Audit 39155

FY End
2022-12-31
Total Expended
$26.80M
Findings
10
Programs
8
Year: 2022 Accepted: 2023-09-28
Auditor: M Group LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
42464 2022-002 Significant Deficiency Yes B
42465 2022-001 Significant Deficiency - N
42466 2022-001 Significant Deficiency - N
42467 2022-003 Significant Deficiency - C
42468 2022-001 Significant Deficiency Yes N
618906 2022-002 Significant Deficiency Yes B
618907 2022-001 Significant Deficiency - N
618908 2022-001 Significant Deficiency - N
618909 2022-003 Significant Deficiency - C
618910 2022-001 Significant Deficiency Yes N

Contacts

Name Title Type
QQ3MM48K4863 Christine Drennon Auditee
2107318030 Michael Martin Auditor
No contacts on file

Notes to SEFA

Title: NOTE 4 - LOANS OUTSTANDING Accounting Policies: NOTE 1 - BASIS OF PRESENTATION: The accompanying Schedule of Expenditures of Federal Awards includes all federal grants, contracts, and similar agreements of Alamo Area Mutual Housing Association (Alamo) under programs of the federal government for the year ended December 31, 2022. 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 Audits for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Alamo, it is not intended to and does not present the financial position, results of operations, or cash flows of Alamo. NOTE 2 - SUMMARY OF SIGNIFICANT 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: NOTE 3 - DE MINIMIS COST RATE: Alamo did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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, 2022: CDFA Number 14.218; Subrecipient - Woodland; Program Title - Community Development Block Grant-Deferred Loan; Outstanding Balance of $4,100. CDFA Number 14.218; Subrecipient - Thompson; Program Title - Community Development Block Grant-Deferred Loan; Outstanding Balance of $648,188. CDFA Number 14.239; Subrecipient - Babcock North II; Program Title - Home Investment Partnerships-"Home Program"; Outstanding Balance of $220,000. CDFA Number 14.239; Subrecipient - Babcock North II; Program Title - Home Investment Partnerships-"Home Program"; Outstanding Balance of $99,606. CDFA Number 14.239; Subrecipient - Bentley; Program Title - Home Investment Partnerships-"Home Program"; Outstanding Balance of $389,922. CDFA Number 14.239; Subrecipient - Western Hills; Program Title - Home Investment Partnerships-"Home Program"; Outstanding Balance of $770,331. CDFA Number 14.135; Subrecipient - Thompson; Program Title - HUD Guaranteed Mortgage-Section 223(a)(7); Outstanding Balance of $3,013,406. CDFA Number 14.135; Subrecipient - Western Hills; Program Title - HUD Guaranteed Mortgage-Section 221(d)(4); Outstanding Balance of $6,808,815. CDFA Number 14.155; Subrecipient - Cypress Cove; Program Title - HUD Guaranteed Mortgage-Section 223(f); Outstanding Balance of $5,540,779. CDFA Number 14.218; Subrecipient - Calcasieu; Program Title - Community Development Block Grant-Deferred Loan; Outstanding Balance of $800,650. CDFA Number 14.155; Subrecipient - Calcasieu; Program Title - HUD Guaranteed Mortgage-Section 223(f); Outstanding Balance of $3,106,637. CDFA Number 14.155; Subrecipient - Babcock North LP; Program Title - HUD Guaranteed Mortgage-Section 223(f); Outstanding Balance of $4,316,766.

Finding Details

Finding #2022-002: Section 223(a)(7) HUD Insured Loan CFDA 14.135 (AAMHA KPTP, LLC HUD Project No. 115-35652). Type of Finding: Significant Deficiency. The Company had surplus cash available for distribution of $28,824 at December 31, 2021. The Company made distributions of $45,294. At June 30, 2022, the Company had no available surplus cash and made distributions of $45,294. The Company made distributions in excess of surplus cash totaling $61,764. See Section II for more information. Finding #2022-002: Section 223(a)(7) HUD Insured Loan CFDA 14.135 (AAMHA KPTP, LLC HUD Project No. 115-35652) Type of Finding: Significant Deficiency Condition: The Company had surplus cash available for distribution of $28,824 at December 31, 2021. The Company made distributions of $45,294. At June 30, 2022, the Company had no available surplus cash and made distributions of $45,294. The Company made distributions in excess of surplus cash totaling $61,764. Criteria: The HUD regulatory agreement requires Management to calculate surplus cash at mid-year and year-end to determine the amount of surplus cash available per the regulatory agreement. Questioned amount: $61,764 Effect: The Company is in violation of the terms of the HUD Regulatory Agreement governing surplus cash distributions. Cause: Timing of surplus cash calculation and owner distributions. Repeat Finding: Yes Recommendation: 2022-002a: We recommend management review the Regulatory Agreement to ensure they are familiar with all the terms of the agreement. 2022-002b: At December 31, 2022, there was no available surplus cash. We recommend Alamo repay $61,764 to the Project?s operating account. Management?s View: Management is in agreement with the finding. Management has re-evaluated the current property management company due to the repeat finding and has plans to hire a new management company effective July 1, 2023. Auditor?s Comment: On March 28, 2023, Alamo repaid $61,764 to the Project. Finding 2022-002 Cleared.
Finding #2022-001: Section 223(a)(7) HUD Insured Loan, CFDA 14.135 (AAMHA Western Hills, LLC HUD Project No. 115-35888) and Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Cypress Cove, LLC HUD Project No. 115-11254 and AAMHA Calcasieu, LLC HUD Project No. 115-11280). Type of Finding: Significant deficiency. The security deposit liability account was greater than the security deposit asset account for three operating properties (AAMHA Western Hills, LLC, AAMHA Cypress Cove, LLC and AAMHA Calcasieu, LLC). See Section II for more information. Finding #2022-001: Section 223(a)(7) HUD Insured Loan, CFDA 14.135 (AAMHA Western Hills, LLC HUD Project No. 115-35888) and Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Cypress Cove, LLC HUD Project No. 115-11254 and AAMHA Calcasieu, LLC HUD Project No. 115-11280) Type of Finding: Significant Deficiency Condition: The security deposit liability account was greater than the security deposit asset account for three operating properties (AAMHA Western Hills, LLC, AAMHA Cypress Cove, LLC and AAMHA Calcasieu, LLC). Criteria: The HUD regulatory agreement requires the security deposit asset account exceed the security deposit liability account at all times. Questioned Costs: $65,358 Effect: The Company is in violation of the terms of the HUD Regulatory Agreement governing security deposits. Cause: Operating costs Repeat Finding: No (AAMHA Western Hills, LLC and AAMHA Cypress Cove, LLCYes (AAMHA Calcasieu, LLC) Recommendation: We recommend management review the Regulatory Agreement to ensure they are familiar with all the terms of the agreement. Management?s Comment: Management is in agreement with finding and will review Regulatory agreement. Management transferred the funds to cover the underfunding of the security deposit asset account for the operating property. Management has re-evaluated the property management company due to the underfunding of the security deposit account and has plans to hire a new management company effective July 1, 2023. Auditor?s Comment: On April 3, 2023, $15,079 was transferred to the security deposit asset account for AAMHA Western Hills, LLC. On March 20, 2023, $30,413 was transferred to the security deposit asset account for AAMHA Cypress Cove, LLC. On March 14, 2023, $19,866 was transferred to the security deposit asset account for AAMHA Calcasieu, LLC. Finding 2022-001 cleared
Finding #2022-001: Section 223(a)(7) HUD Insured Loan, CFDA 14.135 (AAMHA Western Hills, LLC HUD Project No. 115-35888) and Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Cypress Cove, LLC HUD Project No. 115-11254 and AAMHA Calcasieu, LLC HUD Project No. 115-11280). Type of Finding: Significant deficiency. The security deposit liability account was greater than the security deposit asset account for three operating properties (AAMHA Western Hills, LLC, AAMHA Cypress Cove, LLC and AAMHA Calcasieu, LLC). See Section II for more information. Finding #2022-001: Section 223(a)(7) HUD Insured Loan, CFDA 14.135 (AAMHA Western Hills, LLC HUD Project No. 115-35888) and Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Cypress Cove, LLC HUD Project No. 115-11254 and AAMHA Calcasieu, LLC HUD Project No. 115-11280) Type of Finding: Significant Deficiency Condition: The security deposit liability account was greater than the security deposit asset account for three operating properties (AAMHA Western Hills, LLC, AAMHA Cypress Cove, LLC and AAMHA Calcasieu, LLC). Criteria: The HUD regulatory agreement requires the security deposit asset account exceed the security deposit liability account at all times. Questioned Costs: $65,358 Effect: The Company is in violation of the terms of the HUD Regulatory Agreement governing security deposits. Cause: Operating costs Repeat Finding: No (AAMHA Western Hills, LLC and AAMHA Cypress Cove, LLCYes (AAMHA Calcasieu, LLC) Recommendation: We recommend management review the Regulatory Agreement to ensure they are familiar with all the terms of the agreement. Management?s Comment: Management is in agreement with finding and will review Regulatory agreement. Management transferred the funds to cover the underfunding of the security deposit asset account for the operating property. Management has re-evaluated the property management company due to the underfunding of the security deposit account and has plans to hire a new management company effective July 1, 2023. Auditor?s Comment: On April 3, 2023, $15,079 was transferred to the security deposit asset account for AAMHA Western Hills, LLC. On March 20, 2023, $30,413 was transferred to the security deposit asset account for AAMHA Cypress Cove, LLC. On March 14, 2023, $19,866 was transferred to the security deposit asset account for AAMHA Calcasieu, LLC. Finding 2022-001 cleared
Finding #2022-003: Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Babcock North, LP, HUD Project No. 115-11305). Type of Finding: Significant Deficiency. The Project receives Section 8 housing vouchers from San Antonio Housing Authority. Subsidies were received and deposited into a different project?s account totaling $45,629. See Section II for more information. Finding #2022-003: Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Babcock North, LP, HUD Project No. 115-11305) Type of Finding: Significant Deficiency Condition: The Project receives Section 8 housing vouchers from San Antonio Housing Authority. Subsidies were received and deposited into a different project?s account totaling $45,629. Criteria: The HUD regulatory agreement requires project cash receipts be deposited into the project?s bank account. Questioned Costs: $45,629 Effect: The Company is in violation of the compliance requirement of its major federal program. Cause: San Antonio Housing Authority subsidies were sent to the incorrect project?s account. Repeat Finding: No Recommendation: Management should monitor and reconcile the subsidies received to ensure funds are being deposited into the correct Project?s bank account. Management?s Comment: Management is in agreement with finding. Auditor?s Comment: Management will reconcile the cash receipts received monthly. On February 15, 2023, the Project received $45,629 from the affiliate property. CLEARED.
Finding #2022-001: Section 223(a)(7) HUD Insured Loan, CFDA 14.135 (AAMHA Western Hills, LLC HUD Project No. 115-35888) and Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Cypress Cove, LLC HUD Project No. 115-11254 and AAMHA Calcasieu, LLC HUD Project No. 115-11280). Type of Finding: Significant deficiency. The security deposit liability account was greater than the security deposit asset account for three operating properties (AAMHA Western Hills, LLC, AAMHA Cypress Cove, LLC and AAMHA Calcasieu, LLC). See Section II for more information. Finding #2022-001: Section 223(a)(7) HUD Insured Loan, CFDA 14.135 (AAMHA Western Hills, LLC HUD Project No. 115-35888) and Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Cypress Cove, LLC HUD Project No. 115-11254 and AAMHA Calcasieu, LLC HUD Project No. 115-11280) Type of Finding: Significant Deficiency Condition: The security deposit liability account was greater than the security deposit asset account for three operating properties (AAMHA Western Hills, LLC, AAMHA Cypress Cove, LLC and AAMHA Calcasieu, LLC). Criteria: The HUD regulatory agreement requires the security deposit asset account exceed the security deposit liability account at all times. Questioned Costs: $65,358 Effect: The Company is in violation of the terms of the HUD Regulatory Agreement governing security deposits. Cause: Operating costs Repeat Finding: No (AAMHA Western Hills, LLC and AAMHA Cypress Cove, LLCYes (AAMHA Calcasieu, LLC) Recommendation: We recommend management review the Regulatory Agreement to ensure they are familiar with all the terms of the agreement. Management?s Comment: Management is in agreement with finding and will review Regulatory agreement. Management transferred the funds to cover the underfunding of the security deposit asset account for the operating property. Management has re-evaluated the property management company due to the underfunding of the security deposit account and has plans to hire a new management company effective July 1, 2023. Auditor?s Comment: On April 3, 2023, $15,079 was transferred to the security deposit asset account for AAMHA Western Hills, LLC. On March 20, 2023, $30,413 was transferred to the security deposit asset account for AAMHA Cypress Cove, LLC. On March 14, 2023, $19,866 was transferred to the security deposit asset account for AAMHA Calcasieu, LLC. Finding 2022-001 cleared
Finding #2022-002: Section 223(a)(7) HUD Insured Loan CFDA 14.135 (AAMHA KPTP, LLC HUD Project No. 115-35652). Type of Finding: Significant Deficiency. The Company had surplus cash available for distribution of $28,824 at December 31, 2021. The Company made distributions of $45,294. At June 30, 2022, the Company had no available surplus cash and made distributions of $45,294. The Company made distributions in excess of surplus cash totaling $61,764. See Section II for more information. Finding #2022-002: Section 223(a)(7) HUD Insured Loan CFDA 14.135 (AAMHA KPTP, LLC HUD Project No. 115-35652) Type of Finding: Significant Deficiency Condition: The Company had surplus cash available for distribution of $28,824 at December 31, 2021. The Company made distributions of $45,294. At June 30, 2022, the Company had no available surplus cash and made distributions of $45,294. The Company made distributions in excess of surplus cash totaling $61,764. Criteria: The HUD regulatory agreement requires Management to calculate surplus cash at mid-year and year-end to determine the amount of surplus cash available per the regulatory agreement. Questioned amount: $61,764 Effect: The Company is in violation of the terms of the HUD Regulatory Agreement governing surplus cash distributions. Cause: Timing of surplus cash calculation and owner distributions. Repeat Finding: Yes Recommendation: 2022-002a: We recommend management review the Regulatory Agreement to ensure they are familiar with all the terms of the agreement. 2022-002b: At December 31, 2022, there was no available surplus cash. We recommend Alamo repay $61,764 to the Project?s operating account. Management?s View: Management is in agreement with the finding. Management has re-evaluated the current property management company due to the repeat finding and has plans to hire a new management company effective July 1, 2023. Auditor?s Comment: On March 28, 2023, Alamo repaid $61,764 to the Project. Finding 2022-002 Cleared.
Finding #2022-001: Section 223(a)(7) HUD Insured Loan, CFDA 14.135 (AAMHA Western Hills, LLC HUD Project No. 115-35888) and Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Cypress Cove, LLC HUD Project No. 115-11254 and AAMHA Calcasieu, LLC HUD Project No. 115-11280). Type of Finding: Significant deficiency. The security deposit liability account was greater than the security deposit asset account for three operating properties (AAMHA Western Hills, LLC, AAMHA Cypress Cove, LLC and AAMHA Calcasieu, LLC). See Section II for more information. Finding #2022-001: Section 223(a)(7) HUD Insured Loan, CFDA 14.135 (AAMHA Western Hills, LLC HUD Project No. 115-35888) and Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Cypress Cove, LLC HUD Project No. 115-11254 and AAMHA Calcasieu, LLC HUD Project No. 115-11280) Type of Finding: Significant Deficiency Condition: The security deposit liability account was greater than the security deposit asset account for three operating properties (AAMHA Western Hills, LLC, AAMHA Cypress Cove, LLC and AAMHA Calcasieu, LLC). Criteria: The HUD regulatory agreement requires the security deposit asset account exceed the security deposit liability account at all times. Questioned Costs: $65,358 Effect: The Company is in violation of the terms of the HUD Regulatory Agreement governing security deposits. Cause: Operating costs Repeat Finding: No (AAMHA Western Hills, LLC and AAMHA Cypress Cove, LLCYes (AAMHA Calcasieu, LLC) Recommendation: We recommend management review the Regulatory Agreement to ensure they are familiar with all the terms of the agreement. Management?s Comment: Management is in agreement with finding and will review Regulatory agreement. Management transferred the funds to cover the underfunding of the security deposit asset account for the operating property. Management has re-evaluated the property management company due to the underfunding of the security deposit account and has plans to hire a new management company effective July 1, 2023. Auditor?s Comment: On April 3, 2023, $15,079 was transferred to the security deposit asset account for AAMHA Western Hills, LLC. On March 20, 2023, $30,413 was transferred to the security deposit asset account for AAMHA Cypress Cove, LLC. On March 14, 2023, $19,866 was transferred to the security deposit asset account for AAMHA Calcasieu, LLC. Finding 2022-001 cleared
Finding #2022-001: Section 223(a)(7) HUD Insured Loan, CFDA 14.135 (AAMHA Western Hills, LLC HUD Project No. 115-35888) and Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Cypress Cove, LLC HUD Project No. 115-11254 and AAMHA Calcasieu, LLC HUD Project No. 115-11280). Type of Finding: Significant deficiency. The security deposit liability account was greater than the security deposit asset account for three operating properties (AAMHA Western Hills, LLC, AAMHA Cypress Cove, LLC and AAMHA Calcasieu, LLC). See Section II for more information. Finding #2022-001: Section 223(a)(7) HUD Insured Loan, CFDA 14.135 (AAMHA Western Hills, LLC HUD Project No. 115-35888) and Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Cypress Cove, LLC HUD Project No. 115-11254 and AAMHA Calcasieu, LLC HUD Project No. 115-11280) Type of Finding: Significant Deficiency Condition: The security deposit liability account was greater than the security deposit asset account for three operating properties (AAMHA Western Hills, LLC, AAMHA Cypress Cove, LLC and AAMHA Calcasieu, LLC). Criteria: The HUD regulatory agreement requires the security deposit asset account exceed the security deposit liability account at all times. Questioned Costs: $65,358 Effect: The Company is in violation of the terms of the HUD Regulatory Agreement governing security deposits. Cause: Operating costs Repeat Finding: No (AAMHA Western Hills, LLC and AAMHA Cypress Cove, LLCYes (AAMHA Calcasieu, LLC) Recommendation: We recommend management review the Regulatory Agreement to ensure they are familiar with all the terms of the agreement. Management?s Comment: Management is in agreement with finding and will review Regulatory agreement. Management transferred the funds to cover the underfunding of the security deposit asset account for the operating property. Management has re-evaluated the property management company due to the underfunding of the security deposit account and has plans to hire a new management company effective July 1, 2023. Auditor?s Comment: On April 3, 2023, $15,079 was transferred to the security deposit asset account for AAMHA Western Hills, LLC. On March 20, 2023, $30,413 was transferred to the security deposit asset account for AAMHA Cypress Cove, LLC. On March 14, 2023, $19,866 was transferred to the security deposit asset account for AAMHA Calcasieu, LLC. Finding 2022-001 cleared
Finding #2022-003: Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Babcock North, LP, HUD Project No. 115-11305). Type of Finding: Significant Deficiency. The Project receives Section 8 housing vouchers from San Antonio Housing Authority. Subsidies were received and deposited into a different project?s account totaling $45,629. See Section II for more information. Finding #2022-003: Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Babcock North, LP, HUD Project No. 115-11305) Type of Finding: Significant Deficiency Condition: The Project receives Section 8 housing vouchers from San Antonio Housing Authority. Subsidies were received and deposited into a different project?s account totaling $45,629. Criteria: The HUD regulatory agreement requires project cash receipts be deposited into the project?s bank account. Questioned Costs: $45,629 Effect: The Company is in violation of the compliance requirement of its major federal program. Cause: San Antonio Housing Authority subsidies were sent to the incorrect project?s account. Repeat Finding: No Recommendation: Management should monitor and reconcile the subsidies received to ensure funds are being deposited into the correct Project?s bank account. Management?s Comment: Management is in agreement with finding. Auditor?s Comment: Management will reconcile the cash receipts received monthly. On February 15, 2023, the Project received $45,629 from the affiliate property. CLEARED.
Finding #2022-001: Section 223(a)(7) HUD Insured Loan, CFDA 14.135 (AAMHA Western Hills, LLC HUD Project No. 115-35888) and Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Cypress Cove, LLC HUD Project No. 115-11254 and AAMHA Calcasieu, LLC HUD Project No. 115-11280). Type of Finding: Significant deficiency. The security deposit liability account was greater than the security deposit asset account for three operating properties (AAMHA Western Hills, LLC, AAMHA Cypress Cove, LLC and AAMHA Calcasieu, LLC). See Section II for more information. Finding #2022-001: Section 223(a)(7) HUD Insured Loan, CFDA 14.135 (AAMHA Western Hills, LLC HUD Project No. 115-35888) and Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Cypress Cove, LLC HUD Project No. 115-11254 and AAMHA Calcasieu, LLC HUD Project No. 115-11280) Type of Finding: Significant Deficiency Condition: The security deposit liability account was greater than the security deposit asset account for three operating properties (AAMHA Western Hills, LLC, AAMHA Cypress Cove, LLC and AAMHA Calcasieu, LLC). Criteria: The HUD regulatory agreement requires the security deposit asset account exceed the security deposit liability account at all times. Questioned Costs: $65,358 Effect: The Company is in violation of the terms of the HUD Regulatory Agreement governing security deposits. Cause: Operating costs Repeat Finding: No (AAMHA Western Hills, LLC and AAMHA Cypress Cove, LLCYes (AAMHA Calcasieu, LLC) Recommendation: We recommend management review the Regulatory Agreement to ensure they are familiar with all the terms of the agreement. Management?s Comment: Management is in agreement with finding and will review Regulatory agreement. Management transferred the funds to cover the underfunding of the security deposit asset account for the operating property. Management has re-evaluated the property management company due to the underfunding of the security deposit account and has plans to hire a new management company effective July 1, 2023. Auditor?s Comment: On April 3, 2023, $15,079 was transferred to the security deposit asset account for AAMHA Western Hills, LLC. On March 20, 2023, $30,413 was transferred to the security deposit asset account for AAMHA Cypress Cove, LLC. On March 14, 2023, $19,866 was transferred to the security deposit asset account for AAMHA Calcasieu, LLC. Finding 2022-001 cleared