FAC Explorer

Audit 364210

FY End
2024-09-30
Total Expended
$8.91M
Findings
8
Programs
1
Organization: Evangeline Booth Friendship House Residence Inc., A Texas Corporation (TX)
Year: 2024 Accepted: 2025-08-13
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
573489 2024-001 Significant Deficiency - N
573490 2024-002 Material Weakness - B
573491 2024-001 Significant Deficiency - N
573492 2024-002 Material Weakness - B
1149931 2024-001 Significant Deficiency - N
1149932 2024-002 Material Weakness - B
1149933 2024-001 Significant Deficiency - N
1149934 2024-002 Material Weakness - B

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $8.49M Yes 2

Contacts

Name Title Type
DNAWL2H4FPE6 Roland Cox Auditee
4047286700 Amy Blocker Auditor
No contacts on file

Notes to SEFA

Title: Note A - Basis of presentation Accounting Policies: Note B - Summary of significant accounting policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Evangeline Booth Friendship House Residence, Inc., a Texas Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Evangeline Booth Friendship House Residence, Inc., a Texas Corporation and is presented 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 Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of Evangeline Booth Friendship House Residence, Inc., a Texas Corporation, it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of Evangeline Booth Friendship House Residence, Inc., a Texas Corporation. For the year ended September 30, 2024, no awards were passed through to subrecipients.
Title: Note C - U.S. Department of Housing and Urban Development capital advance program Accounting Policies: Note B - Summary of significant accounting policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Evangeline Booth Friendship House Residence, Inc., a Texas Corporation has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Evangeline Booth Friendship House Residence, Inc., a Texas Corporation has received a U.S. Department of Housing and Urban Development direct capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Evangeline Booth Friendship House Residence, Inc., a Texas Corporation received no additional capital advances or loans during the year. The balance of the capital advance outstanding at September 30, 2024 consists of: See the Notes to SEFA for chart/table

Finding Details

Finding 2024-001
Department of Housing and Urban Development Finding 2024-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria Management fee payments are limited to amounts determined in accordance with the terms of the management agreement. Condition During the year ended December 31, 2024, the project paid management fees of $466 in excess of the amount approved by HUD. Cause Lack of management oversight caused management fees to be overpaid during the current year. Effect or Potential Effect The overpaid amount is an unauthorized distribution and therefore considered to be questioned costs. Questioned Costs $466 Context The project overpaid $466 in management fees, exceeding the HUD-approved amount. This overpayment is classified as an unauthorized distribution under HUD regulations and is attributed to insufficient management oversight. Identification as a Repeat Finding Not a Repeat finding Recommendation The management company should reimburse the project for overpaid management fee in the amount of $466 and implement procedures to ensure that the management fee paid does not exceed the amount determined in accordance with the management agreement. Auditor Noncompliance Code: J - Unauthorized management fees Finding Resolution Status: In Process Reporting Views of Responsible Officials Management will repay the property and update our procedures to correctly calculate management fees.
Finding 2024-002
Department of Housing and Urban Development Finding 2024-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria The terms of capital advance and PRAC agreement with HUD prohibit loans from project assets without HUD approval. Condition During the year ended December 31, 2024, management inadvertently deposited $5,073 from project operations into another entity's bank account. Cause An administrative oversight in the payments of replacement reserve deposits caused the amount to be deposited into an incorrect bank account. Effect or Potential Effect The project funds deposited to another entity's cash account are considered to be questioned costs. Questioned Costs $5,227 Context The issue is linked to lack of adequate management oversight in making the replacement reserve deposits and the need for corrective action. Identification as a Repeat Finding Not a Repeat finding Recommendations 2024-2-a The project's operating cash account should be reimbursed for this amount. 2024-2-b The management company should implement procedures to ensure that cash is not inadvertently sent to another company's bank account. Auditor Noncompliance Code: G - Unauthorized loans from project assets Finding Resolution Status: In Process Reporting Views of Responsible Officials North TX A/C will repay the amount to the property
Finding 2024-001
Department of Housing and Urban Development Finding 2024-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria Management fee payments are limited to amounts determined in accordance with the terms of the management agreement. Condition During the year ended December 31, 2024, the project paid management fees of $466 in excess of the amount approved by HUD. Cause Lack of management oversight caused management fees to be overpaid during the current year. Effect or Potential Effect The overpaid amount is an unauthorized distribution and therefore considered to be questioned costs. Questioned Costs $466 Context The project overpaid $466 in management fees, exceeding the HUD-approved amount. This overpayment is classified as an unauthorized distribution under HUD regulations and is attributed to insufficient management oversight. Identification as a Repeat Finding Not a Repeat finding Recommendation The management company should reimburse the project for overpaid management fee in the amount of $466 and implement procedures to ensure that the management fee paid does not exceed the amount determined in accordance with the management agreement. Auditor Noncompliance Code: J - Unauthorized management fees Finding Resolution Status: In Process Reporting Views of Responsible Officials Management will repay the property and update our procedures to correctly calculate management fees.
Finding 2024-002
Department of Housing and Urban Development Finding 2024-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria The terms of capital advance and PRAC agreement with HUD prohibit loans from project assets without HUD approval. Condition During the year ended December 31, 2024, management inadvertently deposited $5,073 from project operations into another entity's bank account. Cause An administrative oversight in the payments of replacement reserve deposits caused the amount to be deposited into an incorrect bank account. Effect or Potential Effect The project funds deposited to another entity's cash account are considered to be questioned costs. Questioned Costs $5,227 Context The issue is linked to lack of adequate management oversight in making the replacement reserve deposits and the need for corrective action. Identification as a Repeat Finding Not a Repeat finding Recommendations 2024-2-a The project's operating cash account should be reimbursed for this amount. 2024-2-b The management company should implement procedures to ensure that cash is not inadvertently sent to another company's bank account. Auditor Noncompliance Code: G - Unauthorized loans from project assets Finding Resolution Status: In Process Reporting Views of Responsible Officials North TX A/C will repay the amount to the property
Finding 2024-001
Department of Housing and Urban Development Finding 2024-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria Management fee payments are limited to amounts determined in accordance with the terms of the management agreement. Condition During the year ended December 31, 2024, the project paid management fees of $466 in excess of the amount approved by HUD. Cause Lack of management oversight caused management fees to be overpaid during the current year. Effect or Potential Effect The overpaid amount is an unauthorized distribution and therefore considered to be questioned costs. Questioned Costs $466 Context The project overpaid $466 in management fees, exceeding the HUD-approved amount. This overpayment is classified as an unauthorized distribution under HUD regulations and is attributed to insufficient management oversight. Identification as a Repeat Finding Not a Repeat finding Recommendation The management company should reimburse the project for overpaid management fee in the amount of $466 and implement procedures to ensure that the management fee paid does not exceed the amount determined in accordance with the management agreement. Auditor Noncompliance Code: J - Unauthorized management fees Finding Resolution Status: In Process Reporting Views of Responsible Officials Management will repay the property and update our procedures to correctly calculate management fees.
Finding 2024-002
Department of Housing and Urban Development Finding 2024-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria The terms of capital advance and PRAC agreement with HUD prohibit loans from project assets without HUD approval. Condition During the year ended December 31, 2024, management inadvertently deposited $5,073 from project operations into another entity's bank account. Cause An administrative oversight in the payments of replacement reserve deposits caused the amount to be deposited into an incorrect bank account. Effect or Potential Effect The project funds deposited to another entity's cash account are considered to be questioned costs. Questioned Costs $5,227 Context The issue is linked to lack of adequate management oversight in making the replacement reserve deposits and the need for corrective action. Identification as a Repeat Finding Not a Repeat finding Recommendations 2024-2-a The project's operating cash account should be reimbursed for this amount. 2024-2-b The management company should implement procedures to ensure that cash is not inadvertently sent to another company's bank account. Auditor Noncompliance Code: G - Unauthorized loans from project assets Finding Resolution Status: In Process Reporting Views of Responsible Officials North TX A/C will repay the amount to the property
Finding 2024-001
Department of Housing and Urban Development Finding 2024-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria Management fee payments are limited to amounts determined in accordance with the terms of the management agreement. Condition During the year ended December 31, 2024, the project paid management fees of $466 in excess of the amount approved by HUD. Cause Lack of management oversight caused management fees to be overpaid during the current year. Effect or Potential Effect The overpaid amount is an unauthorized distribution and therefore considered to be questioned costs. Questioned Costs $466 Context The project overpaid $466 in management fees, exceeding the HUD-approved amount. This overpayment is classified as an unauthorized distribution under HUD regulations and is attributed to insufficient management oversight. Identification as a Repeat Finding Not a Repeat finding Recommendation The management company should reimburse the project for overpaid management fee in the amount of $466 and implement procedures to ensure that the management fee paid does not exceed the amount determined in accordance with the management agreement. Auditor Noncompliance Code: J - Unauthorized management fees Finding Resolution Status: In Process Reporting Views of Responsible Officials Management will repay the property and update our procedures to correctly calculate management fees.
Finding 2024-002
Department of Housing and Urban Development Finding 2024-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria The terms of capital advance and PRAC agreement with HUD prohibit loans from project assets without HUD approval. Condition During the year ended December 31, 2024, management inadvertently deposited $5,073 from project operations into another entity's bank account. Cause An administrative oversight in the payments of replacement reserve deposits caused the amount to be deposited into an incorrect bank account. Effect or Potential Effect The project funds deposited to another entity's cash account are considered to be questioned costs. Questioned Costs $5,227 Context The issue is linked to lack of adequate management oversight in making the replacement reserve deposits and the need for corrective action. Identification as a Repeat Finding Not a Repeat finding Recommendations 2024-2-a The project's operating cash account should be reimbursed for this amount. 2024-2-b The management company should implement procedures to ensure that cash is not inadvertently sent to another company's bank account. Auditor Noncompliance Code: G - Unauthorized loans from project assets Finding Resolution Status: In Process Reporting Views of Responsible Officials North TX A/C will repay the amount to the property