HomeMy WebLinkAbout1999 North Fork Housing Alliance NORTH FORK HOUSING ALLIANCE, INC.
FINANCIAL STATEMENTS
SUPPLEMENTARY INFORMATION AND
OBSERVATIONS AND RECOMMENDATIONS
For the Years Ended December 31, 1999 and 1998 with
REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
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' Deans Archer
NORTH FORK HOUSING ALLIANCE, INC.
YEAR ENDED DECEMBER 31, 1999
TABLE OF CONTENTS
PART I- REPORT ON FINANCIAL STATEMENTS PAGE(s)
- Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-6
1 - Statements of Financial Position7
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
' - Statements of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
- Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
- Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-19
PART II - SUPPLEMENTARY INFORMATION
- Schedule of Functional Expenses 21
- Schedule of Program Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
- Schedule of Supporting Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
- Rural Preservation Program Schedule of DHCR
Revenues and Expenses Compared to Budget
and Questioned Costs Contract Number C-699059
Contract Period July 1, 1999 to June 30, 2000
For the year ended December 31, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . 24
- Rural Preservation Program Schedule of DHCR
Revenues and Expenses Compared to Budget
and Questioned Costs Contract Number C-698059
Contract Period January 1- June 30, 1999
For the year ended December 31, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
DeanN • Archer
' NORTH FORK HOUSING ALLIANCE, INC.
YEAR ENDED DECEMBER 31, 1999
TABLE OF CONTENTS
PAGE(s)
PART III - INTERNAL CONTROL STRUCTURE AND COMPLIANCE
INFORMATION IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS
' - Independent Auditors' Report on Compliance and on
Internal Control Over Financial Reporting Based on
an audit of Financial Statements Performed in Accordance
With "Government Auditing Standards" . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27-28
- Findings and Recommendations - On
Internal Control over Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29-31
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Deans Archer
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NORTH FORK HOUSING ALLIANCE, INC.
FOR THE YEAR ENDED DECEMBER 31, 1999
(with comparative totals for 1998)
PART I
REPORT ON FINANCIAL STATEMENTS
Deans Archer
Deans • Archer & Co.
' CERTIFIED PUBLIC ACCOUNTANTS
265 East Merrick Road
' Valley Stream, New York 11580
(516) 872-6922/FAX: (516) 872-6925
INDEPENDENT AUDITORS' REPORT
' The Board of Directors
North Fork Housing Alliance, Inc.
' Greenport, New York
We have audited the statements of financial position of the North Fork Housing Alliance, Inc., as
of December 31, 1999 and 1998 and the related statements of activities and cash flows for the
years 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 audits.
We conducted our audits in accordance with generally accepted auditing standards, 1995 Audit
1 Manual for Selected Division of Housing and Community Renewal Programs, and Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
' require that we plan and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on 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 audits
provide 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 the North Fork Housing Alliance, Inc., as of December 31, 1999 and
' 1998, and the changes in its net assets and its cash flows for the years then ended in conformity
with generally accepted accounting principles.
' In accordance with Government Auditing Standards, we have also issued our report dated June.28,
2000 on our consideration of North Fork Housing Alliance, Inc's., internal control structure over
' financial reporting and on our test of its compliance with certain provisions of laws, regulations,
contracts and grants.
' Our audits were made for the purpose of forming an opinion on the financial statements taken as
a whole. The supplemental schedules listed in the table of contents is presented for the purpose
of additional analysis and are not a required part of the financial statements of North Fork Housing
Alliance, Inc. Such information has been subjected to the auditing procedures applied in the audits
of the financial statements and, in our opinion, is fairly stated in all material respects in relation
' to the financial statements taken as a whole.
Valley Stream, New York
' June 28, 2000
Deans Archer
NORTH FORK HOUSING ALLIANCE, INC.
' STATEMENTS OF FINANCIAL POSITION
December 31, 1999 and 1998
' Total Total
1999 1998
' ASSETS
Current assets:
' Cash $ 851,853 $ 861,484
Grants receivable 65,947 46,985
Tenants' rent receivable 3,645 11,917
' Prepaid expenses - 1,358
Other receivable 33,165 33,353
Other assets 23.965 73.537
Total current assets 978,575 1,028,634
Fund reserves - restricted (Note 4) 91,241 102,159
Tenants' security deposits 20,123 15,628
' Property and equipment (Notes 2 and 5) 2.817.501 2.940.886
Total assets $3.907.440 $4.087.307
' LIABILITIES AND NET ASSETS
Current liabilities:
' Accounts payable and accrued expenses $ 68,503 $ 109,765
Due to funding source (Note 6) 909,686 787,286
Long-term debt, current portion (Note 7) 48,906 44,819
' Deferred revenue 237,218 301,343
Line of credit (Note 13) 48,240 81,955
Other liabilities 73.835 119.605
Total current liabilities 1,386,388 1,444,773
Security deposits 20,123 15,628
Other long-term liabilities (Note 8) 50,000 50,000
Long-term debt (Note 7) 1.374.470 1.495.389
Total liabilities 2,830,981 3,005,790
Contingencies (Note 9) - -
Net assets
Unrestricted 1,066,047 1,071,105
Temporarily restricted 10,412 10,412
Permanently restricted - -
Total net assets 1.076.459 1.081.517
' Total liabilities and net assets $3 907 44 $4.087.307
' The accompanying notes are an integral part of these financial statements 7
' Deans • Archer
NORTH FORK HOUSING ALLIANCE, INC.
STATEMENTS OF ACTIVITIES
For the years ended December 31, 1999
' (With Comparative Totals for 1998)
' Temporarily Permanently Total Total
Unrestricted Restricted Restricted 1999 1998
Support and revenue:
Support:
' Department of Housing and
Community Renewal $247,623 $ $ - $ 247,623 $ 146.110
County of Suffolk(Rehabilitation) 140,330 140,330 82.158
Town of Southold Block Grant 15,200 15,200 94,627
Village of Greenport - - 50,001
Section 8 rent subsidies(HUD) 1,985,639 1,985,639 2,090,645
FMHA interest reduction subsidy 48,228 48,228 52.714
' Revenue:
Rental income 355,984 355,984 347,011
Interest income 142 142 1,125
' Washing machine income 5,545 = = 5.545 2,417
Other income 16,703 16,703 30.413
Realized gain on sale of fixed asset 40,665 40,665 13.902
2,856,059 2,856,059 2.911,123
Net assets released from
restriction (Note 2)
Total public support
' and revenue 2,856,059 - - 2,856,059 2,911,123
Expenses:
Program services:
' General Fund - _ - 6,459
Reserve Fund 151,788 151,788 92,950
Section 8 Certification Program 688,467 - - 688,467 756,140
Section 8 Voucher Program 1,075,023 - - 1,075,023 1.108.404
' Lakeside Garden Apartments 159.642 _ - 159.642 154,797
Total program services 2,074,920 2,074,920 2.118.750
Support services:
Management and general:
General Fund 246,721 246.721 362.455
Reserve Fund 381,640 381,640 332.064
DHCR Fund 65,000 = _ 65,000 65.000
Section 8 Certification Program 22,391 22,391 47.548
Section 8 Voucher Program 23,106 23,106 4,806
Lakeside Garden Apartments 33.987 33.987 29.919
' Total support services 772,846 - - 772,846 841.792
Total expenses 2,847,766 - 2,847,766 2,960,542
Change in Net Assets 8,293 - - 8,293 (49.419)
Net Assets. Beginning of Year 1,071,105 10.412 - 1,081,517 1.189.828
' Adjustment to Beginning Net Assets (10.000) - - (10,000) -
Net Assets. Beginning of
Year as. Restated 1,061,105 10,412 1,071,517 1.189.828
' Prior Period Adjustment (3.351) - (3.351) (58.892)
Net Assets. End of Year $1.066.047 $ 10.412 $ $1.076,459 $1 081.517
' The accompanying notes are an integral part of these financial statements g
' Deans • Archer
NORTH FORK HOUSING ALLIANCE, INC.
STATEMENTS OF CASH FLOWS
December 31, 1999 and 1998
Cash flow from operating activities: 1999 1998
Increase (decrease) in net assets 8,293 $(49,419)
Depreciation 140,974 136,871
Prior period adjustment (13,351) (58,892)
' Realized gain on sale of fixed assets (40,665) (13,902)
Decrease (increase) in receivables (10,502) (20,076)
Decrease (increase) in prepaid expenses 1,358 -
' Decrease (increase) in other assets 49,572 (6,636)
Increase (decrease) in due to funding source 122,400 293,307
(Decrease) increase in accounts payable and accrued expenses (41,262) 9,487
(Decrease) increase in deferred revenue (64,125) 300,907
Decrease (increase) in deposits/escrow 10,918 14,755
Increase in other liabilities4� 5.770) 33.361
' Net cash flow from operating activities 117.840 639.763
' Cash flow from investing activities:
Purchase of buildings and building improvement (62,018) (218,902)
Proceed from the sale of fixed assets 95,243 64,714
' Purchase of equipment and furniture and fixtures1S 0.149) (,7.868)
Net cash flow from investing activities 23.07616( 2.056)
' Cash flow from financing activities:
Payment on line of credit (33,715) 81,955
Long-term debt - -
' Payment of principal11( 6.832) 10( 0.398)
Net cash flow from financing activities15( 0.547) 11 8.443)
' Net increase (decrease) in cash (9,631) 459,264
Cash, beginning of year68 1.484 402.220
' Cash, end of year $ 851.853 $861.484
Supplemental disclosure of cash flow information
' Interest paid $ 159.857 $1.52.217
The accompanying notes are an integral part of these financial statements 9
' Deans • Archer
' NORTH FORK HOUSING ALLIANCE, INC.
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1999 and 1998
' NOTE 1. ORGANIZATION AND PURPOSE
North Fork Housing Alliance, Inc., ("the Organization") is a corporation formed
under the Not For Profit Corporation Law of the State of New York on October
28, 1982. The purpose of the Organization is to provide decent, affordable housing
to low income families and individuals in the Greenport area of New York State.
' NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
' (a) Method of Accounting
The financial statements of the Organization have been prepared utilizing
the accrual basis of accounting.
' (b) Basis of Presentation
Financial statements presentation follow the recommendation of the
Financial Accounting Standards Board in its Statement of Financial
Accounting Standards ("SFAS") No.116 "Accounting for Contributions
Received and Contributions Made" and No.117, "Financial Statements of
' Not-For-Profit Organizations". Under SFAS No.116 and 117, the
Organization is required to report information regarding its financial
position and activities according to three classes of net assets: unrestricted
' net assets, temporarily restricted net assets, and permanently restricted net
assets.
(c) Promises To Give
' The Organization reports contributions as restricted support if they are
received with donors' stipulations that limit the use of the donated assets.
When a donor restriction expires, that is, when the stipulated time
' restriction ends or purpose restriction is accomplished, temporarily
restricted net assets are reclassified to unrestricted net assets and reported
in the statement of activities as net assets released from restrictions.
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' Deans • Archer
NORTH FORK HOUSING ALLIANCE, INC.
' NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1999 and 1998
' NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(d) Support and Revenues
The Organization derives a major portion of its support and revenues from
' the Department of Housing and Urban Development, New York State
Division of Housing and Community Renewal, the Town of Southold, the
County of Suffolk and rental property. Support is derived from program
amounts received as reimbursements of certain expenditures as stipulated
under contract agreements. Revenue is derived from a per diem rate as
determined by the governmental agencies for the programs. Support and
revenues are recognized on the accrual basis of accounting.
(e) Property and Equipment
s� equipment,ui ment furniture fixtures and leasehold improvements are
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recorded at cost. Land contributed to the Organization has not been
recorded on the books. Selected buildings are being depreciated over the
estimated useful lives using the straight-line method.
' (f) Income Taxes
' The Organization qualified as a tax exempt organization under Section
501(c)(3) of the Internal Revenue Code and, therefore, has no provision for
Federal income taxes.
' (g) Functional Expenses
The costs of providing the various programs and other activities of the
Organization have been summarized on a functional basis in the schedule
' of functional expenses, which includes all expenses incurred for the year.
Accordingly, certain costs have been allocated among the programs and
supporting services benefitted. Such allocations are determined by
management in accordance with grant provisions and/or other equitable
bases.
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' Deans • Archer
NORTH FORK HOUSING ALLIANCE, INC.
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1999 and 1998
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
'
O Basis of h Combination
Total accounts are presented on a combined basis whereby all significant
interfund accounts and transactions have been eliminated.
' (i) Cash and Cash Equivalents
For purposes of the statements of cash flows, the Organization considers all
unrestricted highly liquid investments with an initial maturity of three
months or less to be cash equivalents. There were no cash equivalents at
' December 31, 1999.
(j) Comparative Data
The financial information for theear ended December 31 1998 resented
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for comparative purposes, is not intended to be a complete financial
statement presentation.
(k) Use of Estimates
The preparation of financial statements in conformity with generally
' accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements, and the reported amounts of revenues and
' expenses during the reporting period. Actual results could differ from
those estimates.
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Deans Archer
' NORTH FORK HOUSING ALLIANCE, INC.
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1999 and 1998
NOTE 3. RURAL RENTAL ASSISTANCE PROGRAM
' Apartments,
Through Lakeside Garden A the Organization has entered into a rural
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' rental assistance contract with the Department of Housing and Community Renewal
("DHCR") whereby qualified tenants are subsidized for rent and utility expenses.
The term of the original contract was five years through 1998 up to a maximum of
' $514,600. In 1999, this contract was amended to allow for an increase in funding
of $712,600 through January 2002. There are no funds due from DHCR as of
December 31, 1999.
NOTE 4. FUNDED RESERVES - RESTRICTED
Lakeside Garden Apartments is required to place monthly deposits into a reserve
for replacements and a tax insurance escrow account. These accounts are restricted
' and cannot be used without prior written authorization from Farmers Home
Administration("FMHA"). In addition, amount includes accruals under the Family
' Self Sufficiency Program associated with Section 8 HUD.
' NOTE 5. PROPERTY AND EQUIPMENT
As of December 31, 1999 buildings, equipment, furniture, fixture and leasehold
' improvements consisted of the following:
1999 1998
Buildings $2,501,013 $2,575,133
Buildings Improvements 1,134,194 1,072,177
' Equipment 44,973 34,844
Furniture and Fixtures 4.586 4.565
3,684,766 3,686,719
' Less: accumulated depreciation (867,265) (745.833)
$2.817.501 $2.940.886
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' Deans • Archer
NORTH FORK HOUSING ALLIANCE, INC.
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1999 and 1998
NOTE 6. DUE TO HUD
' As of December 31, 1999 and 1998 the amounts due the Department of Housing
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' and Urban Development for the Certificate Program were $404,223 and $415,611,
respectively. For the Voucher Program, the amounts due were $505,463 and
$371,674 respectively.
NOTE 7. LONG-TERM DEBT
Long-term debt is comprised of the following:
10.625% mortgage payable to FMHA due in
monthly installments beginning June 1, 1987
of$5,614 including interest through May,
' 2035 collateralized by 3 buildings at
Lakeside Gardens. Monthly payments are
' reduced by a FMHA interest reduction
subsidy of$4,243 per month. $619,585
' 10.625% mortgage payable to FMHA due in
monthly installments beginning June 1, 1987
of$372 including interest through May, 2035
collateralized by 3 buildings at Lakeside
Gardens. Monthly payments are reduced by
a FMHA interest reduction subsidy of $281
' per month. 41,090
9.5% mortgage payable to a Bank, due in
' monthly installments beginning August 1,
1993 of$786 including interest through
July, 2017 collateralized by a building
' located at 421 Front Street, Greenport,
New York. 80,579
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' Deans • Archer
NORTH FORK HOUSING ALLIANCE, INC.
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1999 and 1998
NOTE 7. LONG-TERM DEBT (Continued)
' 7.5%a mortgage payable to a Bank, due in
' monthly installments beginning January 1,
1993 of$1,191 including interest through
December, 2006 collateralized by a building
' located at 428 4th Street, Greenport,
New York. 77,849
8.25% mortgage payable to a Bank, due in
monthly installments beginning September 1,
1989 of$678 including interest through July,
2017 collateralized by a building at 413 3rd
Street, Greenport, New York. 75,655
' 8.5% mortgage payable to a Bank, due in
monthly installments beginning July 1, 1995
of$486 including interest through June, 2013
collateralized by a building located at 712
Wiggins St., Greenport, New York. 46,604
' 6.25% mortgage payable to a Bank, due in
monthly installments beginning June 1, 1995
of$1,097 including interest through May 1,
2008 collateralized by a building located at
116 South St., Greenport, New York. 89,207
' 6% mortgage payable to a Bank, due in monthly
installments beginning August 1, 1995 of$559
' including interest through July 1, 2008
collateralized by a building located at 211
Center St., Greenport, New York. 43,595
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' Deans Archer
' NORTH FORK HOUSING ALLIANCE, INC.
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1999 and 1998
' NOTE 7. LONG-TERM DEBT (Continued)
6% mortgage payable to a Bank, due in monthly
installments beginning August 1, 1995 of$854
including interest through August 1, 2008
collateralized by a building located at 211
Carpenter St., Greenport, New York. 67,136
' 9.5% mortgage payable to a Bank, due in
monthly installments beginning July 1, 1998
of$1,380 including interest through June 1, 2027
' collateralized by a building located on
632-634 Second Street, Greenport, New York. 117,117
' 9.5% mortgage payable to a Bank, due in
monthly installments beginning September
16, 1997 of$1,170 including interest
through August, 2011 collateralized by a
building located on 523 Main St., Greenport,
' New York. 98,750
9.625% mortgage payable to a Bank, due in
' monthly installments beginning September 9,
1997 of$789 including interest through
August, 2011 collateralized by a building
' located at 502 Wiggins St., Greenport,
New York. 66.209
' 1,423,376
Less: current portion4( 8.906)
' Long-term debt $1,374,470
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' Deans Archer
' NORTH FORK HOUSING ALLIANCE, INC.
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1999 and 1998
NOTE 7. LONG-TERM DEBT (Continued)
' Following are maturities of long-term debt for each of the next five ears and the
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years thereafter:
Years Ending December 31,
' 2001 $ 53,396
2002 57,823
2003 63,636
2004 69,449
2005 72,013
' Thereafter 1,058,153
$1,374.470
' NOTE 8. OTHER LONG-TERM LIABILITIES
In August 1997 the Organization assumed liability associated with property
purchased. This liability is due to the Town of Southold and County of Suffolk
' Community Development Division only in the event of a sale, transfer, or further
encumbrance of the premises.
' NOTE 9. COMMITMENTS AND CONTINGENCIES
' Reimbursable Expenses and Overhead
Reimbursement of expenses and overhead applicable to various programs
conducted for and on behalf of government and other agencies are subject to
adjustments, if any, based upon the results of audits by the agencies. Management
is of the opinion that such audits would not have a material effect on the
accompanying financial statements.
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Deans • Archer
' NORTH FORK HOUSING ALLIANCE, INC.
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1999 and 1998
NOTE 9. COMMITMENTS AND CONTINGENCIES(Continued)
' Lease Commitment
' The Organization rents office space from the Village of Greenport under a lease
that expires in 1999. Rent expense for the year ended December 31, 1999 was
' $10,650.
The aggregate rental commitment at December 31, 2000 under the noncancellable
leases for real estate is as follows:
2000 $12,000
' Note and Mortgage Agreements
' Under the terms of certain note and mortgage agreements between the Organization
and various Federal, State and Local funding sources, lien covenants are
' enforceable for specified periods.
' NOTE 10. MATCHING REQUIREMENT
Under the terms of the DHCR Rural Preservation Program Contract, the
' Organization is required to match one-third of the DHCR grant, $65,000 for the
year ended December 31, 1999, with funds to be used for neighborhood and rural
preservation activities. The Organization met this requirement for the year ended
' December 31, 1999.
' NOTE 11. CERTAIN CONCENTRATIONS AND CREDIT RISK
' The Organization receives a substantial amount of its support from Federal, State
and Local governments. A significant reduction in the level of support, if this was
to occur, may have an effect on the Organization's programs and activities.
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Deans • Archer
' NORTH FORK HOUSING ALLIANCE, INC.
NOTES TO FINANCIAL STATEMENTS
For the years ended December 31, 1999 and 1998
NOTE 12. PRIOR PERIOD ADJUSTMENT
' The $3,352 and $57,377 in 1999 and 1998 represents adjustments for tenants
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' security deposits and depreciation, respectively, associated with property owned
by the Organization that was not recognized in prior periods.
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NOTE 13. INEO F CREDIT
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North Fork Housing Alliance, Inc., has a line of credit agreement with the Bank
of Brideghampton National Bank. The Bank has agreed to make loans to the
Organization from time-to-time in an aggregate principal amount not to exceed
$135,000. The loan bears interest on the unpaid balance at a fluctuating rate of 2%
above the Bank's Prime Rate. The principal of the loan is payable in monthly
installments. The outstanding balance was $48,240 as of December 31, 1999.
' Interest rate at the close of business on December 31, 1999 was 8.50%. This
agreement will expire December 3, 2000.
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' Decors Archer
NORTH FORK HOUSING ALLIANCE, INC.
1
FOR THE YEAR ENDED DECEMBER 31, 1999
(with comparative totals for 1998)
PART II
' SUPPLEMENTARY INFORMATION
' Deans • Archer
NORTH FORK HOUSING ALLIANCE,INC.
SCHEDULE OF FUNCTIONAL EXPENSES
For the year ended December 31,1999
(With Comparative Totals for 1998)
Section 8 Section 8 Lakeside
DHCR Certificate Voucher Garden General Reserve Total Total
Fund Proeram Pro ra am Apartments Fund Fund 1999 1998
EXPENSES
Personnel services:
Salaries $47,600 $ 18,025 $ 18,750 $ 17,163 $98,675 $24,000 224,213 $257,455
Fringe benefits 7,600 - 1.621 30.177 39.398 43328
Total personnel services 55,200 18,025 18,750 18,784 128,852 24,000 263,611 301,183
Other than personnel services:
Housing assistance payments - 688,467 1,075,023 - - - 1,763,490 1,864,544
Management fee - - - -
Administrative fee 74,801 105,381 - - - 180,182 223,861
Advertising - - 211 1,064 1,200 2,475 3,207
Telephone 772 3,626 3,500 7,898 7,683
Postage - 1,208 602 1,810 5,521
Public relations and training 2,781 700 3,481 2,533
Travel - - 597 - 597 2,644
Miscellaneous administrative 180 720 - 1,690 - 2,590 2,486
Repairs and maintenance - - 10,195 626 20,460 31,281 47,128
Service contracts and equipment leases 9,584 11,083 2,531 23,198 32,760
Supplies - - - - 296
Utilities 9,423 6,693 36,616 52,732 46,735
Real estate taxes 30,294 - 47,571 77,865 69,655
Office rent - - 10,650 - 10,650 10,200
Insurance 1,500 6,475 1,760 22,931 32,666 35,768
Interest expense - - - 64,221 - 95,636 159,857 152,217
Audit 4,000 4,000 1,000 1,000 - 10,000 10,300
Legal - - - 2,846 2,600 1,550 6,996 -
Consultants 8,300 - 54,032 2,250 64,582 63,090
Permits and licenses - - - - 50
Publication and dues - 2,126 - 2,126 3,411
Office expense 16 8,997 2,940 11,953 11,553
Computer costs - 7,683 - 7,683 2,940
Placement fees - - -
Day care grant 6,000
Rehabilitation cost -
Apprenticeship program - - 459
Home LPA expense 141,788 141,788 37,950
Home project - - 55,000
S.T.Home Investment program 10,000 10,000 -
Down payment Assistance Program - - - - - - -
Depreciation 367 356 30,735 3,105 106,411 140,974 136,871
Bad debt expense - - 3,179 - 12,951 16,130 -
Bank charges 73 333 624 1,030 1,214
Miscellaneous - - 5.821 (3.786) (834) 1.201 4.785
Total other than personnel services 9,800 767,815 1,185,480 174,845 117,868 509,427 2,765,235 2,840,860
Eliminating entry7( 4,981) (106.101) - - 18� 1.082) (181,501)
Total expenses $65.000 $710.859 $1 098 29 $193.629 $246.720 $533.427 $2,847,704 2.960.543
.Sec accounlants'report on supplementary inforamlion 21
NORTH FORK HOUSING ALLIANCE, INC.
SCHEDULE OF PROGRAM SERVICES
For the year ended December 31, 1999
(With Comparative Totals for 1998)
Section 8 Section 8 Lakeside
DHCR Certificate Voucher Garden General Reserve Total Total
Fund Program am Program AAnartments Fund Fund 1999 1998
EXPENSES
Personnel services:
Salaries $ - $ $ $17,163 $ - $ - $17,163 $18,359
Fringe benefits 1.621 1.621 1.256
Total personnel services 18,784 18,784 19,615
Other than personnel services
Housing assistance payments 688,467 1,075,023 - 1,763,490 1,864,543
Management fee - - _ -
Administrative fee _ _
Advertising 211 211 211
Telephone 772 772 716
Postage _ _ _
Public relations and training
Travel _
Miscellaneous administrative _ _
Repairs and maintenance 10,195 10,195 9,512
Service contracts and equipment leases 9,584 9,584 8,593
Supplies - - 296
Utilities 9,423 9,423 8,133
Real estate taxes 30,294 30,294 29,360
Office rent _ _ _
Insurance 6,475 6,475 6,463
Interest expense 64,221 64,221 68,862
Audit 1,000 1,000 1,200
Legal 2,846 2,846 -
Consultants - _
Permits and license
Publication dues - _
Office expenses 16 16
Computer costs - _
Placement fee _
Day care grant 6,000
Rehabilitation cost _
Apprenticeship program - - 459
Home LPA expense 141,788 141,788 37,950
S.T. Home Investment program 10,000 10,000 55,000
Depreciation - _ _
Bad debt expense
Bank charges - - _ _
Miscellaneous - - 5.821 5.821 1.835
Total other than personnel services 688,467 1,075,023 140,858 151,788 2,056,136 2,099,135
Eliminating entry - - - -
Total expenses $--Z- $688.647 $1.075.023 $159.642 $ 151 78 $2,074,920 $2 118.750
.See accountants'report on supplementary information 22
NORTH FORK HOUSING ALLIANCE,INC.
SCHEDULE OF SUPPORT SERVICES
For the year ended December 31,1999
(With Comparative Totals for 1998)
Section 8 Section 8 Lakeside
DHCR Certificate Voucher Garden General Reserve Total Total
Fund Program Program Apartments Fund Fund 1999 1998
EXPENSES
Personnel services:
Salaries $47,600 $ 18,025 $18,750 $ $98,675 $24,000 $207,050 $282,356
Fringe benefits 7.600 - 30.177 37.777 42.472
Total personnel services 55,200 18,025 18,750 128,852 24,000 244,827 324,828
Other than personnel services
Housing assistance payments - - - - - - -
Management fee - - - - - -
Administrative fee 74,801 105,381 180,181 180,601
Advertising - - 1,064 1,200 2,264 2,996
Telephone 3,626 3,500 7,126 6,967
Postage 1,208 602 1,809 5,521
Public relations and training 2,781 700 3,481 2,533
Travel - - 597 - 597 2,644
Miscellaneous administrative 180 720 1,690 - 2,590 2,486
Repairs and maintenance - - 626 20,460 21,086 37,616
Service contracts and Equipment Lease 11,083 2,531 13,614 24,166
Supplies - - - -
Utilities 6,693 36,616 43,309 38,602
Real Estate taxes - 47,571 47,571 40,295
Office rent - 10,650 - 10,650 10,200
Insurance 1,500 1,760 22,931 26,191 29,305
Interest expense - - - - 95,636 95,636 83,355
Audit 4,000 4,000 1,000 - 9,000 9,100
Legal - - - 2,600 1,550 4,150 -
Consultants 8,300 54,032 2,250 64,582 63,090
Permits and licenses - - - - - 50
Publication and dues 2,126 - 2,126 3,411
Office expenses 8,997 2,940 11,937 11,553
Computer costs 7,683 - 7,683 2,940
Placement fees - - -
Day care grant
Rehabilitation cost
Apprenticeship program
Home LPA expense -
S.T. Home investment program - - - - - -
Depreciation 367 356 30,735 3,105 106,411 140,974 136,871
Bad debt expense - - 3,179 - 12,951 16,130 -
Bank charges 73 333 624 1,031 1,213
Miscellaneous - - - (3.786) (834) 4( .620) 2.951
Total other than personnel services 9,800 79,347 110,457 33,987 117,869 357,641 709,101 698,466
Eliminating entry - 74,981 106.101 - - 18LA8118( 1.501)
Total expenses $65.000 $22.392 $ 23.106 $33.987 $246.721 $381.639 $772.846841 792
.See accountants'report on supplementary information 23
' NORTH FORK HOUSING ALLIANCE, INC.
RURAL PRESERVATION PROGRAM
SCHEDULE OF DHCR REVENUES AND EXPENSES
' COMPARED TO BUDGET AND QUESTIONED COSTS
CONTRACT NUMBER: C-699059
CONTRACT PERIOD: JULY 1, 1999 TO JUNE 30, 2000
' For the year ended December 31, 1999
Latest Actual Over/
' Approved Revenues & (Under) Questioned
Budget Expenses Budget Costs
REVENUE
DHCR Grant $65.000 $32.500 $32.500 $ -
Total Revenue $65.000 $ 2 500 $32.500 $ -
EXPENSES
' Staff Salaries:
Executive Director 11,900 5,950 5,950 -
Executive Assistant/
Program Manager 11,900 5,950 5,950
Housing Counselor 11,900 5,950 5,950 -
' Administrative Assistant 11,900 5,950 5,950 -
Fringe Benefits 7,600 3,800 3,800 -
Regulated OTPS:
Insurance 1,500 750 750 -
Professional Services 8.300 4.150 4.150
Total Regulated OTPS 9.800 4.900 4.900 -
' 1 Expenses 65 000 $32,50-0 2 500 -
Tota p $ $�_ $
1 See accountant's report on supplementary information
24
Deans • Archer
' NORTH FORK HOUSING ALLIANCE, INC.
RURAL PRESERVATION PROGRAM
SCHEDULE OF DHCR REVENUES AND EXPENSES
' COMPARED TO BUDGET AND QUESTIONED COSTS
CONTRACT NUMBER: C-698059
CONTRACT PERIOD: JANUARY 1, 1999 TO JUNE 30, 1999
For the year ended December 31, 1999
i
Latest Actual Over/
Approved Revenues & (Under) Questioned
Budget Expenses Budge Costs
REVENUE
DHCR Grant $32.500 $32.500
' Total Revenue $32.500 $32.500
' EXPENSES
Staff Salaries:
Executive Director 5,950 5,950 - -
Executive Assistant/
Program Manager 5,950 5,950 - -
Housing Counselor 5,950 5,950 = _
Administrative Assistant 5,950 5,950
' Fringe Benefits 3,800 3,800 - -
Regulated OTPS:
' Insurance 750 750 - -
Professional Services 4.150 4.150 -
' Total Regulated OTPS 4,900 4.900 - -
Total Expenses $32.500 $32.500
See accountant's report on supplementary information
25
1
Deans • Archer
1 NORTH FORK HOUSING ALLIANCE, INC.
rFOR THE YEAR ENDED DECEMBER 31, 1999
' PART III
INTERNAL CONTROL STRUCTURE
AND COMPLIANCE INFORMATION
' IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
' Deans Archer
1
Deans • Archer & Co.
' CERTIFIED PUBLIC ACCOUNTANTS
265 East Merrick Road
Valley Stream, New York 11580
(516) 872-6922/FAX: (516) 872-6925
1
i
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL
' CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
"GOVERNMENT AUDITING STANDARDS"
i
' The Board of Directors
North Fork Housing Alliance, Inc.
Greenport, New York
' We have audited the financial statements of North Fork Housing Alliance, Inc., as of and for the
' year ended December 31, 1999, and have issued our report thereon dated June 28, 2000. We
conducted our audit in accordance with generally accepted auditing standards 1995 Audit Manual
for Selected Division of Housing and Community Renewal Programs, and the standards applicable
' to financial audits contained in Government Auditing Standards, issued by the Comptroller General
of the United States.
rCompliance
' As part of obtaining reasonable assurance about whether North Fork Housing Alliance, Inc's.,
financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts, and grants, noncompliance with which could
' have a direct and material effect on the determination of financial statement amounts. However,
providing an opinion on compliance with those provisions was not an objective of our audit, and
' accordingly, we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance that are required to be reported under Government Auditing Standards.
r
r
r
r
' Internal Control Over Financial Reporting
In planning and performing our audit, we considered North Fork Housing Alliance, Inc's.,
' internal control over financial reporting in order to determine our auditing procedures for the
purpose of expressing our opinion on the financial statements and not to provide assurance on the
internal control over financial reporting. However, we noted certain matters involving the internal
' control over financial reporting 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 financial reporting that, in our judgment,
could adversely affect North Fork Housing Alliance, Inc's., ability to record, process, summarize,
and report financial data consistent with the assertions of management in the financial statements.
Reportable conditions are described in the accompanying schedule of findings and recommendation
as item 99-1 and 98-1 through 98-3.
' 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 misstatements in amounts
that would be material in relation to the financial statements 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 financial reporting 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 of the reportable conditions described above, we do not consider any to
be a material weakness. We also noted other matters involving the internal control over financial
reporting, which we have reported to management of North Fork Housing Alliance, Inc., in a
separate letter dated June 28, 2000.
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.
' Valley Stream, New York
June 28, 2000
' Deans • Archer
' NORTH FORK HOUSING ALLIANCE, INC.
FINDINGS AND RECOMMENDATIONS - ON INTERNAL
CONTROL OVER FINANCIAL REPORTING
FOR THE YEAR ENDED DECEMBER 31, 1999
CURRENT YEAR FINDINGS:
' Condition 99-1
' Test of Controls - Cash Disbursements
We selected twenty-five (25) items for testing of cash disbursements and noted the following:
' (i) On one (1) occasion the disbursement package was not canceled after payment.
(ii) On one (1) occasion the expense was not properly classified in the general ledger.
Recommendation
We recommend that:
' (i) The disbursement package be canceled when paid, to avoid duplication of payment.
' (ii) The policies and procedures in place for the maintenance of the general ledger be
adhered to.
' Management Response
The procedures for disbursing a payment were adhered to except the entire package was not
' stamped paid.
' Condition 99-2
Test of Controls - Payroll
' We selected thirty (30) payroll transactions and noted that on two (2) occasions time card provided
had no evidence of Executive Director's review.
' Recommendation
' We recommend that procedures implemented for the payroll process be adhered to.
' 29
' Deans • Archer
NORTH FORK HOUSING ALLIANCE, INC.
' FINDINGS AND RECOMMENDATIONS - ON INTERNAL
CONTROL OVER FINANCIAL REPORTING
' FOR THE YEAR ENDED DECEMBER 31, 1999
Management Response
Management agrees with the recommendation.
' PRIOR YEAR FINDINGS:
' Condition 98-1
Test of Controls-Cash Receipts
' We selected twenty-five (25) items for testing of cash receipts and noted the following:
(i) On two (2) occasions, deposits recorded were not entered into the log maintained
by the staff accountant.
' (ii) On one (1) occasion, cash receipt was not deposited in a timely manner.
' Recommendation
' We recommend that:
(i) All cash receipt transactions be logged in at all times.
(ii) Cash receipts are deposited within a timely manner, as determined by management.
Follow-up
' These conditions no longer exist.
Condition 98-2
Single Audit-Tenants Eligibility
' We selected twenty-five (25) tenant's file for testing and noted the following:
(i) On four (4) occasions the exit inspection form was not included in the terminated
' (move-outs), tenant's file.
' 30
' Deans • Archer
NORTH FORK HOUSING ALLIANCE, INC.
FINDINGS AND RECOMMENDATIONS - ON INTERNAL
CONTROL OVER FINANCIAL REPORTING
FOR THE YEAR ENDED DECEMBER 31, 1999
(ii) On two (2) occasions, the inspection form for a newly leased unit was dated after
the effective lease date.
Recommendation
We recommend that management enforce the polices and procedures in place for inspection of
newly leased units and exit inspections of terminated tenants units, including the completion and
maintenance of required forms.
' Follow-un
These conditions no longer exist.
Condition 98-3
Bridgehampton Bank /NFHA bank accounts-Concentration of Risk
The Organization does a significant amount of financial transactions with Brideghampton Bank.
The FDIC regulations when considered in relation to North Fork Housing Alliance, Inc's
transaction with the Bank can have a significant effect on the Organization, if the Bank were to
experience significant financial problems.
Follow-un
This condition is substantially the same.
31
Deans Archer
' 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, 1999
' Dentis Archer
' NORTH FORK HOUSING ALLIANCE, INC.
rTABLE OF CONTENTS
' PAGE
' PART I - REPORT OF FEDERAL AWARDS
- Independent Auditors' Report on Financial Statements and
Supplementary Schedule of Expenditures' of Federal Awards . . . . . . . . . . . . . . 4-5
' - Notes to the Schedule of Expenditures of Federal Awards . . . . . . . . . . . . . . . . . . 6
- Schedule of Expenditures of Federal Awards . . . . . . . . . . . . . . . . . . . . . . . . . 7-8
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 . . . . . . . . . . . . . . . . . 10-11
- Schedule of Findings and Questioned Costs . . . . . . . . . . . . . . . . . . . . . . . . . 12-14
PART III - PRIOR AUDIT REPORT AND EXIT CONFERENCE
- Resolution of Prior Year Comments16-17
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
' - Exit Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
' Deans • Arc-her
NORTH FORK HOUSING ALLIANCE INC.
' FOR THE YEAR ENDED DECEMBER 31, 1999
' PART I
REPORT OF FEDERAL AWARDS
Deans • Archer
Deans • Archer & Co.
iCERTIFIED 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, 1999, 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, 1999, 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 Standards, we have also issued our report dated June 28,
' 2000 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.
' Valley Stream, New York
June 28, 2000
Deans Archer
' NORTH FORK HOUSING ALLIANCE, INC.
NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended December 31, 1999
' NOTE 1. BASIS OF PRESENTATION
The accompanying schedule of expenditures of federal awards includes the federal
' grant activity of North Fork Housing Alliance, Inc. and is presented on the accrual
basis of accounting. The information in this schedule is presented on the accrual basis
of accounting. The information in this schedule is presented in accordance with the
requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-
Profit Organizations. Therefore, some amounts presented in this schedule may differ
from amounts presented in or used in the preparation of, the basic financial statements.
' Deans Archer
NORTH FORK HOUSING ALLIANCE, INC.
1
FOR THE YEAR ENDED DECEMBER 31, 1999
PART II
' INTERNAL ACCOUNTING AND ADMINISTRATIVE CONTROLS
' AND COMPLIANCE INFORMATION
IN ACCORDANCE WITH OMB CIRCULAR A-133
' Deans • Archer
Deans • Archer & Co.
' 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, 1999. North Fork Housing Alliance, Inc's., 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, 1999.
' 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.
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.
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. 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 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. We noted no
matters involving the internal control over compliance and its operation that we consider to be a
reportable condition and /or material weakness.
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.
&0,4otA - A "L.A�
' Valley Stream, New York
June 28, 2000
Dents • Archer
NORTH FORK HOUSING ALLIANCE,INC.
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31,1999
1 of 2
Unexpended or Unexpended or
Federal Grantor/ Federal Pass-through Grant Period Program (Over expended) (Overexpended)
Pass-through Grantor CFDA Entity Identifying Beginning/ or Awards Receipts at Federal Federal Receipts at
Program or Cluster Title Number Number Ending Dates Amoun 12/31/98 Receipts Expenditures 12/31/99
U.S. Department of Housing
and Urban Develoyment
Housing Assistance 14.857 NY1045E 01/01/99-12/31/99 1,195,644 - 1,195,644 785,691 409,953
Housing Assistance 14.857 NY152CE 01/01/98-12/31/98 1,303,379 422,589 - 422,589 -
Housing Assistance 14.855 NY1045V 01/01/99-12/31/99 1,720,409 - 1,720,409 1,199,948 520,461
Housing Assistance 14.855 NY152VO 01/01/98-12/31/98 1.602.233 392.378 392.378
Total Department of Housing
and Urban Development 5.821.6651g 4.967 2.916.053 2.800.606 930.414
Department of Housing and Urban
Development
Passed-through the State for New
York-DHCR
Greenport Revitalization Project 14.239 C-403073 05/06/93-10/30/97 1,060,266 (2,779) - - (2,779)
Home Program C-97000233 01/01/98-12/31/03 400,000 (37,950) 176,265 138,315
Passed-through the County of Suffolk
Home Investment Partnership Program - _
Home Investment Partnership Program 14.239 08579 FY98 125,000 88,542 140,330 (51,788)
Passed-through the Town of Southold
Home Investment Partnership Program 14.218 40.000 10.413 - 10.000 413
Total Department of Housing and
Urban Development 1.625.266 (30,316) 264.807 288.6455( 4.154)
See accountants'report on supplementary information
7
NORTH FORK HOUSING ALLIANCE,INC.
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 1999
2of2
Unexpended or Unexpended or
Federal Grantor/ Federal Pass-through Grant Period Program (Over expended) (Overexpended)
Pass-through Grantor CFDA Entity Identifying Beginning/ or Awards Receipts at Federal Federal Receipts at
Program or Cluster Title Number Number Ending Dates Amount 12/31/98 Recei is Expenditures 12/31/99
U.S.Department of Agriculture
Farmer Home Administration
Rural Rental Housing Loan 10.415 06/01/87-09/01/2035 2,624,222 - 48,228 48,228 -
Passed-through the State of New
York-DHCR
Rural Housing Preservation Program 14.239 C-699059 07/01/99-06/30/00 65,000 - 65,000 32,500 32,500
Rural Housing Preservation Program 14.239 C-698059 07/01/98-06/30/99 65,000 32,500 - 32,500 -
Rural Rental Assistance Payments 10.427 C-200038C 02/01/87-01/31/02 712.600 3.363 37,187 40.550 -
Total U.S. Department of Agriculture ,3.466.822 35.863 150.415 153.778 32,500
Other Federal Assistance
Passed-through Town of Southold
CDBG Housing Counseling 14.218 1036-05-99 05/01/99-04/30/00 12,000 - 5,116 12,000 (6,884)
CDBG RLP Family Self-Sufficiency 14.218 1044-05-99 05/01/99-04/30/00 3,200 - 3,200 (3,200)
CDBG Home Improvement 14.218 1003-14A-98 05/01/98-04/30/99 - (5,252) 5,252 - -
Passed through the Village of Greenport
Village of Greenport Rehabilitation Program 50.000 1 - - � I
Total Other Financial Assistance 65.200 (5.251) 10.368 15.200 (10.083)
Total $10.978953 815 263 JLI4l 643 IL258 229 Ln8 677
See accountants'report on supplementary information $
' NORTH FORK HOUSING ALLIANCE, INC.
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 1999
A. SUMMARY OF AUDIT RESULTS
' 1. The auditors' report expresses an unqualified opinion on the financial statements of
' North Fork Housing Alliance, Inc.
2. Two reportable conditions disclosed during the audit of financial statements are
reported in the 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". These conditions are not reported
' as material weaknesses.
3. No instances of noncompliance material to the financial statements of North Fork
' Housing Alliance, Inc., were disclosed during the audit.
4. No reportable conditions were reported during the audit of the major federal award
programs of North Fork Housing Alliance, Inc., 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.
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 major 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. North Fork Housing Alliance, Inc. was determined to be a low-risk auditee.
12
Deans • Archer
NORTH FORK HOUSING ALLIANCE,INC.
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 1999
B. FINDINGS-FINANCIAL STATEMENTS AUDIT
' Condition 99-1
Test of Controls - Cash Disbursements
We selected twenty-five (25) items for testing of cash disbursements and noted the following:
' (i) On one (1) occasion the disbursement package was not canceled after payment.
(ii) On one (1) occasion the expense was not properly classified in the general ledger.
Recommendation
' We recommend that:
(i) The disbursement package be canceled when paid, to avoid duplication of payment.
(ii) The policies and procedures in place for the maintenance of the general ledger be
' adhered to.
Condition 99-2
Test of Controls - Payroll
We selected thirty (30) payroll transactions and noted that on two (2) occasions time card provided
had no evidence of Executive Director's review.
tRecommendation
We recommend that procedures implemented for the payroll process be adhered to.
' 13
Deans Archer
1
1 NORTH FORK HOUSING ALLIANCE, INC.
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 1999
1
iC. FINDINGS AND QUESTIONED COSTS- MAJOR FEDERAL
AWARD PROGRAMS AUDIT
1 Questioned
ost
1 None reported.
1
1
1
i
1
1
1
i
1
1 14
1 Deans Archer
' NORTH FORK HOUSING ALLIANCE, INC.
' FOR THE YEAR ENDED DECEMBER 31, 1999
PART III
' PRIOR AUDIT REPORT AND EXIT CONFERENCE
' Deans Archer
' NORTH FORK HOUSING ALLIANCE, INC.
SINGLE AUDIT
FOR THE YEAR ENDED DECEMBER 31, 1999
' RESOLUTION OF PRIOR YEAR COMMENTS
' Condition 98-1
' Test of Controls-Cash Receipts
' We selected twenty-five (25) items for testing of cash receipts and noted the following:
(i) On two (2) occasions, deposits recorded were not entered into the log maintained by
' the staff accountant.
(ii) On one (1) occasion, cash receipt was not deposited in a timely manner.
Recommendation
1 We recommend that:
' (i) All cash receipt transactions be logged in at all times.
' (ii) Cash receipts are deposited within a timely manner, as determined by management.
Follow-un
' These conditions no longer exist.
' Condition 98-2
Single Audit-Tenants Eligibility
We selected twenty-five (25) tenant's file for testing and noted the following:
' (i) On four (4) occasions the exit inspection form was not included in the terminated
(move-outs), tenant's file.
' (ii) On two (2) occasions, the inspection form for a newly leased unit was dated after the
effective lease date.
' 16
' Deans • Archer
NORTH FORK HOUSING ALLIANCE, INC.
SINGLE AUDIT
FOR THE YEAR ENDED DECEMBER 31, 1999
' RESOLUTION OF PRIOR YEAR COMMENTS
Recommendation
tWe recommend that management enforce the polices and procedures in place for inspection of
newly leased units and exit inspections of terminated tenants units, including the completion and
' maintenance of required forms.
Follow-up
These conditions no longer exist.
' Condition 98-3
Bridgehampton Bank /NFHA bank accounts-Concentration of Risk
' The Organization does a significant amount of financial transactions with Bride ha
mpton Bank.
' The FDIC regulations when considered in relation to North Fork Housing Alliance Inc's
transaction with the Bank can have a significant effect on the Organization, if the Bank were to
experience significant financial problems.
' Follow-un
This condition is substantially the same.
' 17
' Deans Archer
NORTH FORK HOUSING ALLIANCE, INC.
SINGLE AUDIT
FOR THE YEAR ENDED DECEMBER 31, 1999
' EXIT CONFERENCE
EXIT CONFERENCE
' The audit findings and recommendations will be discussed with Tanya Palmore, Executive
Director.
' 18
Deans Archer