EIN: 030494708
UEI: V6K1ZX85HS97
Audited by: CohnReznick LLP
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on June 24, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by December 24, 2026 (117 days from today).
What is a management decision? →During the year ended September 30, 2024, the Project failed to make two required monthly deposits to the replacement reserve totaling $5,464. The required monthly deposit is $2,732. During the year ended September 30, 2025, the Project made a payment for one of the prior-year missed deposits but did not make the remaining prior-year missed deposit. Cause: The Project inadvertently deposited the funds into another entity's cash account. The other entity repaid the Project, however, the Project management did not remit the funds to the replacement reserve upon receipt. Effect or Potential Effect: Failure to make monthly payments resulted in an underfunding of the replacement reserve and a violation of the regulatory agreement. Questioned costs: $2,732 Context: The Project failed to make the required prior-year monthly deposits to the replacement reserve during the year ended September 30, 2025, resulting in an underfunding of $2,732. This represents a violation of the regulatory agreement. Identification as a Repeat Finding: Yes. See 2024-002 Recommendation: Management should implement procedures to ensure the funds are deposited into the correct account and to ensure that the replacement reserve is funded in accordance with the terms of the regulatory agreement. Auditor Noncompliance Code: N - Reserve for replacements deposits Finding Resolution Status: In Process. Reporting Views of Responsible Officials: North TX A/C refunded two months deposit of $5,464 to the property as of September 30, 2025. One month deposit was correctly deposited into the replacement reserve account, the second missed deposit was not deposited into the replacement reserve account.
Show full finding ▾Hide full finding ▴Finding 2025-001 - Special Tests and Provisions U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Supportive Housing for the Elderly Assistance Listing Number: 14.157 Criteria: The regulatory agreement requires that the project make monthly deposits to its replacement reserve. Condition: During the year ended September 30, 2024, the Project failed to make two required monthly deposits to the replacement reserve totaling $5,464. The required monthly deposit is $2,732. During the year ended September 30, 2025, the Project made a payment for one of the prior-year missed deposits but did not make the remaining prior-year missed deposit. Cause: The Project inadvertently deposited the funds into another entity's cash account. The other entity repaid the Project, however, the Project management did not remit the funds to the replacement reserve upon receipt. Effect or Potential Effect: Failure to make monthly payments resulted in an underfunding of the replacement reserve and a violation of the regulatory agreement. Questioned costs: $2,732 Context: The Project failed to make the required prior-year monthly deposits to the replacement reserve during the year ended September 30, 2025, resulting in an underfunding of $2,732. This represents a violation of the regulatory agreement. Identification as a Repeat Finding: Yes. See 2024-002 Recommendation: Management should implement procedures to ensure the funds are deposited into the correct account and to ensure that the replacement reserve is funded in accordance with the terms of the regulatory agreement. Auditor Noncompliance Code: N - Reserve for replacements deposits Finding Resolution Status: In Process. Reporting Views of Responsible Officials: North TX A/C refunded two months deposit of $5,464 to the property as of September 30, 2025. One month deposit was correctly deposited into the replacement reserve account, the second missed deposit was not deposited into the replacement reserve account.
Project Legal Name: Catherine Booth Friendship House Residence, Inc., A Texas Corporation HUD Project No.: 113-EE021 Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/24-9/30/25 Corrective Action Plan prepared by: Name: Philip Gesner Position: Financial Project Manager, USA Southern Territory Finance Department Telephone Number: 470-816-5977 A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2025-001 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to implement procedures to ensure the funds are deposited into the correct account and to ensure that the replacement reserve is funded in accordance with the terms of the regulatory agreement. b. Action(s) Taken or Planned on the Finding North TX A/C refunded two months deposit of $5,464 to the property as of September 30, 2025. One month deposit was correctly deposited into the replacement reserve account, the second missed deposit was not deposited into the replacement reserve account. We will correct the deposit and move to the replacement reserve account.
2024-002
During the year ended September 30, 2025, management withdrew $21,146 from the replacement reserve account without HUD approval. Cause: The amount was withdrawn from the replacement reserve account in error. Effect or Potential Effect: The withdrawal of $21,146 is an unauthorized withdrawal from the replacement reserve account. Questioned costs: $21,146 Context: During the year ended September 30, 2025, the Project did not provide documentation demonstrating HUD approval for a $21,146 withdrawal from the replacement reserve account. This unapproved withdrawal constitutes a violation of the Project's regulatory agreement. The staff member responsible for managing this process was on leave from beginning of January 2025 through beginning of March 2025. Identification as a Repeat Finding: No Recommendation: Management should immediately deposit $21,146 into the replacement reserve account or obtain evidence of HUD approval. Auditor Noncompliance Code: A - Unauthorized withdrawals from replacement reserve account Finding Resolution status: In process Reporting Views of Responsible Officials: Management acknowledges that two replacement reserve withdrawals dated February 14, 2025 were processed prior to obtaining HUD's written approval. This occurred due to a temporary lapse in oversight during a staff absence.
Show full finding ▾Hide full finding ▴Finding 2025-002 – Special Tests and Provisions U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Supportive Housing for the Elderly Assistance Listing Number: 14.157 Criteria: Any withdrawal from the replacement reserve account requires HUD approval. Condition: During the year ended September 30, 2025, management withdrew $21,146 from the replacement reserve account without HUD approval. Cause: The amount was withdrawn from the replacement reserve account in error. Effect or Potential Effect: The withdrawal of $21,146 is an unauthorized withdrawal from the replacement reserve account. Questioned costs: $21,146 Context: During the year ended September 30, 2025, the Project did not provide documentation demonstrating HUD approval for a $21,146 withdrawal from the replacement reserve account. This unapproved withdrawal constitutes a violation of the Project's regulatory agreement. The staff member responsible for managing this process was on leave from beginning of January 2025 through beginning of March 2025. Identification as a Repeat Finding: No Recommendation: Management should immediately deposit $21,146 into the replacement reserve account or obtain evidence of HUD approval. Auditor Noncompliance Code: A - Unauthorized withdrawals from replacement reserve account Finding Resolution status: In process Reporting Views of Responsible Officials: Management acknowledges that two replacement reserve withdrawals dated February 14, 2025 were processed prior to obtaining HUD's written approval. This occurred due to a temporary lapse in oversight during a staff absence.
2. Finding 2025-002 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to deposit $21,146 into the replacement reserve account or obtain evidence of HUD approval. b. Action(s) Taken or Planned on the Finding Management acknowledges that two replacement reserve withdrawals dated February 14, 2025 were processed prior to obtaining HUD's written approval. This occurred due to a temporary lapse in oversight during a staff absence. We will attempt to retroactively obtain HUD approval for the withdrawal.
The Single Audit was not submitted to the Federal Audit Clearinghouse (FAC) within nine months after the fiscal year end of the Company for the year ended September 30, 2024. Cause: Management does not have controls in place to timely file its financial statements with the FAC. Effect or Potential Effect: Management is not in compliance with the requirement to timely submit the Single Audit to the FAC. Questioned Costs: None Context: Management does not have a process in place to ensure that all audits are submitted to the FAC timely. Identification as a Repeat Finding: No Recommendation: Management should implement procedures to ensure that the financial statements are submitted to the FAC in accordance with the FAC filing requirements. Auditor Noncompliance Code: Z – Other Finding Resolution Status: Resolved Reporting Views of Responsible Officials: Management agrees with the finding and is taking steps to address the issue that caused it
Show full finding ▾Hide full finding ▴Finding 2025-003 - Reporting U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Supportive Housing for the Elderly Assistance Listing Number: 14.157 Criteria: The FAC requires that the annual financial statements be submitted the earlier of 30 days after the report date or nine months after the fiscal year end. Condition: The Single Audit was not submitted to the Federal Audit Clearinghouse (FAC) within nine months after the fiscal year end of the Company for the year ended September 30, 2024. Cause: Management does not have controls in place to timely file its financial statements with the FAC. Effect or Potential Effect: Management is not in compliance with the requirement to timely submit the Single Audit to the FAC. Questioned Costs: None Context: Management does not have a process in place to ensure that all audits are submitted to the FAC timely. Identification as a Repeat Finding: No Recommendation: Management should implement procedures to ensure that the financial statements are submitted to the FAC in accordance with the FAC filing requirements. Auditor Noncompliance Code: Z – Other Finding Resolution Status: Resolved Reporting Views of Responsible Officials: Management agrees with the finding and is taking steps to address the issue that caused it
3. Finding 2025-003 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to implement procedures to ensure that the financial statements are submitted to the FAC in accordance with the FAC filing requirements. b. Action(s) Taken or Planned on the Finding Management agrees with the finding and is taking steps to address the issue that caused it. Management was able to implement procedures to submit the 2025 audit within the 9-month period.
During the year ended September 30, 2025, shared costs paid on behalf of an adjacent property were not reimbursed by the other property in a timely manner. In addition, a related receivable of $783 from the other property has remained outstanding for an extended period. Cause: Procedures were not in place to ensure company policy was followed with respect to timely reimbursement for shared costs and related receivables. Effect or Potential Effect: The payments of $8,785 and related receivable of $783 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs: $9,568 Context: During the year ended September 30, 2025, shared costs paid on behalf of an adjacent property, were not reimbursed on a quarterly basis in accordance with company policy. In addition, the related receivable balance remains outstanding. Identification as a Repeat Finding: No Recommendation: Management should immediately reimburse the amount due to the project and establish procedures to ensure reimbursement for shared costs and related receivables are made timely in accordance with established policy. Auditor Noncompliance Code: G – Unauthorized Loans of Project Assets Finding Resolution status: In process Reporting Views of Responsible Officials: Management stated they were unaware of HUD's expectation for consistent reimbursement; however, HUD requires shared costs to be reimbursed on a regular basis, with monthly or quarterly reimbursement most observed. Management noted they will follow this going forward.
Show full finding ▾Hide full finding ▴Finding 2025-004 – Special Tests and Provisions U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Supportive Housing for the Elderly Assistance Listing Number: 14.157 Criteria: Loans are not permitted to be made from project cash without prior authorization from HUD. Statement of Condition: During the year ended September 30, 2025, shared costs paid on behalf of an adjacent property were not reimbursed by the other property in a timely manner. In addition, a related receivable of $783 from the other property has remained outstanding for an extended period. Cause: Procedures were not in place to ensure company policy was followed with respect to timely reimbursement for shared costs and related receivables. Effect or Potential Effect: The payments of $8,785 and related receivable of $783 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs: $9,568 Context: During the year ended September 30, 2025, shared costs paid on behalf of an adjacent property, were not reimbursed on a quarterly basis in accordance with company policy. In addition, the related receivable balance remains outstanding. Identification as a Repeat Finding: No Recommendation: Management should immediately reimburse the amount due to the project and establish procedures to ensure reimbursement for shared costs and related receivables are made timely in accordance with established policy. Auditor Noncompliance Code: G – Unauthorized Loans of Project Assets Finding Resolution status: In process Reporting Views of Responsible Officials: Management stated they were unaware of HUD's expectation for consistent reimbursement; however, HUD requires shared costs to be reimbursed on a regular basis, with monthly or quarterly reimbursement most observed. Management noted they will follow this going forward.
4. Finding 2025-004 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to reimburse the amount due to the project and establish procedures to ensure reimbursement for shared costs and related receivables are made timely in accordance with established policy. b. Action(s) Taken or Planned on the Finding We will implement procedures to ensure shared costs are reimbursed on a consistent and regular basis.
FAC accepted this audit on August 13, 2025 — management decision was due February 13, 2026.
Department of Housing and Urban Development Finding 2024-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria Management fee payments are limited to amounts determined in accordance with the terms of the management agreemen. Condition During the year ended September 30, 2024, the project paid management fees of $216 in excess of the amount approved by HUD. Cause Lack of management oversight caused management fees to be overpaid during the current year. Effect or Potential Effect The overpaid amount is an unauthorized distribution and therefore considered to be questioned costs. Questioned costs $216 Context The project paid $216 in management fees during the year ended September 30, 2024, exceeding the amount approved by HUD. This overpayment is considered an unauthorized distribution due to noncompliance with the management agreement terms and has been classified as a questioned cost. Identification as a Repeat Finding Not a repeat finding Recommendation The management company should reimburse the project for overpaid management fee in the amount of $216 and implement procedures to ensure that the management fee paid does not exceed the amount determined in accordance with the management agreement. Auditor Noncompliance Code: J - Unauthorized management fees Finding Resolution Status: In Process Reporting Views of Responsible Officials Management will repay the property and update our procedures to correctly calculate management fees.
Show full finding ▾Hide full finding ▴Department of Housing and Urban Development Finding 2024-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria Management fee payments are limited to amounts determined in accordance with the terms of the management agreemen. Condition During the year ended September 30, 2024, the project paid management fees of $216 in excess of the amount approved by HUD. Cause Lack of management oversight caused management fees to be overpaid during the current year. Effect or Potential Effect The overpaid amount is an unauthorized distribution and therefore considered to be questioned costs. Questioned costs $216 Context The project paid $216 in management fees during the year ended September 30, 2024, exceeding the amount approved by HUD. This overpayment is considered an unauthorized distribution due to noncompliance with the management agreement terms and has been classified as a questioned cost. Identification as a Repeat Finding Not a repeat finding Recommendation The management company should reimburse the project for overpaid management fee in the amount of $216 and implement procedures to ensure that the management fee paid does not exceed the amount determined in accordance with the management agreement. Auditor Noncompliance Code: J - Unauthorized management fees Finding Resolution Status: In Process Reporting Views of Responsible Officials Management will repay the property and update our procedures to correctly calculate management fees.
Project Legal Name: Catherine Booth Friendship House Residence, Inc., A Texas Corporation HUD Project No.: 113-EE021 Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/2023-9/30/2024 Corrective Action Plan prepared by: Name: Lee Auvinshine Position: Territorial Legal Director – General Counsel Telephone Number: 404-728-6700 The following is a recommended format to be followed by the auditee for preparing a corrective action plan: A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2024-001 a. Comments on the Finding and Each Recommendation Management agrees with the finding and is taking steps to address the issue that caused it. b. Action(s) Taken or Planned on the Finding Management will repay the property and update our procedures to correctly calculate management fees. The issue was due to a change in software.
Department of Housing and Urban Development Finding 2024-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve. Condition During the year ended September 30, 2024, the project did not make two required monthly deposits to the replacement reserve in the amount of $5,464. The project is required to make monthly deposits to the reserve in the amount of $2,732 per month. Cause The project inadvertently deposited the funds into another entity's cash account. Effect or Potential Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the regulatory agreement. Questioned costs $5,464 Context The project failed to make required monthly deposits to the replacement reserve during the year ended September 30, 2024, resulting in an underfunding of $5,464. This constitutes a violation of the regulatory agreement. Identification as a Repeat Finding Not a repeat finding Recommendation Management should implement procedures to ensure the funds are deposited into the correct account and to ensure that the replacement reserve is funded in accordance with the terms of the regulatory agreement. Auditor Noncompliance Code: N - Reserve for replacements deposits Finding Resolution Status: In Process Reporting Views of Responsible Officials North TX A/C refunded a one-month deposit of $2,732 to the property on September 30, 2024. They will repay the remaining one-month deposit of $2,732, and these funds will be correctly deposited into the replacement reserve account.
Show full finding ▾Hide full finding ▴Department of Housing and Urban Development Finding 2024-002 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria The regulatory agreement requires that the project make monthly deposits to its replacement reserve. Condition During the year ended September 30, 2024, the project did not make two required monthly deposits to the replacement reserve in the amount of $5,464. The project is required to make monthly deposits to the reserve in the amount of $2,732 per month. Cause The project inadvertently deposited the funds into another entity's cash account. Effect or Potential Effect Failure to make monthly payments resulted in an underfunding the replacement reserve and a violation of the regulatory agreement. Questioned costs $5,464 Context The project failed to make required monthly deposits to the replacement reserve during the year ended September 30, 2024, resulting in an underfunding of $5,464. This constitutes a violation of the regulatory agreement. Identification as a Repeat Finding Not a repeat finding Recommendation Management should implement procedures to ensure the funds are deposited into the correct account and to ensure that the replacement reserve is funded in accordance with the terms of the regulatory agreement. Auditor Noncompliance Code: N - Reserve for replacements deposits Finding Resolution Status: In Process Reporting Views of Responsible Officials North TX A/C refunded a one-month deposit of $2,732 to the property on September 30, 2024. They will repay the remaining one-month deposit of $2,732, and these funds will be correctly deposited into the replacement reserve account.
2. Finding 2024-002 a. Comments on the Finding and Each Recommendation Management agrees with the finding and is taking steps to address the issue that caused it. b. Action(s) Taken or Planned on the Finding North TX A/C refunded a one-month deposit of $2,732 to the property on September 30, 2024. They will repay the remaining one-month deposit of $2,732, and these funds will be correctly deposited into the replacement reserve account going forward.
Department of Housing and Urban Development Finding 2024-003 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria The terms of the regulatory agreement and HUD handbook 4370.2 require repayments of related party loans to be limited to available surplus cash computed on a semi-annual or annual basis unless approved by HUD. As the Organization is a nonprofit and does not receive surplus cash, HUD approval for repayment was required. Condition During the year ended September 30, 2023, the Organization repaid affiliate advances totaling $23,000 made during the year ended September 30, 2022 without HUD approval. The advances were made as a result of delays in receipt of PRAC funds used for operations. Cause Delays in receiving the PRAC renewal funds resulted in the affiliate lending funds to the property to fund operations. Upon final receipt of PRAC funds, the affiliate was repaid a portion of the advances made. Procedures were not in place to ensure that repayment of related party advances were approved by HUD. Effect or Potential Effect The repayment of $23,000 was technically an unauthorized distribution without HUD approval, and therefore considered to be a questioned cost. Questioned Costs $23,000 Context During the year ended September 30, 2023, the Organization repaid $23,000 in affiliate advances without obtaining required HUD approval. The advances were originally made to address delays in receiving PRAC funds for operational purposes. HUD approved repayment of $73,000 of the $96,000 advanced during fiscal year ended September 3, 2022. HUD has not indicated approval of the remaining $23,000. Identification as a Repeat Finding See prior year finding 2023-001 Recommendation Management should obtain HUD approval of repayment of these advances. In the future, management should request PRAC funding advances, if needed, from the replacement reserve or residual receipts reserve, or obtain HUD approval for repayment to Owner upon receipt of PRAC funds. Auditor Noncompliance Code: H - Unauthorized distribution of project assets Finding Resolution Status: In Process Reporting Views of Responsible Officials HUD approved the $75,000 repaid as a response to a 2022 finding. Management will seek evidence of HUD approval for the remaining $23,000 repaid.
Show full finding ▾Hide full finding ▴Department of Housing and Urban Development Finding 2024-003 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria The terms of the regulatory agreement and HUD handbook 4370.2 require repayments of related party loans to be limited to available surplus cash computed on a semi-annual or annual basis unless approved by HUD. As the Organization is a nonprofit and does not receive surplus cash, HUD approval for repayment was required. Condition During the year ended September 30, 2023, the Organization repaid affiliate advances totaling $23,000 made during the year ended September 30, 2022 without HUD approval. The advances were made as a result of delays in receipt of PRAC funds used for operations. Cause Delays in receiving the PRAC renewal funds resulted in the affiliate lending funds to the property to fund operations. Upon final receipt of PRAC funds, the affiliate was repaid a portion of the advances made. Procedures were not in place to ensure that repayment of related party advances were approved by HUD. Effect or Potential Effect The repayment of $23,000 was technically an unauthorized distribution without HUD approval, and therefore considered to be a questioned cost. Questioned Costs $23,000 Context During the year ended September 30, 2023, the Organization repaid $23,000 in affiliate advances without obtaining required HUD approval. The advances were originally made to address delays in receiving PRAC funds for operational purposes. HUD approved repayment of $73,000 of the $96,000 advanced during fiscal year ended September 3, 2022. HUD has not indicated approval of the remaining $23,000. Identification as a Repeat Finding See prior year finding 2023-001 Recommendation Management should obtain HUD approval of repayment of these advances. In the future, management should request PRAC funding advances, if needed, from the replacement reserve or residual receipts reserve, or obtain HUD approval for repayment to Owner upon receipt of PRAC funds. Auditor Noncompliance Code: H - Unauthorized distribution of project assets Finding Resolution Status: In Process Reporting Views of Responsible Officials HUD approved the $75,000 repaid as a response to a 2022 finding. Management will seek evidence of HUD approval for the remaining $23,000 repaid.
3. Finding 2024-003 a. Comments on the Finding and Each Recommendation Management agrees with the finding and is taking steps to address the issue that caused it. b. Action(s) Taken or Planned on the Finding 2 HUD approved the $75,000 repaid as a response to a 2022 finding. HUD has not reached out to management for repayment of the $23,000, however, management will seek evidence of HUD approval for the remaining $23,000 repaid.
2023-001
Department of Housing and Urban Development Finding 2024-004 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria The terms of regulatory agreement prohibit loans from project assets without HUD approval. Condition During the year ended September 30, 2024, cash intended for deposit into the replacement reserve account in the amount of $2,732 was deposited into another entity's bank account. Cause An administrative oversight in the deposit of receipts caused the amount to be deposited into an incorrect bank account. Effect or Potential Effect The project funds deposited to another entity's cash account are considered to be questioned costs. Questioned costs $2,732 Context During the year ended September 30, 2024, $2,732 in project funds was incorrectly deposited into another entity's bank account, contrary to the terms of the regulatory agreement. Identification as a Repeat Finding Not a repeat finding Recommendations 2024-4-a The project's replacement reserve account should be reimbursed for this amount. 2024-4-b The management company should implement procedures to ensure that cash intended for the project remain in the custody of the project. Auditor Noncompliance Code: G - Unauthorized loans from project assets Finding Resolution Status: In Process Reporting Views of Responsible Officials North TX A/C repaid one deposit on September 30, 2024 and will repay the remaining one-month deposit to the property. These funds will be correctly deposited into the replacement reserve account.
Show full finding ▾Hide full finding ▴Department of Housing and Urban Development Finding 2024-004 Section 202 Supportive Housing for the Elderly, AL 14.157 Criteria The terms of regulatory agreement prohibit loans from project assets without HUD approval. Condition During the year ended September 30, 2024, cash intended for deposit into the replacement reserve account in the amount of $2,732 was deposited into another entity's bank account. Cause An administrative oversight in the deposit of receipts caused the amount to be deposited into an incorrect bank account. Effect or Potential Effect The project funds deposited to another entity's cash account are considered to be questioned costs. Questioned costs $2,732 Context During the year ended September 30, 2024, $2,732 in project funds was incorrectly deposited into another entity's bank account, contrary to the terms of the regulatory agreement. Identification as a Repeat Finding Not a repeat finding Recommendations 2024-4-a The project's replacement reserve account should be reimbursed for this amount. 2024-4-b The management company should implement procedures to ensure that cash intended for the project remain in the custody of the project. Auditor Noncompliance Code: G - Unauthorized loans from project assets Finding Resolution Status: In Process Reporting Views of Responsible Officials North TX A/C repaid one deposit on September 30, 2024 and will repay the remaining one-month deposit to the property. These funds will be correctly deposited into the replacement reserve account.
4. Finding 2024-004 a. Comments on the Finding and Each Recommendation Management agrees with the finding and is taking steps to address the issue that caused it. b. Action(s) Taken or Planned on the Finding This is related to the deposit error in 2024-002. North TX A/C repaid one deposit on September 30, 2024 and will repay the remaining one-month deposit to the property. These funds will be correctly deposited into the replacement reserve account going forward. B. Status of Corrective Actions on Findings Reported in the Schedule of the Status of Prior Audit Findings, Questioned Costs and Recommendations 1. Finding 2023-001 In process. See finding 2024-003.
FAC accepted this audit on June 27, 2024 — management decision was due December 27, 2024.
Department of Housing and Urban Development Finding 2023-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the year ended September 30, 2023, the Organization repaid affiliate advances totaling $23,000 without HUD approval. The advances were made as a result of delays in receipt of PRAC funds used for operations. Criteria The terms of the HAP contract and HUD handbook 4370.2 require repayments of related party loans to be limited to available surplus cash computed on a semi-annual or annual basis unless approved by HUD. As the Organization is a nonprofit and does not receive surplus cash, HUD approval for repayment was required. Cause Delays in receiving the PRAC renewal funds resulted in the affiliate lending funds to the property to fund operations. Upon final receipt of PRAC funds, the affiliate was repaid a portion of the advances made. Procedures were not in place to ensure that repayment of related party advances were approved by HUD. Effect or Potential Effect The repayment of $23,000 was technically an unauthorized distribution without HUD approval, and therefore considered to be a questioned cost. Questioned Costs $23,000 Recommendation Management should obtain HUD approval of repayment of these advances. In the future, management should request PRAC funding advances, if needed, from the replacement reserve or residual receipts reserve, or obtain HUD approval for repayment to Owner upon receipt of PRAC funds. Auditor Noncompliance Code: H - Unauthorized distribution of project assets (REAC); N - Special Tests and Provisions (UG). Finding Resolution Status: In process. The remaining $23,000 advance was repaid to the affiliate North Texas Area Command on October 7, 2022. Approval of the $23,000 of unauthorized transfers is outstanding as of February 15, 2024. Management is planning to reach out to HUD for approval in the near future. Reporting Views of Responsible Officials The funds were a short-term advance to the property by the affiliate to fund operations, to enable management to continue to provide services to our elderly tenants and pay our staff while the property waited for the PRAC funds from HUD. These funds were not distributed to the officers or owners and the advances were not collateralized. In the future we will obtain HUD approval first, or we will request withdrawal from replacement reserves or residual receipts reserve.
Show full finding ▾Hide full finding ▴Department of Housing and Urban Development Finding 2023-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the year ended September 30, 2023, the Organization repaid affiliate advances totaling $23,000 without HUD approval. The advances were made as a result of delays in receipt of PRAC funds used for operations. Criteria The terms of the HAP contract and HUD handbook 4370.2 require repayments of related party loans to be limited to available surplus cash computed on a semi-annual or annual basis unless approved by HUD. As the Organization is a nonprofit and does not receive surplus cash, HUD approval for repayment was required. Cause Delays in receiving the PRAC renewal funds resulted in the affiliate lending funds to the property to fund operations. Upon final receipt of PRAC funds, the affiliate was repaid a portion of the advances made. Procedures were not in place to ensure that repayment of related party advances were approved by HUD. Effect or Potential Effect The repayment of $23,000 was technically an unauthorized distribution without HUD approval, and therefore considered to be a questioned cost. Questioned Costs $23,000 Recommendation Management should obtain HUD approval of repayment of these advances. In the future, management should request PRAC funding advances, if needed, from the replacement reserve or residual receipts reserve, or obtain HUD approval for repayment to Owner upon receipt of PRAC funds. Auditor Noncompliance Code: H - Unauthorized distribution of project assets (REAC); N - Special Tests and Provisions (UG). Finding Resolution Status: In process. The remaining $23,000 advance was repaid to the affiliate North Texas Area Command on October 7, 2022. Approval of the $23,000 of unauthorized transfers is outstanding as of February 15, 2024. Management is planning to reach out to HUD for approval in the near future. Reporting Views of Responsible Officials The funds were a short-term advance to the property by the affiliate to fund operations, to enable management to continue to provide services to our elderly tenants and pay our staff while the property waited for the PRAC funds from HUD. These funds were not distributed to the officers or owners and the advances were not collateralized. In the future we will obtain HUD approval first, or we will request withdrawal from replacement reserves or residual receipts reserve.
Project Legal Name: Catherine Booth Friendship House Residence, Inc., A Texas Corporation HUD Project No.: 113-EE021 Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/2022-9/30/2023 Corrective Action Plan prepared by: Name: Sriparna Mitra Position: HUD Specialist, THQ (Legal) Telephone Number: 404-728-6700 The following is a recommended format to be followed by the auditee for preparing a corrective action plan: A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2023-001 a. Comments on the Finding and Each Recommendation Management agrees with the finding and is taking steps to address the issue that caused it. b. Action(s) Taken or Planned on the Finding Management is reaching out to HUD for retroactive approval of the repayments and will implement procedures to ensure HUD approval is obtained in the future, if needed. B. Status of Corrective Actions on Findings Reported in the Schedule of the Status of Prior Audit Findings, Questioned Costs and Recommendations 1. Finding 2022-001 Resolved. See finding 2023-001
2022-001
FAC accepted this audit on February 27, 2023 — management decision was due August 27, 2023.
Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the year ended September 30, 2022, the Organization repaid affiliate advances totaling $73,000 without HUD approval. The advances were made as a result of delays in receipt of PRAC funds used for operations. Criteria The terms of the HAP contract and HUD handbook 4370.2 require repayments of related party loans to be limited to available surplus cash computed on a semi-annual or annual basis unless approved by HUD. As the Organization is a nonprofit and does not receive surplus cash, HUD approval for repayment was required. Cause Delays in receiving the PRAC renewal funds resulted in the affiliate lending funds to the property to fund operations. Upon final receipt of PRAC funds, the affiliate was repaid a portion of the advances made. Procedures were not in place to ensure that repayment of related party advances were approved by HUD. Effect or Potential Effect The repayment of $73,000 was technically an unauthorized distribution without HUD approval, and therefore considered to be a questioned cost. Questioned Costs $73,000 Recommendation Management should obtain HUD approval of repayment of these advances as well as repayment of the remaining $23,000 advances outstanding. In the future, management should request PRAC funding advances, if needed, from the replacement reserve or residual receipts reserve, or obtain HUD approval for repayment to Owner upon receipt of PRAC funds. Auditor Noncompliance Code: H - Unauthorized distribution of project assets (REAC); N - Special Tests and Provisions (UG). Finding Resolution Status: In process. The remaining $23,000 advance was repaid to the affiliate North Texas Area Command on October 7, 2022. Approval on all $96,000 of the unauthorized transfers is outstanding as of January 3, 2023. Management is planning to reach out to HUD for approval in the near future. Reporting Views of Responsible Officials The funds were a short-term advance to the property by the affiliate to fund operations, to enable management to continue to provide services to our elderly tenants and pay our staff while the property waited for the PRAC funds from HUD. These funds were not distributed to the officers or owners and the advances were not collateralized. In the future we will obtain HUD approval first, or we will request withdrawal from replacement reserves or residual receipts reserve.
Show full finding ▾Hide full finding ▴Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition During the year ended September 30, 2022, the Organization repaid affiliate advances totaling $73,000 without HUD approval. The advances were made as a result of delays in receipt of PRAC funds used for operations. Criteria The terms of the HAP contract and HUD handbook 4370.2 require repayments of related party loans to be limited to available surplus cash computed on a semi-annual or annual basis unless approved by HUD. As the Organization is a nonprofit and does not receive surplus cash, HUD approval for repayment was required. Cause Delays in receiving the PRAC renewal funds resulted in the affiliate lending funds to the property to fund operations. Upon final receipt of PRAC funds, the affiliate was repaid a portion of the advances made. Procedures were not in place to ensure that repayment of related party advances were approved by HUD. Effect or Potential Effect The repayment of $73,000 was technically an unauthorized distribution without HUD approval, and therefore considered to be a questioned cost. Questioned Costs $73,000 Recommendation Management should obtain HUD approval of repayment of these advances as well as repayment of the remaining $23,000 advances outstanding. In the future, management should request PRAC funding advances, if needed, from the replacement reserve or residual receipts reserve, or obtain HUD approval for repayment to Owner upon receipt of PRAC funds. Auditor Noncompliance Code: H - Unauthorized distribution of project assets (REAC); N - Special Tests and Provisions (UG). Finding Resolution Status: In process. The remaining $23,000 advance was repaid to the affiliate North Texas Area Command on October 7, 2022. Approval on all $96,000 of the unauthorized transfers is outstanding as of January 3, 2023. Management is planning to reach out to HUD for approval in the near future. Reporting Views of Responsible Officials The funds were a short-term advance to the property by the affiliate to fund operations, to enable management to continue to provide services to our elderly tenants and pay our staff while the property waited for the PRAC funds from HUD. These funds were not distributed to the officers or owners and the advances were not collateralized. In the future we will obtain HUD approval first, or we will request withdrawal from replacement reserves or residual receipts reserve.
Project Legal Name: Catherine Booth Friendship House Fort Worth, TX (A Project of Catherine Booth Friendship House Residence, Inc., A Texas Corporation) HUD Project No.: 113-EE021 Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/2021-9/30/2022 Corrective Action Plan prepared by: Name: Sriparna Mitra Position: HUD Specialist, THQ (Legal) Telephone Number: 404-728-6700 The following is a recommended format to be followed by the auditee for preparing a corrective action plan: A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2022-001 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation that management should obtain HUD approval of repayment of advances outstanding in the amount of $23,000 to cover PRAC shortfalls. In the future, management will request PRAC shortfall funding advances, if needed, from the replacement reserve or residual receipts reserve, or obtain HUD approval for repayment to Owner from operations upon receipt of PRAC funds. b. Action(s) Taken or Planned on the Finding In the future we will obtain HUD approval prior to repayment for advances to cover PRAC shortfall -funding, or we will request withdrawal from replacement reserves or residual receipts reserve. B. Status of Corrective Actions on Findings Reported in the Schedule of the Status of Prior Year Findings, Questioned Costs and Recommendations Finding 2021-001 Cleared. Finding 2022-001 Cleared.
FAC accepted this audit on June 27, 2022 — management decision was due December 27, 2022.
Department of Housing and Urban Development Finding 2021-001 Section 202 Capital Advance, CFDA 14.157 Statement of Condition During the year ended September 30, 2021, management withdrew $2,140 from the replacement reserve account without HUD approval. Criteria Any withdrawal from the replacement reserve account requires HUD approval. Effect The withdrawal of $2,140 is an unauthorized withdrawal from the replacement reserve account. Cause The amount was withdrawn from the replacement reserve account in error. Recommendation Management should immediately deposit $2,140 into the replacement reserve account. Auditor Noncompliance Code: A - Unauthorized withdrawals from replacement reserve account. Finding Resolution Status: Resolved Reporting Views of Responsible Officials Management agrees with the finding and replenished the replacement reserve account in full on June 16, 2022.
Show full finding ▾Hide full finding ▴Department of Housing and Urban Development Finding 2021-001 Section 202 Capital Advance, CFDA 14.157 Statement of Condition During the year ended September 30, 2021, management withdrew $2,140 from the replacement reserve account without HUD approval. Criteria Any withdrawal from the replacement reserve account requires HUD approval. Effect The withdrawal of $2,140 is an unauthorized withdrawal from the replacement reserve account. Cause The amount was withdrawn from the replacement reserve account in error. Recommendation Management should immediately deposit $2,140 into the replacement reserve account. Auditor Noncompliance Code: A - Unauthorized withdrawals from replacement reserve account. Finding Resolution Status: Resolved Reporting Views of Responsible Officials Management agrees with the finding and replenished the replacement reserve account in full on June 16, 2022.
Finding 2021-001 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation that management should immediately deposit $2,140 into the replacement reserve account. b. Action(s) Taken or Planned on the Finding Management replenished the account on June 16, 2022.
Department of Housing and Urban Development Finding 2021-002 Section 202 Capital Advance, CFDA 14.157 Statement of Condition The Single Audit was not submitted to the Federal Audit Clearinghouse (FAC) within nine months after the fiscal year end of the Company for the year ended September 30, 2020. Criteria The FAC requires that the annual financial statements be submitted the earlier of 30 days after the report date or nine months after the fiscal year end. Effect Management is not in compliance with the requirement to timely submit the Single Audit to the FAC. Cause Management does not have controls in place to timely file its financial statements with the FAC. Recommendation Management should implement procedures to ensure that the financial statements are submitted to the FAC in accordance with the FAC filing requirements. Auditor Noncompliance Code: L - Reporting (FAC), Z - Other (REAC) Finding Resolution Status: Resolved Reporting Views of Responsible Officials Management agrees with the finding and is taking steps to address the issue that caused it.
Show full finding ▾Hide full finding ▴Department of Housing and Urban Development Finding 2021-002 Section 202 Capital Advance, CFDA 14.157 Statement of Condition The Single Audit was not submitted to the Federal Audit Clearinghouse (FAC) within nine months after the fiscal year end of the Company for the year ended September 30, 2020. Criteria The FAC requires that the annual financial statements be submitted the earlier of 30 days after the report date or nine months after the fiscal year end. Effect Management is not in compliance with the requirement to timely submit the Single Audit to the FAC. Cause Management does not have controls in place to timely file its financial statements with the FAC. Recommendation Management should implement procedures to ensure that the financial statements are submitted to the FAC in accordance with the FAC filing requirements. Auditor Noncompliance Code: L - Reporting (FAC), Z - Other (REAC) Finding Resolution Status: Resolved Reporting Views of Responsible Officials Management agrees with the finding and is taking steps to address the issue that caused it.
Finding 2021-002 c. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to implement procedures to ensure that the financial statements are submitted to the FAC in accordance with the FAC filing requirements. d. Action(s) Taken or Planned on the Finding The filing was submitted and management has implemented procedures to ensure the 2021 audit was filed timely with the FAC.
FAC accepted this audit on May 3, 2022 — management decision was due November 3, 2022.
FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Department of Housing and Urban Development Finding 2020-001 Section 202 Capital Advance, CFDA 14.157 Statement of Condition The Project inadvertently paid operating costs for another property in the amount of $23,711 during the year ended September 30, 2020. Criteria The Project is required by regulatory agreement to pay expenses only associated with the operations of the Project. Cause Policies and procedures were not in place to ensure that allocated costs between adjoining properties are accurately reflected in the accounting records. Effect or Potential Effect Noncompliance with the HUD regulatory agreement could result in the loss of Section 202 capital advance program. Recommendation Management should establish policies and procedures to ensure that allocated expenses adjoining projects are accurately reflected in the accounting records. Auditor Noncompliance Code: G - Unauthorized Loans from Project Assets Finding Resolution Status: Pending Reporting Views of Responsible Officials Management agrees with the finding and is taking steps to address the issue that caused it.
Show full finding ▾Hide full finding ▴FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Department of Housing and Urban Development Finding 2020-001 Section 202 Capital Advance, CFDA 14.157 Statement of Condition The Project inadvertently paid operating costs for another property in the amount of $23,711 during the year ended September 30, 2020. Criteria The Project is required by regulatory agreement to pay expenses only associated with the operations of the Project. Cause Policies and procedures were not in place to ensure that allocated costs between adjoining properties are accurately reflected in the accounting records. Effect or Potential Effect Noncompliance with the HUD regulatory agreement could result in the loss of Section 202 capital advance program. Recommendation Management should establish policies and procedures to ensure that allocated expenses adjoining projects are accurately reflected in the accounting records. Auditor Noncompliance Code: G - Unauthorized Loans from Project Assets Finding Resolution Status: Pending Reporting Views of Responsible Officials Management agrees with the finding and is taking steps to address the issue that caused it.
A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2020-001 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding for inadvertently paying the operating costs on behalf of another property in the amount of $23,711, as a result of incorrect expense allocation. b. Action(s) Taken or Planned on the Finding Management will ensure the property is repaid and that controls will be put in place to ensure allocated expenses are correctly reflected in the accounting records.
FAC accepted this audit on June 7, 2020 — management decision was due December 7, 2020.
FAC accepted this audit on June 23, 2019 — management decision was due December 23, 2019.
GSA_MIGRATION
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GSA_MIGRATION
2017-001
FAC accepted this audit on July 17, 2018 — management decision was due January 17, 2019.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on May 15, 2017 — management decision was due November 15, 2017.
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