FAC Explorer

Audit 401816

FY End
2024-06-30
Total Expended
$1.37M
Findings
6
Programs
2
Organization: Friends Alliance Housing Ii,inc D/b/a Friendship House (LA)
Year: 2024 Accepted: 2026-05-20
Auditor: PACIERA GAUTREAU & PRIEST LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1215142 2024-001 Material Weakness Yes P
1215143 2024-002 Material Weakness Yes L
1215144 2024-003 Material Weakness Yes N
1215145 2024-004 Material Weakness Yes P
1215146 2024-005 Material Weakness Yes L
1215147 2024-006 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.28M Yes 6
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $87,213 Yes 0

Contacts

Name Title Type
S162WMWKU857 Brittany Colson Auditee
3343390089 Timothy Priest Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Friends Alliance Housing, II, Inc. d/b/a Friend~hip House HUD Project No. 064-HD074, 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 Part 200, Uniform Administrative Requirementsr Cost Principlesr and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Friends Alliance Housing, II, Inc. d/b/a Friendship House it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Friends Alliance Housing, II, Inc. d/b/a Friendship House.
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.
The Project has received a U.S. Department of Housing and Urban Development direct loan under Section 811. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received no additional loans during the year. The balance of the loan outstanding at June 30, 2024 consists of: AL Number 14.181 Program Name Supportive Housing for Persons with Disabilities (Section 811) Outstanding Loan Balance at June 30, 2024 $1,282,950
The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-001 Condition: The design of the Project's internal controls precludes certain segregation of duties and other designs of internal controls. Criteria: Proper design of the Project's internal controls to include segregation of duties and other designs of internal controls. Effect: The segregation of duties and other designs of internal controls are limited. Context: Proper design of the Project's internal controls to include segregation of duties and other designs of internal controls. Cause: The size of The Project's accounting and administrative staff precludes certain segregation of duties and other designs of internal controls that would be preferred if the office staff were larger. Recommendation: It is recommended that management and Project governance review their procedures and develop processes to address deficiencies in the segregation of duties and other designs of internal controls. Increased involvement of the Board of Directors in the financial affairs of the Project would provide oversight and independent review functions, thereby lessening the severity of the deficiencies. However, it does not eliminate them. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditor's recommendations will be adopted.
Finding 2024-002
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-002 Condition: The Project did not submit their financial information to H.U.D. by the required due date. Criteria: Submit the Project financial information by the required due date. Effect: REAC submission is late. Context: REAC submission should be submitted by the required due date. Cause: Procedures are in place to submit the required information by the required due date. However, the required information was not available for a timely submission. Recommendation: It is recommended that the management and the Project's governance review their procedures and begin the audit earlier to ensure the financial information is available for a timely submission. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditor's recommendations will be adopted.
Finding 2024-003
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-003 Condition: The property management failed to make the required monthly reserve deposits for the period of July 2023 to June 2024. Effect: Failure to make these deposits could jeopardize the financial health of the property and its ability to meet future maintenance needs. Cause: The failure was due to deficiencies in the internal controls within the management process related to the monthly deposits. Recommendation: It is recommended that the property management implement internal controls to ensure monthly reserve deposits are made as required by HUD Section 811 regulations. Views of Responsible Officials and Planned Corrective Actions: The property management agrees with the finding and has implemented a corrective action plan to ensure compliance going forward Criteria: According to HUD Section 811 regulations, properties must make monthly reserve deposits to ensure financial stability and ongoing maintenance.
Finding 2024-004
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-004 Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities See the details of this finding for segregation of duties and other designs of internal controls in 2024-001 above.
Finding 2024-005
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-005 Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities. See the details of this finding for the late REAC submission in 2024- 002 above.
Finding 2024-006
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-006 Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities. See the details of this finding for the failure to make the required monthly reserve deposits in 2024-003 above.