EIN: 480779337
UEI: E3N9XMNU3G65
Audit also covers EIN: 141980060 · unlinked EINs have no separate FAC filing
Audited by: AdamsBrown, LLC
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 September 25, 2024. 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 March 25, 2025 (524 days ago).
What is a management decision? →2023-001 14.155 – Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Criteria or specific requirement To ensure that assisted tenants pay rents commensurate with their ability to pay, tenants must undergo annual recertification. They must also undergo an interim recertification when their family’s income cumulatively increases by $200 or more per month. Any changes should be input on the tenant’s HUD-50059 form, and, for interim recertifications, if the tenant complied with the reporting requirements, rent increases should be implemented after a 30 day advance notice period. Condition During testing, we identified that certain tenants had an improper amount of rent calculated and applied to their rental agreement or paid an incorrect amount. Context Of the three tenants tested, one tenant had an inaccurate amount listed on the Cash Value of Assets section of their HUD-50059 form, which, in turn, affected the amount of rent that they were required to pay. Another tenant underwent an interim recertification, which noted that a rent increase was required, and notification was given to the tenant in May 2023. However, that increase was implemented retroactively to April 2023. Cause For the first situation noted above, the Cash Value of Assets calculated by the Organization only summed five of the six months’ bank statements provided for average, but the total was still divided by six months. For the second situation, the tenant had only recently moved in, and they had been in the process of applying for government benefits at the time of the move in. During the tenant application process, the tenant was notified that a rent increase would be required once the benefits went into effect. However, the official notice was not provided with 30 days advance notice prior to implementing the increase. Effect Two tenants had incorrect amounts applied to their rental agreements. Recommendation Procedures should be reviewed to ensure that all tenants pay an accurate amount for their rental agreements. Views of responsible officials See corrective action plan.
Show full finding ▾Hide full finding ▴2023-001 14.155 – Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Criteria or specific requirement To ensure that assisted tenants pay rents commensurate with their ability to pay, tenants must undergo annual recertification. They must also undergo an interim recertification when their family’s income cumulatively increases by $200 or more per month. Any changes should be input on the tenant’s HUD-50059 form, and, for interim recertifications, if the tenant complied with the reporting requirements, rent increases should be implemented after a 30 day advance notice period. Condition During testing, we identified that certain tenants had an improper amount of rent calculated and applied to their rental agreement or paid an incorrect amount. Context Of the three tenants tested, one tenant had an inaccurate amount listed on the Cash Value of Assets section of their HUD-50059 form, which, in turn, affected the amount of rent that they were required to pay. Another tenant underwent an interim recertification, which noted that a rent increase was required, and notification was given to the tenant in May 2023. However, that increase was implemented retroactively to April 2023. Cause For the first situation noted above, the Cash Value of Assets calculated by the Organization only summed five of the six months’ bank statements provided for average, but the total was still divided by six months. For the second situation, the tenant had only recently moved in, and they had been in the process of applying for government benefits at the time of the move in. During the tenant application process, the tenant was notified that a rent increase would be required once the benefits went into effect. However, the official notice was not provided with 30 days advance notice prior to implementing the increase. Effect Two tenants had incorrect amounts applied to their rental agreements. Recommendation Procedures should be reviewed to ensure that all tenants pay an accurate amount for their rental agreements. Views of responsible officials See corrective action plan.
14.155 – Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Condition During testing, we identified that certain tenants had an improper amount of rent calculated and applied to their rental agreement or paid an incorrect amount. Recommendation Procedures should be reviewed to ensure that all tenants pay an accurate amount for their rental agreements. Comments on the Finding The Organization is aware of the oversight and will strive to improve the process in the future. Action Taken As of the date of this notice, processes have been implemented for the Fiscal Manager or Executive Director to complete a review of all rent calculations prior to sending them to the third party HUD contractor for inclusion on form HUD-50059. Additionally, all applicable staff have been trained on the timelines associated with implementing rent increases.
FAC accepted this audit on September 27, 2023 — management decision was due March 27, 2024.
FAC accepted this audit on September 28, 2022 — management decision was due March 28, 2023.
Federal Program Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution 93.498 Compliance requirements Period of Performance Criteria or specific requirement Internal controls should be in place to ensure that program expenses are paid before the end of the period of performance. Condition During testing, we identified that the loan for the building acquisition cost had not been fully paid off by the end of the period of performance. Context Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution monies received from April 10, 2020 to December 31, 2020, had to be used by December 31, 2021. Of the $195,000 loan for the building acquisition cost, only $90,000 had been paid before the end of the period of performance. Cause Although the funds used for the building acquisition were obligated within the period of performance, the Organization did not ensure that all funds were paid within the timeframe required. Effect Funds that were reported as being used for the period of performance ending on December 31, 2021 had not been paid out. Recommendation We recommend that the Organization review its controls to ensure that program expenses are obligated and paid within the correct timeframes. Views of responsible officials See Corrective Action Plan.
Show full finding ▾Hide full finding ▴Federal Program Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution 93.498 Compliance requirements Period of Performance Criteria or specific requirement Internal controls should be in place to ensure that program expenses are paid before the end of the period of performance. Condition During testing, we identified that the loan for the building acquisition cost had not been fully paid off by the end of the period of performance. Context Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution monies received from April 10, 2020 to December 31, 2020, had to be used by December 31, 2021. Of the $195,000 loan for the building acquisition cost, only $90,000 had been paid before the end of the period of performance. Cause Although the funds used for the building acquisition were obligated within the period of performance, the Organization did not ensure that all funds were paid within the timeframe required. Effect Funds that were reported as being used for the period of performance ending on December 31, 2021 had not been paid out. Recommendation We recommend that the Organization review its controls to ensure that program expenses are obligated and paid within the correct timeframes. Views of responsible officials See Corrective Action Plan.
2021-001 Period of Performance Recommendation We recommend that the Organization review its controls to ensure that program expenses are obligated and paid within the correct timeframes. Action Taken Sunflower Diversified Services, Inc. (SDS) had acquired property and reported the cost as a program expense, but a portion of the funds had not yet been paid at 12/31/2021. SDS had additional expenses and lost revenues that had not been claimed at the end of the first reporting period (submitted 3/31/22) that exceeds the amount of the property expenses claimed in error. These same expenses and lost revenues also exceed the amount needed for the final period of performance (to be submitted 3/31/23), without any consideration given to the property transaction. Calls were made to HHS in an attempt to correct the first period reports, but modifications are not currently being accepted. Proper internal procedures have been implemented to verify the timing of obligations being reported in the future.
FAC accepted this audit on September 29, 2021 — management decision was due March 29, 2022.
FAC accepted this audit on December 17, 2020 — management decision was due June 17, 2021.
FAC accepted this audit on September 25, 2019 — management decision was due March 25, 2020.
FAC accepted this audit on July 19, 2018 — management decision was due January 19, 2019.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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