FAC Explorer

Audit 44111

FY End
2022-12-31
Total Expended
$1.32M
Findings
2
Programs
1
Organization: Blanco River Regional Recovery Team (TX)
Year: 2022 Accepted: 2023-09-18
Auditor: Randy Walker & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50450 2022-001 - - P
626892 2022-001 - - P

Programs

ALN Program Spent Major Findings
21.023 Emergency Rental Assistance Program $1.32M Yes 1

Contacts

Name Title Type
JN1FC18UP7B3 Elizabeth Wills Auditee
5126779701 Natalie Kuhn Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - GENERAL Accounting Policies: NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reflected on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or arelimited as to reimbursement. De Minimis Rate Used: N Rate Explanation: BR3T has elected not to use the 10 percent de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards presents expenditures for all federal assistance awards that were in effect for the year ended December 31, 2022 for Blanco River Regional Recovery Team (BR3T). BR3Ts reporting entity is described in Note 1 of the basic financial statements.
Title: NOTE 2 - BASIS OF PRESENTATION Accounting Policies: NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reflected on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or arelimited as to reimbursement. De Minimis Rate Used: N Rate Explanation: BR3T has elected not to use the 10 percent de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of BR3T 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. Because the schedule presents only a selected portion of the operations of BR3T, it is not intended to and does not present the financial position, changes in net assets, or cash flows of BR3T.
Title: NOTE 4 - OTHER DISCLOSURES Accounting Policies: NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESExpenditures reflected on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or arelimited as to reimbursement. De Minimis Rate Used: N Rate Explanation: BR3T has elected not to use the 10 percent de minimis indirect cost rate. There were no loans or loan guarantees outstanding at year end.BR3T has elected not to use the 10 percent de minimis indirect cost rate.BR3T did not disburse any federal awards to subrecipients for the year ended December 31, 2022.

Finding Details

Finding 2022-001
Current Year Finding - Major Federal Award Programs Audit 2022-001 ? Fraud Affecting Federal Program Federal Awarding Agency ? U.S. Department of the Treasury Pass-Through Entity ? Texas Department of Housing and Community Affairs Assistance Listing and Title ? 21.023 Emergency Rental Assistance Program Condition: Through an internal review, BR3T identified twenty cases where rental assistance payments were made for security deposits, utility deposits, and application fees based on fraudulent applications and false documentation submitted to BR3T by a contracted housing provider. For three of the cases, assistance payments amounted to $1,800 during the year ended December 31, 2022. For the remaining seventeen cases, assistance payments totaled $16,637.50 and were made in 2023. Criteria: Per 2 CRF section 200.516(a)(6), an auditor must report known or likely fraud affecting a federal program award. Effect: BR3T issued rental assistance payments to a housing provider based on fraudulent documentation. Cause of Condition: The housing provider supplied fraudulent documentation to BR3T in order to receive rental assistance payments. Recommendation: We recommend management terminate its relationship with the housing provider and return the federal funds to the grantor for the cases identified by BR3T. In addition, we recommend management enhance its procedures to verify and ensure that communication with clients is from a valid source. Management Response: Management accepts the finding and recommendation.
Finding 2022-001
Current Year Finding - Major Federal Award Programs Audit 2022-001 ? Fraud Affecting Federal Program Federal Awarding Agency ? U.S. Department of the Treasury Pass-Through Entity ? Texas Department of Housing and Community Affairs Assistance Listing and Title ? 21.023 Emergency Rental Assistance Program Condition: Through an internal review, BR3T identified twenty cases where rental assistance payments were made for security deposits, utility deposits, and application fees based on fraudulent applications and false documentation submitted to BR3T by a contracted housing provider. For three of the cases, assistance payments amounted to $1,800 during the year ended December 31, 2022. For the remaining seventeen cases, assistance payments totaled $16,637.50 and were made in 2023. Criteria: Per 2 CRF section 200.516(a)(6), an auditor must report known or likely fraud affecting a federal program award. Effect: BR3T issued rental assistance payments to a housing provider based on fraudulent documentation. Cause of Condition: The housing provider supplied fraudulent documentation to BR3T in order to receive rental assistance payments. Recommendation: We recommend management terminate its relationship with the housing provider and return the federal funds to the grantor for the cases identified by BR3T. In addition, we recommend management enhance its procedures to verify and ensure that communication with clients is from a valid source. Management Response: Management accepts the finding and recommendation.