FAC Explorer

Finding 42467 (2022-003)

Significant Deficiency
Requirement
C
Questioned Costs
$1
Year
2022
Accepted
2023-09-28
Audit: 39155
Organization: Alamo Area Mutual Housing Association (TX)
Auditor: M Group LLP

AI Summary

  • Core Issue: $45,629 in Section 8 housing voucher subsidies were incorrectly deposited into another project's account.
  • Impacted Requirements: This violates HUD's requirement that all project cash receipts must be deposited into the project's designated bank account.
  • Recommended Follow-Up: Management should regularly monitor and reconcile subsidy deposits to ensure compliance with the correct account procedures.

Finding Text

Finding #2022-003: Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Babcock North, LP, HUD Project No. 115-11305). Type of Finding: Significant Deficiency. The Project receives Section 8 housing vouchers from San Antonio Housing Authority. Subsidies were received and deposited into a different project?s account totaling $45,629. See Section II for more information. Finding #2022-003: Section 223(f) HUD Insured Loan, CFDA 14.155 (AAMHA Babcock North, LP, HUD Project No. 115-11305) Type of Finding: Significant Deficiency Condition: The Project receives Section 8 housing vouchers from San Antonio Housing Authority. Subsidies were received and deposited into a different project?s account totaling $45,629. Criteria: The HUD regulatory agreement requires project cash receipts be deposited into the project?s bank account. Questioned Costs: $45,629 Effect: The Company is in violation of the compliance requirement of its major federal program. Cause: San Antonio Housing Authority subsidies were sent to the incorrect project?s account. Repeat Finding: No Recommendation: Management should monitor and reconcile the subsidies received to ensure funds are being deposited into the correct Project?s bank account. Management?s Comment: Management is in agreement with finding. Auditor?s Comment: Management will reconcile the cash receipts received monthly. On February 15, 2023, the Project received $45,629 from the affiliate property. CLEARED.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: AAMHA Babcock North, L.P. HUD No. 115-11305 Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2022 Compliance Review C. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN FINDING 2022-003: Section 223(f) HUD Insured Loan, CFDA 14.155 CORRECTIVE ACTION COMPLETED: Management will monitor and reconcile the cash receipts received from San Antonio Housing Authority. On February 15, 2023, the Company received $45,629 from the affiliated property. Finding 2022-003 Cleared. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Any questions regarding the above corrective action plan should be directed to Brandi Vitier, Board Member.

Categories

Questioned Costs HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 42464 2022-002
    Significant Deficiency Repeat
  • 42465 2022-001
    Significant Deficiency
  • 42466 2022-001
    Significant Deficiency
  • 42468 2022-001
    Significant Deficiency Repeat
  • 618906 2022-002
    Significant Deficiency Repeat
  • 618907 2022-001
    Significant Deficiency
  • 618908 2022-001
    Significant Deficiency
  • 618909 2022-003
    Significant Deficiency
  • 618910 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.135 Mortgage Insurance_rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $6.90M
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.17M
14.239 Home Investment Partnerships Program $816,795
14.218 Community Development Block Grants/entitlement Grants $800,650
21.000 Capital and Expendable Grants $325,044
14.267 Continuum of Care Program $147,042
14.871 Section 8 Housing Choice Vouchers $18,942
21.019 Coronavirus Relief Fund $13,118