FAC Explorer

Finding 501483 (2023-004)

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Requirement
P
Questioned Costs
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Year
2023
Accepted
2024-10-01
Audit: 323539
Organization: Alamo Area Mutual Housing Association (TX)
Auditor: M Group LLP

AI Summary

  • Core Issue: The Company is not consistently following its own policies for federal awards, leading to lost revenue.
  • Impacted Requirements: Non-compliance with federal regulations under 2 CFR Part 200, specifically regarding monitoring and utilizing federal programs.
  • Recommended Follow-Up: Ensure adherence to written policies and conduct thorough reviews of all federal programs to strengthen internal controls.

Finding Text

Finding #2023-004: Inadequate internal controls over Federal Awards Type of Finding: Other Matter Condition: The Company is not consistently following the written policies and procedures over federal awards. The Company did not properly monitor the federal award programs available to the operating properties which resulted in lost revenue. Criteria: Written policies, procedures and standards of conduct required by 2 Code of Federal Regulations Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart D – Post Federal Award Requirements and Subpart E – Cost Principles are required. Questioned Costs: Unknown Effect: The Company is not in compliance with specific requirements of Uniform Guidance for non-profits. Federal programs were not utilized by the operating properties. Cause: The Company does not have an adequate internal control system in place to properly monitor and review the federal awards. Repeat Finding: No Recommendation: We recommend the Company adhere to the written policies, procedures and standards of conduct. We recommend all federal programs are closely reviewed. Management’s Comment: Management is in agreement with finding. Auditor’s Comment: Alamo is seeking training and support to improve internal controls and policies and procedures for oversight of federal awards. The Board of Directors is providing oversight and researching recommendations to ensure adequate internal controls are functioning. The Company is in the process of selecting a permanent Executive Director.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: Alamo Area Mutual Housing Association Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2023 Compliance Review A. 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 2023-004: The Company does not have effective internal controls or consistently follow the written policies and procedures over federal awards. CORRECTIVE ACTION: Alamo is seeking training and support to improve internal controls and policies and procedures for oversight of federal awards. 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 Christine Drennon, Executive Director.

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.135 Mortgage Insurance_rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $6.81M
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $4.32M
14.218 Community Development Block Grants/entitlement Grants $800,650
14.239 Home Investment Partnerships Program $770,331
21.011 Capital Magnet Fund $312,000
14.267 Continuum of Care Program $190,680