Loading...
HomeMy WebLinkAbout1994 North Fork Housing Alliance wr NORTH FORK HOUSING ALLIANCE, INC. FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 1994 (With Comparative Totals for 1993) NORTH FORK HOUSING ALLIANCE, INC. TABLE OF CONTENTS PAGE Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Balance Sheet - December 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . 2 Statement of Support, Revenue and Expenses, and changes in Fund Balances for the Year Ended December 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Supplemental Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Program Balance Sheet - December 31, 1994 . . . . . . . . . . . . . . . . . 14 Program Statement of Support, Revenue, and Expenses and Changes in Fund Balances - December 31, 1994 . . . . . . . . . . 15 Schedule of Functional Expenses - For the year Ended December 31, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Schedule of Program Services for the Year Ended December 31, 1994 . . . . . . . . . . . . . . . . . . . . . 17 Schedule of Supporting Services for the Year Ended December 31, 1994 . . . . . . . . . . . . . . . . . . . 18 Schedule of DHCR Revenues and Expenditures Compared to Budget and Questioned Cost for the Year Ended December 31, 1994 (Rural Preservation Program) . . . . . . . . . . . . . . . . . . . . . . . 19 Independent Auditors' Report on Internal Control . . . . . . . . . . . . . . 20 Independent Auditors' Report on Compliance . . . . . . . . . . . . . . . . . 22 Exit Conference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Deans •Archer& Co. 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 Board of Directors North Fork Housing Alliance, Inc. Greenport, New York We have audited the accompanying balance sheet of North Fork Housing Alliance, Inc. as of December 31, 1994, and the related statements of support, revenue and expenses and changes in fund balances and cash flows for the year then ended. These financial statements are the responsibility of the Corporation'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, the auditing standards prescribed by the DHCR Audit Guide for Recipients of DHCR Funds, dated June 1988, and Government Audit 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, 1994 and the results of its operations and the changes in its financial position for the year then ended, on the basis of accounting described in Note 2. Our audit was made for the purpose of forming an opinion on the financial statements taken as a whole. The supplement schedules listed in the table of contents are presented for purposes 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 audit 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. Ntvw • Valley Stream, New York April 14, 1995 FINANCIAL STATEMENTS Deans •Archer&Co. NORTH FORK HOUSING ALLIANCE, INC. Balance Sheet December 31, 1994 (With Comparative Totals for 1993) Current Funds Total Total Eliminating All Funds All Funds Restricted Unrestricted Entries 1994 1993 ASSETS Current Assets: Cash $121,036 $46,943 $ - $167,979 $530,123 Accounts receivable 5,386 13,894 19,280 15,373 Interfund receivable 309,113 257,589 (566,702) 10 1,800 - 1,810 106 Prepaid expenses Total Current Assets 435,545 320,226 (566,702) 189,069 545,602 Fund reserves - restricted (Note 4) 54,732 3,903 - 58,635 9,159 Tenants' security deposits 6,442 10,953 - 17,395 5,484 I - 103,390 (103,390) - Interfund investments Buildings, equipment and leasehold _ 2,081,041 2,070,585 improvements (Note 2 and 5) 789,952 1,291,089 - Deposits - 1,005 1,005 7,860 Total Assets $1,286,671 $1,730,566 ($670,092) $2,347,145 $2,638,690 LIABILITIES AND FUND BALANCES Current Liabilities: Accounts payable and accrued expenses $22,377 $38,881 $ _ $61,258 $37,231 Deferred revenue 16,250 24,000 40,250 Due to Funding Source (Note 6) 208,909 - - 208,909 526,022 Long-term debt,current portion (Note 7) 1,013 151,522 _ 152,535 159,454 Other liabilities 34,407 47,871 82,278 35,000 Interfund payables 95,564 471,138 566,702 - Total Current Liabilities 378,520 733,412 (566,702) 545,230 757,707 Security deposits 6,505 1,144 _ 7,649 10,057 Long-term debt(Note 7) 665,988 908,592 1,574,580 1,597,388 Total Liabilities 1,051,013 1,643,148 (566,702) 2,127,459 2,365,152 Contingencies (Note 8) - Fund Balances 235,658 87,418 103,390 219,686 273,538 Total Liabilities and Fund Balances $1,286,671 $1,730,566 ($670,092) $2,347,145 $2,638,690 The accompanying notes are an integral part of these financial statements. 2 Deans •Archer& Co. NORTH FORK HOUSING ALLIANCE, INC. Statement of Support, Revenue and Expenses and Changes in Fund Balances For the Year Ended December 31, 1994 (With Comparative Totals for 1993) Current Funds Total Total Eliminating All Funds All Funds Restricted Unrestricted Entries 1994 1993 Support and Revenue: Support: DHCR $128,119 $28,834 $ - $156,953 $65,000 State of New York - 1,215 - 1,215 - County of Suffolk(Rehabilitation) - 174,277 - 174,277 30,350 Town of Southold Block Grant - 86,347 - 86,347 120,110 Section 8 rent subsidies(HUD) 2,171,166 11,250 - 2,182,416 1,903,744 FMHA interest reduction subsidy 54,294 - - 54,294 54,039 Revenue: Rental income 38,685 195,069 - 233,754 260,148 Interest income 426 253 - 679 787 Washing machine income - 6,362 - 6,362 5,540 Other income (5) 16,581 - 16,576 28,165 Total Public Support and Revenue 2,392,685 520,188 - 2,912,873 2,467,883 Expenses: Program Services General Fund - 26,316 - 26,316 9,627 Reserve Fund - 179,741 - 179,741 97,068 Section 8 Certificate Program 775,363 - - 775,363 819,658 Section 8 Voucher Program 1,177,636 - - 1,177,636 1,058,743 Lakeside Garden Apartments 157,819 - - 157,819 156,017 Affordable Housing Program - - - - - Total Program Services 2,110,818 206,057 - 2,316,875 2,141,113 Support Services: Management and General General Fund - 209,874 - 209,874 116,845 Reserve Fund - 157,172 - 157,172 140,883 DHCR Fund 65,035 - - 65,035 65,000 Section 8 Certificate Program 100,464 - - 100,464 11,061 Section 8 Voucher Program 117,805 - - 117,805 11,577 Total Support Services 283,304 367,046 - 650,350 345,366 Total Expenses 2,394,122 573,103 - 2,967,225 2,486,479 (Deficiency) or Excess of Public Support and Revenues Over Expenses (1,437) (52,915) - (54,352) (18,596) Capital Outlay (Note 9) - - - - (99,100) Prior period adjustment 500 500 - Fund Balances, Beginning of Year 236,595 140,333 103,390) 273,538 391,234 Fund Balances, End of Year $235,658 $87,418 ($103,390) $219,686 $273,538 The accompanying notes are an integral part of these financial statements. 3 Deans •Archer& Co. NORTH FORK HOUSING ALI DANCE, INC. Statement of Cash Flows For the Years Ended December 31, 1994 and 1993 Cash flow from operating activities: 1994 1993 (Deficiency) of public support and revenues over expenses ($54,352) ($18,596) Prior period adjustment 500 — Capital outlay — (99,100) Increase in accounts receivable (3,907) (3,325) (Increase)decrease in prepaid expenses (1,704) 10,584 (Decrease)increase in due to HUD (317,113) 213,626 Increase in deferred revenue 40,250 — Increase in accounts payable and accrued expenses 24,027 735 (Increase)in deposits/escrow (56,940) (4,381) Increase in other payable 47,278 3,206 Net cash flow from operating activities (321,961) 102,749 Cash flow from investing activities: Purchase of buildings and leasehold improvement (10,456) (735,992) Net cash flow from investing activities (10,456) (735,992) Cash flow from financing activities: Long—term debt — 796,454 Payment of Principal (29,727) (7,711) Net cash from financing activities (29,727) 788,743 Net increase in cash and cash equivalents (362,144) 155,500 Cash and cash equivalents at beginning of year 530,123 374,623 Cash and cash equivalents at end of year $167,979 $530,123 The accompanying notes are an integral part of these financial statements. Deans •Archer& Co. 4 NORTH FORK HOUSING ALLIANCE, INC. NOTES TO FINANCIAL STATEMENTS December 31, 1994 NOTE 1: ORGANIZATION AND OTHER MATTERS North Fork Housing Alliance, Inc. 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 Corporation 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 To ensure observances of certain constraints and restrictions placed on the use of resources available to the Corporation, the accounts are maintained in accordance with the principles of fund accounting. Accordingly, resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with the nature and purpose of such funds. In accordance with this system, the Corporation has established six basic types of funds encompassing the following: A. General Fund - To account for all revenues and expenditures not required to be accounted for in another fund and to facilitate administrative expenses. B. DHCR Fund - To account for grants received from the New York State Division of Housing and Community Renewal (DHCR) under the Rural Preservation Program Contract and a Rural Homeownership Assistance Program. These funds are only to be used for administrative payroll and related payroll expenses and other administrative expenses directly related to the DHCR Program. C. Reserve Fund - To account for various grants received for the purpose of purchasing and improving or constructing residential units to be sold or rented to low income families and individuals. D. Section 8 Funds (Certificate Program and Voucher Program) - To account for grants received from the U.S. Department of Housing and Urban Development (HUD) used for the purpose of providing housing assistance payments to landlords on behalf of qualified tenants. Deans•Archer&Co. 5 NORTH FORK HOUSING ALLIANCE, INC. NOTES TO FINANCIAL STATEMENTS December 31, 1994 NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) E. Lakeside Garden Apartments - To account for revenues and expenses relating to a 16 unit rental project constructed and owned by the Corporation under the auspices of the Farmer's Home Administration (FMHA). F. Affordable Housing Program - To account for grants received from the New York State Affordable Housing Corp. in connection with construction and sale of homes to qualified low income families. Buildings. Equipment. and Leasehold Improvements Buildings, equipment, and leasehold improvements are recorded at cost. Land contributed to the Corporation has not been recorded on the books. No depreciation has been provided on property and equipment. Income Taxes The Corporation is a Not-for-Profit entity not subject for federal, state, or local income taxes. Functional Expenses The costs of providing the various programs and other activities of the Corporation have been summarized on a functional basis in the statement of support, revenue, expenses and changes in fund balances, 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. Basis of Combination Total accounts are presented on a combined basis whereby all significant interfund accounts and transactions have been eliminated. Deans •Archer&Co. 6 NORTH FORK HOUSING ALLIANCE, INC. NOTES TO FINANCIAL STATEMENTS December 31, 1994 NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Comparative Data The financial information for the year ended December 31, 1993, presented for comparative purposes, is not intended to be a complete financial statement presentation. Reclassification In order to conform to 1994 financial statement presentation, 1993 balances were reclassified. NOTE 3. RURAL RENTAL ASSISTANCE PAYMENTS Through Lakeside Garden Apartments, the Corporation has entered into a rural rental assistance contract with the DHCR whereby qualified tenants are subsidized for rent and utility expenses. The term of the contract is five years through 1997 up to a maximum of $514,600. There are no funds due from DHCR as of December 31, 1994. 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 FMHA. NOTE 5. BUILDING, EQUIPMENT, AND LEASEHOLD IMPROVEMENTS As of December 31, 1994, buildings, equipment, and leasehold improvements consisted of the following: Buildings $ 1,988,351 Equipment 16,572 Office Improvements 60,892 Leasehold Improvements 15.226 $ 2,081,041 Deans•Archer&Co. 7 NORTH FORK HOUSING ALLIANCE, INC. NOTES TO FINANCIAL STATEMENTS December 31, 1994 NOTE 6. DUE TO HUD As of December 31, 1994, the amount due the U. S. Department of Housing and Urban Development for the Certificate and Voucher Programs were $182,893 and $26,016, respectively. NOTE 7: LONGTERM 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 an FMHA interest reduction subsidy of$4,243 per month $ 625,519 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 an FMHA interest reduction subsidy of $281 per month 41,483 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. 87,636 Deans •Archer& Co. 8 NORTH FORK HOUSING ALLIANCE, INC. NOTES TO FINANCIAL STATEMENTS December 31, 1994 NOTE 7. LONG-TERM DEBT (Continued): 7.5% 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. 111,688 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. 83,195 8.5% mortgage payable to a Bank, due in monthly installments beginning July 1, 1994 of$486 including interest through June 2013 collateralized by a building located at 712 Wiggins St. Greenport, New York. 54,214 6% mortgage payable to a Bank, due in monthly installments beginning April 1, 1994 of$675 including interest through April 2008 collateralized by a building located at 162 Bridgehampton Tpke. Bridge- hampton, New York. 73,925 Deans•Archer&Co. 9 NORTH FORK HOUSING ALLIANCE, INC. NOTES TO FINANCIAL STATEMENTS December 31, 1994 NOTE 7. LONGTERM DEBT (Continued): 6.25% mortgage payable to a Bank, due in monthly installments beginning June 1, 1994 of $1,097 including interest through May 1, 2008 collateralized by a building located at 116 South St, Greenport, New York. 119,313 6% mortgage payable to a Bank, due in monthly installments beginning August 1, 1994 of $559 including interest through July 1, 2008 collateralized by a building located at 211 Center St, Greenport, New York. 57,863 8.75% mortgage payable to a Bank, due in monthly installments beginning August 1, 1994 of$496 including interest through September 1, 2023 collateralized by a building located at 426 First St, Greenport, New York. 62,428 6% mortgage payable to a Bank, due in monthly installments beginning August 1, 1994 of$854 including interest through August 1, 2008 collateralized by a building located at 211 Carpenter St. Greenport, New York 88,759 8.75% mortgage payable to a Bank, due in monthly installments beginning August 1, 1994 of$1,027 including interest through September 2023 collateralized by a building located at 620 Second St. Greenport, New York 129,315 Deans •Archer& Co. 10 NORTH FORK HOUSING ALLIANCE, INC. NOTES TO FINANCIAL STATEMENTS December 31, 1994 NOTE 7. LONGTERM DEBT (Continued): 6% note payable to a bank, due June 1, 1995 collateralized by a building locate at 618 Second St, Greenport, New York. 121,583 6% mortgage payable to a Bank, due in monthly installments beginning January 1, 1994 of$517 including interest through December, 2013 collateralized by a building located on Walnut St. Greenport, New York 70.194 1,727,115 Less current portion 152.535 Long-term debt 1,574,580 Following are maturities of long-term debt for each of the next five years and the years thereafter: Years Ending December 31, 1996 $33,179 1997 35,574 1998 38,149 1999 41,020 2000 44,313 thereafter 1.382,345 11,574,580 Deans•Archer&Co. 11 NORTH FORK HOUSING ALLIANCE, INC. NOTES TO FINANCIAL STATEMENTS December 31, 1994 NOTE 8. COMNffrMENTS AND CONTINGENCIES 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. NOTE 9. LEASE CONMUTMENTS The Corporation rents land from an unrelated landlord under a lease that expires in September, 1993. The land and related leasehold improvements are used by the Corporation for apartment rentals to qualified low income families. The lease provides that all real estate taxes are paid by the Corporation. Under the terms of the lease, all leasehold improvements revert back to the landlord upon the expiration of the lease. The lease expired in 1993 and the leasehold improvements made to the property in the amount of$99,100 reverted back to the landlord. The Corporation rents office space from the Village of Greenport under a lease that expires in 1999. Rent expense for the year ended December 31, 1994 was $10,200. The aggregate rental commitment at December 31, 1994 under the non- cancelable leases for real estate is as follows: 1995 10,200 1996 10,200 1997 10,200 1998 10,200 1999 10,200 Deans •Archer& Co. 12 NORTH FORK HOUSING ALLIANCE, INC. NOTES TO FINANCIAL STATEMENTS December 31, 1994 NOTE 10. MATCHING REQUIREMENT Under the terms of the DHCR Rural Preservation Program Contract, the Corporation is required to match one-third of the DHCR grant ($65,000 for the year ended December 31, 1994) with funds to be used for neighborhood and rural preservation activities. The Corporation met this requirement for the year ended December 31, 1994. Deans•Archer& Co. 13 SUPPLEMENTAL INFORMATION Deans•Archer&Co. NORTH FORK HOUSING ALLIANCE, INC. Program Balance Sheet December 31,1994 Restricted Funds Unrestricted Funds Section 8 Section 8 Lakeside Affordable DHCR Certificate Voucher Garden Housing General Reserve Eliminating Fund Program Program Apartments Program Total Fund Fund Total Entries Total ASSETS Current Assets: Cash $ - $100,816 $18,983 $1,236 $ - $121,035 $20,544 $26,400 $46,944 $ - $167,979 Accounts receivable - 1,044 3,468 874 - 5,386 11,267 2,627 13,894 - 19,280 Interfund receivables 29,112 154,732 125,269 - - 309,113 224,855 32,734 257,589 (566,702) - Prepald expenses - - - 10 - 10 1,800 - 1,800 - 1,810 Total Current Assets 29,112 256,592 147,720 2,120 - 435,544 258,466 61,761 320,227 (566,702) 189,069 Fund reserves-restricted(Note 4) - - 33,661 21,071 - 54,732 - 3,904 3,904 - 58,636 Tenants'security deposits - - - 6,442 - 6,442 - 10,953 10,953 - 17,395 Interfund Investments - - - - - - - 103,390 103,390 (103,390) - Buildings,equipmentand leasehold O Improvements(Note 2 and 5) - 3,688 - 786,264 - 789,952 10,427 1,280,662 1,291,089 - 2,081,041 n Deposits - - - - - - 1,006 - 1,006 - 1,006 y Total Assets 29112260,280 181 381 815 897 $ 1 286 670 269,898 X1,460,669 1730 567 670092 ¢2,347,145 n_ o Po LIABILITIES AND FUND BALANCES n 0 Current Liabilities: Accounts payable and accrued expenses $ - $8,658 $9,268 $4,447 $ - $22,373 $18,755 $2Q131 $38,886 $ - $61,259 Deferred revenue 16,250 - - - - 16,250 - 24,000 24,000 - 40,250 Due to Funding Source - 182,893 26,016 - - 208,909 - - - - 208,909 Long-term debt,current portion(Note 7) - - - 1,013 - 1,013 - 151,522 151,522 - 152,535 Other liabilities - 13,767 20,640 - - 34,407 68 47,803 47,871 - 82,278 Interfund payables 782 22,347 64,404 2,036 5,995 95,564 388,556 82,583 471.139 566,702 - Total Current Liabilitles 17,032 227,665 120,328 7,496 5,995 378,516 407,379 326,039 733,418 (566,702) 545,231 Security deposits - - - 6,505 - 6,505 1,096 48 1,144 - 7,649 Long-term debt(Note 7) - - - 665,988 - 665,988 - 908,592 908,592 - 1,574,580 Tote]Liabilities 17,032 227,665 120,328 679,989 5,995 1,051,009 408,475 1,234,679 1,643,154 (566,702) 2,127,459 Contingencies(Note 8) - - - - - - - - - - - Fund Balances 12,080 32,615 61,053 135,908 (5,995) 235,662 138,5 225,990 87,413 103,3 219,685 Total LtabWas and Fund Balances 29112 260L280 181 381 15 897 1 286,670 269.898 1 4y�60,669 .�1`_730,567 670,092 �2,347�145 See Accountants'report on supplementary Information. 14 NORTH FORK HOUSING AWANCE, INC. Program Statement of Support,Revenue and Expenses and Changes in Fund Balances December 31,1994 Restricted Funds Unrestricted Funds . Section 8 Section 8 Lakeside Affordable DHCR Certificate Voucher Garden Housing General Reserve Eliminating Fund Program Program Apartments Program Total Fund Fund Total Entries Total Support: DHCR $65,000 $ - $ - $63,119 $ - $128,119 $ - $28,834 $28,834 $ - $156.953 State of New York - - - - - - - 1,215 1,215 - 1,215 Town of Southold Block Grant - - - - - - 85,915 432 86,347 - 86,347 Section 8 rent subsidies(HUD) - 875,827 1,295,339 - - 2,171,166 11,250 - 11,250 - 2,182,416 FMHA Interest reduction subsidy - - - 54,294 - 54,294 - - - - 54,294 County of Suffolk(Rehabllitatlon) - - - - - - - 174,277 174,277 - 174,277 Revenue: Rental Income - - - 38,685 - 38,685 11,400 183,669 195,069 - 233,754 Interest Income 35 - 106 289 - 429 32 218 250 - 679 Washing machine Income - - - - - - 6,362 - 6,362 . - 6,362 Interfind Income - - - - - - - - - a Other Income - - (5) - - (5) 16,305 275 16,581 - 16,576 Total Public Support and Revenue 65,035 875,827 1,295,440 156,387 - 2,392,689 131,265 388,920 520,184 - 2,912,873 n Expenses: Personal cost 62,450 89,323 105,662 8,246 - 265,681 126,358 - 126,358 - 392,039 Other than personal lost 2,585 786,504 1,189,778 149,574 - 2,128,441 109,832 336,913 446,745 - 2,575,186 o - Total Expenses 65,035 875,827 1,295,440 157,820 - 2,394,122 236,190 336,913 573,103 - 2,967,225 Excess of Public Support and Revenues Over Expenses - - - (1,433) - (1,433) (104,925) 52,006 (52,919) - (54,352) Fund Balances,Beginning of Year 12,081 32,615 61,053 136,841 (5,995) 236,595 (33,651) 173,984 140,333 (103,390) 273,538 Prior Period Adjustment - - - 500 - 500 - - - - 500 Fund Balances,End of Year $12,081 532,615 $61,053 $135,908 ($5,995) $235,662 {$138,577) 5225,990 587,414 (5103,390) 5219,685 See Accountants'report on supplementary information. 15 NORTH FORK HOUSING ALLIANCE, INC. Schedule of Functional Expenses December 31,1994 Restricted Funds Unrestricted Funds ' Section 8 Section 8 Lakeside Affordable DHCR Certificate Voucher Garden Housing General Reserve Eliminating Fund Program Program Apartments Program Total Fund Fund Total Entries Total EXPENSES Personal Services: Salaries $53,311 $74,156 $89,218 $8,246 $ - $224,931 $94,674 $ - $94, 74 $ - $319,605 Fringe benefits 9,139 15,167 16,444 - - 40,750 31,684 - 31,684 - $72,434 Total Personal Services 62,450 89,323 105,662 8,246 - 265,681 126,358 - 126,358 - 392,039 Other than Personal Services: Housing assistance payments - 775,363 1,177,636 - - 1,952,999 - - - - 1,952,999 Management fee - - - 10,397 - 10,397 - 850 850 - 11,247 Advertising - - - 221 - 221 34 174 206 - 430 Telephone - - 202 1,618 - 1,820 5,324 - 5,324 - 7,144 b Office expense - - - 2,083 - 2,083 4,352 200 4,552 - 6,635 a Public relations and training - - - 2,988 - 2,988 6,013 - 6,013 - 9,001 Travel - - - - - - 3,080 - 3,080 - 3,080 ti Miscellaneous administrative - - - - - - 14,820 -_ 14,820 - 14,820 Repairs and maintenance - - - 13,020 - 13,020 3,435 18,054 21,489 - 34,509 Service contracts and Re equipment leases - 3,979 3,063 6,265 - 13,307 6,848 1,547 8,395 - 21,702 o Supplies - 1,592 285 243 - 2,120 4,414 442 4,856 - 6,976 Utilities - - 52 11,744 - 11,796 3,710 24,050 27,760 - 39,556 Real estate taxes - - - 22,460 - 22,460 - 22,098 22,098 - 44,558 Office rent - - - - - - 10,200 - 10,200 - 10,200 Insurance 1,850 - - 1,831 - 3,681 7,650 3,753 11,403 - 15,084 Interest expense - - - 70,914 - 70,914 - 78,774 78,774 - 149,688 Accounting - - - 790 - 790 4,560 4,500 9,060 - 9,850 Audit 700 4,000 6,629 1,500 - 12,829 - - - - 12,829 Legal - - - 1,921 - 1,921 - 1,729 1,729 - 3,650 Consultants - 1,157 1,178 600 - 2,935 8,179 250 8,429 - 11,364 Cast grant - - - - - - 11,800 - 11,800 - 11,800 Day care grant - - - - - - 10,800 - 10,800 - 10,800 Rehabilitation cost - - - - - - 3,716 179,741 183,457 - 183,457 Miscellaneous 35 413 733 978 - 2,159 897 751 ;,S48 - 3,807 2,585 786,504 1,189,778 149,574 - 2,128,441 109,832 336,913 446,745 - 2,575,186 $65,035 $875,827 $1,295,440 157820 $2,394,122 238190 5336,913 573103 52,967,225 See Accontants'report on supplementary Information. 16 NORTH FORK HOUSING ALLIANCE, INC. Schedule of Program Services December 31, 1994 Restricted Funds Unrestricted Funds Section 8 Section 8 Lakeside Affordable DHCR Certificate Voucher Garden Housing General Reserve Eliminating Fund Program Program Apartments Program Total Fund Fund Total Entries Total EXPENSES Personal Services: Salaries $ - $ - $ - $8,246 $ - $8,246 $ - 5 - $ - $ - $8,246 Fringe benefits - - - - - - - - - - - Total Personal Services - - - 8,246 - 8,246 - - - - 8,246 Other than Personal Services: Housing assistance payments - 775,363 1,177,636 - - 1,952,999 - - - - 1,952,999 Management fee - - - 10,397 - 10,397 - - - - 10,397 Advertising - - - 221 - 221 - - - - 221 Telephone - - - 1,618 - 1,618 - - - - 1,618 Office expense - - - 2,083 - 2,083 - - - - 2,083 C7 Public relations and training - - - 2,988 - 2,988 - - - - 2,988 Q Travel - - - - - - - - - - - Miscellaneous administrative - - - - - - - - - - Repairs and maintenance - - - 13,020 - 13,020 - - - - 13,020 Service contracts and equipment leases - - - 6,265 - 6,265 - - - - 6,265 Supplies - - - 243 - 243 - - - - 243 Ro Utilities - - - 11,744 - 11,744 - - - - 11,744 n Real estate taxes - - - 22,460 - 22,460 - - - - 22,460 ° Office rent - - - - - - - - - - - Insurance - - - 1,831 - 1,831 - - - - 1,831 Interest expense - - - 70,914 - 70,914 - - - - 70,914 Accounting - - - 790 - 790 - - - - 790 Audit - - - 1,500 - 1,500 - - - - 1,500 Legal - - - 1,921 - 1,921 - - - - 1,921 Consultant - - - 600 - 600 - - - - 600 Cast grant - - - - - - 11,800 - 11,800 - 11,800 Day care grant - - - - - - 10,800 - 10,800 - 10,800 Senior home care grant - - - - - - 3,716 - 3,716 - 3,716 Rehabilitation cost - - - - - - - 179,741 179,741 - 179,741 Miscellaneous - - - 978 - 978 - - - - 978 775,363 1,177,636 149,573 - 2,102,572 26,316 179,741 206,057 - 2,308,629 5775,363 1 177 636 _5157§_l 9 $ - $2,110,818 26 3L16 $179,741 _$206,057 5 - $2,316,875 See Accountants'report on supplementary Information. 17 NORTH FORK HOUSING ALLIANCE, INC. Schedule of Supporting Services December 31,1994 Restricted Funds Unrestricted Funds Section 8 Section 8 Lakeside Affordable DHCR Certificate Voucher Garden Housing General Reserve Eliminating Fund Program Program Apartments Program Total Fund Fund Total Entries Total EXPENSES Personal Services: Salaries $53,311 $74,156 $89,218 $ - $ - $216,685 $94,674 $ - $94,674 $ - $311,359 Fringe benefits 9,139 15,167 16,444 - - 40,750 31,684 - 31,684 - 72,434 Total Personal Services 62,450 89,323 105,662 - - 257,435 126,358 - 126,358 - 383,793 Other than Personal Services: Housing assistance payments - - - - - - - - - - - Management fee - - - - - - - 850 850 - 850 Advertising - - - - - - 34 174 208 - 208 Telephone - - 202 - - 202 5,324 - 5,324 - 5,526 Office expense - - - - - - 4,352 200 4,552 - 4,552 a Public relations and training - - - - - 6,013 - 6,013 - 6,013 Travel - - - - - - 3,080 - 3,080 - 3,080 Miscellaneous administrative - - - - - - 14,820 - 14,820 - 14,820 Repalre and maintenance - - - - - - 3,435 18,054 21,489 - 21,489 a Service contracts and equipment leases - 3,979 3,063 - - 7,042 6,848 1,547 8,395 - 15,437 i Supplies - 1,592 285 - - 1,877 4,414 442 4,856 - 6,733 kb Utilities - - 52 - - 52 3,710 24,050 27,760 - 27,812 o Real estate taxes - - - - - - - 22,098 22,098 - 22,098 Office rent - - - - - - 10,200 - 10,200 - 10,200 Insurance 1,850 - - - - 1,850 7,650 3,753 11,403 - 13,253 Interest expense - - - - - - - 78,774 78,774 - 78,774 Accounting - - - - - - 4,560 4,500 9,060 - 9,060 Audit 700 4,000 6,629 - - 11,329 - - - - 11,329 Legal - - - - - - - 1,729 1,729 - 1,729 Consultants - 1,157 1,178 - - 2,335 8,179 250 8,429 - 10,764 Cast grant - - - - - - - - - - - Day care grant - - - - - - - - - - - Rehabilitation cost - - - - - - - - - - - Miscellaneous 35 413 734 - - 1,182 897 751 1,648 - 2,830 2,585 11,141 12,143 - - 25,869 83,516 157,172 240,688 - 266,557 65 035 $100,464 $117,805 $ - $ - _$283 31 04 209 8, 74 $157, 650 172 $367,046 $ - $ ,350 See Accontants'report on supplementary Information. 18 NORTH FORK HOUSING ALLIANCE, INC. Rural Preservation Program Schedule of DHCR Revenues and Expenses Compared to Budget and Questioned Costs For the Year Ended December 31, 1994 C-603059 Contact Period: January 1, 1994 to December 31, 1994 Actual Latest Over/ Revenues & Approved Under Questioned Expenses Budget Budget Costs Revenue: DHCR Grant $65,000 $65,000 $ — $ — Total Revenue $65,000 $65,000 $ — $ — Expenses: Staff Salaries: Executive Director 25,336 25,336 — — Executive Assistant/ Program Manager 12,075 12,075 — — Housing Counselor 8,400 8,400 — — Administrative Assistant 7,500 7,500 — — Fringe Benefits 9,139 9,139 — — Regulated OTPS: Insurance 1,850 1,850 — — Professional Services: Audit for FYE 12/31/93 700 700 — — Total Regulated OTPS 2,550 2,550 — — Total Expenses $65,000 $65,000 $ See Accountants' report on supplementary information Deans •Archer& Co. 19 INTERNAL CONTROL STRUCTURE AND COMPLIANCE SECTION Deans •Archer& Co. . 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 Internal Control Board of Directors of 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, 1994, and have issued our report thereon dated April 14, 1995. We conducted our audit in accordance with generally accepted auditing standards, the DHCR Audit Guide for Recipients of DHCR Funds, dated June, 1988 and 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. In planning and performing our audit of the financial statements of North Fork Housing Alliance, Inc. for the year ended December 31, 1994, we considered its internal control structure 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 structure. The management of the North Fork Housing Alliance, Inc., is responsible for establishing and maintaining. an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Management and Funding Source Reports Revenues, Receivable and Receipts Building, Equipment and Improvements Accounts Payable and Accrued Liabilities Budgeting Payroll Expenditures Cash Disbursement Federal Financial Reporting General Ledger Tenant Eligibility Financial Statements Disclosure For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A Material weakness is a condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities 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. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. This report is intended for the information of North Fork Housing Alliance Inc.'s board of directors, management, and DHCR. However, this report is a matter of public record and its distribution is not limited. A'j, + Valley Stream, New York April 14, 1995 Deans•Archer&Co. 21 Deans • Archer & Co. CERTIFIED PUBLIC ACCOUNTANTS 265 East Merrick Road Valley Stream, New York 11580 (516) 872-6922/FAX: (516) 872-6925 Independent Auditors' Reuort on Compliance Board of Directors of 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, 1994, and have issued our report thereon dated April 14, 1995. We conducted our audit in accordance with generally accepted auditing standards, DHCR Audit Guide, dated June 1988 and 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. Compliance with laws, regulations, contracts, and grants applicable to North Fork Housing Alliance, Inc., is the responsibility of North Fork Housing Alliance, Inc.'s management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of North Fork Housing Alliance, Inc.'s compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests indicate that, with respect to the items tested, North Fork Housing Alliance, Inc. complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that North Fork Housing Alliance, Inc had not complied, in all material respects, with those provisions. This report is intended for the information of the North Fork Housing Alliance, Inc. board of directors, management, and DHCR. However, this report is a matter of public record and its distribution is not limited. LAX4,�f Valley Stream, New York April 14, 1995 NORTH FORK HOUSING ALLIANCE, INC. Exit Conference Grantee:North Fork Housing Alliance, Inc. Address:110 South Street Greenport, New York Period Audited:Year Ended December 31, 1994 Location: North Fork Housing Alliance, Inc.--Office Date: April 21, 1995 In Attendance: North Fork Housing Alliance, Inc. Bessie Swann - Executive Director Kelvin D. Redmond - Chief Financial Officer Deans-Archer, & Co. Micheal O. Archer - Partner Michelle Wilson - Manager Deans•Archer&Co. 23 Y NORTH FORK HOUSING ALLIANCE, INC. SINGLE AUDIT REPORTS UNDER OMB CIRCULAR A-128 FOR THE YEAR ENDED December 31, 1994 Deans -Archer& Co. NORTH FORK HOUSING ALLIANCE, INC. TABLE OF CONTENTS Page Independent Auditors' Report on Supplementary Information 1 Schedule of Federal Financial Assistance Schedule of Federal Financial Assistance for the Year Ended 2 December 31, 1994 Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs 3-5 Report on Compliance with the General Requirements 6-7 Opinion on Compliance with Specific Requirements Applicable to Major Federal Financial Assistance Programs 8-9 Report on Compliance with Requirements Applicable to Nonmajor Federal Financial Asssistance Program Transactions 10 Deans •Archer& Co. !r, . Deans • Archer & Co. CERTIFIED PUBLIC ACCOUNTANTS 265 East Merrick Road Valley Stream. New York 11580 (516) 872-6922/FAX: (516) 872-6925 Indevendent Auditor's Rogrt on Supplementary Information Schedule of Federal Financial Assistance 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, 1994, and have issued our report thereon dated April 14, 1995. 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 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. Our audit was made for the purpose of forming an opinion on the financial statements of North Fork Housing Alliance, Inc., taken as a whole. The accompanying schedule of Federal Financial Assistance is presented for purposes of additional analysis and is not a required part of the basic financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly presented in all material respects in relation to the financial statements taken as a whole. Valley Stream, New York April 14, 1995 i 1l nlilll I nlrlIlr u)�:nP,l,i IIAM:1 Irlr: SraII_Ulr I.UI'II_UI:IIN III1At 1C IN. AS';I';I A I I F f UII lit[--YFAII FNI)CO ULCI MUI=11 31, 1(814 Unexpondod or Unoxpondod or Fodrxal Gmntor/ Federal Pass-Through Gra nt Period Program (Overexpanded) (Ovcrexp"idod) Pass-Through Gronlor/ CFDA Gantor's Beginning/ or Award Rocolpls of Receipts at Progro m Title Number Numbor Ending Dates Amount December 31,1993 Receipts Disbursements December 31,1994 MAJOR PROGRAMS Dorn riment of Housing and Urban Development Housing Assishnce 14.857 NY104SE $ - $1,437 $ - $ - $1,437 Housing Assisb nce 14.857 NY104SE 07/01/91-06/30/92 657,284 (25,667) - - (25,667) 110using Assistr nco 14.857 NY1045E 07/01/92-06/30/93 611,734 3,544 - - 3,544 I lousing Assish nco 14.857 NY 1045E 07/01/93-12/31/04 1,4(x),722_ 276,397_ _1110_0113 8_63,801- _203.570 2 6(f),140 255,711 810083 8113,801 1112,1193 b 1-lousing Assishnce 14.855 NY1045V 07/01/91-06/30/92 856,714 = IiousingAssisbnce 14.655 NY1045V 07/01/92-06/30193 916087 ti Housing Asslsbnce 14.655 NY1045V 07/01/92-12/31/94 901,185 270,272 1,051,070_ 1,295,326_ 26,016 �^ 2,673,986 270,272 1,051,070 1,295,326 26,016 TOTAL DEPAPTNIENT OF A� HOUSING AND URBAN DEVELOPMENT 5,343,726 525,983 1,862,053 2,179,127 208,909 l r) t' NONMAJOR PROGRAMS N .y U.S.Department of Agricullure nFormer lio7-Administrallon Rural Rmitol Housing Loans 10.415 - - 54,204 54,204_ Doporlrnenlot Housing and Urban Development Passed through the County of Suffolk Horne Investment In Allorcbblo Housing 14.239 #08579 FY92 135,000 - 174,277 174,277 - OTHER FEDERAL ASSISTANCE Passed through Town of Southold Housing Counseling 14.169 #1036-O5J-19 06/01/93-05/31/94 22,200 - 12,685 12.685 - Housing Counseling 14.169 #1036-05J-20 06101/94-05/31/95 22,200 - 7,537 7,537 - Community Development Block Grant 14.227 #1036-05-19 05/01/93-04/30/94 21,000 - 8,350 8,350 - CommunlyDevelopmentBlockGrant 14.227 #1038-05-20 06/01/94-05/31/95 22,200 - 14,500 14,500 - CommunlyDeveloprnentBlockGranl 14.227 #1003-13A-19 05/01/93-04/30/94 95,000 - 5,167 5,107 - Community Development Block Grant 14.227 #1003-14A-20 OSr'O1/93-04/30/94 90000 - 14756 14756 - Communiy Development Block Grant 14.227 #1044-05J-19 05/01/03-04/30/04 10,000 2,50/ 3,819 6,319 - CommuniyDevelopmentBiockGranl 14.227 #1044-05J-20 04101/94-05/31/95 10,000 - 6,302 8,302 - Child Caro 93.574 #1039-OSL-18 04101/94-05/31/95 10,800 - 10,800 10,800 - TOTAL OTHER FINANCIAL ASSISTANCE 303,400 2,500 85,915 88,415 - TOTAL 15762 126 $528 4_83 12 176,539 $2,496,113 __ _ $208,909 See Accountants'report on supplementary Information 2 Deans Archer & Co. CERTIFIED PUBLIC ACCOUNTANTS 265 East Merrick Road Vallee Stream. New York 11580 (516) 872-6922/FAX: (516) 872-6925 Report on the Internal Control Structure Used in Administering Federal Financial Assistance Programs 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, 1994 and have issued our report thereon, dated April 14, 1995. We have also audited the compliance of North Fork Housing Alliance, Inc. with requirements applicable to major federal assistance programs and have issued our report thereon dated April 14, 1995. We conducted our audits in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements and about whether North Fork Housing Alliance, Inc. complied with laws and regulations, noncompliance with which would be material to a major federal assistance program. In planning and performing our audits for the year then December 31, 1994, we considered the internal control structure of North Fork Housing Alliance, Inc. in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and on the compliance with requirements applicable to major programs, and to report on the internal control structure in accordance with OMB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the financial statements in a separate report dated April 14, 1995. The management of North Fork Housing Alliance, Inc. is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that federal assistance programs are managed in compliance with 3 applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering federal financial assistance programs into the following categories: General Requirements • Political activity • Davis-Bacon Act • Civil Rights • Cash management • Relocation assistance and real property management • Federal financial reports • Allowable costs/cost principles • Drug-free workplace • Administrative requirements Specific Requirements • Types of services • Eligibility • Matching, level of effort, or earmarking • Reporting • Cost allocation • Special requirements, if any • Monitoring subrecipients Claims for advances and reimbursements Amounts claimed or used for matching For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant po'A*cies and procedures and determined whether they have teen place in operation, and we assessed control risk. During the year ended December 31, 1994 North Fork Housing Alliance, Inc. expended 95 percent of its total federal financial assistance under major federal financial assistance programs. 4 Deans •Archer& Co. __ We performed tests of controls, as required by OMB Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with specific requirements, general requirements, and requirements governing claims for advances and reimbursements and amounts claimed or used for matching that are applicable to each of the major financial assistance programs of North Fork Housing Alliance, Inc's which are identified in the accompanying Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. Our consideration of the internal control structure policies and procedures used in administering federal financial assistance would not necessarily disclose all matters in the internal control structure that might constitute material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the internal control structure elements dose not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a federal financial assistance program 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 structure and its operations that we consider to be material weaknesses as defined above. This report is intended for the information of North Fork Housing Alliance, Inc.'s board of directors, 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 AJV,,'L- + Valley Stream, New York April 14, 1995 Deans •Archer& Co. 5 Deans • Archer & Co. CERTIFIED PUBLIC ACCOUNTANTS 265 East Merrick Road Valley Stream, New York 11580 (516) 872-6922/FAX: (516) 872-6925 Report on Compliance With the General Requirements 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, 1994, and have issued our report thereon, dated April 14, 1995. We have applied procedures to test North Fork Housing Alliance, Inc.'s compliance with the following requirements applicable to its federal financial assistance programs, which are identified in the accompanying Schedule of Federal Financial Assistance, for the year ended December 31, 1994. • Political activity • Davis-Bacon Act • Civil Rights • Cash management • Relocation assistance and real property management • Federal financial reports • Allowable costs/cost principles • Drug-free workplace • Administrative requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's Compliance Supplement for Single Audits of State and Local Governments. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on North Fork Housing Alliance, Inc.'s compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. With respect to the items tj sted, the results of those procedures disclosed no materia'. ins:ances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that North Fork Housing Alliance, Inc. has not complied, in all material respects, with those requirements. 6 This report is intended for the information of the North Fork Housing Alliance Inc.'s board of directors, 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,�� 4 Co. Valley Stream, New York April 14, 1995 Deans •Archer& Co. 7 Deans • Archer & Co. CERTIFIED PUBLIC ACCOUNTANTS 265 East Merrick Road Valley Stream, New York 11580 (516) 872-6922/FAX: (516) 872-6925 Qpinion on Comvliance With Specific Requirements AWlicable to Major Federal Financial Assistance Programs 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, 1994, and have issued our report thereon, dated April 14, 1995. We have also audited North Fork Housing Alliance, Inc.'s compliance with the requirements governing types of services allowed or unallowed; eligibility; reporting and special tests and provisions, claims for advances and reimbursements and cost allocation that are applicable to each of its major financial assistance programs, which is identified in the accompanying schedule of federal assistance, for the year ended December 31, 1994. The management of North Fork Housing Alliance, Inc. is responsible for the North Fork Housing Alliance, Inc.'s compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. We conducted our audit of compliance with those requirements in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and (OMB) Circular A-128, Audits of State and Local Governments. Those standards and OMB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about North Fork Housing Alliance, Inc.'s compliance with those requirements. We believe that our audit provides a reasonable basis for our opinion. In our opinion, North Fork Housing Alliance, Inc., complied, in all material respects, with the requirements governing types of services allowed or unallowed; eligibility; reporting and special tests and provisions, claims for advances and reimbursements and cost allocation that are applicable to its major federal financial assistance programs for the year ended December 31, 1994. 8 ` This report is -,w nded for the information of North Fork Housing Alliance, IInc.'sHoard of directors, manag ,.gent, and the Department of Housing and Urban Develop this report is a r atter of public record and its distribution is not limited. /� Valley Stream, N.--w York April 14, 1995 Deans•Archer& Co. 9 Deans • Ai pier & Co. CERTIFIED PUBLIC ACCOUNTANTS 265 East Merrick Road Valley Stream, New York 11580 (516) 872-6922/FAX: (516) 872-6925 },snort on Compliance With Requirements Applicable to Nor_•na.jor Federal Financial Assistance Program Transactions The Board of Direct irs North Fork Housing Alliance, Inc. Greenport, New Yore We have audited the financial statements of North Fork Housing Alliance, Inc., as of and for the year ended December 31, 1994, and have issued our report thereon, dated April 14, 1995. In connection with ou- audit of the financial statements of North Fork Housing Alliance, Inc. and with our consideration of North Fork Housing Alliance, Inc.'s internal control structure used to administer federal financial assistance programs, as required by Office of Management and Budget Circular A-128, Audits of State and Local Governments. we selected certain transactions applicable to certain nonmajor federal financial assistance programs for the year ended December 31, 1994. As required by OMB Circular A-128, ,Fe have performed auditing procedures to test compliance with the requirements governing Eyp--. of services allowed or unallowed, eligibility, matching, level of effort or earmarking, reporting, cost allocation, special requirements and monetary subrecipients that are applicable to those transactions. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on North Fork Housing Alliance, Inc.'s compliance with these requirements. Accordingly, we do not express such an opinion. With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that North Fork Housing Alliance, Inc. had not complied, in all material respects, with those requirements. This report is intended for the information of the North Fork Housing Alliance, Inc.'s board of directors, management, and the Department of Housing and Urban Development. However this report is a matter of public record and its distribution is not limited. Andra, + Valley Stream, New York April 14, 1995 10