EIN: 720600718
UEI: S162WMWKU857
Audited by: Timothy Priest
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 May 20, 2026. 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 20, 2026 (83 days from today).
What is a management decision? →The Project incurred unsupported costs, costs charged to the incorrect entity, and duplicate payments totaling $21,082.78. Criteria: Uniform Guidance requires that costs be properly supported, allowable, and allocable to the Federal program. Cause: Controls over disbursements were not effectively designed or implemented. Effect: Federal funds were used for unallowable or unsupported purposes. Questioned Costs: $21,082.78. Recommendation: Strengthen controls over invoice review, ensure proper documentation, and verify charges are allocable to the Project prior to payment.
Show full finding ▾Hide full finding ▴Condition: The Project incurred unsupported costs, costs charged to the incorrect entity, and duplicate payments totaling $21,082.78. Criteria: Uniform Guidance requires that costs be properly supported, allowable, and allocable to the Federal program. Cause: Controls over disbursements were not effectively designed or implemented. Effect: Federal funds were used for unallowable or unsupported purposes. Questioned Costs: $21,082.78. Recommendation: Strengthen controls over invoice review, ensure proper documentation, and verify charges are allocable to the Project prior to payment.
Management will perform a line-item review of all exceptions identified, obtain missing documentation to support allowability and allocability, reclassify costs to non-federal cost centers where appropriate, or reimburse the program for unsupported costs. A reconciliation schedule will be prepared identifying each exception and resolution method. Controls will be strengthened by requiring complete documentation, implementing a multi-level review process, establishing property-specific coding procedures, and training staff on federal allowability requirements.
The Project disposed of a vehicle during the year without obtaining prior approval from HUD. Criteria: Federal regulations require prior approval for disposition of equipment acquired with Federal funds. Cause: Lack of awareness of HUD approval requirements. Effect: Noncompliance with Federal equipment management requirements. Questioned Costs: $8,700. Recommendation: Implement procedures to ensure HUD approval is obtained prior to disposing of any Federally funded assets.
Show full finding ▾Hide full finding ▴Condition: The Project disposed of a vehicle during the year without obtaining prior approval from HUD. Criteria: Federal regulations require prior approval for disposition of equipment acquired with Federal funds. Cause: Lack of awareness of HUD approval requirements. Effect: Noncompliance with Federal equipment management requirements. Questioned Costs: $8,700. Recommendation: Implement procedures to ensure HUD approval is obtained prior to disposing of any Federally funded assets.
Management will request retroactive HUD disposition approval and either demonstrate proper handling of proceeds or reimburse/deposit funds as directed by HUD. A written fixed-asset policy will be implemented requiring HUD approval prior to asset disposal, Board approval of dispositions, and retention of HUD correspondence and disposition documentation.
The Project did not make required deposits into the Reserve for Replacement account totaling $3,600. Criteria: HUD Regulatory Agreement requires periodic deposits into the reserve account. Cause: Oversight in monitoring required deposits. Effect: Noncompliance with HUD reserve requirements. Recommendation: Establish monitoring controls to ensure all required reserve deposits are made timely.
Show full finding ▾Hide full finding ▴Condition: The Project did not make required deposits into the Reserve for Replacement account totaling $3,600. Criteria: HUD Regulatory Agreement requires periodic deposits into the reserve account. Cause: Oversight in monitoring required deposits. Effect: Noncompliance with HUD reserve requirements. Recommendation: Establish monitoring controls to ensure all required reserve deposits are made timely.
Management will implement a monthly reserve funding checklist, automate recurring reserve transfers where feasible, and require Board review of reserve account activity. Reserve deposits will be supported by bank statements and documented through signed monthly checklists, with exceptions documented and remediated.
The Project did not submit required REAC reporting within the prescribed timeframe. Criteria: HUD requires timely submission of required reporting. Cause: Delays in preparation and review processes. Effect: Noncompliance with reporting requirements. Recommendation: Implement procedures to ensure timely preparation and submission of required reports.
Show full finding ▾Hide full finding ▴Condition: The Project did not submit required REAC reporting within the prescribed timeframe. Criteria: HUD requires timely submission of required reporting. Cause: Delays in preparation and review processes. Effect: Noncompliance with reporting requirements. Recommendation: Implement procedures to ensure timely preparation and submission of required reports.
Management will begin year-end closing procedures earlier, establish internal deadlines, engage the auditor earlier, and implement a REAC submission calendar assigning responsibilities and target dates. Evidence of timely submission will be retained, including confirmations or screenshots.
The Project did not maintain required flood insurance coverage during the audit period. Criteria: HUD regulations require continuous insurance coverage for insured properties. Cause: Failure to monitor insurance policy status. Effect: Exposure to uninsured risk and noncompliance with HUD requirements. Recommendation: Implement procedures to ensure required insurance coverage is maintained at all times.
Show full finding ▾Hide full finding ▴Condition: The Project did not maintain required flood insurance coverage during the audit period. Criteria: HUD regulations require continuous insurance coverage for insured properties. Cause: Failure to monitor insurance policy status. Effect: Exposure to uninsured risk and noncompliance with HUD requirements. Recommendation: Implement procedures to ensure required insurance coverage is maintained at all times.
Management will implement an insurance compliance calendar with renewal tracking, assign responsibility for monitoring coverage, establish a funding mechanism for premiums, and retain documentation of policy renewals, payments, and annual flood-zone confirmations to ensure continuous coverage.
FAC accepted this audit on May 20, 2026 — management decision was due November 20, 2026.
The design of the Project's internal controls precludes certain segregation of duties and other designs of internal controls. Criteria: Proper design of the Project's internal controls to include segregation of duties and other designs of internal controls. Effect: The segregation of duties and other designs of internal controls are limited. Context: Proper design of the Project's internal controls to include segregation of duties and other designs of internal controls. Cause: The size of The Project's accounting and administrative staff precludes certain segregation of duties and other designs of internal controls that would be preferred if the office staff were larger. Recommendation: It is recommended that management and Project governance review their procedures and develop processes to address deficiencies in the segregation of duties and other designs of internal controls. Increased involvement of the Board of Directors in the financial affairs of the Project would provide oversight and independent review functions, thereby lessening the severity of the deficiencies. However, it does not eliminate them. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditor's recommendations will be adopted.
Show full finding ▾Hide full finding ▴DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-001 Condition: The design of the Project's internal controls precludes certain segregation of duties and other designs of internal controls. Criteria: Proper design of the Project's internal controls to include segregation of duties and other designs of internal controls. Effect: The segregation of duties and other designs of internal controls are limited. Context: Proper design of the Project's internal controls to include segregation of duties and other designs of internal controls. Cause: The size of The Project's accounting and administrative staff precludes certain segregation of duties and other designs of internal controls that would be preferred if the office staff were larger. Recommendation: It is recommended that management and Project governance review their procedures and develop processes to address deficiencies in the segregation of duties and other designs of internal controls. Increased involvement of the Board of Directors in the financial affairs of the Project would provide oversight and independent review functions, thereby lessening the severity of the deficiencies. However, it does not eliminate them. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditor's recommendations will be adopted.
Finding 2024-001, Significant Deficiency in Internal Control over Financial Reporting. Condition: The design of the Project’s internal controls precludes certain segregation of duties and other designs of internal controls. Criteria: Proper design of the Project’s internal controls to include segregation of duties and other designs of internal controls. Cause: The size of The Project’s accounting and administrative staff precludes certain segregation of duties and other designs of internal controls that would be preferred if the office staff were larger. Effect: The segregation of duties and other designs of internal controls are limited. Recommendation: The auditor recommended that management and Project governance review their procedures and develop processes to address deficiencies in the segregation of duties and other designs of internal controls. Increased involvement of the Board of Directors in the financial affairs of the Project would provide oversight and independent review functions, thereby lessening the severity of the deficiencies. Responsible Person: Brittany Colson, Manager Planned Action: The Project agrees with the finding and the auditor’s recommendations will be adopted. Anticipated completion date: The recommendation will be applied in fiscal year ending June 30, 2025.
The Project did not submit their financial information to H.U.D. by the required due date. Criteria: Submit the Project financial information by the required due date. Effect: REAC submission is late. Context: REAC submission should be submitted by the required due date. Cause: Procedures are in place to submit the required information by the required due date. However, the required information was not available for a timely submission. Recommendation: It is recommended that the management and the Project's governance review their procedures and begin the audit earlier to ensure the financial information is available for a timely submission. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditor's recommendations will be adopted.
Show full finding ▾Hide full finding ▴DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-002 Condition: The Project did not submit their financial information to H.U.D. by the required due date. Criteria: Submit the Project financial information by the required due date. Effect: REAC submission is late. Context: REAC submission should be submitted by the required due date. Cause: Procedures are in place to submit the required information by the required due date. However, the required information was not available for a timely submission. Recommendation: It is recommended that the management and the Project's governance review their procedures and begin the audit earlier to ensure the financial information is available for a timely submission. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding and the auditor's recommendations will be adopted.
Finding 2024-002, Significant Deficiency in Internal Control over Financial Reporting. Condition: The Project did not submit their financial information to H.U.D. by the required due date. Criteria: Submit the Project financial information by the required due date. Cause: Procedures are in place to submit the required information by the required due date. However, the required information was not available for a timely submission. Effect: The REAC submission is late. Recommendation: The auditor recommended that the management and the Project’s governance review their procedures and begin the audit earlier to ensure the financial information is available for a timely submission. Responsible Person: Brittany Colson, Manager Planned Action: The Project agrees with the finding and the auditor’s recommendations will be adopted. Anticipated completion date: The recommendation will be applied in fiscal year ending June 30, 2025.
2023-001, 2023-002
The property management failed to make the required monthly reserve deposits for the period of July 2023 to June 2024. Effect: Failure to make these deposits could jeopardize the financial health of the property and its ability to meet future maintenance needs. Cause: The failure was due to deficiencies in the internal controls within the management process related to the monthly deposits. Recommendation: It is recommended that the property management implement internal controls to ensure monthly reserve deposits are made as required by HUD Section 811 regulations. Views of Responsible Officials and Planned Corrective Actions: The property management agrees with the finding and has implemented a corrective action plan to ensure compliance going forward Criteria: According to HUD Section 811 regulations, properties must make monthly reserve deposits to ensure financial stability and ongoing maintenance.
Show full finding ▾Hide full finding ▴DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-003 Condition: The property management failed to make the required monthly reserve deposits for the period of July 2023 to June 2024. Effect: Failure to make these deposits could jeopardize the financial health of the property and its ability to meet future maintenance needs. Cause: The failure was due to deficiencies in the internal controls within the management process related to the monthly deposits. Recommendation: It is recommended that the property management implement internal controls to ensure monthly reserve deposits are made as required by HUD Section 811 regulations. Views of Responsible Officials and Planned Corrective Actions: The property management agrees with the finding and has implemented a corrective action plan to ensure compliance going forward Criteria: According to HUD Section 811 regulations, properties must make monthly reserve deposits to ensure financial stability and ongoing maintenance.
Finding 2024-003, Significant Deficiency in Internal Control over Compliance. Condition: The property management failed to make the required monthly reserve deposits for the period of July 2023 to June 2024. Criteria: According to HUD Section 811 regulations, properties must make monthly reserve deposits to ensure financial stability and ongoing maintenance. Cause: The failure was due to deficiencies in the internal controls within the management process related to the monthly deposits. Effect: The failure to make these deposits could jeopardize the financial health of the property and its ability to meet future maintenance needs. Recommendation: The auditor recommended that the property management implement internal controls to ensure monthly reserve deposits are made as required by HUD Section 811 regulations. Responsible Person: Brittany Colson, Manager Planned Action: The Project agrees with the finding and the auditor’s recommendations will be adopted. Anticipated completion date: The recommendation will be applied in fiscal year ending June 30, 2025.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-004 Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities See the details of this finding for segregation of duties and other designs of internal controls in 2024-001 above.
Show full finding ▾Hide full finding ▴DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-004 Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities See the details of this finding for segregation of duties and other designs of internal controls in 2024-001 above.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-004 Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities See the details of this finding for segregation of duties and other designs of internal controls in 2024-001 above.
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-005 Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities. See the details of this finding for the late REAC submission in 2024- 002 above.
Show full finding ▾Hide full finding ▴DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-005 Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities. See the details of this finding for the late REAC submission in 2024- 002 above.
Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities. See the details of this finding for the late REAC submission in 2024-002 above.
2023-001, 2023-002
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-006 Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities. See the details of this finding for the failure to make the required monthly reserve deposits in 2024-003 above.
Show full finding ▾Hide full finding ▴DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING NO. 2024-006 Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities. See the details of this finding for the failure to make the required monthly reserve deposits in 2024-003 above.
Assistance Listing Number 14.181: Section 811 Supportive Housing for Persons with Disabilities. See the details of this finding for the failure to make the required monthly reserve deposits in 2024-003 above.
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