FAC Explorer

Audit 375928

FY End
2024-12-31
Total Expended
$31.53M
Findings
34
Programs
6
Organization: Alamo Area Mutual Housing Association (TX)
Year: 2024 Accepted: 2025-12-18
Auditor: M GROUP LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1165332 2024-004 Material Weakness Yes B
1165333 2024-004 Material Weakness Yes B
1165334 2024-004 Material Weakness Yes B
1165335 2024-003 Material Weakness Yes C
1165336 2024-001 Material Weakness Yes P
1165337 2024-001 Material Weakness Yes P
1165338 2024-001 Material Weakness Yes P
1165339 2024-001 Material Weakness Yes P
1165340 2024-001 Material Weakness Yes P
1165341 2024-001 Material Weakness Yes P
1165342 2024-001 Material Weakness Yes P
1165343 2024-001 Material Weakness Yes P
1165344 2024-001 Material Weakness Yes P
1165345 2024-001 Material Weakness Yes P
1165346 2024-001 Material Weakness Yes P
1165347 2024-001 Material Weakness Yes P
1165348 2024-001 Material Weakness Yes P
1165349 2024-001 Material Weakness Yes P
1165350 2024-002 Material Weakness Yes P
1165351 2024-002 Material Weakness Yes P
1165352 2024-002 Material Weakness Yes P
1165353 2024-002 Material Weakness Yes P
1165354 2024-002 Material Weakness Yes P
1165355 2024-002 Material Weakness Yes P
1165356 2024-002 Material Weakness Yes P
1165357 2024-002 Material Weakness Yes P
1165358 2024-002 Material Weakness Yes P
1165359 2024-002 Material Weakness Yes P
1165360 2024-002 Material Weakness Yes P
1165361 2024-002 Material Weakness Yes P
1165362 2024-002 Material Weakness Yes P
1165363 2024-002 Material Weakness Yes P
1165364 2024-004 Material Weakness Yes B
1165365 2024-004 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
14.135 MORTGAGE INSURANCE_RENTAL AND COOPERATIVE HOUSING FOR MODERATE INCOME FAMILIES AND ELDERLY, MARKET INTEREST RATE $5.72M Yes 3
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $4.24M Yes 3
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $800,650 Yes 2
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $770,331 Yes 2
14.267 CONTINUUM OF CARE PROGRAM $307,238 Yes 2
21.011 CAPITAL MAGNET FUND $239,000 Yes 0

Contacts

Name Title Type
QQ3MM48K4863 Mike Pitchford Auditee
2107318030 Michael Martin Auditor
No contacts on file

Notes to SEFA

The mortgage balances at the beginning of the year are included in the federal expenditures presented in this Schedule. Alamo had the following federal loan balances outstanding at December 31, 2024: Assistance Listing Number 14.218; Subrecipient of Woodland; Program Title of Community Development Block Grant – Deferred Loan; Outstanding Balance at December 31, 2024 of $0. Assistance Listing Number 14.218; Subrecipient of Thompson; Program Title of Community Development Block Grant – Deferred Loan; Outstanding Balance at December 31, 2024 of $628,943. Assistance Listing Number 14.239; Subrecipient of Babcock North II; Program Title of Home Investment Partnerships –“Home Program”; Outstanding Balance at December 31, 2024 of $219,973. Assistance Listing Number 14.239; Subrecipient of Babcock North II; Program Title of Home Investment Partnerships –“Home Program”; Outstanding Balance at December 31, 2024 of $95,994. Assistance Listing Number 14.239; Subrecipient of Bentley; Program Title of Home Investment Partnerships –“Home Program”; Outstanding Balance at December 31, 2024 of $363,298. Assistance Listing Number 14.239; Subrecipient of Western Hills; Program Title of Home Investment Partnerships –“Home Program”; Outstanding Balance at December 31, 2024 of $770,331. Assistance Listing Number 14.135; Subrecipient of Thompson; Program Title of HUD Guaranteed Mortgage - Section 223(a)(7); Outstanding Balance at December 31, 2024 of $2,844,479. Assistance Listing Number 14.135; Subrecipient of Western Hills; Program Title of HUD Guaranteed Mortgage - Section 221(d)(4); Outstanding Balance at December 31, 2024 of $6,620,738. Assistance Listing Number 14.155; Subrecipient of Cypress Cove; Program Title of HUD Guaranteed Mortgage - Section 223(f); Outstanding Balance at December 31, 2024 of $5,299,766. Assistance Listing Number 14.218; Subrecipient of Calcasieu; Program Title of Community Development Block Grant - Deferred Loan; Outstanding Balance at December 31, 2024 of $800,650. Assistance Listing Number 14.155; Subrecipient of Calcasieu; Program Title of HUD Guaranteed Mortgage - Section 223(f); Outstanding Balance at December 31, 2024 of $2,979,382. Assistance Listing Number 14.155; Subrecipient of Babcock North LP; Program Title of HUD Guaranteed Mortgage - Section 223(f); Outstanding Balance at December 31, 2024 of $4,164,822; Assistance Listing Number 14.155; Subrecipient of Bentley; Program Title of HUD Guaranteed Mortgage - Section 223(f); Outstanding Balance at December 31, 2024 of $5,587,321.

Finding Details

Finding 2024-003
Finding #2024-003: Passed through City of San Antonio Community Development Block Grant – Loan, Assistance Listing 14.218 Type of Finding: Material Weakness Condition: The Company has not paid May 2024 through August 2025 loan payments in accordance with the loan agreement. The Company is in arrears for 16 principal and interest payments as of the report date. The loan with the City of San Antonio is in default due to the payments in arrears. Criteria: The loan agreement was for monthly principal and interest of $3,796 to be paid monthly beginning November 1, 2014. Questioned cost: $60,736 in principal and interest payments not paid as of the report date. Effect: The Lender has placed the loan in default which could result in interest on the unpaid principal to (a) accrue interest at the highest nonusurious rate allowed by law until such default is cured, and (b) be immediately payable in addition to the entire remaining principal amount then owing. Cause: Management did not pay the monthly principal and interest payments. Repeat Finding: No Recommendation: We recommend that the Company pay all outstanding principal and interest to cure the loan default. Status: Alamo is working with City of San Antonio to make arrangements to pay the $60,736. The Lender did not add additional interest or penalties.
Finding 2024-001
Finding #2024-001: Management Company’s Internal Controls over Financial Reporting Type of Finding: Material Weakness in Internal Control over Financial Reporting Condition: Material audit adjustments were posted to the management company’s accounts, which were necessary to ensure the financial statements are fairly presented in accordance with GAAP. Criteria: Management is responsible for the accuracy and completeness of all financial records and related information to ensure accuracy and presentation in accordance with GAAP. Question Costs: Adjusting journal entries were required in order to present the financial statements in accordance with GAAP. The net impact on the change in net assets was $1,650,694. Effect: The financial statements contained errors and misstatements. Cause: The management company’s internal control policies and procedures did not prevent or detect the errors or misstatement of the financial statements. The current property management company took over in October 2024. Repeat Finding: Yes Recommendation: The management company should review and reconcile all accounts and review the financial data to ensure accuracy, completeness and that financial statements are presented in accordance with GAAP. Management’s Comment: Management is in agreement with finding. Cause: The management company’s internal control policies and procedures did not prevent or detect the errors or misstatements of the financial statements. Auditor’s Comment: The owners have hired an outside consultant to work with the management company to review their policies, procedures and internal controls.
Finding 2024-002
Finding #2024-002: Inadequate internal controls for Alamo Corporate Type of Finding: Material Weakness in Internal Controls over Financial Reporting Condition: The Company does not have effective internal control policies and procedures or sufficiently trained or experienced personnel in order to ensure the consolidated statements are accurate and complete and prepared in accordance with generally accepted accounting principles, Government Auditing Standards and the Uniform Guidance. Criteria: Effective internal controls over financial reporting, proper segregation of duties and trained and experienced personnel are essential to ensure the financial statements are prepared accurately and completely. Questioned Costs: Unknown Effect: The monthly consolidated financial statements are misleading and incomplete and not prepared in accordance with Generally Accepted Accounting Principles. Cause: The Company does not have an adequate internal control system in place to properly monitor and review the financial reporting process. Repeat Finding: Yes Recommendation: We recommend Alamo implement new policies and internal control procedures to ensure the consolidated financial statements are free from material errors or misstatements and presented accurately and completely and in accordance with GAAP, Management’s Comment: Management is in agreement with finding. Auditor’s Comment: Alamo has hired consultants to help improve controls over financial reporting. Alamo currently has a Memorandum of Understanding with a non-profit corporation for a potential acquisition or merger who will provide expertise and guidance to improve controls and implement adequate policies and procedures.
Finding 2024-004
Finding #2024-004: Inadequate internal controls over Federal Awards Type of Finding: Significant Deficiency Condition: The Company is not consistently following the written policies and procedures over federal awards. The Company did not properly monitor the federal award programs available to the operating properties which resulted in lost revenue. Criteria: Written policies, procedures and standards of conduct required by 2 Code of Federal Regulations Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart D – Post Federal Award Requirements and Subpart E – Cost Principles are required. Questioned Costs: Unknown Effect: The Company is not in compliance with specific requirements of Uniform Guidance for non-profits. Federal programs were not utilized by the operating properties. Cause: The Company does not have an adequate internal control system in place to properly monitor and review the federal awards. Repeat Finding: Yes Recommendation: We recommend the Company adhere to the written policies, procedures and standards of conduct. We recommend all federal programs are closely reviewed. Management’s Comment: Management is in agreement with finding. Auditor’s Comment: Alamo is seeking training and support to improve internal controls and policies and procedures for oversight of federal awards. The Board of Directors is providing oversight and researching recommendations to ensure adequate internal controls are functioning. Alamo currently has a Memorandum of Understanding with a non-profit corporation for a potential acquisition or merger who will provide expertise and guidance to improve controls and implement adequate policies and procedures.