Audit 366774

FY End
2024-12-31
Total Expended
$77.94M
Findings
1
Programs
3
Organization: New Hope Housing, Inc. (TX)
Year: 2024 Accepted: 2025-09-19

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1153511 2024-001 Material Weakness Yes N

Contacts

Name Title Type
N1RXNNMCVBW3 John Peavy Auditee
7132209726 Kay Walther Auditor
No contacts on file

Notes to SEFA

Basis of presentation – The schedule of expenditures of federal awards (the schedule) is prepared 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Federal expenditures include allowable costs funded by federal grants. Allowable costs are subject to the cost principles of the Uniform Guidance, and include costs that are recognized as expenses or capitalized as assets in New Hope Housing, Inc. and Affiliates’ financial statements in conformity with generally accepted accounting principles. New Hope Housing, Inc. and Affiliates have not elected to use the 10% de minimis cost rate for indirect costs. New Hope Housing, Inc. and Affiliates do not have any subrecipients. Because the schedule presents only a selected portion of the operations of New Hope Housing, Inc. and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of New
New Hope Housing, Inc. and Affiliates have received U. S. Department of Housing and Urban Development and U. S. Department of Treasury deferred payment loans passed through the City of Houston, Texas Department of Housing and Community Affairs and Harris County Housing Finance Corporation totaling $77,935,810. The balance of the loans outstanding at December 31, 2024 is reported in the schedule of expenditures of federal awards.

Finding Details

Finding #2024-001 – Significant Deficiency and Other Noncompliance. Federal Award: U. S. Department of Housing and Urban Development, Passed through Texas Department of Housing and Community Affairs, Assistance Listing #: 14.239, Contract number: 92230123418, Contract period: 07/14/23 – Grant agreement expires 30 years from the date of completion. Criteria: Contracts for the construction of affordable housing with 12 or more HOME-assisted units are required to comply with the Wage Rate Requirements (42 USC 12836). All laborers and mechanics employed by contractors or subcontractors to work on construction contracts in excess of $2,000 financed by Federal assistance funds must be paid wages not less than those established for the locality of the project (prevailing wage rates) by the Department of Labor (40 USC 3141-3144, 3146, and 3147). Condition and context: Our testing included a sample of 5 of the 31 subcontractors for two months of the year for timely submission of weekly certified payroll reports. Two of the five subcontractors did not submit certified payroll reports in a timely manner. Cause: One of the subcontractors was delayed in making payroll payments and submitted the required reports late, while the other subcontractor had login issues to the portal system for uploading the reports and uploaded them late. The subcontractors were not being regularly monitored for compliance. Effect: The weekly certified payroll reports were not submitted timely. Recommendation: Provide additional oversight of the submission of certified payroll reports by subcontractors to ensure compliance. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.