Finding Text
Finding #2024-003: Passed through City of San Antonio Community Development Block Grant – Loan, Assistance Listing 14.218 Type of Finding: Material Weakness Condition: The Company has not paid May 2024 through August 2025 loan payments in accordance with the loan agreement. The Company is in arrears for 16 principal and interest payments as of the report date. The loan with the City of San Antonio is in default due to the payments in arrears. Criteria: The loan agreement was for monthly principal and interest of $3,796 to be paid monthly beginning November 1, 2014. Questioned cost: $60,736 in principal and interest payments not paid as of the report date. Effect: The Lender has placed the loan in default which could result in interest on the unpaid principal to (a) accrue interest at the highest nonusurious rate allowed by law until such default is cured, and (b) be immediately payable in addition to the entire remaining principal amount then owing. Cause: Management did not pay the monthly principal and interest payments. Repeat Finding: No Recommendation: We recommend that the Company pay all outstanding principal and interest to cure the loan default. Status: Alamo is working with City of San Antonio to make arrangements to pay the $60,736. The Lender did not add additional interest or penalties.