FAC Explorer

Audit 38628

FY End
2022-03-31
Total Expended
$3.97M
Findings
2
Programs
2
Organization: Beaumont Elderly and Handicapped Corp. Dba Raintree Tower Apts (TX)
Year: 2022 Accepted: 2023-05-07
Auditor: Tidwell Group LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44430 2022-001 Material Weakness - J
620872 2022-001 Material Weakness - J

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.88M Yes 1
14.195 Section 8 Housing Assistance Payments Program $1.09M Yes 0

Contacts

Name Title Type
DUFBSHZAEZX8 Joshua W. Allen, Sr. Auditee
4098338947 Xiaohui Jiang Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE 1 - BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal grant activity of Beaumont Elderly and Handicapped Housing Corporation, HUDProject No. 114-11242, and is presented on the accrual basis of accounting. The informationin the Schedule is presented in accordance with the requirements of Title 2 U.S. Code ofFederal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents only a selected portion of the operations of Beaumont Elderly and HandicappedHousing Corporation, it is not intended to and does not present the financial position,changes in net assets, or cash flows of Beaumont Elderly and Handicapped HousingCorporationNOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in OMB Circular A-122,Cost Principles for Non-profit Organizations, wherein certain types of expenditures are notallowable or are limited as to reimbursement.Beaumont Elderly and Handicapped Housing Corporation has elected not to use the 10percent de minimus indirect cost rate as allowed under the Uniform Guidance.NOTE 3 - MORTGAGE NOTE PAYABLEThe outstanding balance of the loan and loan guarantee program at March 31, 2022 withcontinuing compliance requirements which are reported as federal expenditures on theaccompanying schedule of expenditures of federal awards was $2,772,131. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 2881191.

Finding Details

Finding 2022-001
C. Findings and Questioned Costs - Major Federal Award Program Audit Finding No. 2022-1 Criteria The terms of the Regulatory Agreement require Beaumont Elderly and Handicapped Housing Corporation to limit its management fee payment to the amount earned per the HUD approved management certification. Condition Beaumont Elderly and Handicapped Housing Corporation overpaid its management fee in the amount of $6,300 as of March 31, 2022. Questioned Costs $6,300. Cause An administrative oversight in the process of paying the management fee caused the fee to be overpaid. Auditor Noncompliance Code J - Unauthorized management fees Effect The overpaid management fees are not approved by HUD, and therefore, Beaumont Elderly and Handicapped Housing Corporation is considered to be in non-compliance. Recommendations Beaumont Elderly and Handicapped Housing Corporation should be reimbursed for the overpaid management fee amount of $6,300. Views of Responsible Officials Management concurs with the finding and will reimburse Beaumont Elderly and Handicapped Housing Corporation for the overpaid management fee amount.
Finding 2022-001
C. Findings and Questioned Costs - Major Federal Award Program Audit Finding No. 2022-1 Criteria The terms of the Regulatory Agreement require Beaumont Elderly and Handicapped Housing Corporation to limit its management fee payment to the amount earned per the HUD approved management certification. Condition Beaumont Elderly and Handicapped Housing Corporation overpaid its management fee in the amount of $6,300 as of March 31, 2022. Questioned Costs $6,300. Cause An administrative oversight in the process of paying the management fee caused the fee to be overpaid. Auditor Noncompliance Code J - Unauthorized management fees Effect The overpaid management fees are not approved by HUD, and therefore, Beaumont Elderly and Handicapped Housing Corporation is considered to be in non-compliance. Recommendations Beaumont Elderly and Handicapped Housing Corporation should be reimbursed for the overpaid management fee amount of $6,300. Views of Responsible Officials Management concurs with the finding and will reimburse Beaumont Elderly and Handicapped Housing Corporation for the overpaid management fee amount.