L.B.S.H. Housing Corporation

Statement of Condition The Corporation’s Single Audit financial reporting package and Data Collection Form (SF-SAC) for 2022 was not filed by the required due date. Criteria The audit package and data collection form shall be submitted the earlier of thirty days after receipt of the auditor’s report, or nine months after the end of the fiscal year. Effect of Condition The Corporation did not meet the timely submission requirement and cannot be considered a low-risk auditee in the next single audit reporting period. Cause of Condition Corporation management relies on the assistance of the independent auditor for preparation of the data collection form and submission to the Federal Audit Clearinghouse. The process failed to prepare and submit the required forms prior to the reporting deadline. Recommendation We recommend that management work with their independent auditor to ensure that a proper data collection form be submitted on a timely basis for the current year. View of Responsible Officials and Planned Corrective Action Management will work with their independent auditor to ensure that a proper data collection form will be submitted on a timely basis for the 2023 audit.

Statement of Condition The Corporation’s Single Audit financial reporting package and Data Collection Form (SF-SAC) for 2021 was not filed by the required due date. Criteria The audit package and data collection form shall be submitted the earlier of thirty days after receipt of the auditor’s report, or nine months after the end of the fiscal year. Effect of Condition The Corporation did not meet the timely submission requirement and cannot be considered a low-risk auditee in the next single audit reporting period. Cause of Condition Corporation management relies on the assistance of the independent auditor for preparation of the data collection form and submission to the Federal Audit Clearinghouse. The process failed to prepare and submit the required forms prior to the reporting deadline. Recommendation We recommend that management work with their independent auditor to ensure that a proper data collection form be submitted on a timely basis for the current year. View of Responsible Officials and Planned Corrective Action Management will work with their independent auditor to ensure that a proper data collection form will be submitted on a timely basis for the 2022 audit.

The Corporation’s Single Audit financial reporting package and Data Collection Form (SF-SAC) for 2020 was not filed by the required due date. The audit package and data collection form shall be submitted the earlier of thirty days after receipt of the auditor’s report, or nine months after the end of the fiscal year. The Corporation did not meet the timely submission requirement and cannot be considered a low-risk auditee in the next single audit reporting period. Corporation management relies on the assistance of the independent auditor for preparation of the data collection form and submission to the Federal Audit Clearinghouse. The process failed to prepare and submit the required forms prior to the reporting deadline.

LBSH management does not review tenant income worksheets prepared by its consultants before being submitted to New York State Housing Trust Fund or the U.S. Department of Housing and Urban Development. Controls should be in place to provide reasonable assurance that tenants are paying the proper rent and the Corporation is receiving the proper subsidy. There are no procedures in place to catch incorrect reporting on income worksheet in a timely manner.

The Corporation's Single Audit financial reporting package and Data Collection Form (SF-SAC) for 2019 was not filed by the required due date. The audit package and data collection form shall be submitted the earlier of thirty days after receipt of the auditor's report, or nine months after the end of the fiscal year. The Corporation did not meet the timely submission requirement and cannot be considered a low-risk auditee in the next single audit reporting period.

Significant Deficiency: As discussed at Finding 2020-001, review of tenant income worksheet is not required before being submitted to New York State Housing Trust Fund or U.S. Department of Housing ad Urban Development. Incorrect income entered and submitted on income worksheet will result in an incorrect calculation of tenant portion of rent owed to the Corporation and subsidy to be received, which can result in payback of improper subsidy amount received and loss of revenue. Finance personnel not involved in income certification should review income worksheet for accuracy before being submitted.