FAC Explorer

Audit 409179

FY End
2025-12-31
Total Expended
$30.81M
Findings
39
Programs
6
Organization: Alamo Area Mutual Housing Association (TX)
Year: 2025 Accepted: 2026-08-14
Auditor: M GROUP LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1226990 2025-001 Material Weakness Yes P
1226991 2025-001 Material Weakness Yes P
1226992 2025-001 Material Weakness Yes P
1226993 2025-001 Material Weakness Yes P
1226994 2025-001 Material Weakness Yes P
1226995 2025-001 Material Weakness Yes P
1226996 2025-001 Material Weakness Yes P
1226997 2025-001 Material Weakness Yes P
1226998 2025-001 Material Weakness Yes P
1226999 2025-001 Material Weakness Yes P
1227000 2025-001 Material Weakness Yes P
1227001 2025-001 Material Weakness Yes P
1227002 2025-001 Material Weakness Yes P
1227003 2025-002 Material Weakness Yes P
1227004 2025-002 Material Weakness Yes P
1227005 2025-002 Material Weakness Yes P
1227006 2025-002 Material Weakness Yes P
1227007 2025-002 Material Weakness Yes P
1227008 2025-002 Material Weakness Yes P
1227009 2025-002 Material Weakness Yes P
1227010 2025-002 Material Weakness Yes P
1227011 2025-002 Material Weakness Yes P
1227012 2025-002 Material Weakness Yes P
1227013 2025-002 Material Weakness Yes P
1227014 2025-002 Material Weakness Yes P
1227015 2025-002 Material Weakness Yes P
1227016 2025-003 Material Weakness Yes B
1227017 2025-003 Material Weakness Yes B
1227018 2025-003 Material Weakness Yes B
1227019 2025-003 Material Weakness Yes B
1227020 2025-003 Material Weakness Yes B
1227021 2025-003 Material Weakness Yes B
1227022 2025-003 Material Weakness Yes B
1227023 2025-003 Material Weakness Yes B
1227024 2025-003 Material Weakness Yes B
1227025 2025-003 Material Weakness Yes B
1227026 2025-003 Material Weakness Yes B
1227027 2025-003 Material Weakness Yes B
1227028 2025-003 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 $5.59M Yes 3
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $4.16M Yes 3
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $800,650 Yes 3
14.267 CONTINUUM OF CARE PROGRAM $164,027 Yes 0
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $46,734 Yes 3
14.252 SECTION 4 CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE HOUSING $10,000 Yes 0

Contacts

Name Title Type
QQ3MM48K4863 Jaclyn S. Woodring Auditee
2107318030 Elizabeth Armas 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. ACG had the following federal loan balances outstanding at December 31, 2025: Assistance Listing Number 14.239; Subrecipient of Meadows at Bentley; Program Title of Home Investment Partnerships –“Home Program”; Outstanding Balance at December 31, 2025 of $191,892. Assistance Listing Number 14.218; Subrecipient of Thompson; Program Title of Community Development Block Grant – Deferred Loan; Outstanding Balance at December 31, 2025 of $604,488. Assistance Listing Number 14.239; Subrecipient of Babcock North II; Program Title of Home Investment Partnerships –“Home Program”; Outstanding Balance at December 31, 2025 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, 2025 of $86,519. Assistance Listing Number 14.239; Subrecipient of Meadows at Bentley; Program Title of Home Investment Partnerships –“Home Program”; Outstanding Balance at December 31, 2025 of $340,107. Assistance Listing Number 14.239; Subrecipient of Western Hills; Program Title of Home Investment Partnerships –“Home Program”; Outstanding Balance at December 31, 2025 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, 2025 of $2,756,406. Assistance Listing Number 14.135; Subrecipient of Western Hills; Program Title of HUD Guaranteed Mortgage - Section 221(d)(4); Outstanding Balance at December 31, 2025 of $6,521,905. Assistance Listing Number 14.155; Subrecipient of Cypress Cove; Program Title of HUD Guaranteed Mortgage - Section 223(f); Outstanding Balance at December 31, 2025 of $5,188,378. Assistance Listing Number 14.218; Subrecipient of Calcasieu; Program Title of Community Development Block Grant - Deferred Loan; Outstanding Balance at December 31, 2025 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, 2025 of $2,912,857. Assistance Listing Number 14.155; Subrecipient of Babcock North II; Program Title of HUD Guaranteed Mortgage - Section 223(f); Outstanding Balance at December 31, 2025 of $4,084,666. Assistance Listing Number 14.135; Subrecipient of Bentley; Program Title of HUD Guaranteed Mortgage - Section 223(a)(7); Outstanding Balance at December 31, 2025 of $5,453,968.

Finding Details

Finding 2025-001
Finding #2025-001: 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 $2,075,072. 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: ACG plan to transition the operating properties to a new management company during 2026.
Finding 2025-002
Finding #2024-004: Inadequate internal controls over Federal Awards Finding #2025-002: Inadequate internal controls for ACG 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 ACG 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: Prospera has begun implementing new policies and procedures. Effective January 1, 2026, Prospera has control over ACG and plans to continue to improve the internal control procedures.
Finding 2025-003
Finding #2025-003: 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: Effective January 1, 2026, Prospera has control over ACG and plans to improve the internal control procedures and monitor the federal awards.