FAC Explorer

Audit 399188

FY End
2025-12-31
Total Expended
$1.42M
Findings
1
Programs
1
Organization: Tomball Pines, Inc. (TX)
Year: 2025 Accepted: 2026-04-20
Auditor: PITTSFORD SAMUELS PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1208237 2025-001 Material Weakness Yes J

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $206,899 Yes 0

Contacts

Name Title Type
MXTUA39TMUK4 Steve Colella Auditee
2102201908 Nancy Mack Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal grant activity of Tomball Pines Apartments, FHA Project No. 114-HD006-NP-CMI, and is presented 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). Because the Schedule presents only a selected portion of the operations of Tomball Pines Apartments, it is not intended to and does not present the financial position, changes in net assets or cash flows of Tomball Pines Apartments.
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.
Tomball Pines Apartments has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The Project received a loan under HUD's Section 811 Capital Advance Program in a prior year. The loan balance at the beginning of the year, amounting to $1,216,500, is included in the schedule of expenditures of federal awards. The Project has received no additional funds during the year. The loan balance is reported as a long-term note payable in the statement of financial position.

Finding Details

Finding 2025-001
Findings reference number: 2025-001 - Title and AL Number of Federal Program: Supportive Housing for Persons with Disabilities (Section 811), AL 14.181 - Type of finding: Compliance - Resolution Status: In process - Population size: N/A - Sample size: N/A - Repeat finding: No. - Criteria: Per the HUD management fee schedule for owners and agents, the basic rate for management fees is $50 per unit per month (pupm). The Project qualifies for add-on fees of $8 pupm for having 16 to 30 units in property and $3 pupm for being a Sec 811 property with the total cap of management fees at $61 pupm. - Condition: Management fees for the year ended December 31, 2025 were paid in excess of the monthly pupm cap. - Cause: Management oversight. - Effect: Management miscalculated the management fees for the year ended December 31, 2025, and hence, fees were paid in excess of the cap by $4,183. A receivable was recorded for the overpaid management fees. - Noncompliance code: J. Unauthorized management fees. - Questioned costs: $4,183. - Reporting views of officials: Auditee agrees with the finding. - Contract Number: 114-HD006-NP-CMI - Context: This was noted while performing audit procedures on management fees during the audit. - Recommendation: Management should ensure that management fees are paid in accordance with HUD limits. - Auditors' summary of auditee's comments: They are in agreement. - Completion date: 12/31/26. - Response: Management plans to repay the overcharged fees as soon as possible.