FAC Explorer

Audit 319145

FY End
2023-12-31
Total Expended
$79.15M
Findings
38
Programs
3
Organization: Atlantic Housing Foundation, Inc. (TX)
Year: 2023 Accepted: 2024-09-09
Auditor: M Group LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496191 2023-001 Material Weakness - E
496192 2023-002 Material Weakness - N
496193 2023-003 Significant Deficiency - N
496194 2023-003 Significant Deficiency - N
496195 2023-003 Significant Deficiency - N
496196 2023-003 Significant Deficiency - N
496197 2023-003 Significant Deficiency - N
496198 2023-003 Significant Deficiency - N
496199 2023-003 Significant Deficiency - N
496200 2023-003 Significant Deficiency - N
496201 2023-003 Significant Deficiency - N
496202 2023-003 Significant Deficiency - N
496203 2023-005 Significant Deficiency - E
496204 2023-005 Material Weakness - E
496205 2023-004 Significant Deficiency - N
496206 2023-004 Significant Deficiency - N
496207 2023-004 Significant Deficiency - N
496208 2023-004 Significant Deficiency - N
496209 2023-004 Significant Deficiency - N
1072633 2023-001 Material Weakness - E
1072634 2023-002 Material Weakness - N
1072635 2023-003 Significant Deficiency - N
1072636 2023-003 Significant Deficiency - N
1072637 2023-003 Significant Deficiency - N
1072638 2023-003 Significant Deficiency - N
1072639 2023-003 Significant Deficiency - N
1072640 2023-003 Significant Deficiency - N
1072641 2023-003 Significant Deficiency - N
1072642 2023-003 Significant Deficiency - N
1072643 2023-003 Significant Deficiency - N
1072644 2023-003 Significant Deficiency - N
1072645 2023-005 Significant Deficiency - E
1072646 2023-005 Material Weakness - E
1072647 2023-004 Significant Deficiency - N
1072648 2023-004 Significant Deficiency - N
1072649 2023-004 Significant Deficiency - N
1072650 2023-004 Significant Deficiency - N
1072651 2023-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $11.82M Yes 0
14.239 Home Investment Partnerships Program $3.44M Yes 0
14.195 Section 8 Housing Assistance Payments Program $603,958 Yes 2

Contacts

Name Title Type
NDHUBKJDEKZ9 Wil Saqueton Auditee
4692068925 Michael Martin Auditor
No contacts on file

Notes to SEFA

Title: NOTE 3 - LOANS OUTSTANDING Accounting Policies: NOTE 1 - BASIS OF PRESENTATION: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes all federal grants, contracts, and similar agreements of Atlantic Housing Foundation, Inc. (the “Corporation”) under programs of the federal government for the year ended December 31, 2023. Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, results of operations, or cash flows of the Corporation. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Expenditures reported on the Schedule are reported 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 Audits for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: The Corporation did not elect to use the 10% de minimis indirect cost rate. The Corporation had the following federal loan balances outstanding at December 31, 2023, that were reported as direct and federal award expenditures in the Schedule: Assistance Listing Number 14.155, Program Title of HUD Guaranteed Mortgage - Section223(a)(7)(Willow Run), Outstanding Balance at December 31, 2023 of $19,846,530; Assistance Listing Number 14.155, Program Title of HUD Guaranteed Mortgage - Section223(a)(7)(Magnolia Bay), Outstanding Balance at December 31, 2023 of $20,615,491; Assistance Listing Number 14.155, Program Title of HUD Guaranteed Mortgage - Section223(a)(7)(Berryhill), Outstanding Balance at December 31, 2023 of $7,192,998; Assistance Listing Number 14.155, Program Title of HUD Guaranteed Mortgage - Section223(a)(7)(Longcreek), Outstanding Balance at December 31, 2023 of $11,586,567; Assistance Listing Number 14.239, Program Title of Home Investment Partnership Program (Magnolia Bay), Outstanding Balance at December 31, 2023 of $964,358; Assistance Listing Number 14.239, Program Title of Home Investment Partnership Program (Sunrise), Outstanding Balance at December 31, 2023 of $3,441,667.

Finding Details

Finding 2023-001
Finding #2023-001: Section 8 Housing Assistance Payments Program Assistance Listing 14.155– Waters at West Ashley, LP. Condition: The Partnership failed to maintain proper certifications prior to doing on-site transfers governed by the HAP Contract that required multiple months to unravel and resulted in a delay in payment until March 2024. Criteria: The Partnership is required to annually re-certify tenants to ensure they are meeting the HAP Contract requirements and receiving benefits according to their income. Questioned Costs: $639,206 Effect: The Partnership is in violation of the Section 8 Housing Assistance Payments Program. Repeat Finding: No Cause: The Project was undergoing a major rehabilitation and transferred tenants which had lost HUD certification. Recommendation: We recommend the Partnership review the rules that govern the HAP Contract and implement a system to ensure that all new and existing residents are meeting the Contract requirements. Management’s Views: Management is in agreement with the finding and will submit the remaining vouchers with the related certification documentation. Management will implement a process to accurately track unit transfers during a major rehabilitation and maintain the proper tenant certifications. Auditors comment: The Partnership has recertified existing residents, submitted the 2023 vouchers and received payment for the submitted vouchers as of April 3, 2024.
Finding 2023-002
Finding #2023-002: Section 8 Housing Assistance Payments Program 14.195 – Gretna Village, LP Type of Finding: Material Weakness Condition: The Partnership failed to renew their HAP Contract before it expired on April 27, 2023, resulting in the Project not receiving subsidy payments from May through December 2023. Criteria: Management should monitor contract terms to ensure the renewal process is started in sufficient time so there is no lapse in the Project receiving subsidies. Effect: The Partnership is without a valid HAP contract. Repeat Finding: No Questioned Cost: $167,975 Cause: Oversight Recommendation: Management should monitor contract terms and have procedures in place to ensure contract coverage does not lapse. Auditor’s Comment: The Partnership submitted a new HAP Contract for approval and received payment for the May through December 2023 subsidies in May 2024.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-005
Finding #2023-005: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 - Waters at James Crossing, LP., Brittany Woods/Park Chase, LLC Condition: The Projects did not recertify or obtain adequate income verification for Section 8 tenants. Criteria: The Projects are required to annually confirm eligibility and maintain documentation in the tenant file including a signed Tenant Income Certification form and income verification documents. Questioned Costs: $125,009 Effect: The Projects are in violation of regulatory requirements governing tenant files and eligibility verification, which could result in the loss of HUD subsidies. Cause: Management’s policies with respect to tenant eligibility and tenant files were not consistently followed. Repeat Finding: No Recommendation: Management should review its tenant eligibility policies and monitoring procedures to ensure compliance. Management Views: Management concurs and agrees to review and monitor policies and procedures regarding tenant eligibility and related documentation.
Finding 2023-005
Finding #2023-005: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 - Waters at James Crossing, LP., Brittany Woods/Park Chase, LLC Condition: The Projects did not recertify or obtain adequate income verification for Section 8 tenants. Criteria: The Projects are required to annually confirm eligibility and maintain documentation in the tenant file including a signed Tenant Income Certification form and income verification documents. Questioned Costs: $125,009 Effect: The Projects are in violation of regulatory requirements governing tenant files and eligibility verification, which could result in the loss of HUD subsidies. Cause: Management’s policies with respect to tenant eligibility and tenant files were not consistently followed. Repeat Finding: No Recommendation: Management should review its tenant eligibility policies and monitoring procedures to ensure compliance. Management Views: Management concurs and agrees to review and monitor policies and procedures regarding tenant eligibility and related documentation.
Finding 2023-004
Finding #2023-004: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 and Section 221(d)(4) Insured Loan Program Assistance Listing 14.155 Condition: The Corporation did not record credit card charges or reconcile the credit card payable account to the credit card statement during 2023. Criteria: Under GAAP and Uniform Guidance compliance requirements the Corporation is required to account for expenses and liabilities to ensure the financial statements are materially stated and expenses are in compliance with Uniform Guidance requirements. Questioned Costs: $216,657 Effect: The Corporation is not in compliance with Uniform Guidance. Cause: The Corporation has expense report procedures in place, however, these procedures have not been followed. Expense reports and receipts have not been provided or approved by management resulting in the understatement of expenses and liabilities. Repeat Finding: No Recommendation: Management needs to provide oversight and monthly monitoring to ensure employees follow the expense report policies and expenses are proper expenditures of the Corporation and properly recorded in the financial statements. Management’s Views: For unsubmitted expense reports, management will record the proper accrual for expenses.
Finding 2023-004
Finding #2023-004: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 and Section 221(d)(4) Insured Loan Program Assistance Listing 14.155 Condition: The Corporation did not record credit card charges or reconcile the credit card payable account to the credit card statement during 2023. Criteria: Under GAAP and Uniform Guidance compliance requirements the Corporation is required to account for expenses and liabilities to ensure the financial statements are materially stated and expenses are in compliance with Uniform Guidance requirements. Questioned Costs: $216,657 Effect: The Corporation is not in compliance with Uniform Guidance. Cause: The Corporation has expense report procedures in place, however, these procedures have not been followed. Expense reports and receipts have not been provided or approved by management resulting in the understatement of expenses and liabilities. Repeat Finding: No Recommendation: Management needs to provide oversight and monthly monitoring to ensure employees follow the expense report policies and expenses are proper expenditures of the Corporation and properly recorded in the financial statements. Management’s Views: For unsubmitted expense reports, management will record the proper accrual for expenses.
Finding 2023-004
Finding #2023-004: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 and Section 221(d)(4) Insured Loan Program Assistance Listing 14.155 Condition: The Corporation did not record credit card charges or reconcile the credit card payable account to the credit card statement during 2023. Criteria: Under GAAP and Uniform Guidance compliance requirements the Corporation is required to account for expenses and liabilities to ensure the financial statements are materially stated and expenses are in compliance with Uniform Guidance requirements. Questioned Costs: $216,657 Effect: The Corporation is not in compliance with Uniform Guidance. Cause: The Corporation has expense report procedures in place, however, these procedures have not been followed. Expense reports and receipts have not been provided or approved by management resulting in the understatement of expenses and liabilities. Repeat Finding: No Recommendation: Management needs to provide oversight and monthly monitoring to ensure employees follow the expense report policies and expenses are proper expenditures of the Corporation and properly recorded in the financial statements. Management’s Views: For unsubmitted expense reports, management will record the proper accrual for expenses.
Finding 2023-004
Finding #2023-004: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 and Section 221(d)(4) Insured Loan Program Assistance Listing 14.155 Condition: The Corporation did not record credit card charges or reconcile the credit card payable account to the credit card statement during 2023. Criteria: Under GAAP and Uniform Guidance compliance requirements the Corporation is required to account for expenses and liabilities to ensure the financial statements are materially stated and expenses are in compliance with Uniform Guidance requirements. Questioned Costs: $216,657 Effect: The Corporation is not in compliance with Uniform Guidance. Cause: The Corporation has expense report procedures in place, however, these procedures have not been followed. Expense reports and receipts have not been provided or approved by management resulting in the understatement of expenses and liabilities. Repeat Finding: No Recommendation: Management needs to provide oversight and monthly monitoring to ensure employees follow the expense report policies and expenses are proper expenditures of the Corporation and properly recorded in the financial statements. Management’s Views: For unsubmitted expense reports, management will record the proper accrual for expenses.
Finding 2023-004
Finding #2023-004: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 and Section 221(d)(4) Insured Loan Program Assistance Listing 14.155 Condition: The Corporation did not record credit card charges or reconcile the credit card payable account to the credit card statement during 2023. Criteria: Under GAAP and Uniform Guidance compliance requirements the Corporation is required to account for expenses and liabilities to ensure the financial statements are materially stated and expenses are in compliance with Uniform Guidance requirements. Questioned Costs: $216,657 Effect: The Corporation is not in compliance with Uniform Guidance. Cause: The Corporation has expense report procedures in place, however, these procedures have not been followed. Expense reports and receipts have not been provided or approved by management resulting in the understatement of expenses and liabilities. Repeat Finding: No Recommendation: Management needs to provide oversight and monthly monitoring to ensure employees follow the expense report policies and expenses are proper expenditures of the Corporation and properly recorded in the financial statements. Management’s Views: For unsubmitted expense reports, management will record the proper accrual for expenses.
Finding 2023-001
Finding #2023-001: Section 8 Housing Assistance Payments Program Assistance Listing 14.155– Waters at West Ashley, LP. Condition: The Partnership failed to maintain proper certifications prior to doing on-site transfers governed by the HAP Contract that required multiple months to unravel and resulted in a delay in payment until March 2024. Criteria: The Partnership is required to annually re-certify tenants to ensure they are meeting the HAP Contract requirements and receiving benefits according to their income. Questioned Costs: $639,206 Effect: The Partnership is in violation of the Section 8 Housing Assistance Payments Program. Repeat Finding: No Cause: The Project was undergoing a major rehabilitation and transferred tenants which had lost HUD certification. Recommendation: We recommend the Partnership review the rules that govern the HAP Contract and implement a system to ensure that all new and existing residents are meeting the Contract requirements. Management’s Views: Management is in agreement with the finding and will submit the remaining vouchers with the related certification documentation. Management will implement a process to accurately track unit transfers during a major rehabilitation and maintain the proper tenant certifications. Auditors comment: The Partnership has recertified existing residents, submitted the 2023 vouchers and received payment for the submitted vouchers as of April 3, 2024.
Finding 2023-002
Finding #2023-002: Section 8 Housing Assistance Payments Program 14.195 – Gretna Village, LP Type of Finding: Material Weakness Condition: The Partnership failed to renew their HAP Contract before it expired on April 27, 2023, resulting in the Project not receiving subsidy payments from May through December 2023. Criteria: Management should monitor contract terms to ensure the renewal process is started in sufficient time so there is no lapse in the Project receiving subsidies. Effect: The Partnership is without a valid HAP contract. Repeat Finding: No Questioned Cost: $167,975 Cause: Oversight Recommendation: Management should monitor contract terms and have procedures in place to ensure contract coverage does not lapse. Auditor’s Comment: The Partnership submitted a new HAP Contract for approval and received payment for the May through December 2023 subsidies in May 2024.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 Project Name of Afton Gardens, LLC, FHA/Contract No. of VA36L00002, Amount of $18,183; Project Name of Boulder Creek, LLC, FHA/Contract No. of SC16M000064, Amount of $42,313; Project Name of Brentwood Crossing, LLC, FHA/Contract No. of NC19M000070, Amount of $266,088; Project Name of Brittany Woods/Park Chase, LLC, FHA/Contract No. of GA06L00060, Amount of $23,154; Project Name of Cedar Moor, LLC, FHA/Contract No. of NC19L000146, Amount of $14,359; Project Name of Crescent Hills, LLC, FHA/Contract No. of SC16M000062, Amount of $33,321; Project Name of Spring Grove, LLC, FHA/Contract No. of SC16L000003 and SC160056002, Amount of $45,038; Project Name of Timber Ridge, LLC, FHA/Contract No. of NC19M000088, Amount of $26,759; Project Name of Gretna Village, LP, FHA/Contract No. of 02-1709-HF/SP and 02-1710-HCD, Amount of $5,839; Project Name of Waters at James Corssing, LP, FHA/Contract No. of VA36L000130, Amount of $9,041; Total of $484,095. Condition: The Projects paid management fees during 2022 and 2023 at an increased rate of 5% without approval from HUD. Criteria: The Projects property management fees must follow the HUD approved management agreement. Effect: The Projects overpaid property management fees in 2022 and 2023. Questioned Cost: $484,095 Cause: Oversight Repeat Finding: No Recommendation: The Projects need to submit the new management fee rate on HUD Form 9839 for approval. Auditor’s Comment: The Projects are in the process of submitting the updated Form 9839 to HUD for approval.
Finding 2023-005
Finding #2023-005: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 - Waters at James Crossing, LP., Brittany Woods/Park Chase, LLC Condition: The Projects did not recertify or obtain adequate income verification for Section 8 tenants. Criteria: The Projects are required to annually confirm eligibility and maintain documentation in the tenant file including a signed Tenant Income Certification form and income verification documents. Questioned Costs: $125,009 Effect: The Projects are in violation of regulatory requirements governing tenant files and eligibility verification, which could result in the loss of HUD subsidies. Cause: Management’s policies with respect to tenant eligibility and tenant files were not consistently followed. Repeat Finding: No Recommendation: Management should review its tenant eligibility policies and monitoring procedures to ensure compliance. Management Views: Management concurs and agrees to review and monitor policies and procedures regarding tenant eligibility and related documentation.
Finding 2023-005
Finding #2023-005: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 - Waters at James Crossing, LP., Brittany Woods/Park Chase, LLC Condition: The Projects did not recertify or obtain adequate income verification for Section 8 tenants. Criteria: The Projects are required to annually confirm eligibility and maintain documentation in the tenant file including a signed Tenant Income Certification form and income verification documents. Questioned Costs: $125,009 Effect: The Projects are in violation of regulatory requirements governing tenant files and eligibility verification, which could result in the loss of HUD subsidies. Cause: Management’s policies with respect to tenant eligibility and tenant files were not consistently followed. Repeat Finding: No Recommendation: Management should review its tenant eligibility policies and monitoring procedures to ensure compliance. Management Views: Management concurs and agrees to review and monitor policies and procedures regarding tenant eligibility and related documentation.
Finding 2023-004
Finding #2023-004: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 and Section 221(d)(4) Insured Loan Program Assistance Listing 14.155 Condition: The Corporation did not record credit card charges or reconcile the credit card payable account to the credit card statement during 2023. Criteria: Under GAAP and Uniform Guidance compliance requirements the Corporation is required to account for expenses and liabilities to ensure the financial statements are materially stated and expenses are in compliance with Uniform Guidance requirements. Questioned Costs: $216,657 Effect: The Corporation is not in compliance with Uniform Guidance. Cause: The Corporation has expense report procedures in place, however, these procedures have not been followed. Expense reports and receipts have not been provided or approved by management resulting in the understatement of expenses and liabilities. Repeat Finding: No Recommendation: Management needs to provide oversight and monthly monitoring to ensure employees follow the expense report policies and expenses are proper expenditures of the Corporation and properly recorded in the financial statements. Management’s Views: For unsubmitted expense reports, management will record the proper accrual for expenses.
Finding 2023-004
Finding #2023-004: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 and Section 221(d)(4) Insured Loan Program Assistance Listing 14.155 Condition: The Corporation did not record credit card charges or reconcile the credit card payable account to the credit card statement during 2023. Criteria: Under GAAP and Uniform Guidance compliance requirements the Corporation is required to account for expenses and liabilities to ensure the financial statements are materially stated and expenses are in compliance with Uniform Guidance requirements. Questioned Costs: $216,657 Effect: The Corporation is not in compliance with Uniform Guidance. Cause: The Corporation has expense report procedures in place, however, these procedures have not been followed. Expense reports and receipts have not been provided or approved by management resulting in the understatement of expenses and liabilities. Repeat Finding: No Recommendation: Management needs to provide oversight and monthly monitoring to ensure employees follow the expense report policies and expenses are proper expenditures of the Corporation and properly recorded in the financial statements. Management’s Views: For unsubmitted expense reports, management will record the proper accrual for expenses.
Finding 2023-004
Finding #2023-004: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 and Section 221(d)(4) Insured Loan Program Assistance Listing 14.155 Condition: The Corporation did not record credit card charges or reconcile the credit card payable account to the credit card statement during 2023. Criteria: Under GAAP and Uniform Guidance compliance requirements the Corporation is required to account for expenses and liabilities to ensure the financial statements are materially stated and expenses are in compliance with Uniform Guidance requirements. Questioned Costs: $216,657 Effect: The Corporation is not in compliance with Uniform Guidance. Cause: The Corporation has expense report procedures in place, however, these procedures have not been followed. Expense reports and receipts have not been provided or approved by management resulting in the understatement of expenses and liabilities. Repeat Finding: No Recommendation: Management needs to provide oversight and monthly monitoring to ensure employees follow the expense report policies and expenses are proper expenditures of the Corporation and properly recorded in the financial statements. Management’s Views: For unsubmitted expense reports, management will record the proper accrual for expenses.
Finding 2023-004
Finding #2023-004: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 and Section 221(d)(4) Insured Loan Program Assistance Listing 14.155 Condition: The Corporation did not record credit card charges or reconcile the credit card payable account to the credit card statement during 2023. Criteria: Under GAAP and Uniform Guidance compliance requirements the Corporation is required to account for expenses and liabilities to ensure the financial statements are materially stated and expenses are in compliance with Uniform Guidance requirements. Questioned Costs: $216,657 Effect: The Corporation is not in compliance with Uniform Guidance. Cause: The Corporation has expense report procedures in place, however, these procedures have not been followed. Expense reports and receipts have not been provided or approved by management resulting in the understatement of expenses and liabilities. Repeat Finding: No Recommendation: Management needs to provide oversight and monthly monitoring to ensure employees follow the expense report policies and expenses are proper expenditures of the Corporation and properly recorded in the financial statements. Management’s Views: For unsubmitted expense reports, management will record the proper accrual for expenses.
Finding 2023-004
Finding #2023-004: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 and Section 221(d)(4) Insured Loan Program Assistance Listing 14.155 Condition: The Corporation did not record credit card charges or reconcile the credit card payable account to the credit card statement during 2023. Criteria: Under GAAP and Uniform Guidance compliance requirements the Corporation is required to account for expenses and liabilities to ensure the financial statements are materially stated and expenses are in compliance with Uniform Guidance requirements. Questioned Costs: $216,657 Effect: The Corporation is not in compliance with Uniform Guidance. Cause: The Corporation has expense report procedures in place, however, these procedures have not been followed. Expense reports and receipts have not been provided or approved by management resulting in the understatement of expenses and liabilities. Repeat Finding: No Recommendation: Management needs to provide oversight and monthly monitoring to ensure employees follow the expense report policies and expenses are proper expenditures of the Corporation and properly recorded in the financial statements. Management’s Views: For unsubmitted expense reports, management will record the proper accrual for expenses.