FAC Explorer

Finding 566002 (2023-003)

Significant Deficiency
Requirement
A
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 keep up-to-date vendor documents, like invoices and checks.
  • Impacted Requirements: There is a violation of regulations requiring proper documentation for disbursements.
  • Recommended Follow-Up: Management should reassess and enhance policies to ensure compliance with documentation standards.

Finding Text

Finding #2023-003: Section 8 Housing Assistance Payments Program, CFDA: 14.195 Condition: The Corporation did not maintain current documents in the vendor files, including invoices and cancelled checks. Criteria: The Corporation is required to maintain documentation in the vendor files including approved bills, invoices, or other supporting documents. Questioned Costs: $98,784 Effect: The Corporation is in violation of regulatory requirements governing disbursements. Cause: Management’s policies with respect to proper documentation of vendor files and cash disbursements were not consistently followed. Recommendation: Management should review its policies and monitoring procedures to ensure compliance. Management Views: Management concurs and agrees to review and monitor policies and procedures regarding tenant eligibility and related documentation.

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 #2023-003: 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: The Corporation will review and monitor documentation procedures to ensure compliance regarding cash disbursements. 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.

Categories

Questioned Costs HUD Housing Programs Subrecipient Monitoring Eligibility

Other Findings in this Audit

  • 565999 2023-001
    Material Weakness
  • 566000 2023-001
    Material Weakness
  • 566001 2023-002
    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