FAC Explorer

Finding 566005 (2024-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-24
Audit: 359651
Organization: Beaumont Senior Citizens Housing, Inc. (TX)
Auditor: M Group LLP

AI Summary

  • Core Issue: The Corporation lost its tax-exempt status due to not filing Form 990 for three years.
  • Impacted Requirements: This affects compliance with federal program regulations related to HUD financing.
  • Recommended Follow-Up: Ensure all necessary forms are filed to reinstate tax-exempt status and monitor compliance moving forward.

Finding Text

Section II – Financial Statement and Section III - Federal Award Finding Finding #2024-002: Section 8 Housing Assistance Payments Program, Assistance Listing: 14.195 and Mortgage Insurance Section 223(f) Insured Loan Assistance Listing: 14.155 Type of Finding: Material Weakness Condition: On November 15, 2023, the Corporation’s tax-exempt status was revoked due to failure to file federal tax return Form 990 for three consecutive years. Criteria: The nonprofit corporation financed the Project with the U.S. Department of Housing and Urban Development (HUD) pursuant to a mortgage note regulated by HUD. Effect: The Corporation is in violation of the compliance requirement of its major federal programs. Questioned Cost: $0 Cause: Federal tax return Form 990’s were not filed for three consecutive years. Recommendation: We recommend the Corporation file all necessary forms to reinstate the Corporations’ tax-exempt status. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: The Form 990’s for fiscal year 2021, 2022 and 2023 have been filed. The Corporation intends to apply for reinstatement of tax-exempt status.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: Beaumont Senior Citizens Housing, Inc. FHA/CONTRACT NO. 114-11227 Audit Firm: M Group, LLP Audit Period: The year ended June 30, 2024 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 #2024-002: Section 8 Housing Assistance Payments Program, Assistance Listing: 14.195 and Mortgage Insurance Section 223(f) Insured Loan, Assistance Listing: 14.155 CORRECTIVE ACTION TO BE COMPLETED: The Organization intends to apply for reinstatement of tax-exempt status. 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 of Arnold-Grounds Apartment Management & Affordable Housing Specialists, LLC.

Categories

HUD Housing Programs Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 566003 2024-001
    Significant Deficiency Repeat
  • 566004 2024-001
    Significant Deficiency Repeat
  • 566006 2024-002
    Material Weakness
  • 1142445 2024-001
    Significant Deficiency Repeat
  • 1142446 2024-001
    Significant Deficiency Repeat
  • 1142447 2024-002
    Material Weakness
  • 1142448 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.04M
14.195 Project-Based Rental Assistance (pbra) $794,432