FAC Explorer

Finding 566001 (2023-002)

Significant Deficiency
Requirement
C
Questioned Costs
$1
Year
2023
Accepted
2025-06-24
Audit: 359650
Organization: Beaumont Senior Citizens Housing, Inc. (TX)
Auditor: M Group LLP

AI Summary

  • Core Issue: The Corporation failed to make the June mortgage payment on time.
  • Impacted Requirements: This violates HUD's regulatory agreement for timely payments under the mortgage agreement.
  • Recommended Follow-Up: Monitor cash flow closely and establish procedures to ensure future mortgage payments are made on time.

Finding Text

Finding #2023-002: Section 8 Housing Assistance Payments Program, CFDA: 14.195 and Mortgage Insurance Section 223(f) Insured Loan CFDA: 14.195 Condition: The June mortgage payment was not made in a timely matter. Criteria: The HUD regulatory agreement requires the Corporation to promptly make all payments due under the mortgage agreement. Effect: The Corporation is in violation of the compliance requirement of its major federal program. Questioned Cost: $32,376 Cause: Insufficient cash flow Recommendation: We recommend the Corporation monitor cash flow and implement procedures for assuring payment of the mortgage by the due dates. Auditor’s Comment: CLEARED: The mortgage payment due on June 1, 2023 was made on July 1, 2023.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name of the Project: Baten Arms Apartments FHA/CONTACT NO. 114-11227 Audit Firm: M Group, LLP Audit Period: The year ended June 30, 2023 Compliance Review 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 #2023-002: Section 8 Housing Assistance Payments Program, CFDA: 14.195 and Mortgage Insurance Section 223(f) Insured Loan, CFDA: 14.155 CORRECTIVE ACTION TO BE COMPLETED: None. The June 2023 mortgage payment was made July 1, 2023. 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 Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Mr. Stewart Grounds, Chief Financial Officer.

Categories

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

Other Findings in this Audit

  • 565999 2023-001
    Material Weakness
  • 566000 2023-001
    Material Weakness
  • 566002 2023-003
    Significant Deficiency
  • 1142441 2023-001
    Material Weakness
  • 1142442 2023-001
    Material Weakness
  • 1142443 2023-002
    Significant Deficiency
  • 1142444 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.16M
14.195 Project-Based Rental Assistance (pbra) $539,511