FAC Explorer

Audit 49448

FY End
2022-09-30
Total Expended
$8.93M
Findings
4
Programs
1
Organization: Evangeline Booth Friendship House Residence Inc., A Texas Corporation (TX)
Year: 2022 Accepted: 2023-02-27
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46547 2022-001 Material Weakness - N
46548 2022-001 Material Weakness - N
622989 2022-001 Material Weakness - N
622990 2022-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $8.49M Yes 1

Contacts

Name Title Type
DNAWL2H4FPE6 Major Philip Swyers Auditee
4047286700 Amy Blocker Auditor
No contacts on file

Notes to SEFA

Title: Note A - Basis of Presentation Accounting Policies: Note B - Summary of significant accounting policiesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, the cost principles contained in the UniformGuidance. Evangeline Booth Friendship House has elected not to use the 10-percent de minimisindirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Evangeline Booth Friendship House and is presented on the accrual basis of accounting. Theinformation in this schedule is presented in accordance with the requirements of Title 2 U.S. Codeof Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and AuditRequirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only aselected portion of the operations of Evangeline Booth Friendship House, it is not intended to anddoes not present the financial position, changes in net assets (deficit), or cash flows of EvangelineBooth Friendship House.
Title: Note C - U.S. Department of Housing and Urban Development capital advance p Accounting Policies: Note B - Summary of significant accounting policiesExpenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, the cost principles contained in the UniformGuidance. Evangeline Booth Friendship House has elected not to use the 10-percent de minimisindirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Evangeline Booth Friendship House has received a U.S. Department of Housing and UrbanDevelopment direct capital advance under Section 202 of the National Housing Act. The capitaladvance balance outstanding at the beginning of the year is included in the federal expenditurespresented in the Schedule. Evangeline Booth Friendship House received no additional capitaladvances or loans during the year. The balance of the capital advance outstanding at September30, 2022 consists of:AL Number Program NameOutstandingBalance atSeptember 30,202214.157 Section 202 Capital Advance $ 8 ,493,400

Finding Details

Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the year ended September 30, 2022, the Project paid expenses in the amount of $6,500 on behalf of an affiliate from project cash without HUD approval. The amount due to the Project as of September 30, 2022 is $6,500. Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Effect The payments of $6,500 were unauthorized loans and therefore considered to be questioned costs. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Recommendation Management should immediately reimburse the amount due to the Project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code: G. Unauthorized Loans (REAC); N. Special Tests and Provisions (UG) Finding Resolution Status: In process. As of January 10, 2023, the check request for the reimbursement to Evangeline Booth Friendship House has been approved. Reimbursement is anticipated in the near future. Reporting Views of Responsible Officials Management agrees with the finding and is taking steps to address the issue that caused it. The $6,500 will be repaid to the property.
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the year ended September 30, 2022, the Project paid expenses in the amount of $6,500 on behalf of an affiliate from project cash without HUD approval. The amount due to the Project as of September 30, 2022 is $6,500. Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Effect The payments of $6,500 were unauthorized loans and therefore considered to be questioned costs. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Recommendation Management should immediately reimburse the amount due to the Project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code: G. Unauthorized Loans (REAC); N. Special Tests and Provisions (UG) Finding Resolution Status: In process. As of January 10, 2023, the check request for the reimbursement to Evangeline Booth Friendship House has been approved. Reimbursement is anticipated in the near future. Reporting Views of Responsible Officials Management agrees with the finding and is taking steps to address the issue that caused it. The $6,500 will be repaid to the property.
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the year ended September 30, 2022, the Project paid expenses in the amount of $6,500 on behalf of an affiliate from project cash without HUD approval. The amount due to the Project as of September 30, 2022 is $6,500. Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Effect The payments of $6,500 were unauthorized loans and therefore considered to be questioned costs. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Recommendation Management should immediately reimburse the amount due to the Project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code: G. Unauthorized Loans (REAC); N. Special Tests and Provisions (UG) Finding Resolution Status: In process. As of January 10, 2023, the check request for the reimbursement to Evangeline Booth Friendship House has been approved. Reimbursement is anticipated in the near future. Reporting Views of Responsible Officials Management agrees with the finding and is taking steps to address the issue that caused it. The $6,500 will be repaid to the property.
Finding 2022-001
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the year ended September 30, 2022, the Project paid expenses in the amount of $6,500 on behalf of an affiliate from project cash without HUD approval. The amount due to the Project as of September 30, 2022 is $6,500. Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Effect The payments of $6,500 were unauthorized loans and therefore considered to be questioned costs. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Recommendation Management should immediately reimburse the amount due to the Project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code: G. Unauthorized Loans (REAC); N. Special Tests and Provisions (UG) Finding Resolution Status: In process. As of January 10, 2023, the check request for the reimbursement to Evangeline Booth Friendship House has been approved. Reimbursement is anticipated in the near future. Reporting Views of Responsible Officials Management agrees with the finding and is taking steps to address the issue that caused it. The $6,500 will be repaid to the property.