FAC Explorer

Audit 351691

FY End
2023-12-31
Total Expended
$5.24M
Findings
2
Programs
7
Organization: Montgomery Housing Partnership, INC (MD)
Year: 2023 Accepted: 2025-03-31
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
547496 2023-002 Significant Deficiency - E
1123938 2023-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $2.76M Yes 1
14.218 Community Development Block Grants/entitlement Grants $1.21M Yes 0
21.000 Neighborworks America $628,387 - 0
84.287 Twenty-First Century Community Learning Centers $305,578 - 0
14.258 Tax Credit Assistance Program (recovery Act Funded) $234,615 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $75,000 - 0
14.252 Section 4 Capacity Building for Community Development and Affordable Housing $24,124 - 0

Contacts

Name Title Type
XPW2MKPJUFQ6 Jennifer Rudolph Auditee
3018124142 Ken Slater Auditor
No contacts on file

Notes to SEFA

Title: Note 4 - Home Investment Partnership Program Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Montgomery Housing Partnership, Inc. and its Subsidiaries and Affiliates under programs of the federal government for the year ended December 31, 2023. 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 Montgomery Housing Partnership, Inc. and its Subsidiaries and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Montgomery Housing Partnership, Inc. and its Subsidiaries and Affiliates. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-122, "Cost Principles for Nonprofit Organizations" or 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. Expenditures for loan disbursements are recognized when paid. De Minimis Rate Used: Y Rate Explanation: Montgomery Housing Partnership, Inc. and its Subsidiaries and Affiliates has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding under the Home Investment Partnership Program at December 31, 2023 consists of:
Title: Note 5 - Community Development Block Grants Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Montgomery Housing Partnership, Inc. and its Subsidiaries and Affiliates under programs of the federal government for the year ended December 31, 2023. 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 Montgomery Housing Partnership, Inc. and its Subsidiaries and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Montgomery Housing Partnership, Inc. and its Subsidiaries and Affiliates. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-122, "Cost Principles for Nonprofit Organizations" or 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. Expenditures for loan disbursements are recognized when paid. De Minimis Rate Used: Y Rate Explanation: Montgomery Housing Partnership, Inc. and its Subsidiaries and Affiliates has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding under the Community Development Block Grants at December 31, 2023 consists of:
Title: Note 6 - Tax Credit Assistance Program (Recovery Act Funded) Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Montgomery Housing Partnership, Inc. and its Subsidiaries and Affiliates under programs of the federal government for the year ended December 31, 2023. 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 Montgomery Housing Partnership, Inc. and its Subsidiaries and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Montgomery Housing Partnership, Inc. and its Subsidiaries and Affiliates. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles contained in OMB Circular A-122, "Cost Principles for Nonprofit Organizations" or 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. Expenditures for loan disbursements are recognized when paid. De Minimis Rate Used: Y Rate Explanation: Montgomery Housing Partnership, Inc. and its Subsidiaries and Affiliates has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding under the Tax Credit Assistance Program at December 31, 2023 consists of:

Finding Details

Finding 2023-002
Finding 2023-002 - Eligibility - Significant Deficiency Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name and Assistance Listing Number: 14.239 - Home Investment Partnership Program Federal Award Identification Number and Year: N/A Name of Pass-through Entity: N/A Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our lease file review we noted the following deficiencies: 4 out of 9 tenants tested did not have the annual tenant recertification form completed timely. 1 out of 9 tenants tested did not have the accurate amount of adjusted annual income reported on the tenant recertification form. Cause The Organization failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines. The procedures for determining eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Context A sample of nine tenant files from a population of 27 were selected. We identified exceptions in four out of the nine files tested. The sample in not a statistically valid sample. Identification as a Repeat Finding This finding is not a repeat finding. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Views of Responsible Officials Management will begin the recertification process 120 days prior to the recertification effective date to ensure adequate time for preparation and review. Management will issue a Notice to Vacate to any household that has failed to provide required documentation 30 days prior to the recertification effective date. Furthermore, income calculations will be thoroughly reviewed to ensure all sources of income and assets are calculated accurately and without the possibility of income discrepancies. Both tasks will primarily be handled by the Property Manager and Assistant Property Manager with additional assistance and oversight from the Regional Director and Assistant Regional Directors.
Finding 2023-002
Finding 2023-002 - Eligibility - Significant Deficiency Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name and Assistance Listing Number: 14.239 - Home Investment Partnership Program Federal Award Identification Number and Year: N/A Name of Pass-through Entity: N/A Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Condition In connection with our lease file review we noted the following deficiencies: 4 out of 9 tenants tested did not have the annual tenant recertification form completed timely. 1 out of 9 tenants tested did not have the accurate amount of adjusted annual income reported on the tenant recertification form. Cause The Organization failed to follow the policies and procedures which have been established for proper tenant file maintenance and determining tenant eligibility in accordance with HUD guidelines. The procedures for determining eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs None Context A sample of nine tenant files from a population of 27 were selected. We identified exceptions in four out of the nine files tested. The sample in not a statistically valid sample. Identification as a Repeat Finding This finding is not a repeat finding. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Views of Responsible Officials Management will begin the recertification process 120 days prior to the recertification effective date to ensure adequate time for preparation and review. Management will issue a Notice to Vacate to any household that has failed to provide required documentation 30 days prior to the recertification effective date. Furthermore, income calculations will be thoroughly reviewed to ensure all sources of income and assets are calculated accurately and without the possibility of income discrepancies. Both tasks will primarily be handled by the Property Manager and Assistant Property Manager with additional assistance and oversight from the Regional Director and Assistant Regional Directors.