FAC Explorer

Finding 60173 (2022-001)

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Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-01-11
Audit: 55766
Organization: Villas at Bayou Park Inc. (TX)
Auditor: Pittsford Samuels PLLC

AI Summary

  • Core Issue: The required report to HUD was not submitted on time due to a temporary suspension of accounting work.
  • Impacted Requirements: Timely filing of reports to HUD and the Federal Audit Clearinghouse is mandatory.
  • Recommended Follow-up: Management should establish procedures to ensure future reports are submitted on time.

Finding Text

Findings reference number: 2022-001 Title and CFDA Number of Federal Program: Section 811 Capital Advance, CFDA 14.181 Type of finding: Federal Award (Compliance) Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: No Criteria: Reports to HUD and the Federal Audit Clearinghouse must be filed on a timely basis. Condition: The electronic submission to REAC for the year ended August 31, 2021 was not filed by the due date. Cause: The year end accounting and auditing work was temporarily suspended due to lack of funds. Effect: The Project may be penalized for filing the report late. Noncompliance code: Z. Other. Questioned costs: N/A. Reporting views of officials: Auditee agrees with the finding. Contract Number: 114HD019 Context:The reports could not be filed in time due to the reasons stated above. Recommendation: Management should do everything possible to ensure reports are filed timely. Auditee's comments: Auditee agrees with the finding and has made efforts to provide all information needed for the audit and have the funds to pay for those services. In the future it will ensure that the REAC submissions are done timely. Auditors' summary of auditee's comments: They are in agreement. Completion date: 01/03/2022 Response: Management will implement proper procedures for timely reporting.

Corrective Action Plan

Audit Finding 2022-001: The electric submission to REAC for the year ended August 31, 2021 was not filed by the due date. Response: For the fiscal year ending 8/31/21, the year-end accounting and auditing work was temporarily suspended due to lack of funds, which resulted in the REAC being submitted late. For the fiscal year ending 8/31/22, the REAC was also submitted late. This was due to a change in board members coupled with the managing agent being hospitalized for a period of time before the submission was due. Management believes that these were extenuating circumstances and that the REAC submissions will be completed in a timely manner in the future. Responsible Party: Linda G. Holder Vice President/COO/Agent Houston Housing Management Corporation 2211 Norfolk, Suite 614 Houston, TX 77098

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.98M