EIN: 760107354
UEI: EXAHA8KPBU87
Audited by: PITTSFORD SAMUELS, PLLC
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 December 16, 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 June 16, 2026 (74 days ago).
What is a management decision? →FAC accepted this audit on October 23, 2024 — management decision was due April 23, 2025.
FAC accepted this audit on October 18, 2023 — management decision was due April 18, 2024.
Recertifications for tenants were not properly updated in the rent roll. Criteria: The accounting records should reflect the proper breakout between HUD and tenant rent. Effect: The breakout of total rental income between HUD subsidy and tenant rent was incorrect and had to be adjusted. Context: Upon recertification, the tenant and HUD rent were adjusted and both tenant and HUD were paying the correct amounts per the recertification, however the accounting records (rent roll) was not updated for the recertification. The total rent was correct, however reclassifications had to be made in the general ledger to properly reflect the payments made. Cause: Oversight by the property manager. Noncompliance code: S. Internal control deficiency Questioned costs: None. Reporting views of officials: Management agrees with the finding. Contract number: 114-11304. Recommendation: Upon recertification, rent roll should be updated to properly reflect the breakout between tenant and HUD rent. Views of Responsible Officials and Planned Corrective Actions:: Management is in agreement and have accepted the proposed reclassification journal entries to record in the general ledger. The property manager will be trained to update the accounting records upon recertification. Completion date: 6/30/2024
Show full finding ▾Hide full finding ▴Findings reference number: 2023-001 TItle and AL Number of Federal Program: Section 8 Housing Assistance (AL 14.195) Type of finding: Internal control Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: No Condition: Recertifications for tenants were not properly updated in the rent roll. Criteria: The accounting records should reflect the proper breakout between HUD and tenant rent. Effect: The breakout of total rental income between HUD subsidy and tenant rent was incorrect and had to be adjusted. Context: Upon recertification, the tenant and HUD rent were adjusted and both tenant and HUD were paying the correct amounts per the recertification, however the accounting records (rent roll) was not updated for the recertification. The total rent was correct, however reclassifications had to be made in the general ledger to properly reflect the payments made. Cause: Oversight by the property manager. Noncompliance code: S. Internal control deficiency Questioned costs: None. Reporting views of officials: Management agrees with the finding. Contract number: 114-11304. Recommendation: Upon recertification, rent roll should be updated to properly reflect the breakout between tenant and HUD rent. Views of Responsible Officials and Planned Corrective Actions:: Management is in agreement and have accepted the proposed reclassification journal entries to record in the general ledger. The property manager will be trained to update the accounting records upon recertification. Completion date: 6/30/2024
Response: Management recorded the adjusting journal entries as proposed by the audit firm. In the future, management will ensure that depreciation and amortization of loan costs and calculated and recorded in the general ledger.
FAC accepted this audit on October 24, 2022 — management decision was due April 24, 2023.
FAC accepted this audit on September 21, 2021 — management decision was due March 21, 2022.
During our testing of the transactions that relate to fixed assets and loan costs of the Project, we noted that certain amounts had not been properly recorded in the general ledger. Cause: Certain transactions relating to depreciation were recorded incorrectly. Amortization expense had not been recorded and accumulated amortization had been recorded backwards. Effect: Accumulated depreciation and depreciation expense were overstated. Amortization expense was understated and accumulated amortization had been recorded as a debit. An adjusting entry for a significant amount had to be made to properly report the balances at year end. Noncompliance code: S. Internal control deficiency Questioned costs: None. Reporting views of officials: Management agrees with the finding. Contract number: 114-11304. Context: The general ledger balance was different than the supporting detail for certain accounts that were related to the loan costs and fixed assets of the Project. This was noted during the testing of loan costs and fixed assets. Recommendation: The proposed adjusting entries should be posted to the books. Management should set up procedures for ensuring that all transactions are recorded properly at year-end. Auditors' summary of auditee's comments: They are in agreement and have accepted the proposed journal entries to record the various transactions correctly to the books. Completion date: 6/30/2022 Response: Management recorded the proposed adjusting entries to the general ledger after discussing it with the auditor.
Show full finding ▾Hide full finding ▴Findings reference number: 2021-001 Title and CFDA Number of Federal Program: Section 223(f) Mortgage Insurance for Purchase or Refinancing of Existing MultiFamily Housing Projects, (CFDA 14.155) Type of finding: Internal control Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: Yes. Criteria: Controls should be in place to ensure that all the Project's transactions are properly recorded according to generally accepted accounting principles and are reconciled to the supporting detail. Statement of Condition: During our testing of the transactions that relate to fixed assets and loan costs of the Project, we noted that certain amounts had not been properly recorded in the general ledger. Cause: Certain transactions relating to depreciation were recorded incorrectly. Amortization expense had not been recorded and accumulated amortization had been recorded backwards. Effect: Accumulated depreciation and depreciation expense were overstated. Amortization expense was understated and accumulated amortization had been recorded as a debit. An adjusting entry for a significant amount had to be made to properly report the balances at year end. Noncompliance code: S. Internal control deficiency Questioned costs: None. Reporting views of officials: Management agrees with the finding. Contract number: 114-11304. Context: The general ledger balance was different than the supporting detail for certain accounts that were related to the loan costs and fixed assets of the Project. This was noted during the testing of loan costs and fixed assets. Recommendation: The proposed adjusting entries should be posted to the books. Management should set up procedures for ensuring that all transactions are recorded properly at year-end. Auditors' summary of auditee's comments: They are in agreement and have accepted the proposed journal entries to record the various transactions correctly to the books. Completion date: 6/30/2022 Response: Management recorded the proposed adjusting entries to the general ledger after discussing it with the auditor.
Audit Finding 2021-001: During testing of the transactions that relate to fixed assets and loan costs of the Project, certain amounts had not been properly recorded in the general ledger. Response: Management recorded the adjusting journal entries as proposed by the audit firm. In the future, management will ensure that depreciation and amortization of loan costs and calculated and recorded in the general ledger. Name and Title of contact person responsible for corrective action: Kenneth Tann ? Management Agent Multi-Family Mission Ministries 21059 Blair Road Conroe, TX 77385 281-298-7999 Employer Identification Number: 76-0039673
2020-001
FAC accepted this audit on November 24, 2020 — management decision was due May 24, 2021.
During our testing of the transactions that relate to fixed assets of the Project, we noted that certain amounts had not been properly recorded in the general ledger. Cause: Certain transactions relating to depreciation were recorded incorrectly. Effect: Accumulated depreciation and depreciation expense were overstated. An adjusting entry for a significant amount had to be made to properly report the balances at year end. Noncompliance code: S. Internal control deficiency Questioned costs: None. Reporting views of officials: Management agrees with the finding. Contract number: 114-11304. Context: The general ledger balance was different than the supporting detail for certain accounts that were related to the fixed assets of the Project. This was noted during the testing of the fixed assets detail and depreciation expense. Recommendation: The proposed adjusting entries should be posted to the books. Management should set up procedures for ensuring that all transactions are recorded properly at year-end. Auditors' summary of auditee's comments: They are in agreement and have accepted the proposed journal entries to record the various transactions correctly to the books. Completion date: 6/30/2021 Response: Management recorded the proposed adjusting entries to the general ledger after discussing it with the auditor.
Show full finding ▾Hide full finding ▴Findings reference number: 2020-001 Title and CFDA Number of Federal Program: Section 223(f) Mortgage Insurance for Purchase or Refinancing of Existing MultiFamily Housing Projects, (CFDA 14.155) Type of finding: Internal control Resolution Status: Resolved Population size: N/A Sample size: N/A Repeat finding: Yes. Criteria: Controls should be in place to ensure that all the Project's transactions are properly recorded according to generally accepted accounting principles and are reconciled to the supporting detail. Statement of Condition: During our testing of the transactions that relate to fixed assets of the Project, we noted that certain amounts had not been properly recorded in the general ledger. Cause: Certain transactions relating to depreciation were recorded incorrectly. Effect: Accumulated depreciation and depreciation expense were overstated. An adjusting entry for a significant amount had to be made to properly report the balances at year end. Noncompliance code: S. Internal control deficiency Questioned costs: None. Reporting views of officials: Management agrees with the finding. Contract number: 114-11304. Context: The general ledger balance was different than the supporting detail for certain accounts that were related to the fixed assets of the Project. This was noted during the testing of the fixed assets detail and depreciation expense. Recommendation: The proposed adjusting entries should be posted to the books. Management should set up procedures for ensuring that all transactions are recorded properly at year-end. Auditors' summary of auditee's comments: They are in agreement and have accepted the proposed journal entries to record the various transactions correctly to the books. Completion date: 6/30/2021 Response: Management recorded the proposed adjusting entries to the general ledger after discussing it with the auditor.
CORRECTIVE ACTION PLAN November 24, 2020 RE: Oak Haven Apartments Houston, Texas FHA #114-11304 Pursuant to the recent HUD Assessment of Electronic Submission of the annual audit for Oak Haven Apartments. Multi-family Mission Ministries, Inc. agent for Oak Haven Apartments respectfully submits the following corrective action for the audit period July 1, 2018 through June 30, 2020. The findings from the June 2020 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding No. 2020...001 Finding: During testing of the transactions that relate to fixed assets of the Project, we noted that certain amounts had not been properly recorded in the general ledger. Action Taken: Management recorded the adjusting journal entries as proposed by the audit firm. We have also transitioned to a new accounting program since the prior program was out of date. Management will ensure all fixed assets are booked and depreciation calculated. Thank you for your continued assistance and cooperation. Nannette Vallis Managing Agent
2019-001
HUD increased rents during December 2019 for Oak Haven Apartments and February 2020 for Oak Haven for the Handicapped. The Project did not update rent roll for the increases on a timely basis. Cause: The Project experienced manager turnover during the year and the records were not properly updated during this time. Effect or Potential Effect: The tenant ledger balances were misstated during the year. Auditor Non-Compliance Code: S. Internal Control Deficiency Questioned costs: None Reporting views of responsible officials: Management agrees with the finding. Contract Number: 114-11034 Context: This was noted during the testing of tenant rents. The correct amount of rent was being paid by both the tenant and HUD, however the records by tenant and certain general ledger accounts were misstated. Recommendation: Management should set up procedures to ensure that rent increases are properly reflected in the rental software system. Auditors' summary of auditee's comment: They are in agreement and are in the process of reviewing and updating each tenant ledger in the software. Proposed completion date: June 30, 2021. Response: Management will review the tenant ledgers to ensure accuracy.
Show full finding ▾Hide full finding ▴Schedule reference number: 2020-002 Title and CFDA Number of Federal Program: Section 223(f) Mortgage Insurance for Purchase or Refinancing of Existing MultiFamily Housing Projects (CFDA 14.155) Type of finding: Internal Control Resolution Status: In process. Population size: N/A Sample size: N/A Repeat finding: No Criteria: The accounting records and tenant ledger balances should be updated for any rent increases. Statement of Condition: HUD increased rents during December 2019 for Oak Haven Apartments and February 2020 for Oak Haven for the Handicapped. The Project did not update rent roll for the increases on a timely basis. Cause: The Project experienced manager turnover during the year and the records were not properly updated during this time. Effect or Potential Effect: The tenant ledger balances were misstated during the year. Auditor Non-Compliance Code: S. Internal Control Deficiency Questioned costs: None Reporting views of responsible officials: Management agrees with the finding. Contract Number: 114-11034 Context: This was noted during the testing of tenant rents. The correct amount of rent was being paid by both the tenant and HUD, however the records by tenant and certain general ledger accounts were misstated. Recommendation: Management should set up procedures to ensure that rent increases are properly reflected in the rental software system. Auditors' summary of auditee's comment: They are in agreement and are in the process of reviewing and updating each tenant ledger in the software. Proposed completion date: June 30, 2021. Response: Management will review the tenant ledgers to ensure accuracy.
CORRECTIVE ACTION PLAN November 24, 2020 RE: Oak Haven Apartments Houston, Texas FHA #114-11304 Pursuant to the recent HUD Assessment of Electronic Submission of the annual audit for Oak Haven Apartments. Multi-family Mission Ministries, Inc. agent for Oak Haven Apartments respectfully submits the following corrective action for the audit period July 1, 2018 through June 30, 2020. The findings from the June 2020 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding No. 2020-002 Finding: It was noted that during tenant file testing that the rental software system records were not correct. Action Taken: Management has setup procedures to ensure that the rent increase amounts are reflected correctly in the system. Tenants and HUD were paying the correct amounts and files noted correct amounts however during multiple staff changes the rental software was not updated. This has been completed to reflect correct amounts and procedures have been put in place for monthly verification. Thank you for your continued assistance and cooperation. Nannette Vallis Managing Agent
FAC accepted this audit on January 5, 2020 — management decision was due July 5, 2020.
During our testing of the transactions that relate to fixed assets of the Project, we noted that certain amounts had notbeen properly recorded in the general ledger.Cause: Certain transactions were recorded incorrectly.Effect: Fixed assets were understated while accumulated depreciation was overstated. Adjusting entries for significant amounts had to bemade to properly report the balances at year end.Noncompliance code: S. Internal control deficiencyQuestioned costs: None.Reporting views of officials: Management agrees with the finding.Contract number: I 14-1I304.Context The general ledger balance was different than the supporting detail tor certarn accounts that were related to the fixed assets of theProject. This was noted during the testing of expenditures and depreciation expense.Recommendation: The proposed adjusting entries should be posted to the books. Management should set up procedures for ensuring that alltransactions are recorded properly at year-end.Auditors' summary of auditee's comments: They are in agreement and have accepted the proposed journal entries to record the varioustransactions correctly to the books.Completion date: 6/30/2020Response: Management recorded the proposed adjusting entries to the general ledger after discussing it with the auditor.25
Show full finding ▾Hide full finding ▴II Findings Related to Financial Statements Audit:Findings reference number: 2019-001Title and CFDA Number of Federal Program: Section 223(t) Mortgage Insurance for Purchase or Refinancing of Existing MultiFamilyHousing Projects, (C'FJ)A 14.155)Type of finding: Internal controlResolution Status: ResolvedPopulation size: NIASample size: N/ ARepeat finding: No.Criteria: Controls should be in place to ensure that all the Project's transactions are property recorded according to generally acceptedaccounting principles and are reconciled to the supporting detail.Statement of Condition: During our testing of the transactions that relate to fixed assets of the Project, we noted that certain amounts had notbeen properly recorded in the general ledger.Cause: Certain transactions were recorded incorrectly.Effect: Fixed assets were understated while accumulated depreciation was overstated. Adjusting entries for significant amounts had to bemade to properly report the balances at year end.Noncompliance code: S. Internal control deficiencyQuestioned costs: None.Reporting views of officials: Management agrees with the finding.Contract number: I 14-1I304.Context The general ledger balance was different than the supporting detail tor certarn accounts that were related to the fixed assets of theProject. This was noted during the testing of expenditures and depreciation expense.Recommendation: The proposed adjusting entries should be posted to the books. Management should set up procedures for ensuring that alltransactions are recorded properly at year-end.Auditors' summary of auditee's comments: They are in agreement and have accepted the proposed journal entries to record the varioustransactions correctly to the books.Completion date: 6/30/2020Response: Management recorded the proposed adjusting entries to the general ledger after discussing it with the auditor.25
Finding No. 2019-001CFDA: 14.155, Section 223(f) Mortgage Insurance for Purchase or Refinancing of Existing Multi-Family Housing ProjectFinding: During testing of the transactions that relate to fixed assets of the Project, we noted that certain amounts had not been properly recorded in the general ledger.Action Taken: Management recorded the adjusting journal entries as proposed by the audit firm.We have also transitioned to a new accounting program since the prior program was out of date.Nannette VallisManaging Agent
The Project used MGT Support Services, LLC (MGn for pre-inspection services. An officer of the Corporationhas an ownership interest in MGT. Additionally, the Project used Distinguished Care Services, LLC (DCS) for coordination services for theelderly. An officer of the Corporation owns DCS.Cause: Management was unaware of this provision of the Regulatory Agreement and has indicated that HUD was knowledgeable aboutthese transactions and did not consider them to be an issue.Effect or Potential Effect: HUD may require the Project to outsource these services in the future.Auditor Non-Compliance Code: Z.Questioned costs: $18, 105Reporting views of responsible officials: Management believes that these services are vital for the successful operations of the Project andthey consider the costs to be below fair value.Contract Number: 114-11034Context: Management believes these services are ordinary and necessary for the Project.Recommendation: Management should get written approval from HUD to continue to use these vendors and should adopt a conflict ofinterest policy.Auditors' summary of auditee's comment: They disagree that the services should be outsourced but will consult with HUD to find aresolution.Proposed completion date: December 31, 2019.Response: Management will consult with HUD on this matter.
Show full finding ▾Hide full finding ▴Schedule reference number: 201 9-002Title and CFDA Number of Federal Program: Section 223(f) Mortgage Insurance for Purchase or Refinancing of Existing MultiFamilyHousing Projects (CFDA 14.155)Type of finding: Federal AwardResolution Status: In process.Population size: NI ASample size: N/ ARepeat finding: NoCriteria: Per the Regulatory Agreement (Section l tk), no officer of the Project shall have any financial interest in an contractualarrangement entered into by the Project in connection with the rendition of services.Statement of Condition: The Project used MGT Support Services, LLC (MGn for pre-inspection services. An officer of the Corporationhas an ownership interest in MGT. Additionally, the Project used Distinguished Care Services, LLC (DCS) for coordination services for theelderly. An officer of the Corporation owns DCS.Cause: Management was unaware of this provision of the Regulatory Agreement and has indicated that HUD was knowledgeable aboutthese transactions and did not consider them to be an issue.Effect or Potential Effect: HUD may require the Project to outsource these services in the future.Auditor Non-Compliance Code: Z.Questioned costs: $18, 105Reporting views of responsible officials: Management believes that these services are vital for the successful operations of the Project andthey consider the costs to be below fair value.Contract Number: 114-11034Context: Management believes these services are ordinary and necessary for the Project.Recommendation: Management should get written approval from HUD to continue to use these vendors and should adopt a conflict ofinterest policy.Auditors' summary of auditee's comment: They disagree that the services should be outsourced but will consult with HUD to find aresolution.Proposed completion date: December 31, 2019.Response: Management will consult with HUD on this matter.
Finding No.2019-002CFDA: 14.155, Section 223(f) Mortgage Insurance for Purchase or Refinicing of Existing MultiFamily Housing ProjectFinding: Per the Regulatory Agreement, no officer of the Project shall have any financiaJ interest in a contractual arrangement entered into by the Project in connection with the rendition of services. 'Action Taken: Services for the Elderly were for the Social Service Coordinator salary.Services are provided by Distinguished Care Services which is the same company that has been on the site since early 2000 when the grant was in place.Since the property has limited budget it was in the best interest of the community to continue to use a third party so there are no additional benefits that have to be offered.This is service is no longer in place.Pre-inspection services were for the site inspection services utilized throughout the year. MGTSupport Services hired an individual to do weekly site inspections to ensure the USPC/REAC Compliance Pre-inspection & Code Coordination standards are being met.Mr. Clark also provides maintenance of asset to the community as changes in staff often occur and new training is needed.This is billed on an as needed basis.Nannette VallisManaging Agent
The Project inadvertently submitted an invoice twice when requesting withdrawals from the replacement reserve.HUD approved the Funds Authorization both times.Cause: Management oversight.Effect or Potential Effect: None.Auditor Non-Compliance Code: Z.Questioned costs: $7,540Reporting views of responsible officials: Auditee agrees with the finding.Contract Number: 114-11034Context: The Project inadvertently submitted the same invoice twice. The funds were repaid on September 12, 2019.Recommendation: Management should compare current requests to all prior requests to ensure that items are not duplicated.Auditors' summary of auditee's comment: They are in agreement.Proposed completion date: September 12, 2019.Response: Management repaid the funds to the replacement reserve in September 2019.26
Show full finding ▾Hide full finding ▴Title and CFDA Number of Federal Program: Section 223(f) Mortgage Insurance for Purchase or Refinancing of Existing MultifamilyHousing Projects (CFDA 14.155)Type of finding: Federal AwardResolution Status; Resolved.Population size: N/ ASample size: NI ARepeat finding: NoCriteria: Invoices should be submitted to HUD for approval for withdrawal from the replacement reserve.Statement of Condition: The Project inadvertently submitted an invoice twice when requesting withdrawals from the replacement reserve.HUD approved the Funds Authorization both times.Cause: Management oversight.Effect or Potential Effect: None.Auditor Non-Compliance Code: Z.Questioned costs: $7,540Reporting views of responsible officials: Auditee agrees with the finding.Contract Number: 114-11034Context: The Project inadvertently submitted the same invoice twice. The funds were repaid on September 12, 2019.Recommendation: Management should compare current requests to all prior requests to ensure that items are not duplicated.Auditors' summary of auditee's comment: They are in agreement.Proposed completion date: September 12, 2019.Response: Management repaid the funds to the replacement reserve in September 2019.26
Finding No. 2019-003CFDA: 14.155, Section 223(f) Mortgage Insurance for Purchase or Refinancing of Existing Multi-Family Housing ProjectFinding: The Project inadvertently submitted an invoice twice when requesting withdrawals from the replacement reserve. HUD approved the Funds Authorization both times.Action Taken: Management corrected and repaid to the replacement reserve in September 2019.Nannette VallisManaging Agent
FAC accepted this audit on December 10, 2018 — management decision was due June 10, 2019.
FAC accepted this audit on November 2, 2017 — management decision was due May 2, 2018.
FAC accepted this audit on October 27, 2016 — management decision was due April 27, 2017.
GSA_MIGRATION
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GSA_MIGRATION
2015-001
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