FAC Explorer

Audit 6082

FY End
2023-08-31
Total Expended
$3.63M
Findings
4
Programs
2
Organization: Texas State Affordable Housing Corporation (TX)
Year: 2023 Accepted: 2023-12-11
Auditor: Maxwell Locke & Ritter LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3859 2023-001 - - J
3860 2023-001 - - J
580301 2023-001 - - J
580302 2023-001 - - J

Programs

ALN Program Spent Major Findings
93.791 Money Follows the Person Rebalancing Demonstration $35,382 - 0
21.011 Capital Magnet Fund $32,438 Yes 1

Contacts

Name Title Type
D3ZGKY8GBJT6 Melinda Smith Auditee
5129041399 Jimmy Romell Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Basis of Accounting The Schedule includes the federal and state activity of the Corporation and is presented on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and TxGMS, where certain types of expenditures are not allowed or are limited as to reimbursement. Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the financial statements. The Corporation has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Included in the Schedule are balances at August 31, 2023 of loans from the Capital Magnet Fund for the construction and remodeling of affordable low income housing projects. Uniform Guidance requires that the Schedule include the total amount of federal awards expended for loan or loan guarantee programs which include the value of new loans made or received during the year plus the beginning of the period balance of loans from previous years for which the federal government imposes continuing compliance requirements. The Capital Magnet Fund had a total loan balance of $3,562,500 as of August 31, 2023. De Minimis Rate Used: N Rate Explanation: The Corporation has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Federal Program: Capital Magnet Fund (CMF) – Assistance Listing #21.011 - Award #181CM050456; Passed through the Community Development Financial Institutions. Criteria: Pursuant to the terms of the grant agreement and in accordance with compliance requirements of Uniform Guidance, program income in the form of principal and equity repayments of the CMF Award earned during the Investment Period must be reinvested by the Corporation. The program income must be committed within twelve months of the end of the Corporation’s fiscal year in which the Corporation received the program income. Condition /Context: As of August 31, 2023, the Corporation had not fully committed the program income that was received within the prior fiscal year. Questioned Costs: None Effect: Noncompliance with the Program Income requirements under Uniform Guidance. Cause: In order for the Corporation to commit funds with developers, the development projects much meet specific CMF grant qualifications. The Corporation was not able to fully commit the program income funds by the deadline, as the Corporation was still locating development projects that met all the CMF grant qualifications. Recommendations: The Corporation should obtain an extension on the program income deadline from the granting agency, if possible, when the Corporation is unable to commit to development projects due to timing and CMF grant requirements. Views of Responsible Officials and Planned Corrective Actions: See Schedule of Corrective Action Plan
Finding 2023-001
Federal Program: Capital Magnet Fund (CMF) – Assistance Listing #21.011 - Award #181CM050456; Passed through the Community Development Financial Institutions. Criteria: Pursuant to the terms of the grant agreement and in accordance with compliance requirements of Uniform Guidance, program income in the form of principal and equity repayments of the CMF Award earned during the Investment Period must be reinvested by the Corporation. The program income must be committed within twelve months of the end of the Corporation’s fiscal year in which the Corporation received the program income. Condition /Context: As of August 31, 2023, the Corporation had not fully committed the program income that was received within the prior fiscal year. Questioned Costs: None Effect: Noncompliance with the Program Income requirements under Uniform Guidance. Cause: In order for the Corporation to commit funds with developers, the development projects much meet specific CMF grant qualifications. The Corporation was not able to fully commit the program income funds by the deadline, as the Corporation was still locating development projects that met all the CMF grant qualifications. Recommendations: The Corporation should obtain an extension on the program income deadline from the granting agency, if possible, when the Corporation is unable to commit to development projects due to timing and CMF grant requirements. Views of Responsible Officials and Planned Corrective Actions: See Schedule of Corrective Action Plan
Finding 2023-001
Federal Program: Capital Magnet Fund (CMF) – Assistance Listing #21.011 - Award #181CM050456; Passed through the Community Development Financial Institutions. Criteria: Pursuant to the terms of the grant agreement and in accordance with compliance requirements of Uniform Guidance, program income in the form of principal and equity repayments of the CMF Award earned during the Investment Period must be reinvested by the Corporation. The program income must be committed within twelve months of the end of the Corporation’s fiscal year in which the Corporation received the program income. Condition /Context: As of August 31, 2023, the Corporation had not fully committed the program income that was received within the prior fiscal year. Questioned Costs: None Effect: Noncompliance with the Program Income requirements under Uniform Guidance. Cause: In order for the Corporation to commit funds with developers, the development projects much meet specific CMF grant qualifications. The Corporation was not able to fully commit the program income funds by the deadline, as the Corporation was still locating development projects that met all the CMF grant qualifications. Recommendations: The Corporation should obtain an extension on the program income deadline from the granting agency, if possible, when the Corporation is unable to commit to development projects due to timing and CMF grant requirements. Views of Responsible Officials and Planned Corrective Actions: See Schedule of Corrective Action Plan
Finding 2023-001
Federal Program: Capital Magnet Fund (CMF) – Assistance Listing #21.011 - Award #181CM050456; Passed through the Community Development Financial Institutions. Criteria: Pursuant to the terms of the grant agreement and in accordance with compliance requirements of Uniform Guidance, program income in the form of principal and equity repayments of the CMF Award earned during the Investment Period must be reinvested by the Corporation. The program income must be committed within twelve months of the end of the Corporation’s fiscal year in which the Corporation received the program income. Condition /Context: As of August 31, 2023, the Corporation had not fully committed the program income that was received within the prior fiscal year. Questioned Costs: None Effect: Noncompliance with the Program Income requirements under Uniform Guidance. Cause: In order for the Corporation to commit funds with developers, the development projects much meet specific CMF grant qualifications. The Corporation was not able to fully commit the program income funds by the deadline, as the Corporation was still locating development projects that met all the CMF grant qualifications. Recommendations: The Corporation should obtain an extension on the program income deadline from the granting agency, if possible, when the Corporation is unable to commit to development projects due to timing and CMF grant requirements. Views of Responsible Officials and Planned Corrective Actions: See Schedule of Corrective Action Plan