Overexpended) Receipts at (Overexpended) Pass-through Grantor CFDA Grantor's Beginning/ or Awards Receipts at 12/31/96 Receipts at Program Title Numbe Numbe Ending Date Amog 12/31/96 AA'ustments As restate Receipts Disbursements 12/31/97 U.S. Department of Agriculture Farmer Home Administration Rural Rental Housing Loan 10.415 06/01/87-09/01/2035 2,624,222 - 54,063 54,063 - Passed-through the State of New York-DHCR Rural Housing Preservation Grants 10.433 C-606059 01/01/97-12/31/97 65,000 65,000 65,000 Rural Rental Assistance Payment 10.427 C-200038C 02/01/87-01/31/99 588.600 53,722 53,722 Total U.S. Department of Agriculture 3.277.822 172,785 172.785 Other Federal Assistance Passed-through Town of Southold CDBG Economic Development Prog. 14.218 1050-01-18B 07/01/96-06/30/97 25,100 (12,386) (12,386) 13,988 1,714 (112) CDBG Home Improvement Program 14.218 1003-14A-96 07/01/96-06/30/97 18,500 (18,500) (18,500) 18,500 - - CDBG Housing Counseling 14.218 1036-05-96 07/01/96-06/30/97 18,400 (13,412) (13,412) 18,400 4,988 CDBG RLP Child Care Program 14.218 1049-01-05L 07101/96-06/30/97 5,000 (5,000) (5,000) 5,000 - CDBG NFHA Counseling 14.218 1036-05-97 07/01/97-06/30/98 9,000 - - CDBG RLP Child Care Program 14.218 104901-05L-97 07/01/97-06/30/98 6,000 6,000 6,000 CDBG Home Improvement 14.218 1003-14A-97 07/01/97-06/30/98 18,000 7,282 14,592 (7,309) CDBG FSS 14.218 1044-05-97 07/01/97-06/30/98 9.000 7.721 9.000 (1.279) Total Other Federal Assistance 109.000 (49.298) (49.298) 76.892 36.294 (8.700) Told S 12.490.730 $415.640 x,56.090 $471.728 $3.146.904 $3.099.932 X518.700 .See accountants'report on supplentenlaq information �