Audit 365038

FY End
2023-12-31
Total Expended
$830,640
Findings
2
Programs
1
Organization: Pro Viviendas Iii, INC (PR)
Year: 2023 Accepted: 2025-08-27
Auditor: Galindez LLC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
574730 2023-001 Significant Deficiency - N
1151172 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments Program $830,640 Yes 1

Contacts

Name Title Type
GB23QTGX9359 Carmen Gloria Rivera Auditee
7877598018 Rafael Nieves Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pro Viviendas III has elected not to use the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Pro Viviendas III has elected not to use the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Pro Viviendas III, Inc. under program of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) 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 Pro Viviendas III, Inc., it is not intended to, and does not, present the financial position result of operations,, changes in net assets or cash flows of Pro Viviendas III, Inc.
Title: Note 2 - Summary of significant accounting policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pro Viviendas III has elected not to use the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Pro Viviendas III has elected not to use the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pro Viviendas III has elected not to use the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 3 - Assistance Listing Number (ALN) Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pro Viviendas III has elected not to use the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Pro Viviendas III has elected not to use the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Assistance Listing Numbers (ALN) included in the Schedule are determined based on the program name, review of grant contract information and the public descriptions of federal assistance listings published by the U.S. Government in sam.gov.
Title: Note 4 - Major federal programs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pro Viviendas III has elected not to use the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Pro Viviendas III has elected not to use the ten-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The major federal program is identified in the Summary of Auditors’ Result Section in the Schedule of Findings and Questioned Cost. The federal programs is presented by federal agency.

Finding Details

Finding Number: 2023-001 REPLACEMENT RESERVE DEPOSITS Program Title: Section 8 Housing Assistance Payments Program Name of Federal Agency: U. S. Department of Housing and Urban Development (HUD) CFDA Number: 14.195 Criteria Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve funds. All disbursements from the reserve must be approved by HUD, (24 CFR section 891.405 and 891.605). Condition The Project deposited the required February 2023 monthly amount during March 2023. Cause The Project had a problem with its internet connection, so based on the premise that it is in compliance with HUD, it decided to make the deposit in March. Effect The Project failed to make the corresponding deposit in the month of February 2023 and later deposited on March 2023 affecting interest earned on those deposits. Questioned cost None since the deposit was made in March 2023. Context Condition observed on one of the twelve deposits required by the Regulatory Agreement. Prior year finding No Recommendation Management should monitor monthly the activity of the replacement reserve account, and tenant’s security deposit account. Required deposits should be made to the correct account on a monthly basis to avoid deficiencies in the reserve account balance.
Finding Number: 2023-001 REPLACEMENT RESERVE DEPOSITS Program Title: Section 8 Housing Assistance Payments Program Name of Federal Agency: U. S. Department of Housing and Urban Development (HUD) CFDA Number: 14.195 Criteria Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve funds. All disbursements from the reserve must be approved by HUD, (24 CFR section 891.405 and 891.605). Condition The Project deposited the required February 2023 monthly amount during March 2023. Cause The Project had a problem with its internet connection, so based on the premise that it is in compliance with HUD, it decided to make the deposit in March. Effect The Project failed to make the corresponding deposit in the month of February 2023 and later deposited on March 2023 affecting interest earned on those deposits. Questioned cost None since the deposit was made in March 2023. Context Condition observed on one of the twelve deposits required by the Regulatory Agreement. Prior year finding No Recommendation Management should monitor monthly the activity of the replacement reserve account, and tenant’s security deposit account. Required deposits should be made to the correct account on a monthly basis to avoid deficiencies in the reserve account balance.