EIN: 660550404
UEI: KQ4KQ2QKF3S8
Audited by: Fernandez Valdivia & Company
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 October 29, 2025. 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 April 29, 2026 (122 days ago).
What is a management decision? →Internal Control over Compliance For 3 of 25 disbursements tested we noted that the check was issued 30 days after the date of the vendors’ invoices. For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 3 of 25 disbursement the time exceed 30 days (it was 34 days), average the period as per client’s established procedures. The 2 CFR Section 215.22 – Payments, states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. s The cash turnover days is the measure of the difference between the invoice date and the date of the payment (check date). The difference considered reasonable as per client is an average of 30 days or less.
Show full finding ▾Hide full finding ▴Internal Control over Compliance For 3 of 25 disbursements tested we noted that the check was issued 30 days after the date of the vendors’ invoices. For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 3 of 25 disbursement the time exceed 30 days (it was 34 days), average the period as per client’s established procedures. The 2 CFR Section 215.22 – Payments, states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. s The cash turnover days is the measure of the difference between the invoice date and the date of the payment (check date). The difference considered reasonable as per client is an average of 30 days or less.
Recommendation is accepted. Housing Program Director will be in charge to monitoring weekly the accounts payable. Although it is important to note that due to the fiscal situation of the Project, there are accounts payable of more than three years with which we are working and for that it is necessary to work with the cash flow.
2023-001
Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses ten payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project’s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan on page 37.
Show full finding ▾Hide full finding ▴Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses ten payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project’s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan on page 37.
Finding Number: 2024-002 Finding The entity has a delinquent deposit to the replacement reserve. Cause Recommendation We recommend the Project’s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Corrective Action Plan The budget of the managing agent is limited so the recommendation of more employees cannot be assumed at this time. However, the Management will be evaluating functions performed by the accountant from which he can be relieved so that more time is left for the activities required in the recommendations. The deposit was made more later due to the cash flow problems mentioned in the previous finding. Housing Program Director will be in charge to monitoring monthly the deposit to the replacement account. Currently the number of vacancies decreased which helped the project financially. Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures.
2023-002
FAC accepted this audit on September 13, 2024 — management decision was due March 13, 2025.
Internal Control over Compliance For 2 of 25 disbursements tested we noted that the check was issued 30 days after the date of the vendors’ invoices. For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 2 of 25 disbursement the time exceed 30 days (it was 34 days), average the period as per client’s established procedures. The 2 CFR Section 215.22 – Payments, states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. s The cash turnover days is the measure of the difference between the invoice date and the date of the payment (check date). The difference considered reasonable as per client is an average of 30 days or less.
Show full finding ▾Hide full finding ▴Internal Control over Compliance For 2 of 25 disbursements tested we noted that the check was issued 30 days after the date of the vendors’ invoices. For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 2 of 25 disbursement the time exceed 30 days (it was 34 days), average the period as per client’s established procedures. The 2 CFR Section 215.22 – Payments, states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. s The cash turnover days is the measure of the difference between the invoice date and the date of the payment (check date). The difference considered reasonable as per client is an average of 30 days or less.
Recommendation is accepted. Housing Program Director will be in charge to monitoring weekly the accounts payable. Although it is important to note that due to the fiscal situation of the Project, there are accounts payable of more than three years with which we are working and for that it is necessary to work with the cash flow.
2022-001
Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses ten payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project’s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan on page 37.
Show full finding ▾Hide full finding ▴Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses ten payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project’s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan on page 37.
Finding Number: 2023-002 Finding The entity has a delinquent deposit to the replacement reserve. Cause Recommendation We recommend the Project’s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Corrective Action Plan The budget of the managing agent is limited so the recommendation of more employees cannot be assumed at this time. However, the Management will be evaluating functions performed by the accountant from which he can be relieved so that more time is left for the activities required in the recommendations. The deposit was made more later due to the cash flow problems mentioned in the previous finding. Housing Program Director will be in charge to monitoring monthly the deposit to the replacement account. Currently the number of vacancies decreased which helped the project financially. Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures.
2022-002
FAC accepted this audit on July 27, 2023 — management decision was due January 27, 2024.
Finding Number: 2022-1 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Cash management Statement of Condition For 4 of 25 disbursement tested we noted that the check was issued 30 days after the date of the vendors? invoices. Context For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 4 of 25 disbursements the time exceed 30 days, average period as per client established procedures. Criteria The 2 CFR Section 215.22 states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. Known questioned cost None. Underlying cause The Project has not established proper internal control procedures for cash management. In addition, the Project takes more than 30 days in processing its accounts payable invoices. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to establish specific internal control procedures to minimize the time to pay suppliers invoices and therefore, minimize the cash in bank. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2022-1 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Cash management Statement of Condition For 4 of 25 disbursement tested we noted that the check was issued 30 days after the date of the vendors? invoices. Context For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 4 of 25 disbursements the time exceed 30 days, average period as per client established procedures. Criteria The 2 CFR Section 215.22 states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. Known questioned cost None. Underlying cause The Project has not established proper internal control procedures for cash management. In addition, the Project takes more than 30 days in processing its accounts payable invoices. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to establish specific internal control procedures to minimize the time to pay suppliers invoices and therefore, minimize the cash in bank. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Finding Number: 2022-1 Payment of invoices before 30 days of received. During the months of December 2020 to June 2021 this project has problems to receive their corresponding monthly vouchers. This situation doesn?t permit 30 days payments. The project staff was oriented about the importance of make a payment 30 days after receiving the invoice. The plan of correction empathizes in verify weekly the supplier?s invoices and establish a payment date not more than 30 days of the invoice was received. In some instance is difficult to comply with the dates is particularly when the project has some problem in processing or receive the voucher payment.
2021-001
Finding Number: 2022-2 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses ten payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2022-2 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses ten payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Finding Number: 2022-2 Reserve for Replacement Deposits. During the months of December 2021 to June 2022 this project has problems to receive their corresponding monthly vouchers. At this date most of the required deposit for 2021 are made. The Project Administrator was oriented to comply with this important monthly requirement in normal conditions.
2021-002
FAC accepted this audit on July 23, 2023 — management decision was due January 23, 2024.
Finding Number: 2021-1 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Cash management Statement of Condition For 5 of 25 disbursement tested we noted that the check was issued 30 days after the date of the vendors? invoices. Context For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 5 of 25 disbursements the time exceed 30 days, average period as per client established procedures. Criteria The 2 CFR Section 215.22 states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. Known questioned cost None. Underlying cause The Project has not established proper internal control procedures for cash management. In addition, the Project takes more than 30 days in processing its accounts payable invoices. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to establish specific internal control procedures to minimize the time to pay suppliers invoices and therefore, minimize the cash in bank. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2021-1 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Cash management Statement of Condition For 5 of 25 disbursement tested we noted that the check was issued 30 days after the date of the vendors? invoices. Context For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 5 of 25 disbursements the time exceed 30 days, average period as per client established procedures. Criteria The 2 CFR Section 215.22 states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. Known questioned cost None. Underlying cause The Project has not established proper internal control procedures for cash management. In addition, the Project takes more than 30 days in processing its accounts payable invoices. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to establish specific internal control procedures to minimize the time to pay suppliers invoices and therefore, minimize the cash in bank. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Finding Number: 2021-1 Payment of invoices before 30 days of received. During the months of December 2020 to June 2021 this project has problems to receive their corresponding monthly vouchers. This situation doesn?t permit 30 days payments. The project staff was oriented about the importance of make a payment 30 days after receiving the invoice. The plan of correction empathizes in verify weekly the supplier?s invoices and establish a payment date not more than 30 days of the invoice was received. In some instance is difficult to comply with the dates is particularly when the project has some problem in processing or receive the voucher payment.
2020-001
Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses ten payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses ten payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Finding Number: 2021-2 Reserve for Replacement Deposits. During the months of December 2020 to June 2021 this project has problems to receive their corresponding monthly vouchers. At this date most of the required deposit for 2021 are made. The Project Administrator was oriented to comply with this important monthly requirement in normal conditions.
2020-002
FAC accepted this audit on July 22, 2023 — management decision was due January 22, 2024.
Finding Number: 2020-1 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Cash management Statement of Condition For 13 of 25 disbursement tested we noted that the check was issued 30 days after the date of the vendors? invoices. Context For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 13 of 25 disbursements the time exceed 30 days, average period as per client established procedures. Criteria The 2 CFR Section 215.22 states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. Known questioned cost None. Underlying cause The Project has not established proper internal control procedures for cash management. In addition, the Project takes more than 30 days in processing its accounts payable invoices. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to establish specific internal control procedures to minimize the time to pay suppliers invoices and therefore, minimize the cash in bank. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2020-1 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Cash management Statement of Condition For 13 of 25 disbursement tested we noted that the check was issued 30 days after the date of the vendors? invoices. Context For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 13 of 25 disbursements the time exceed 30 days, average period as per client established procedures. Criteria The 2 CFR Section 215.22 states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. Known questioned cost None. Underlying cause The Project has not established proper internal control procedures for cash management. In addition, the Project takes more than 30 days in processing its accounts payable invoices. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to establish specific internal control procedures to minimize the time to pay suppliers invoices and therefore, minimize the cash in bank. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Finding Number: 2020-1 Payment of invoices before 30 days of received. During the months of December 2019 to June 2020 this project has problems to receive their corresponding monthly vouchers. This situation doesn?t permit 30 days payments. The project staff was oriented about the importance of make a payment 30 days after receiving the invoice. The plan of correction empathizes in verify weekly the supplier?s invoices and establish a payment date not more than 30 days of the invoice was received. In some instance is difficult to comply with the dates is particularly when the project has some problem in processing or receive the voucher payment.
2019-001
Finding Number: 2020-2 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses ten payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2020-2 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses ten payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Finding Number: 2020-2 Reserve for Replacement Deposits. During the months of December 2019 to June 2020 this project has problems to receive their corresponding monthly vouchers. At this date most of the required deposit for 2020 are made. The Project Administrator was oriented to comply with this important monthly requirement in normal conditions.
2019-002
FAC accepted this audit on October 5, 2020 — management decision was due April 5, 2021.
Finding Number: 2019-1 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Cash management Statement of Condition For 11 of 25 disbursement tested we noted that the check was issued 30 days after the date of the vendors? invoices. Context For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 11 of 25 disbursements the time exceed 30 days, average period as per client established procedures. Criteria The 2 CFR Section 215.22 states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. Known questioned cost None. Underlying cause The Project has not established proper internal control procedures for cash management. In addition, the Project takes more than 30 days in processing its accounts payable invoices. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to establish specific internal control procedures to minimize the time to pay suppliers invoices and therefore, minimize the cash in bank. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2019-1 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Cash management Statement of Condition For 11 of 25 disbursement tested we noted that the check was issued 30 days after the date of the vendors? invoices. Context For 25 disbursements selected we verified the time elapsing between the invoice and the check and noted that for 11 of 25 disbursements the time exceed 30 days, average period as per client established procedures. Criteria The 2 CFR Section 215.22 states that payment methods of Non-Profit Organizations shall minimize the time elapsing between the transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payment by other means by the recipients. Known questioned cost None. Underlying cause The Project has not established proper internal control procedures for cash management. In addition, the Project takes more than 30 days in processing its accounts payable invoices. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to establish specific internal control procedures to minimize the time to pay suppliers invoices and therefore, minimize the cash in bank. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Finding Number: 2019-1 Payment of invoices before 30 days of received. During the months of December 2018 to June 2019 this project has problems to receive their corresponding monthly vouchers. This situation doesn?t permit 30 days payments. The project staff was oriented about the importance of make a payment 30 days after receiving the invoice. The plan of correction empathizes in verify weekly the supplier?s invoices and establish a payment date not more than 30 days of the invoice was received. In some instance is difficult to comply with the dates is particularly when the project has some problem in processing or receive the voucher payment.
2018-001
Finding Number: 2019-2 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses five payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding Number: 2019-2 Catalog Number Program Name CFDA#14.195 Section 8 Housing Assistance Payments Program Special Allocations Category Compliance Compliance requirement Special Test and Provisions Statement of Condition The entity has a delinquent deposit to the replacement reserve. Context In order to ascertain whether the Project complied with the proper use of the reserve account, we verified that monthly deposits were transferred from the operating account to the reserve account for the authorized amount. We noted that the entity misses five payments. Criteria The owner shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. All disbursements from the reserve must be as approved or directed by HUD or the State Agency for 24 CFR part 883 projects, as applicable. An amount as required by HUD or the State Agency for 24 CFR part 883 projects, as applicable, shall be deposited monthly in the reserve fund in accordance with the Regulatory Agreement or HAP contract (24CFR sections 880.601, 880.602, 881.601 and 883.701). Known questioned cost None. Underlying cause Lack of personnel in the accounting department. Only one employee is in-charge of performing the accounting and the closing procedures. Effect Project may be subject to HUD findings and therefore, may be subject to penalties. Recommendation We recommend the Project?s management to evaluate the need of contracting additional personnel to minimize the accounting closing time. We recommend also, establishing monitoring procedures to ensure the compliance of such requirement. Management Response See Corrective Action Plan.
Finding Number: 2019-2 Reserve for Replacement Deposits. During the months of December 2018 to June 2019 this project has problems to receive their corresponding monthly vouchers. At this date most of the required deposit for 2019 are made. The Project Administrator was oriented to comply with this important monthly requirement in normal conditions.
2018-002
FAC accepted this audit on July 17, 2020 — management decision was due January 17, 2021.
GSA_MIGRATION
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GSA_MIGRATION
2017-001
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on June 29, 2020 — management decision was due December 29, 2020.
GSA_MIGRATION
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GSA_MIGRATION
2016-001
FAC accepted this audit on June 29, 2020 — management decision was due December 29, 2020.
GSA_MIGRATION
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