EIN: 741667634
UEI: GSA_MIGRATION
Audited by: BEASLEY, MITCHELL & CO., LLP
Oversight agency: 14 [Department of Housing and Urban Development]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on August 16, 2022. 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 February 16, 2023 (1292 days ago).
What is a management decision? →FAC accepted this audit on August 1, 2021 — management decision was due February 1, 2022.
Federal Program Information Funding Agency: Housing and Urban Development (HUD) Title: Section 8 Housing Assistance Payments CFDA: 14.195 Questioned Cost: None CONDITION Failure to maintain proper balances in the Tenant Security Deposits account and utilization of account to resolve temporary operating deficiencies. CRITERIA The deposit liability bank account should match the liability accrual for tenant deposits. CAUSE The Association utilized the funds held for operational expenses. EFFECT The deposit liability bank account will not have the funds necessary to refund all tenants. RECOMMENDATION The auditor recommended that Management should immediately fund the difference between the bank balance and the liability account; as well as refrain from utilizing the Tenant Security Deposits to resolve temporary operating deficiencies. RESPONSE Management concurs. IMPLEMENTATION Responsible Personnel: Executive director Anticipated completion date: 06/30/2021
Show full finding ▾Hide full finding ▴Federal Program Information Funding Agency: Housing and Urban Development (HUD) Title: Section 8 Housing Assistance Payments CFDA: 14.195 Questioned Cost: None CONDITION Failure to maintain proper balances in the Tenant Security Deposits account and utilization of account to resolve temporary operating deficiencies. CRITERIA The deposit liability bank account should match the liability accrual for tenant deposits. CAUSE The Association utilized the funds held for operational expenses. EFFECT The deposit liability bank account will not have the funds necessary to refund all tenants. RECOMMENDATION The auditor recommended that Management should immediately fund the difference between the bank balance and the liability account; as well as refrain from utilizing the Tenant Security Deposits to resolve temporary operating deficiencies. RESPONSE Management concurs. IMPLEMENTATION Responsible Personnel: Executive director Anticipated completion date: 06/30/2021
Tenant Security Deposit Deficit- During the ongoing pandemic, many tenants decided they did not have to pay rent, so management was forced to employ funds from the security account to cover those missing rents. The security deposit account will be fully funded.
2019-003
Federal Program Information Funding Agency: Housing and Urban Development (HUD) Title: Section 8 Housing Assistance Payments CFDA: 14.195 Questioned Cost: None CONDITION Tenant Security Deposits- Held in Trust were not utilized in accordance with the programmatic purpose requirement. CRITERIA Tenant Security Deposits- Held in Trust records the tenant security deposits held by the Association, in the name of the Association and in a separate bank account. Agents may use deposits to pay for tenant damages and delinquent rents when a tenant vacates. Total funds in the account must at all times equal or exceed the corresponding liability account. CAUSE Tenant Security Deposits- Held in Trust, fund did not, at all times, equal or exceed the liability account and the bank account was utilized as a mechanism to resolve temporary operating deficiencies. EFFECT Tenant Security Deposits. Held in trust were not utilized in accordance with HUD requirements. RECOMMENDATION Management should immediately reconcile and fund the amount in the Tenant Security Deposits- Held in Trust with the associated liability account and refrain from further utilization of the Tenant Security Deposits- Held in Trust to resolve temporary operating cash deficiencies. RESPONSE Management concurs. IMPLEMENTATION Responsible Personnel: Executive director Anticipated completion date: 06/30/2021
Show full finding ▾Hide full finding ▴Federal Program Information Funding Agency: Housing and Urban Development (HUD) Title: Section 8 Housing Assistance Payments CFDA: 14.195 Questioned Cost: None CONDITION Tenant Security Deposits- Held in Trust were not utilized in accordance with the programmatic purpose requirement. CRITERIA Tenant Security Deposits- Held in Trust records the tenant security deposits held by the Association, in the name of the Association and in a separate bank account. Agents may use deposits to pay for tenant damages and delinquent rents when a tenant vacates. Total funds in the account must at all times equal or exceed the corresponding liability account. CAUSE Tenant Security Deposits- Held in Trust, fund did not, at all times, equal or exceed the liability account and the bank account was utilized as a mechanism to resolve temporary operating deficiencies. EFFECT Tenant Security Deposits. Held in trust were not utilized in accordance with HUD requirements. RECOMMENDATION Management should immediately reconcile and fund the amount in the Tenant Security Deposits- Held in Trust with the associated liability account and refrain from further utilization of the Tenant Security Deposits- Held in Trust to resolve temporary operating cash deficiencies. RESPONSE Management concurs. IMPLEMENTATION Responsible Personnel: Executive director Anticipated completion date: 06/30/2021
Tenant Security Deposit fund use- Regrettably, we found ourselves underfunded, saddled with repair projects and a host of operational troubles, but those issues have been solved. We expect we will not reach into the security deposit account again because we recently received grant funds and no-interest loans.
2019-001
Federal Program Information Funding Agency: Housing and Urban Development (HUD) Title: Section 8 Housing Assistance Payments CFDA: 14.195 Questioned Cost: None CONDITION The Association has two bank accounts. One account is used to hold tenant deposits and the other is used for Association operations. The operational account at the end of fiscal year 2020 was overdrawn by $1,592 cash basis and $70,201 accrual basis. CRITERIA Accounting standards require that accurate and complete books are kept by the Association in order to prevent cash shortfalls. CAUSE The Association spent more than what was readily available in the operational bank account. EFFECT The Association has incurred a liability to the bank for the overdrawn account. RECOMMENDATION The Association should set up an operating budget that will allow them to achieve their organizational objectives without incurring additional liabilities. RESPONSE Management concurs. IMPLEMENTATION Responsible Personnel: Executive director Anticipated completion date: 06/30/2021
Show full finding ▾Hide full finding ▴Federal Program Information Funding Agency: Housing and Urban Development (HUD) Title: Section 8 Housing Assistance Payments CFDA: 14.195 Questioned Cost: None CONDITION The Association has two bank accounts. One account is used to hold tenant deposits and the other is used for Association operations. The operational account at the end of fiscal year 2020 was overdrawn by $1,592 cash basis and $70,201 accrual basis. CRITERIA Accounting standards require that accurate and complete books are kept by the Association in order to prevent cash shortfalls. CAUSE The Association spent more than what was readily available in the operational bank account. EFFECT The Association has incurred a liability to the bank for the overdrawn account. RECOMMENDATION The Association should set up an operating budget that will allow them to achieve their organizational objectives without incurring additional liabilities. RESPONSE Management concurs. IMPLEMENTATION Responsible Personnel: Executive director Anticipated completion date: 06/30/2021
Bank overdraw- We are certain that the $1,592 at the end of 2020 was immediately taken care of as our funding was received. However, we are deconstructing our operating budget in an effort to reorganize, prioritize and avoid liabilities.
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