FAC Explorer

Audit 44042

FY End
2022-09-30
Total Expended
$11.66M
Findings
2
Programs
1
Organization: Austin Bluff Apartments (TX)
Year: 2022 Accepted: 2023-01-08
Auditor: Carter & Company CPA LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47022 2022-001 - - P
623464 2022-001 - - P

Programs

ALN Program Spent Major Findings
14.135 Mortgage Insurance_rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $11.66M Yes 1

Contacts

Name Title Type
Y7KHSHL5DW43 Anne White Auditee
4694702702 Clara Fornella Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE A BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards includes the federal award activity of CantonProperties, Inc., d/b/a Austin Bluff Apartments and is presented on the accrual basis of accounting. The informationin this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of Canton Properties, Inc., d/b/aAustin Bluff Apartments it is not intended to and does not present the financial position, changes in net assets, orcash flows of Canton Properties, Inc., d/b/a Austin Bluff Apartments.NOTE B SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance, wherein certain types of expendituresare not allowable or are limited as to reimbursement. Canton Properties, Inc., d/b/a Austin Bluff Apartments haselected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.NOTE C U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT LOAN PROGRAMCanton Properties, Inc., d/b/a Austin Bluff Apartments has received a U.S. Department of Housing and UrbanDevelopment insured loan under Section 221(d)(3) of the National Housing Act. The loan balance outstanding atthe beginning of the year is included in the federal expenditures presented in the Schedule. Canton Properties, Inc.,d/b/a Austin Bluff Apartments received no additional loans during the year. The balance of the loan outstanding atSeptember 30, 2022 consists of:Outstanding BalanceCFDA Number Program Name at September 30, 202214.135 Mortgage Insurance Rental and Cooperative Housingfor Moderate Income Families and Elderly,Market Interest Rate $ 11,453,678 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE_RENTAL AND COOPERATIVE HOUSING FOR MODERATE INCOME FAMILIES AND ELDERLY, MARKET INTEREST RATE (14.135) - Balances outstanding at the end of the audit period were 11453678.

Finding Details

Finding 2022-001
S2700-005 Finding Reference Number 2022-01 S2700-006 Finding Resolution Status Unresolved S2700-007 Information on Universal Population Size N/A S2700-008 Sample Size Information N/A S2700-009 Noncompliance Information N/A S2700-010 Statement of Condition As of September 30, 2022 the Corporation failed to make the surplus cash deposit as required by the Regulatory Agreement to the Residual Receipts Reserve Account. S2700-020 Criteria Pursuant to the requirements of the Regulatory Agreement, the Corporation is required to comply with all HUD regulations and other requirements. Including but not limit to the requirement to conduct the "Computation of Surplus Cash, Distributions, and Residual Receipts," to determine amounts due to the Residual Receipts Reserve Account. S2700-030 Effect or Potential Effect The Corporation is not in compliance with the terms of the Regulatory Agreement. Failure to deposit amounts due to the Residual Receipts Reserve Account may negatively impact the Corporation's capital resources. S2700-040 Cause The Corporation failed to deposit funds due to the Residual Receipt Reserve Account. S2700-050 Recommendation The Corporation should deposit amounts due to the Residual Receipts Account within a timely manor of the audit report issuance date. S2700-055 Auditor Non-Compliance Code P. Investment of Residual Receipts S2700-065 Amount of Questioned Costs $112,033 S2700-100 Reporting Views of Responsible Officials Agrees S2700-070 Concur or Do Not Concur with this Finding Concurs S2700-075 Agree or Disagree with auditor recommendations Agrees S2700-080 Completion Date or Proposed Completion Date September 30, 2023 S2700-090 Actions Taken or Planned on the Finding The Corporation intends on complying with the requirements established by the Regulatory Agreement.
Finding 2022-001
S2700-005 Finding Reference Number 2022-01 S2700-006 Finding Resolution Status Unresolved S2700-007 Information on Universal Population Size N/A S2700-008 Sample Size Information N/A S2700-009 Noncompliance Information N/A S2700-010 Statement of Condition As of September 30, 2022 the Corporation failed to make the surplus cash deposit as required by the Regulatory Agreement to the Residual Receipts Reserve Account. S2700-020 Criteria Pursuant to the requirements of the Regulatory Agreement, the Corporation is required to comply with all HUD regulations and other requirements. Including but not limit to the requirement to conduct the "Computation of Surplus Cash, Distributions, and Residual Receipts," to determine amounts due to the Residual Receipts Reserve Account. S2700-030 Effect or Potential Effect The Corporation is not in compliance with the terms of the Regulatory Agreement. Failure to deposit amounts due to the Residual Receipts Reserve Account may negatively impact the Corporation's capital resources. S2700-040 Cause The Corporation failed to deposit funds due to the Residual Receipt Reserve Account. S2700-050 Recommendation The Corporation should deposit amounts due to the Residual Receipts Account within a timely manor of the audit report issuance date. S2700-055 Auditor Non-Compliance Code P. Investment of Residual Receipts S2700-065 Amount of Questioned Costs $112,033 S2700-100 Reporting Views of Responsible Officials Agrees S2700-070 Concur or Do Not Concur with this Finding Concurs S2700-075 Agree or Disagree with auditor recommendations Agrees S2700-080 Completion Date or Proposed Completion Date September 30, 2023 S2700-090 Actions Taken or Planned on the Finding The Corporation intends on complying with the requirements established by the Regulatory Agreement.