FAC Explorer

Audit 304335

FY End
2023-12-31
Total Expended
$7.75M
Findings
2
Programs
1
Organization: Haverstock Hills Apartments Tx24m000183 (TX)
Year: 2023 Accepted: 2024-04-24
Auditor: Tidwell Group LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
394329 2023-001 Significant Deficiency - E
970771 2023-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments Program $7.75M Yes 1

Contacts

Name Title Type
SPFNM2HRJS75 Joshua W. Allen Auditee
4098338947 Scott Reeves Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - 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 OMB Circular A-122, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Haverstock Hills Apartments, HUD Project No. TX24M000183, 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 Haverstock Hills Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Haverstock Hills Apartments.

Finding Details

Finding 2023-001
Finding No. 2023-1 Statement of Condition During the procedures applied to a sample of 25 tenant lease files, we noted 5 instances of noncompliance with HUD regulations regarding the maintenance of lease files. Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Cause The project failed to follow the policies and procedures which have been established for proper tenant file maintenance in accordance with HUD guidelines. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Auditor Noncompliance Code R – Section 8 program administration View of Responsible Officials Management agrees with the finding. Management will establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD.
Finding 2023-001
Finding No. 2023-1 Statement of Condition During the procedures applied to a sample of 25 tenant lease files, we noted 5 instances of noncompliance with HUD regulations regarding the maintenance of lease files. Criteria Management is responsible for determining tenant eligibility and maintaining lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Cause The project failed to follow the policies and procedures which have been established for proper tenant file maintenance in accordance with HUD guidelines. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Auditor Noncompliance Code R – Section 8 program administration View of Responsible Officials Management agrees with the finding. Management will establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD.