EIN: 311483371
UEI: R9B3ZA9KGHJ4
Audited by: THE HOBBS GROUP, 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 April 14, 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 October 14, 2026 (44 days from today).
What is a management decision? →FAC accepted this audit on April 4, 2025 — management decision was due October 4, 2025.
FAC accepted this audit on April 3, 2024 — management decision was due October 3, 2024.
FAC accepted this audit on April 12, 2023 — management decision was due October 12, 2023.
FAC accepted this audit on April 25, 2022 — management decision was due October 25, 2022.
The Project has tenant obligations of $2,487, but only $2,080 in the security deposit bank account to cover the tenant obligations. Cause: Management of the Project reviewed the security deposits they had on hand and found that they did not have enough on hand to cover the liability they had. This was an oversight by management. Questioned Costs: Not applicable. Context: The project is required to maintain a bank account that at all times equal or exceed the aggregate of all outstanding tenant obligations. Due to the turnover at the Project the difference was over looked by management. Effect or Potential Effect: The project could become noncompliant with the regulatory agreement and have to pay back the capital advance it received from HUD. Recommendation: Management should insure that the balance in the security deposit bank account covers the tenant obligations on a regular basis.
Show full finding ▾Hide full finding ▴Finding 2021-001: Information on the Federal Program: CFDA 14.181 ? Supportive Housing for Persons with Disabilities, Department of Housing and Urban Development. Compliance Requirement: Amount in security deposit bank account shall at all times equal or exceed the aggregate of all outstanding obligations under that account. Type of finding: Noncompliance. Criteria: The Project is required to maintain tenant security deposits in a separate bank account. This amount should exceed the aggregate of all outstanding obligations under that account. Condition: The Project has tenant obligations of $2,487, but only $2,080 in the security deposit bank account to cover the tenant obligations. Cause: Management of the Project reviewed the security deposits they had on hand and found that they did not have enough on hand to cover the liability they had. This was an oversight by management. Questioned Costs: Not applicable. Context: The project is required to maintain a bank account that at all times equal or exceed the aggregate of all outstanding tenant obligations. Due to the turnover at the Project the difference was over looked by management. Effect or Potential Effect: The project could become noncompliant with the regulatory agreement and have to pay back the capital advance it received from HUD. Recommendation: Management should insure that the balance in the security deposit bank account covers the tenant obligations on a regular basis.
Responsible Official?s Response and Corrective Action Plan: In response to the above finding, MIRCI, the sponsor agency for Sandstone Apartments, Inc., acknowledges that funds held in the security deposit bank account are nominally below the liability. The discrepancy was identified by the auditors during the current year audit and has been remedied as of the completion date of the 2021 audit. As a result of this finding, MIRCI, the sponsor agency for Sandstone Apartments, Inc., all finance department staff, whether new or old, will be properly trained on policy and procedures as they relate to specific guidelines for closing the HUD properties monthly. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Executive Director
FAC accepted this audit on April 20, 2021 — management decision was due October 20, 2021.
The Project failed to submit their prior audits to the Federal Audit Clearinghouse. Cause: Management was incorrectly advised that the only year they were required to submit their audit to the Federal Audit Clearinghouse was in the initial year of the capital advance. Questioned Costs: Not applicable. Context: The Project has a capital advance in the amount of $1,101,400, that was awarded in 1998. The Project has had single audits performed annually since the initial award to test for compliance requirements but have not submitted their single audits to the Federal Audit Clearinghouse since the initial year of the capital advance. Effect or Potential Effect: The Project may not be eligible for future federal funding due to noncompliance. Recommendation: Management should ensure they have a complete understanding of the compliance requirements of the Uniform Guidance set forth in in the Code of Federal Regulations 2 CFR 200.502.
Show full finding ▾Hide full finding ▴Information on the Federal Program: CFDA 14.181 ? Supportive Housing for Persons with Disabilities, Department of Housing and Urban Development. Compliance Requirement: Reporting Type of Finding: Material Noncompliance. Criteria: The Project has a capital advance that is forgivable at maturity. The capital advance has ongoing compliance requirements that must be met in order for the loan to be forgiven at maturity. Due to the ongoing compliance requirements, the capital advance is required to be on the Schedule of Expenditure of Federal Awards until it matures. Due to the amount of the capital advance, the Project?s federal expenditures are in excess of $750,000, they are required under the Code of Federal Regulations Section CFR 200.502, to submit their audit annually to the Federal Audit Clearinghouse. Condition: The Project failed to submit their prior audits to the Federal Audit Clearinghouse. Cause: Management was incorrectly advised that the only year they were required to submit their audit to the Federal Audit Clearinghouse was in the initial year of the capital advance. Questioned Costs: Not applicable. Context: The Project has a capital advance in the amount of $1,101,400, that was awarded in 1998. The Project has had single audits performed annually since the initial award to test for compliance requirements but have not submitted their single audits to the Federal Audit Clearinghouse since the initial year of the capital advance. Effect or Potential Effect: The Project may not be eligible for future federal funding due to noncompliance. Recommendation: Management should ensure they have a complete understanding of the compliance requirements of the Uniform Guidance set forth in in the Code of Federal Regulations 2 CFR 200.502.
Responsible Official?s Response and Corrective Action Plan: In response to the above finding, MIRCI, the sponsor agency for Sandstone Apartments, Inc., acknowledges that prior year audit reports have not been submitted to the Federal Audit Clearinghouse with the exception of the original year of the loan. Prior year reports were not submitted based on the guidance and direction of the prior independent external audit firm that completed the annual single audit. MIRCI, the sponsor agency for Sandstone Apartments, Inc., will under the guidance and direction of our new external audit firm submit reports to the Federal Audit Clearinghouse until advised it is no longer a requirement. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Executive Director
The Project did not make the correct deposit amount into the replacement reserve for 6 of the 12 months. They were depositing the prior HUD approved amount of $304.67 instead of the current HUD approved deposit amount of $349.66 as of June 1, 2020. Cause: Due to the COVID-19 epidemic and the turnover in the finance director in the current year, this was an oversight by management. Questioned Costs: Not applicable. Context: The Project is required to make a monthly deposit into the replacement reserve account by the regulatory agreement with HUD. The Project received an approved increase in deposit from HUD. Due to the epidemic and turnover at the Project the increase in the deposit amount was overlooked by management. Effect or Potential Effect: The Project could become noncompliant with the regulatory agreement and have to pay back the capital advance it received from HUD. Recommendation: Management should insure that the required monthly deposit into the replacement reserve account is made in a timely manner.
Show full finding ▾Hide full finding ▴Information on the Federal Program: CFDA 14.181 ? Supportive Housing for Persons with Disabilities, Department of Housing and Urban Development. Compliance Requirement: Monthly deposits to replacement reserve account. Type of Finding: Noncompliance. Criteria: The Project is required to maintain a replacement reserve account to aid in funding extraordinary maintenance and repair and replacement of capital items. In accordance with the regulatory agreement with HUD, the Project is required to deposit $349.66 monthly into the reserve fund. Condition: The Project did not make the correct deposit amount into the replacement reserve for 6 of the 12 months. They were depositing the prior HUD approved amount of $304.67 instead of the current HUD approved deposit amount of $349.66 as of June 1, 2020. Cause: Due to the COVID-19 epidemic and the turnover in the finance director in the current year, this was an oversight by management. Questioned Costs: Not applicable. Context: The Project is required to make a monthly deposit into the replacement reserve account by the regulatory agreement with HUD. The Project received an approved increase in deposit from HUD. Due to the epidemic and turnover at the Project the increase in the deposit amount was overlooked by management. Effect or Potential Effect: The Project could become noncompliant with the regulatory agreement and have to pay back the capital advance it received from HUD. Recommendation: Management should insure that the required monthly deposit into the replacement reserve account is made in a timely manner.
Responsible Official?s Response and Corrective Action Plan: In response to the above finding, MIRCI, the sponsor agency for Harmon Hill Apartments, Inc., acknowledges that the full 12-months of reserve deposits were not processed in 2020. There was turnover during the 2020 year of the Director of Finance and Administration position. As a result of the transition in this key management position, proper oversight in the finance department was not maintained at the high standard required of the staff in our agency. The discrepancy was identified by the auditors and has been remedied as of the completion date of the 2020 audit. As a result of this finding, all finance department staff, whether new or old, will be properly trained on policy and procedures as they relate to specific guidelines for closing the HUD properties monthly. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Executive Director
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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