Audit 30387

FY End

2022-06-30

Total Expended

$2.01M

Findings

2

Programs

2

Organization: Alberto E. Sanchez Project (PR)

Year: 2022 Accepted: 2023-07-11

Auditor: Jlm & CO LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
38461	2022-001	-	-	P
614903	2022-001	-	-	P

ALN	Program	Spent	Major	Findings
14.195	Section 8 Housing Assistance Payments Program	$2.01M	Yes	1
14.195	Supplemental Assistance Covid 19	$1,728	-	0

Contacts

Name	Title	Type
E81CXCMS7E65	Brenda Marquez	Auditee
7872680222	Luis A Vega	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE A -- BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal award activity of VILLAS DE MONTERREY PROJECT, HUD Project No. 056-44036-NP, 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 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project.NOTE B -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures 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 reimbursements. The Project has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001

Finding No. 2022-001 1. CONDITION ? Vacancy losses is extremely high when compared to last year vacancy losses. Vacancy losses increased in fiscal year 2022 by $92,164, from $76,077 to $168,241, representing a 7.26% of gross potential income. 2. CRITERIA ? Management Agent is not in compliance with the Affirmative Fair Housing Marketing Plan since they undersigned Voluntary Compliance Agreement with HUD, No. 02-20-5450-8, that requires the rehabilitation of thirteen (13) units identified in the agreement. 3. EFFECT ? Negative impact in cash flows to the Project. 4. CAUSE ? Units in the Voluntary Compliance Agreement are not available to be rent to new tenants. 5. QUESTIONED COST ? Loss of tenant?s revenues in the amount of $92,164. 6. RECOMMENDATION ? Management Agent should complete the unit?s rehabilitation as soon as possible.

Finding 2022-001

Finding No. 2022-001 1. CONDITION ? Vacancy losses is extremely high when compared to last year vacancy losses. Vacancy losses increased in fiscal year 2022 by $92,164, from $76,077 to $168,241, representing a 7.26% of gross potential income. 2. CRITERIA ? Management Agent is not in compliance with the Affirmative Fair Housing Marketing Plan since they undersigned Voluntary Compliance Agreement with HUD, No. 02-20-5450-8, that requires the rehabilitation of thirteen (13) units identified in the agreement. 3. EFFECT ? Negative impact in cash flows to the Project. 4. CAUSE ? Units in the Voluntary Compliance Agreement are not available to be rent to new tenants. 5. QUESTIONED COST ? Loss of tenant?s revenues in the amount of $92,164. 6. RECOMMENDATION ? Management Agent should complete the unit?s rehabilitation as soon as possible.