FAC Explorer

Audit 17431

FY End
2022-08-31
Total Expended
$2.01M
Findings
4
Programs
1
Organization: Acres Home Garden, Inc. (TX)
Year: 2022 Accepted: 2023-01-11
Auditor: Pittsford Samuels PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12994 2022-001 - - N
12995 2022-002 - - N
589436 2022-001 - - N
589437 2022-002 - - N

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $37,590 Yes 0

Contacts

Name Title Type
DWQFYMEUSNR3 Linda Holder Auditee
7135269470 Nancy MacK Auditor
No contacts on file

Notes to SEFA

Title: Section 811 Capital Advance Accounting Policies: BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards includes the federal grant activity of Acres Homes Gardens Apartments, HUD Project No. 114HD031, and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Acres Homes Gardens Apartments, it is not intended to and does not present the financial position, changes in net assets or cash flows of Acres Homes Gardens Apartments. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SECTION 911 CAPITAL ADVANCE - The Project received a loan under HUD's Sec 811 Capital Advance Program in 2009. The loan balance at the beginning of the year is included in the schedule of expenditures of federal awards. The Project has received no additional funds during the year. The loan balance, amounting to $1,977,300, is included in net assets with donor restrictions in the statement of financial position.

Finding Details

Finding 2022-001
Findings reference number: 2022-001 Title and AL Number of Federal Program: Supportive Housing for Persons with Disabilities (AL 14.181) Type of finding: Compliance Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: No Criteria: Withdrawals from the residual receipt account should be approved by HUD. Condition: A withdrawal was made from the residual receipt account without HUD's approval. The funds were transferred to the operating account to pay for operating expenses. Cause: The Project did not have enough funds to pay its vendors. Effect: The Project may not have sufficient funds in the future to pay for major repairs and replacements. Noncompliance code: C, Unauthorized withdrawals from Residual Receipts account Questioned costs: N/A. Reporting views of officials: Management agrees with the finding. Contract Number: 114HD031 Context: The Project has practically no liquidity. Recommendation: The Project should bring this matter to the attention of the Center and request an injection of funds in fiscal 2023 to replace the funds withdrawn. Auditors' summary of auditee's comments: They are in agreement. Completion date: 8/31/2023 Response: Management has consulted the Center on this matter.
Finding 2022-002
Findings reference number: 2022-002 Title and AL Number of Federal Program: Supportive Housing for Persons with Disabilities (AL 14.181). Type of finding: Compliance Resolution Status: Completed Population size: N/A Sample size: N/A Repeat finding: No Criteria: The Project should be maintained in decent, safe and sanitary conditions. Condition: HUD inspected the Project in July 2022 and found serious deficiencies relating to the Project's condition. Cause: The Project has not had sufficient working capital to maintain the property properly. Effect: The Center was in default of its agreement with HUD. Noncompliance code: I. Failure to maintain property Questioned costs: N/A. Reporting views of officials: Management agrees with the finding. During August 2022, the Center hired and paid contractors to correct the deficiencies listed in the HUD report. Contract number: 114HD031 Context: The Center and management should determine future cash needs which would enable the Project to make the necessary repairs in a timely basis. Auditors' summary of auditee's comments: They are in agreement. Response: Management indicated that all the repairs have been completed to HUD's satisfaction as of September 2, 2022. Recommendation: Management should provide the Center with information of any future repairs that would require the Center's assistance as soon as possible. Auditors' summary of auditee's comments: They are in agreement. Completion date: September 2, 2022
Finding 2022-001
Findings reference number: 2022-001 Title and AL Number of Federal Program: Supportive Housing for Persons with Disabilities (AL 14.181) Type of finding: Compliance Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: No Criteria: Withdrawals from the residual receipt account should be approved by HUD. Condition: A withdrawal was made from the residual receipt account without HUD's approval. The funds were transferred to the operating account to pay for operating expenses. Cause: The Project did not have enough funds to pay its vendors. Effect: The Project may not have sufficient funds in the future to pay for major repairs and replacements. Noncompliance code: C, Unauthorized withdrawals from Residual Receipts account Questioned costs: N/A. Reporting views of officials: Management agrees with the finding. Contract Number: 114HD031 Context: The Project has practically no liquidity. Recommendation: The Project should bring this matter to the attention of the Center and request an injection of funds in fiscal 2023 to replace the funds withdrawn. Auditors' summary of auditee's comments: They are in agreement. Completion date: 8/31/2023 Response: Management has consulted the Center on this matter.
Finding 2022-002
Findings reference number: 2022-002 Title and AL Number of Federal Program: Supportive Housing for Persons with Disabilities (AL 14.181). Type of finding: Compliance Resolution Status: Completed Population size: N/A Sample size: N/A Repeat finding: No Criteria: The Project should be maintained in decent, safe and sanitary conditions. Condition: HUD inspected the Project in July 2022 and found serious deficiencies relating to the Project's condition. Cause: The Project has not had sufficient working capital to maintain the property properly. Effect: The Center was in default of its agreement with HUD. Noncompliance code: I. Failure to maintain property Questioned costs: N/A. Reporting views of officials: Management agrees with the finding. During August 2022, the Center hired and paid contractors to correct the deficiencies listed in the HUD report. Contract number: 114HD031 Context: The Center and management should determine future cash needs which would enable the Project to make the necessary repairs in a timely basis. Auditors' summary of auditee's comments: They are in agreement. Response: Management indicated that all the repairs have been completed to HUD's satisfaction as of September 2, 2022. Recommendation: Management should provide the Center with information of any future repairs that would require the Center's assistance as soon as possible. Auditors' summary of auditee's comments: They are in agreement. Completion date: September 2, 2022