FAC Explorer

Audit 359651

FY End
2024-06-30
Total Expended
$3.83M
Findings
8
Programs
2
Organization: Beaumont Senior Citizens Housing, Inc. (TX)
Year: 2024 Accepted: 2025-06-24
Auditor: M Group LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
566003 2024-001 Significant Deficiency Yes L
566004 2024-001 Significant Deficiency Yes L
566005 2024-002 Material Weakness - L
566006 2024-002 Material Weakness - L
1142445 2024-001 Significant Deficiency Yes L
1142446 2024-001 Significant Deficiency Yes L
1142447 2024-002 Material Weakness - L
1142448 2024-002 Material Weakness - L

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.04M Yes 2
14.195 Project-Based Rental Assistance (pbra) $794,432 Yes 2

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, 2024. 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. Assistance Listing Number of 14.155; Program Title of HUD Section 223(f) insured loan; Outstanding Balance at June 30, 2024 of $2,912,674

Finding Details

Finding 2024-001
Section III - Federal Award Finding Finding #2024-001: Section 8 Housing Assistance Payments Program, Assistance Listing: 14.195 and Mortgage Insurance Section 223(f) Insured Loan Assistance Lising: 14.155 Type of Finding: Significant Deficiency Condition: The audited financial statements for the periods ended June 30, 2021, 2022 and 2023 were not entered into the FASSUB or Federal Audit Clearinghouse (FAC) 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 2021 and 2022 financial statements will not be submitted. The June 30, 2023 and 2024 financial data was received and submitted into the FASSUB system.
Finding 2024-001
Section III - Federal Award Finding Finding #2024-001: Section 8 Housing Assistance Payments Program, Assistance Listing: 14.195 and Mortgage Insurance Section 223(f) Insured Loan Assistance Lising: 14.155 Type of Finding: Significant Deficiency Condition: The audited financial statements for the periods ended June 30, 2021, 2022 and 2023 were not entered into the FASSUB or Federal Audit Clearinghouse (FAC) 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 2021 and 2022 financial statements will not be submitted. The June 30, 2023 and 2024 financial data was received and submitted into the FASSUB system.
Finding 2024-002
Section II – Financial Statement and Section III - Federal Award Finding Finding #2024-002: Section 8 Housing Assistance Payments Program, Assistance Listing: 14.195 and Mortgage Insurance Section 223(f) Insured Loan Assistance Listing: 14.155 Type of Finding: Material Weakness Condition: On November 15, 2023, the Corporation’s tax-exempt status was revoked due to failure to file federal tax return Form 990 for three consecutive years. Criteria: The nonprofit corporation financed the Project with the U.S. Department of Housing and Urban Development (HUD) pursuant to a mortgage note regulated by HUD. Effect: The Corporation is in violation of the compliance requirement of its major federal programs. Questioned Cost: $0 Cause: Federal tax return Form 990’s were not filed for three consecutive years. Recommendation: We recommend the Corporation file all necessary forms to reinstate the Corporations’ tax-exempt status. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: The Form 990’s for fiscal year 2021, 2022 and 2023 have been filed. The Corporation intends to apply for reinstatement of tax-exempt status.
Finding 2024-002
Section II – Financial Statement and Section III - Federal Award Finding Finding #2024-002: Section 8 Housing Assistance Payments Program, Assistance Listing: 14.195 and Mortgage Insurance Section 223(f) Insured Loan Assistance Listing: 14.155 Type of Finding: Material Weakness Condition: On November 15, 2023, the Corporation’s tax-exempt status was revoked due to failure to file federal tax return Form 990 for three consecutive years. Criteria: The nonprofit corporation financed the Project with the U.S. Department of Housing and Urban Development (HUD) pursuant to a mortgage note regulated by HUD. Effect: The Corporation is in violation of the compliance requirement of its major federal programs. Questioned Cost: $0 Cause: Federal tax return Form 990’s were not filed for three consecutive years. Recommendation: We recommend the Corporation file all necessary forms to reinstate the Corporations’ tax-exempt status. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: The Form 990’s for fiscal year 2021, 2022 and 2023 have been filed. The Corporation intends to apply for reinstatement of tax-exempt status.
Finding 2024-001
Section III - Federal Award Finding Finding #2024-001: Section 8 Housing Assistance Payments Program, Assistance Listing: 14.195 and Mortgage Insurance Section 223(f) Insured Loan Assistance Lising: 14.155 Type of Finding: Significant Deficiency Condition: The audited financial statements for the periods ended June 30, 2021, 2022 and 2023 were not entered into the FASSUB or Federal Audit Clearinghouse (FAC) 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 2021 and 2022 financial statements will not be submitted. The June 30, 2023 and 2024 financial data was received and submitted into the FASSUB system.
Finding 2024-001
Section III - Federal Award Finding Finding #2024-001: Section 8 Housing Assistance Payments Program, Assistance Listing: 14.195 and Mortgage Insurance Section 223(f) Insured Loan Assistance Lising: 14.155 Type of Finding: Significant Deficiency Condition: The audited financial statements for the periods ended June 30, 2021, 2022 and 2023 were not entered into the FASSUB or Federal Audit Clearinghouse (FAC) 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 2021 and 2022 financial statements will not be submitted. The June 30, 2023 and 2024 financial data was received and submitted into the FASSUB system.
Finding 2024-002
Section II – Financial Statement and Section III - Federal Award Finding Finding #2024-002: Section 8 Housing Assistance Payments Program, Assistance Listing: 14.195 and Mortgage Insurance Section 223(f) Insured Loan Assistance Listing: 14.155 Type of Finding: Material Weakness Condition: On November 15, 2023, the Corporation’s tax-exempt status was revoked due to failure to file federal tax return Form 990 for three consecutive years. Criteria: The nonprofit corporation financed the Project with the U.S. Department of Housing and Urban Development (HUD) pursuant to a mortgage note regulated by HUD. Effect: The Corporation is in violation of the compliance requirement of its major federal programs. Questioned Cost: $0 Cause: Federal tax return Form 990’s were not filed for three consecutive years. Recommendation: We recommend the Corporation file all necessary forms to reinstate the Corporations’ tax-exempt status. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: The Form 990’s for fiscal year 2021, 2022 and 2023 have been filed. The Corporation intends to apply for reinstatement of tax-exempt status.
Finding 2024-002
Section II – Financial Statement and Section III - Federal Award Finding Finding #2024-002: Section 8 Housing Assistance Payments Program, Assistance Listing: 14.195 and Mortgage Insurance Section 223(f) Insured Loan Assistance Listing: 14.155 Type of Finding: Material Weakness Condition: On November 15, 2023, the Corporation’s tax-exempt status was revoked due to failure to file federal tax return Form 990 for three consecutive years. Criteria: The nonprofit corporation financed the Project with the U.S. Department of Housing and Urban Development (HUD) pursuant to a mortgage note regulated by HUD. Effect: The Corporation is in violation of the compliance requirement of its major federal programs. Questioned Cost: $0 Cause: Federal tax return Form 990’s were not filed for three consecutive years. Recommendation: We recommend the Corporation file all necessary forms to reinstate the Corporations’ tax-exempt status. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: The Form 990’s for fiscal year 2021, 2022 and 2023 have been filed. The Corporation intends to apply for reinstatement of tax-exempt status.