FAC Explorer

Audit 359650

FY End
2023-06-30
Total Expended
$3.70M
Findings
8
Programs
2
Organization: Beaumont Senior Citizens Housing, Inc. (TX)
Year: 2023 Accepted: 2025-06-24
Auditor: M Group LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
565999 2023-001 Material Weakness - L
566000 2023-001 Material Weakness - L
566001 2023-002 Significant Deficiency - C
566002 2023-003 Significant Deficiency - A
1142441 2023-001 Material Weakness - L
1142442 2023-001 Material Weakness - L
1142443 2023-002 Significant Deficiency - C
1142444 2023-003 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.16M Yes 1
14.195 Project-Based Rental Assistance (pbra) $539,511 Yes 3

Contacts

Name Title Type
U11GKJDHR7G7 Stewart Grounds Auditee
8174882011 Michael Martin Auditor
No contacts on file

Notes to SEFA

Title: Note 3: Loans Outstanding Accounting Policies: Note 1: Basis of Presentation: This schedule of expenditures of federal awards (Schedule) includes the federal award activity of Beaumont Senior Citizens Housing, Inc. under programs of the federal government for the year ended June 30, 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 Audits for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Beaumont Senior Citizens Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Beaumont Senior Citizens Housing, Inc. Note 2: Summary of Significant Accounting Policies: Expenditures 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 reimbursement. Beaumont Senior Citizens Housing, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Beaumont Senior Citizens Housing, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. CDFA Number of 14.155; Program Title of HUD Section 223(f) insured loan; Outstanding Balance at June 30, 2023 of $3,037,186

Finding Details

Finding 2023-001
Finding #2023-001: Section 8 Housing Assistance Payments Program, CFDA: 14.195 and Mortgage Insurance Section 223(f) Insured Loan CFDA: 14.155 Condition: The audited financial statements for the periods ended June 30, 2021, 2022 and 2023 were not entered into the FASSUB system timely. Criteria: The HUD regulatory agreement requires the audited financial statements to be prepared in accordance with GAAP and filed into the FASSUB system within 90 days of year end. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $0 Cause: Financials were not ready\available for audit. Recommendation: We recommend the audited financial statements be submitted into the FASSUB system within 90 days of year end. Auditor’s Comment: The June 30, 2023 financial data was received and submitted into the FASSUB system.
Finding 2023-001
Finding #2023-001: Section 8 Housing Assistance Payments Program, CFDA: 14.195 and Mortgage Insurance Section 223(f) Insured Loan CFDA: 14.155 Condition: The audited financial statements for the periods ended June 30, 2021, 2022 and 2023 were not entered into the FASSUB system timely. Criteria: The HUD regulatory agreement requires the audited financial statements to be prepared in accordance with GAAP and filed into the FASSUB system within 90 days of year end. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $0 Cause: Financials were not ready\available for audit. Recommendation: We recommend the audited financial statements be submitted into the FASSUB system within 90 days of year end. Auditor’s Comment: The June 30, 2023 financial data was received and submitted into the FASSUB system.
Finding 2023-002
Finding #2023-002: Section 8 Housing Assistance Payments Program, CFDA: 14.195 and Mortgage Insurance Section 223(f) Insured Loan CFDA: 14.195 Condition: The June mortgage payment was not made in a timely matter. Criteria: The HUD regulatory agreement requires the Corporation to promptly make all payments due under the mortgage agreement. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $32,376 Cause: Insufficient cash flow Recommendation: We recommend the Corporation monitor cash flow and implement procedures for assuring payment of the mortgage by the due dates. Auditor’s Comment: CLEARED: The mortgage payment due on June 1, 2023 was made on July 1, 2023.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program, CFDA: 14.195 Condition: The Corporation did not maintain current documents in the vendor files, including invoices and cancelled checks. Criteria: The Corporation is required to maintain documentation in the vendor files including approved bills, invoices, or other supporting documents. Questioned Costs: $98,784 Effect: The Corporation is in violation of regulatory requirements governing disbursements. Cause: Management’s policies with respect to proper documentation of vendor files and cash disbursements were not consistently followed. Recommendation: Management should review its 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 2023-001
Finding #2023-001: Section 8 Housing Assistance Payments Program, CFDA: 14.195 and Mortgage Insurance Section 223(f) Insured Loan CFDA: 14.155 Condition: The audited financial statements for the periods ended June 30, 2021, 2022 and 2023 were not entered into the FASSUB system timely. Criteria: The HUD regulatory agreement requires the audited financial statements to be prepared in accordance with GAAP and filed into the FASSUB system within 90 days of year end. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $0 Cause: Financials were not ready\available for audit. Recommendation: We recommend the audited financial statements be submitted into the FASSUB system within 90 days of year end. Auditor’s Comment: The June 30, 2023 financial data was received and submitted into the FASSUB system.
Finding 2023-001
Finding #2023-001: Section 8 Housing Assistance Payments Program, CFDA: 14.195 and Mortgage Insurance Section 223(f) Insured Loan CFDA: 14.155 Condition: The audited financial statements for the periods ended June 30, 2021, 2022 and 2023 were not entered into the FASSUB system timely. Criteria: The HUD regulatory agreement requires the audited financial statements to be prepared in accordance with GAAP and filed into the FASSUB system within 90 days of year end. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $0 Cause: Financials were not ready\available for audit. Recommendation: We recommend the audited financial statements be submitted into the FASSUB system within 90 days of year end. Auditor’s Comment: The June 30, 2023 financial data was received and submitted into the FASSUB system.
Finding 2023-002
Finding #2023-002: Section 8 Housing Assistance Payments Program, CFDA: 14.195 and Mortgage Insurance Section 223(f) Insured Loan CFDA: 14.195 Condition: The June mortgage payment was not made in a timely matter. Criteria: The HUD regulatory agreement requires the Corporation to promptly make all payments due under the mortgage agreement. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $32,376 Cause: Insufficient cash flow Recommendation: We recommend the Corporation monitor cash flow and implement procedures for assuring payment of the mortgage by the due dates. Auditor’s Comment: CLEARED: The mortgage payment due on June 1, 2023 was made on July 1, 2023.
Finding 2023-003
Finding #2023-003: Section 8 Housing Assistance Payments Program, CFDA: 14.195 Condition: The Corporation did not maintain current documents in the vendor files, including invoices and cancelled checks. Criteria: The Corporation is required to maintain documentation in the vendor files including approved bills, invoices, or other supporting documents. Questioned Costs: $98,784 Effect: The Corporation is in violation of regulatory requirements governing disbursements. Cause: Management’s policies with respect to proper documentation of vendor files and cash disbursements were not consistently followed. Recommendation: Management should review its 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.