EIN: 630788730
UEI: FMHYPP5Z43H6
Audited by: Mauldin & Jenkins, LLC
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on March 16, 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 September 16, 2026 (13 days from today).
What is a management decision? →FAC accepted this audit on October 4, 2024 — management decision was due April 4, 2025.
FAC accepted this audit on March 26, 2024 — management decision was due September 26, 2024.
FAC accepted this audit on March 20, 2023 — management decision was due September 20, 2023.
FAC accepted this audit on March 30, 2022 — management decision was due September 30, 2022.
During testing of the replacement reserve account, it was discovered that the HUD-approved required deposit increase to the replacement reserve account was not properly implemented. Criteria: Internal controls should be in place to provide reasonable assurance that the replacement reserve deposit increase is appropriately implemented. Cause: The Project has procedures in place to implement such changes, however, the Project experienced a delay in the receiving the notification of the change in the deposit and since the mortgage company holds the deposit, once it was sent to the servicing agent, and they were no longer with the mortgagor, it took several months before the Project was able to find an individual at the mortgage company that could change the monthly deposit to correct it. Effect: Because the required deposit change to the replacement reserve was not implemented, the Project did not adequately escrow balances for the replacement reserve account. Recommendation: The Project should change their procedure to require follow-up with the Contract Administrator and HUD to insure they are receiving timely notice of the deposit amount to be made when it changes and then require the mortgage company to respond to their notification of the change in the deposit and if the mortgage company does not respond, continue to follow-up with other representatives at the mortgage company until they are able to have them make the required change so that the correct amount is being deposited. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the recommended procedures have been implemented. Also, subsequent to year-end, the Project made the required deposits to the replacement reserve account to correct the delinquent remittances.
Show full finding ▾Hide full finding ▴Finding 2021-001 Condition: During testing of the replacement reserve account, it was discovered that the HUD-approved required deposit increase to the replacement reserve account was not properly implemented. Criteria: Internal controls should be in place to provide reasonable assurance that the replacement reserve deposit increase is appropriately implemented. Cause: The Project has procedures in place to implement such changes, however, the Project experienced a delay in the receiving the notification of the change in the deposit and since the mortgage company holds the deposit, once it was sent to the servicing agent, and they were no longer with the mortgagor, it took several months before the Project was able to find an individual at the mortgage company that could change the monthly deposit to correct it. Effect: Because the required deposit change to the replacement reserve was not implemented, the Project did not adequately escrow balances for the replacement reserve account. Recommendation: The Project should change their procedure to require follow-up with the Contract Administrator and HUD to insure they are receiving timely notice of the deposit amount to be made when it changes and then require the mortgage company to respond to their notification of the change in the deposit and if the mortgage company does not respond, continue to follow-up with other representatives at the mortgage company until they are able to have them make the required change so that the correct amount is being deposited. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the recommended procedures have been implemented. Also, subsequent to year-end, the Project made the required deposits to the replacement reserve account to correct the delinquent remittances.
Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the recommended procedures have been implemented. Also, subsequent to year-end, the Project made the required deposits to the replacement reserve account to correct the delinquent remittances.
2020-001
FAC accepted this audit on March 28, 2021 — management decision was due September 28, 2021.
During testing of the replacement reserve account, it was discovered that the HUD-approved required deposit increase to the replacement reserve account was not properly implemented. Criteria: Internal controls should be in place to provide reasonable assurance that the replacement reserve deposit increase is appropriately implemented. Cause: The Project has procedures in place to implement such changes, however, the control did not detect the failure to implement the required deposit increase. Effect: Because the required deposit change to the replacement reserve was not implemented, the Project did not adequately escrow balances for the replacement reserve account. Recommendation: Procedures should be strengthened to ensure that all required deposit changes to the replacement reserve account are appropriately implemented. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the recommended procedures have been implemented. Also, subsequent to year-end, the Project made the required deposits to the replacement reserve account to correct the delinquent remittances.
Show full finding ▾Hide full finding ▴Finding 2020-001 Condition: During testing of the replacement reserve account, it was discovered that the HUD-approved required deposit increase to the replacement reserve account was not properly implemented. Criteria: Internal controls should be in place to provide reasonable assurance that the replacement reserve deposit increase is appropriately implemented. Cause: The Project has procedures in place to implement such changes, however, the control did not detect the failure to implement the required deposit increase. Effect: Because the required deposit change to the replacement reserve was not implemented, the Project did not adequately escrow balances for the replacement reserve account. Recommendation: Procedures should be strengthened to ensure that all required deposit changes to the replacement reserve account are appropriately implemented. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the recommended procedures have been implemented. Also, subsequent to year-end, the Project made the required deposits to the replacement reserve account to correct the delinquent remittances.
Once the company discovered that the deposit to the reserve for replacement account had not been increased upon notification and approval by HUD, the management company immediately prepared a disbursement and fully funded the reserve replacement account for the shortage in the deposits to the accounts. As of 7/31/20 the reserve for replacement account was fully funded and in accordance with HUD regulations. In addition to this, a staff meeting was held with all accounting and asset managers and they were reminded of the company policies and everyone was instructed to be certain that all the companies procedures be followed without exception so that in the event that the notification received from HUD was not received by the accountant from the asset manager that the accountant would question whether or not there was an increase and this was to occur every year regardless of whether or not the deposit increased. In addition the asset managers were reminded to specifically review this as a part of their monthly review of the financial statement to insure that any increases required by HUD were put into effect at the proper time. All personnel were reminded of the importance of these procedures to insure that the reserve for replacement accounts were funded in accordance with HUD regulations.
FAC accepted this audit on January 1, 2020 — management decision was due July 1, 2020.
FAC accepted this audit on November 5, 2018 — management decision was due May 5, 2019.
FAC accepted this audit on February 6, 2018 — management decision was due August 6, 2018.
FAC accepted this audit on November 13, 2016 — management decision was due May 13, 2017.
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