EIN: 261782425
UEI: TVHBLXMXBKL8
Audited by: Handwerger Cardegna Funkhouser and Lurman, P.A.
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 January 24, 2024. 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 July 24, 2024 (766 days ago).
What is a management decision? →Project funds were used to pay a related party. The related party, in turn, paid the operating expenses of the Project. Cause: For ease of administration, common vendors were paid by the related party. Effect: The payments made to the related party could be disallowed. Auditor Non-Compliance Code: H - Unauthorized distribution of project assets. Questioned Costs: $43,938. Reporting View of Responsible Oficials: The Organization agrees with the finding. The auditor's recommendations, as well as the local HUD field office's recommendations, are in the process of being implemented. Context: Review of the detail in the account provided evidence that project funds were paid to the related party. Personnel were forthcoming with this practice and are in the process of correcting this finding. Recommendation: In conjuction with the Organization's local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, the Organizationi should pay the invoice amount on a monthly basis.
Show full finding ▾Hide full finding ▴Statement of Condition: Project funds were used to pay a related party. The related party, in turn, paid the operating expenses of the Project. Cause: For ease of administration, common vendors were paid by the related party. Effect: The payments made to the related party could be disallowed. Auditor Non-Compliance Code: H - Unauthorized distribution of project assets. Questioned Costs: $43,938. Reporting View of Responsible Oficials: The Organization agrees with the finding. The auditor's recommendations, as well as the local HUD field office's recommendations, are in the process of being implemented. Context: Review of the detail in the account provided evidence that project funds were paid to the related party. Personnel were forthcoming with this practice and are in the process of correcting this finding. Recommendation: In conjuction with the Organization's local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, the Organizationi should pay the invoice amount on a monthly basis.
Recommendation: In conjunction with Pono Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Pono Homes, Inc. should pay the invoice amount on a monthly basis.Action Taken: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties agreed with the recommendation to avoid unauthorized distributions.
2022-001
Residual receipts balance is over the calculated compliance amount. Cause: The prior years surplus cash amount was deposited into the residual receipts account. However, approval was not requested to pay back excess residual receipts. Effect: Residual receipts balance is over the compliance amount. Auditor Non-Compliance Code: Z. Questioned Costs: $20,259. Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. Context: Review of the residual receipts activity showed that the client had deposited surplus cash money into the account; however, approval was never sought to pay back excess residual receipts. Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements.
Show full finding ▾Hide full finding ▴Statement of Condition: Residual receipts balance is over the calculated compliance amount. Cause: The prior years surplus cash amount was deposited into the residual receipts account. However, approval was not requested to pay back excess residual receipts. Effect: Residual receipts balance is over the compliance amount. Auditor Non-Compliance Code: Z. Questioned Costs: $20,259. Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. Context: Review of the residual receipts activity showed that the client had deposited surplus cash money into the account; however, approval was never sought to pay back excess residual receipts. Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements.
Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements. Action Taken: The Organization did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to pay back excess residual receipts.
2022-002
Tenant files after October 2022 were missing Form 50059. Cause: The Organization lost access to the federal form writing software and there was a delay getting it corrected due to a change in staffing. Effect: Potential miscalculation of tenant eligibility. Audito Non-Compliance Code: Z. Questioned Costs: $0. Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. Context: Review of the tenant files provided evidence that the Form 50059 reports were not being printed and stored in tenant files. Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all the tenant file compliance requirements.
Show full finding ▾Hide full finding ▴Statement of Condition: Tenant files after October 2022 were missing Form 50059. Cause: The Organization lost access to the federal form writing software and there was a delay getting it corrected due to a change in staffing. Effect: Potential miscalculation of tenant eligibility. Audito Non-Compliance Code: Z. Questioned Costs: $0. Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. Context: Review of the tenant files provided evidence that the Form 50059 reports were not being printed and stored in tenant files. Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all the tenant file compliance requirements.
Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all the tenant file compliance requirements. Action Taken: The Organization did not retain all required information in the tenant file. Going forward the Organization will retain all tenant file information and will review its current tenant files.
FAC accepted this audit on October 16, 2022 — management decision was due April 16, 2023.
Project funds were used to pay a related party. The related party, in turn, paid the operating expenses of the Project. S3800-032 Cause: For ease of administration, common vendors were paid by the related party. S3800-033 Effect: The payments made to the related party could be disallowed. S3800-035 Auditor Non-Compliance Code: H - Unauthorized distribution of project assets S3800-040 Questioned Costs: $28,775 S3800-045 Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations, as well as the local HUD field office's recommendations, are in the process of being implemented. S3800-050 Context: Review of the detail in the account provided evidence that project funds were paid to the related party. Personnel were forthcoming with this practice and are in the process of correcting this finding. S3800-080 Recommendation: In conjunction with the Organization's local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, the Organization should pay the invoice amount on a monthly basis. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties were in agreement with the recommendation. S3800-130 Response Indicator: Agree S3800-140 Completion Date: September 30, 2022 S3800-150 Response: The auditee is committed to correcting the finding.
Show full finding ▾Hide full finding ▴S3800-010 Finding Reference Number: 2022-001 S3800-011 Title and CFDA Number of Federal Program:Supportive Housing for Persons with Disabilities - 14.181 S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In Process S3800-020 Criteria: Project funds must be used for the operation of the Project. S3800-030 Statement of Condition: Project funds were used to pay a related party. The related party, in turn, paid the operating expenses of the Project. S3800-032 Cause: For ease of administration, common vendors were paid by the related party. S3800-033 Effect: The payments made to the related party could be disallowed. S3800-035 Auditor Non-Compliance Code: H - Unauthorized distribution of project assets S3800-040 Questioned Costs: $28,775 S3800-045 Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations, as well as the local HUD field office's recommendations, are in the process of being implemented. S3800-050 Context: Review of the detail in the account provided evidence that project funds were paid to the related party. Personnel were forthcoming with this practice and are in the process of correcting this finding. S3800-080 Recommendation: In conjunction with the Organization's local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, the Organization should pay the invoice amount on a monthly basis. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties were in agreement with the recommendation. S3800-130 Response Indicator: Agree S3800-140 Completion Date: September 30, 2022 S3800-150 Response: The auditee is committed to correcting the finding.
Recommendation: ln conjunction with Pono Homes, lnc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. ln turn, Pono Homes, lnc. should pay the invoice amount on a monthly basis. Action Taken: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties agreed with the recommendation to avoid unauthorized distributions.
Residual receipts balance is over the calculated compliance amount. S3800-032 Cause: The prior year surplus cash amount was deposited into the residual receipts account. However, approval was not requested to pay back excess residual receipts. S3800-033 Effect: Residual receipts balance is over the compliance amount. S3800-035 Auditor Non-Compliance Code: Z S3800-040 Questioned Costs: $7,625 S3800-045 Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. S3800-050 Context: Review of the residual receipts activity showed that the client had deposited surplus cash money into the account; however, approval was never sought to pay back excess residual receipts. S3800-080 Recommendation: Training of staff should be performed to bring the staff up to date with of all residual receipts compliance requirements. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The Organization did not obtain approval to pay back the excess residual receipts amount. This led to the residual receipts account being greater than its compliance amount. S3800-130 Response Indicator: Agree S3800-140 Completion Date: September 30, 2022 S3800-150 Response: The Organization will request approval to pay back excess residual receipts.
Show full finding ▾Hide full finding ▴S3800-010 Finding Reference Number: 2022-002 S3800-011 Title and CFDA Number of Federal Program: Supportive Housing for Persons with Disabilities - 14.181 S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In Process S3800-020 Criteria: Residual receipts balance at year end should be equal to the number of units multiplied by $250. After the overage is calculated, the Organization should request approval for the withdrawal from HUD. After approval, this overage is to be withdrawn and used to pay the excess in residual receipts. S3800-030 Statement of Condition: Residual receipts balance is over the calculated compliance amount. S3800-032 Cause: The prior year surplus cash amount was deposited into the residual receipts account. However, approval was not requested to pay back excess residual receipts. S3800-033 Effect: Residual receipts balance is over the compliance amount. S3800-035 Auditor Non-Compliance Code: Z S3800-040 Questioned Costs: $7,625 S3800-045 Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. S3800-050 Context: Review of the residual receipts activity showed that the client had deposited surplus cash money into the account; however, approval was never sought to pay back excess residual receipts. S3800-080 Recommendation: Training of staff should be performed to bring the staff up to date with of all residual receipts compliance requirements. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The Organization did not obtain approval to pay back the excess residual receipts amount. This led to the residual receipts account being greater than its compliance amount. S3800-130 Response Indicator: Agree S3800-140 Completion Date: September 30, 2022 S3800-150 Response: The Organization will request approval to pay back excess residual receipts.
Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all residual receipts compliance requirements. Action Taken: The Organization will request HUD approval to pay back the excess residual receipts balance.
Reports demonstrating the proper use of EIV system were not printed and retained in one of the sampled tenant file. S3800-032 Cause: The Organization was not storing EIV reports into the tenant files. S3800-033 Effect: Potential miscalculation of tenant rent responsibility. S3800-035 Auditor Non-Compliance Code: Z S3800-040 Questioned Costs: $0 S3800-045 Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. S3800-050 Context: Review of the tenant files provided evidence that the EIV reports were not being printed and stored in the tenant file. S3800-080 Recommendation Training of staff should be performed to bring the staff up to date with the implementation of all the EIV system compliance requirements. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The Organization did not retain EIV information because in their opinion they had more current and detailed information on clients' financial status than EIV provided; however, the Organization will retain the EIV information in the tenant file as required. S3800-130 Response Indicator: Agree S3800-140 Completion Date: September 30, 2022 S3800-150 Response: The Organization will retain the EIV information in the tenant file as required.
Show full finding ▾Hide full finding ▴S3800-010 Finding Reference Number: 2022-003 S3800-011 Title and CFDA Number of Federal Program: Supportive Housing for Persons with Disabilities - 14.181 S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In Process S3800-020 Criteria: Reports viewed from EIV system must be printed and included in the tenant files in order to demonstrate EIV system compliance. S3800-030 Statement of Condition: Reports demonstrating the proper use of EIV system were not printed and retained in one of the sampled tenant file. S3800-032 Cause: The Organization was not storing EIV reports into the tenant files. S3800-033 Effect: Potential miscalculation of tenant rent responsibility. S3800-035 Auditor Non-Compliance Code: Z S3800-040 Questioned Costs: $0 S3800-045 Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor's recommendations are in the process of being implemented. S3800-050 Context: Review of the tenant files provided evidence that the EIV reports were not being printed and stored in the tenant file. S3800-080 Recommendation Training of staff should be performed to bring the staff up to date with the implementation of all the EIV system compliance requirements. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: The Organization did not retain EIV information because in their opinion they had more current and detailed information on clients' financial status than EIV provided; however, the Organization will retain the EIV information in the tenant file as required. S3800-130 Response Indicator: Agree S3800-140 Completion Date: September 30, 2022 S3800-150 Response: The Organization will retain the EIV information in the tenant file as required.
Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all EIV system compliance requirements. Action Taken: Pono Homes, lnc. did not retain EIV information because in their opinion they had more current and detailed information on clients' financial status than EIV provided; however, Pono Homes, lnc. will retain the EIV information in the tenant file as required.
A tenant file requested only retained EIV information on the tenant. No other required documentation was observed in the file. S3800-032 Cause: Organization did not retain the information, except the EIV support, in a specific tenant file selected. S3800-033 Effect: Non-compliance of HUD requirements in regards to information that must be retained in tenant files. S3800-035 Auditor Non-Compliance Code: Z S3800-040 Questioned Costs: $0 S3800-045 Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor'srecommendations are in the process of being implemented. S3800-050 Context: Review of a specific tenant file showed that no information,except an EIV support, was stored in the tenant file. S3800-080 Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of proper storage and documentation of tenant files and all tenant files should be reviewed to ensure all proper documentation is stored within the files. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations:The Organization did not retain all the required information in the tenant file. Going forward, the Organization will retain all tenant file information and will review its current tenant files. S3800-130 Response Indicator: Agree S3800-140 Completion Date: September 30, 2022 S3800-150 Response: The Organization will review all tenant files to insure all documentation is retained.
Show full finding ▾Hide full finding ▴S3800-010 Finding Reference Number: 2022-004 S3800-011 Title and CFDA Number of Federal Program: Supportive Housing for Persons with Disabilities - 14.181 S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In Process S3800-020 Criteria: The Organization should retain all required tenant documentation on site and should retain all required information. S3800-030 Statement of Condition: A tenant file requested only retained EIV information on the tenant. No other required documentation was observed in the file. S3800-032 Cause: Organization did not retain the information, except the EIV support, in a specific tenant file selected. S3800-033 Effect: Non-compliance of HUD requirements in regards to information that must be retained in tenant files. S3800-035 Auditor Non-Compliance Code: Z S3800-040 Questioned Costs: $0 S3800-045 Reporting View of Responsible Officials: The Organization agrees with the finding. The auditor'srecommendations are in the process of being implemented. S3800-050 Context: Review of a specific tenant file showed that no information,except an EIV support, was stored in the tenant file. S3800-080 Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of proper storage and documentation of tenant files and all tenant files should be reviewed to ensure all proper documentation is stored within the files. S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations:The Organization did not retain all the required information in the tenant file. Going forward, the Organization will retain all tenant file information and will review its current tenant files. S3800-130 Response Indicator: Agree S3800-140 Completion Date: September 30, 2022 S3800-150 Response: The Organization will review all tenant files to insure all documentation is retained.
Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of proper storage and documentation of tenant files and all tenant files should be reviewed to ensure all proper documentation is stored within the files. Action Taken: Pono Homes, lnc. will review all of its tenant files to ensure proper storage and documentation of tenant files.
FAC accepted this audit on September 28, 2021 — management decision was due March 28, 2022.
FAC accepted this audit on October 27, 2020 — management decision was due April 27, 2021.
FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Reports viewed from EIV system must be printed and included in the tenant files in order to demonstrate EIV system compliance. Reports demonstrating the proper use of EIV system were not printed and retained in the tenant files. The Organization was not storing EIV reports into the tenant files. Potential miscalculation of tenant rent responsibility.
Show full finding ▾Hide full finding ▴FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT Reports viewed from EIV system must be printed and included in the tenant files in order to demonstrate EIV system compliance. Reports demonstrating the proper use of EIV system were not printed and retained in the tenant files. The Organization was not storing EIV reports into the tenant files. Potential miscalculation of tenant rent responsibility.
September 22, 2020 Department of Housing and Urban Development Pono Homes, Inc., respectfully submits the following corrective action plan for the year ended June 30, 2020. Name and address of independent public accounting firm: Handwerger, Cardegna, Funkhouser & Lurman, P.A. 1104 Kenilworth Drive, Suite 300 Towson, MD 21204 Audit period: June 30, 2020 The findings from the June 30, 2020 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS - FINANCIAL STATEMENT AUDIT NONE FINDINGS - MAJOR FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2020-001: Supportive Housing for Persons with Disabilities - 14.181 Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all the EIV systems compliance requirements. Action Taken: Prologue did not retain EIV information because in their opinion they had more current and detailed information on clients? financial status than EIV provided; however, Prologue will retain the EIV information in the tenant file as required. This process will be put in place by September 30, 2020. If the Department of Housing and Urban Development has questions regarding this plan, please call Patti Appel at 410-653-6190. Sincerely yours, Sendy Rommel, President
FAC accepted this audit on October 17, 2019 — management decision was due April 17, 2020.
FAC accepted this audit on October 10, 2018 — management decision was due April 10, 2019.
FAC accepted this audit on October 23, 2017 — management decision was due April 23, 2018.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on October 20, 2016 — management decision was due April 20, 2017.
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