FAC Explorer

Audit 33347

FY End
2022-12-31
Total Expended
$5.78M
Findings
4
Programs
1
Organization: Fulton Gardens II Corporation (TX)
Year: 2022 Accepted: 2023-04-18
Auditor: Pittsford Samuels PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33735 2022-001 - - N
33736 2022-002 - Yes N
610177 2022-001 - - N
610178 2022-002 - Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $147,416 Yes 1

Contacts

Name Title Type
QBB8HLQ1FJC7 Travis Gordon Auditee
7138648099 Nancy MacK Auditor
No contacts on file

Notes to SEFA

Title: HUD CAPITAL ADVANCE Accounting Policies: BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards includes the federal grant activity of Fulton Gardens II, HUD Project No. 114-EE150. 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. Because the Schedule presents only a selected portion of the operations of Fulton Gardens II, it is not intended to and does not present the financial position, changes in net assets or cash flows of Fulton Gardens II. 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. The Project has received a capital advance under section 202 of the National Housing Act. The capital advance balance at the beginning of the period is included in the federal expenditures presented in the schedule. The Project received no additional funds during the year. The capital advance is included with 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 the Elderly - Section 202 Capital Advance (AL 14.157) Type of finding: Federal Award (Compliance) Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: No Criteria: Funds should not be withdrawn from the reserve for replacement without HUD's authorization. Condition: Review of the reserve for replacement account showed that $6,000 was withdrawn without HUD's approval. Cause: The Project had a shortfall of operational cash and used some funds from the reserve for replacement account to pay for operating expenses. Effect: The Project will have to redeposit such funds to the reserve for replacement or obtain authorization for the withdrawal. Noncompliance code: A. Unauthorized withdrawal Questioned costs: N/A. Reporting views of officials: Auditee agrees with the finding. Contract Number: 114-EE150 Context: The funds were withdrawn because of a shortfall of operating cash. Recommendation: Management should transfer enough funds to the reserve for replacement account to cover the withdrawal. Auditee's comments: Auditee agrees with the finding and will replenish the money to the reserve for replacement account as soon as possible. Auditors' summary of auditee's comments: They are in agreement. Completion date: 12/31/2023 Response: Management will transfer money from the operations to reserve for replacement account to cover the withdrawal, as soon as the funds become available.
Finding 2022-002
Findings reference number: 2022-002 Title and AL Number of Federal Program: Project Rental Assistance Contract, AL 14.157 Type of finding: Federal Award (Compliance) Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: Yes Criteria: The tenant security deposits bank account should have enough cash to cover the tenant security deposit liability. Condition: Review of the security deposit account showed that the balance as of December 31, 2022 was insufficient to cover the tenant security deposit liability. Cause: The Project had a shortfall of operational cash and used some funds from the security deposit account. Effect: The Project may not be able to refund the security deposit for tenants moving out. Noncompliance code: M. Security deposits. Questioned costs: N/A. Reporting views of officials: Auditee agrees with the finding. Contract Number: 114-EE150 Context: The funds were withdrawn because of a shortfall of operating cash and need for necessary repairs to the property. Recommendation: Management must transfer enough funds to the security deposit account to cover the tenant security deposit liability. Completion date: 12/31/23 Auditee's Response: Auditee agrees with the finding and will replenish the money to the security deposit account as soon as possible.
Finding 2022-001
Findings reference number: 2022-001 Title and AL Number of Federal Program: Supportive Housing for the Elderly - Section 202 Capital Advance (AL 14.157) Type of finding: Federal Award (Compliance) Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: No Criteria: Funds should not be withdrawn from the reserve for replacement without HUD's authorization. Condition: Review of the reserve for replacement account showed that $6,000 was withdrawn without HUD's approval. Cause: The Project had a shortfall of operational cash and used some funds from the reserve for replacement account to pay for operating expenses. Effect: The Project will have to redeposit such funds to the reserve for replacement or obtain authorization for the withdrawal. Noncompliance code: A. Unauthorized withdrawal Questioned costs: N/A. Reporting views of officials: Auditee agrees with the finding. Contract Number: 114-EE150 Context: The funds were withdrawn because of a shortfall of operating cash. Recommendation: Management should transfer enough funds to the reserve for replacement account to cover the withdrawal. Auditee's comments: Auditee agrees with the finding and will replenish the money to the reserve for replacement account as soon as possible. Auditors' summary of auditee's comments: They are in agreement. Completion date: 12/31/2023 Response: Management will transfer money from the operations to reserve for replacement account to cover the withdrawal, as soon as the funds become available.
Finding 2022-002
Findings reference number: 2022-002 Title and AL Number of Federal Program: Project Rental Assistance Contract, AL 14.157 Type of finding: Federal Award (Compliance) Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: Yes Criteria: The tenant security deposits bank account should have enough cash to cover the tenant security deposit liability. Condition: Review of the security deposit account showed that the balance as of December 31, 2022 was insufficient to cover the tenant security deposit liability. Cause: The Project had a shortfall of operational cash and used some funds from the security deposit account. Effect: The Project may not be able to refund the security deposit for tenants moving out. Noncompliance code: M. Security deposits. Questioned costs: N/A. Reporting views of officials: Auditee agrees with the finding. Contract Number: 114-EE150 Context: The funds were withdrawn because of a shortfall of operating cash and need for necessary repairs to the property. Recommendation: Management must transfer enough funds to the security deposit account to cover the tenant security deposit liability. Completion date: 12/31/23 Auditee's Response: Auditee agrees with the finding and will replenish the money to the security deposit account as soon as possible.