EIN: 742630744
UEI: JU5WAKJDJS97
Data as of August 23, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on May 12, 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 November 12, 2022 (1380 days ago).
What is a management decision? →During our testing of move ins, we noted the following exceptions when completing the HUD Form 50059: One sample omitted a tenant?s annual income and the child support income was not properly calculated. One sample omitted a tenant?s deduction for a dependent. Cause: The exceptions noted above were performed by an interim project manager and whereby the Company?s policies and procedures to ensure that HUD Form 50059 is complete and accurate, including the verification of income, were not appropriately adhered to. Effect: Amount subsidized by HUD as calculated on the HUD Form 50059 was incorrect. Context: We tested a sample of 9 items and found two exceptions as noted in the condition. This is a condition identified per review of the Corporation?s compliance with specified requirements using a statistically valid sample. Recommendation: We recommend that the Corporation ensure its policies and procedures in validating the completeness and accuracy of HUD Form 50059, which includes income verification, are followed on a consistent basis. Views of Responsible Officials Management agrees with the finding and recommendation set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in internal control.
Show full finding ▾Hide full finding ▴Information on Federal Program: Program: HOME Investment Partnership Program Assistance Listing Number: 14.239 Federal Agency: U.S. Housing and Urban Development State Agency: Texas Department of Housing and Community Affairs Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control Criteria or Specific Requirement: Compliance - The Corporation is required to ascertain that benefits paid to or on behalf of the individuals were calculated correctly and in compliance with the eligibility requirements of the program. Control ? The Corporation is required to establish internal controls to ensure the accuracy and completeness of data used to determine eligibility are reviewed and agreed to support by a knowledgeable supervisor. Condition: During our testing of move ins, we noted the following exceptions when completing the HUD Form 50059: One sample omitted a tenant?s annual income and the child support income was not properly calculated. One sample omitted a tenant?s deduction for a dependent. Cause: The exceptions noted above were performed by an interim project manager and whereby the Company?s policies and procedures to ensure that HUD Form 50059 is complete and accurate, including the verification of income, were not appropriately adhered to. Effect: Amount subsidized by HUD as calculated on the HUD Form 50059 was incorrect. Context: We tested a sample of 9 items and found two exceptions as noted in the condition. This is a condition identified per review of the Corporation?s compliance with specified requirements using a statistically valid sample. Recommendation: We recommend that the Corporation ensure its policies and procedures in validating the completeness and accuracy of HUD Form 50059, which includes income verification, are followed on a consistent basis. Views of Responsible Officials Management agrees with the finding and recommendation set forth within and has developed a corrective action plan to address the instances of noncompliance identified and lapses in internal control.
Summary It was found during the tenant file audit of Unit 15 158 (9/3/2021 Move-in certification) at Houston House Apartments, there was an income calculation error of child support. In addition, the head of household received non-federal wage income that was not included on the form HUD-50059. Management has processed a Move-in correction form HUD-50059 that includes the correct Child Support income and the head of household?s employment income. The Move-in correction has been submitted to TRACS and will be processed on the May 2022 Housing Assistance Payment (HAP) voucher. HUD will be repaid the overpayment of HAP in the adjustments section of the voucher. Additionally, the Owner/Agent and the head of household has signed and dated the Move-in correction form HUD-50059, acknowledging the increase of the household?s Total Tenant Payment and Tenant Rent. The head of household has received the 30-day notice of rent increase. An additional file, Unit 17 178 (11/29/2021 Move-in certification), had a Move-in certification listing the head of household as the only family member. Management processed a Move-in correction adding a dependent. Once the dependent was added to the form HUD-50059, the dependent deduction in the amount of $480 was added to adjust the household?s annual income. This Move-in correction was also sent to TRACS and will appear on the May 2022 HAP voucher. Corrective Action Status These errors occurred during the beginning of September 2021. Since then, a new property manager has been employed at Houston House Apartments. New management for Prospera Property Management (PPM) are trained by the property?s Regional Manager onsite to ensure new employees are educated in the property management policies and procedures, including, but not limited to, the application, move-in, and recertification process. In addition, PPM has recently implemented a new procedure for new hire property managers. Prior to move-in, property managers must submit all application files to the Compliance Manager to review accuracy of the income/asset verification, allowances/deductions, household screening, and to ensure the applicant is receiving all required documentation. If needed, the Compliance Manager will respond to the property manager for corrections or updated documentation. Once the application file is approved by the Compliance Manager, the property manager will then start the move-in process and transmit the accurate form HUD-50059 to TRACS for subsidy payment. Regional Managers and members of the Compliance Department conduct internal onsite audits as continuing education for property managers. The audits include review of tenant files and the EIV Master File. PPM conducts these audits to ensure property management is up to date and in compliance with HUD regulations. If multiple discrepancies are found during the internal audit, the property manager will follow the same application file procedure as new hires and must submit the application file to the Compliance Manager for approval prior to move-in. Onsite internal audits will continue for these properties until management is properly educated on the policies and procedures and HUD requirements. Name of Contact Person Responsible for Corrective Action Zachary Daywood, Compliance Manager
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