Audit 357832

FY End
2025-03-31
Total Expended
$1.93M
Findings
4
Programs
2
Organization: Desert Willow Apartments (CA)
Year: 2025 Accepted: 2025-06-02

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
562236 2025-001 Significant Deficiency - C
562237 2025-002 Significant Deficiency - C
1138678 2025-001 Significant Deficiency - C
1138679 2025-002 Significant Deficiency - C

Contacts

Name Title Type
H6LEBB1N1MY8 Nancy Jordan Auditee
6614007164 Anthony Apodaca Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note - Basis of Presentation: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Desert Willow Apartments. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of Example Entity, it is not intended to and does not present the financial position, changes in net assets or cash flows of Desert Willow Apartments. Note - Summary of Significant Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected not to use the 10 percent de Minimis indirect cost rate allowed under the Uniform Guidance. Note - Federally Funded Grant: The grant balance at the beginning of the year is included in the federal expenditures presented in this schedule. The balance of the outstanding federally insured grant at March 31, 2025, is $1,848,500. De Minimis Rate Used: N Rate Explanation: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Organization has elected not to use the 10 percent de Minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

2025-001 Reportable Condition – Compliance: Criteria: The regulatory agreement requires HUD authorization to withdraw money from the Residual Receipts account. Condition: The Organization did not receive HUD authorization for three withdrawals totaling $18,354 during the year. Questioned cost: None Context: Occurring within the current accounting period. Cause: Management distributed money without HUD approval. Effect: The Project is not in compliance with the regulatory agreement. Recommendation: The Project should refund the distribution. Repeat finding: No Views of responsible official and planned corrective action: The current management agent concurs and will take immediate corrective action.
2025-002 Reportable Condition – Compliance: Criteria: The regulatory agreement requires HUD authorization to withdraw money from the Reserve for Replacements account. Condition: The Organization did not receive HUD authorization for two withdrawals totaling $2,500 during the year. Questioned cost: None Context: Occurring within the current accounting period. Cause: Management distributed money without HUD approval. Effect: The Project is not in compliance with the regulatory agreement. Recommendation: The Project should refund the distribution. Repeat finding: No Views of responsible official and planned corrective action: The current management agent concurs and will take immediate corrective action.
2025-001 Reportable Condition – Compliance: Criteria: The regulatory agreement requires HUD authorization to withdraw money from the Residual Receipts account. Condition: The Organization did not receive HUD authorization for three withdrawals totaling $18,354 during the year. Questioned cost: None Context: Occurring within the current accounting period. Cause: Management distributed money without HUD approval. Effect: The Project is not in compliance with the regulatory agreement. Recommendation: The Project should refund the distribution. Repeat finding: No Views of responsible official and planned corrective action: The current management agent concurs and will take immediate corrective action.
2025-002 Reportable Condition – Compliance: Criteria: The regulatory agreement requires HUD authorization to withdraw money from the Reserve for Replacements account. Condition: The Organization did not receive HUD authorization for two withdrawals totaling $2,500 during the year. Questioned cost: None Context: Occurring within the current accounting period. Cause: Management distributed money without HUD approval. Effect: The Project is not in compliance with the regulatory agreement. Recommendation: The Project should refund the distribution. Repeat finding: No Views of responsible official and planned corrective action: The current management agent concurs and will take immediate corrective action.