FAC Explorer

Audit 18808

FY End
2022-09-30
Total Expended
$2.15M
Findings
2
Programs
1
Organization: Casa Bienvivir (TX)
Year: 2022 Accepted: 2022-12-19
Auditor: Strickler & Prieto LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20290 2022-001 - - N
596732 2022-001 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.15M Yes 1

Contacts

Name Title Type
JQ59NTQ39NU5 Luis Ortiz Auditee
9155623444 Phillip Strickler Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on 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 reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Casa Bienvivir (a Nonprofit Corporation), HUD Project No. 133-EE008 under programs of the federal government for the year ended September 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 Casa Bienvivir, it is not intended to and does not present the financial position, changes in nets assets, or cash flows of Casa Bienvivir.
Title: CAPITAL ADVANCE PROGRAMS Accounting Policies: Expenditures reported on 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 reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. HUD makes "capital advances" to owners for the construction, acquisition, or rehabilitation of housing for persons age 62 or older (under Section 202 of the Housing Act of 1959 as amended) or disabled persons (under Section 811 of the National Affordable Housing Act). Capital advances bear no interest and need not be repaid so long as the housing remains available to elderly or disabled persons for at least 40 years. Only not-for-profit projects are eligible for assistance under capital advance programs. Capital advance projects are typically supplemented with rental assistance. Capital advances for the year ended September 30, 1998 $1,765,884 Capital advances for the year ended September 30, 1999 200,516 Total Capital Advances for project $1,966,400

Finding Details

Finding 2022-001
Finding 2022-001 Instance of Noncompliance in Internal Controls over Compliance for Special Tests and Provisions Related to the Residual Receipts Account. Federal Agency: U.S. Department of Housing and Urban Development Program Title: Supportive Housing for the Elderly (Section 202) CFDA Number: 14.157 Award Number: 133-EE008 Award Period: September 30, 1999 through September 30, 2039 Criteria Per CFR 891.600 (e) Any project funds in the project funds account (including earned interest) following the expiration of the fiscal year shall be deposited in a Federally-insured residual receipts account within 60 days following the end of the fiscal year. Condition/Context for Evaluation As part of our audit procedures we noted the deposit for residual receipts of $19,697 at September 30, 2021 was not deposited within 60 days following the fiscal year end. The required deposit was subsequently made. Questioned Costs Not applicable Effect or Potential Effect Casa Bienvivir is out of compliance with the special tests and provisions residual receipts requirements and did not make its required deposit timely. Repeat Finding Not applicable, as no similar finding was noted in the prior year audit of Casa Bienvivir. Cause Proper internal controls were not established to ensure payment is made annually within 60 days following the end of the fiscal year. Recommendation We recommend that Casa Bienvivir establish additional controls to ensure payments are made in accordance with the U.S. Department of Housing and Urban Development requirements. View of Responsible Officials of the Auditee Funding of the residual receipts reserve account will be made in a timely manner.
Finding 2022-001
Finding 2022-001 Instance of Noncompliance in Internal Controls over Compliance for Special Tests and Provisions Related to the Residual Receipts Account. Federal Agency: U.S. Department of Housing and Urban Development Program Title: Supportive Housing for the Elderly (Section 202) CFDA Number: 14.157 Award Number: 133-EE008 Award Period: September 30, 1999 through September 30, 2039 Criteria Per CFR 891.600 (e) Any project funds in the project funds account (including earned interest) following the expiration of the fiscal year shall be deposited in a Federally-insured residual receipts account within 60 days following the end of the fiscal year. Condition/Context for Evaluation As part of our audit procedures we noted the deposit for residual receipts of $19,697 at September 30, 2021 was not deposited within 60 days following the fiscal year end. The required deposit was subsequently made. Questioned Costs Not applicable Effect or Potential Effect Casa Bienvivir is out of compliance with the special tests and provisions residual receipts requirements and did not make its required deposit timely. Repeat Finding Not applicable, as no similar finding was noted in the prior year audit of Casa Bienvivir. Cause Proper internal controls were not established to ensure payment is made annually within 60 days following the end of the fiscal year. Recommendation We recommend that Casa Bienvivir establish additional controls to ensure payments are made in accordance with the U.S. Department of Housing and Urban Development requirements. View of Responsible Officials of the Auditee Funding of the residual receipts reserve account will be made in a timely manner.