FAC Explorer

Audit 36897

FY End
2022-12-31
Total Expended
$2.66M
Findings
2
Programs
2
Organization: Pecan Village, Inc. (TX)
Year: 2022 Accepted: 2023-05-16
Auditor: Pittsford Samuels PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
39860 2022-001 - Yes P
616302 2022-001 - Yes P

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.21M Yes 0
14.195 Section 8 Housing Assistance Payments Program $446,243 Yes 1

Contacts

Name Title Type
TVMVESKWA174 Linda Holder Auditee
7135269470 Nancy MacK Auditor
No contacts on file

Notes to SEFA

Title: HUD Insured Loan Accounting Policies: BASIS OF PRESENTATION - The accompanying schedule of expenditures of federal awards includes the federal grant activity of Silver Lake Retirement Community and The Oaks Retirement Community, HUD Project No. 114-11228. 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 Silver Lake Retirement Community and The Oaks Retirement Community, it is not intended to and does not present the financial position, changes in net assets or cash flows of Silver Lake Retirement Community and The Oaks Retirement Community. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Expenditures reported in 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 reimbursements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. HUD INSURED LOAN - The Project has received a loan under section 207 of the National Housing Act of 1959. The loan balance at the beginning of the year is included in the federal expenditures presented in the schedule. The Project received no additional funds during the year. The balance of the mortgage at December 31, 2022 amounts to $2,162,815.

Finding Details

Finding 2022-001
Findings reference number: 2022-001 Title and AL Number of Federal Program: Section 8 Housing Assistance, AL 14.195 Type of finding: Federal Award (Compliance) Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: Yes. Criteria: The tenant security deposits bank account should have enough cash to cover the tenant security deposit liability. Condition: Review of the security deposit account showed that the balance as of December 31, 2022 was insufficient to cover the tenant security deposit liability. Cause: The Project had a shortfall of operational cash and used some funds from the security deposit account. Effect: The Project may not be able to refund the security deposit for tenants moving out. Noncompliance code: M. Security deposits. Questioned costs: N/A. Reporting views of officials: Auditee agrees with the finding. Contract Number: 114-11228 Context: The funds were withdrawn because of a shortfall of operating cash and need for necessary repairs to the property. Recommendation: Management must transfer enough funds to the security deposit account to cover the tenant security deposit liability.
Finding 2022-001
Findings reference number: 2022-001 Title and AL Number of Federal Program: Section 8 Housing Assistance, AL 14.195 Type of finding: Federal Award (Compliance) Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: Yes. Criteria: The tenant security deposits bank account should have enough cash to cover the tenant security deposit liability. Condition: Review of the security deposit account showed that the balance as of December 31, 2022 was insufficient to cover the tenant security deposit liability. Cause: The Project had a shortfall of operational cash and used some funds from the security deposit account. Effect: The Project may not be able to refund the security deposit for tenants moving out. Noncompliance code: M. Security deposits. Questioned costs: N/A. Reporting views of officials: Auditee agrees with the finding. Contract Number: 114-11228 Context: The funds were withdrawn because of a shortfall of operating cash and need for necessary repairs to the property. Recommendation: Management must transfer enough funds to the security deposit account to cover the tenant security deposit liability.