Audit 368785

FY End

2024-12-31

Total Expended

$1.35M

Findings

Programs

Organization: Homeless No More, Inc. 122-Hd085-Wdd-Np (CA)

Year: 2024 Accepted: 2025-09-29

Auditor: Suchan & Associates An Accountancy Corporation

Organization Exclusion Status:

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Findings

ID	Ref	Severity	Repeat	Requirement
1156461	2024-001	Material Weakness	Yes	N

Programs

ALN	Program	Spent	Major	Findings
14.181	Supportive Housing for Persons with Disabilities	$1.26M	Yes	1
14.181	Project Rental Assistance Contract (prac)	$87,479	Yes	0

Contacts

Name	Title	Type
X1Q2APRZLDL9	Dan O'Brien	Auditee
2132513475	Michele Suchan	Auditor
No contacts on file

Notes to SEFA

Basis Of Presentation - The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Homeless No More, Inc., HUD Project No. 122-HD085-WDD-NP, is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Homeless No More, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Homeless No More, Inc.

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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Homeless No More, Inc. has elected not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance.

U.S. Department of Housing and Urban Development Loan Program - Homeless No More, Inc. has received a U.S. Department of Housing and Urban Development direct loan under Section 811 of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the schedule. Homeless No More, Inc. received no additional loans during the year. The balance of the loan outstanding at December 31, 2024 consists of: Outstanding Balance AL # Program Name December 31, 2024 14.181 Section 811 Direct Loan $1,261,500

Finding Details

Finding 2024-001

Condition: The Project did not make timely replacement reserve deposits for 12 of the 12 required monthly deposits for the calendar year ended December 2024, as required by the regulatory agreement. The Project did not make all 12 monthly deposits of $750 for an annual contribution of $9,000 to the replacement reserve account as required by the regulatory agreement. During 2024, one deposit of $750 was a catch-up deposit from 2023. Zero deposits were made for the year 2024. Replacement reserve deposits were short $9,000 for the calendar year ended December 31, 2024. Criteria: Per the regulatory agreement, HUD requires the Project to make equal monthly deposits of $750 for an annual total of $9,000. Effect: For the year ended December 31, 2024 the replacement reserve account is underfunded. A total of $0 was deposited into the replacement reserve account for the year 2024 leaving a shortage of $9,000. The Project was not compliant with the HUD regulatory agreement to deposit timely monthly required deposits into the replacement reserves account. Questioned Costs: $ -- Context: All activity for the replacement reserve account was traced and it was determined that the required monthly deposits were not timely deposited. It was determined that 12 out of the 12 monthly deposits were not timely deposited in accordance with the regulatory agreement. The project’s increase in necessary repairs and maintenance was substantial and created a cash flow shortage to fund the required monthly deposits. Cause: The Project has insufficient cash flow to fund the replacement reserve account in accordance with the regulatory agreement as a result of an increase in required repairs and maintenance expenses incurred during the year to maintain safe and livable conditions for tenants. Recommendation: The Project should fund the shortage as soon as possible and make the required timely monthly deposits in accordance with the regulatory agreement. View of Responsible Officials and Planned Corrective Actions: The Project agrees with this finding and will adhere to the corrective action plan on page 33 in this audit report. Response: As of the current date the delinquent deposits have not been brought up to date due to ongoing cash flow issues. The Project is negotiating for a rent increase and is in the process of renewing its contract with HUD. Once both the rent increase and contract renewal are approved the replacement reserve account will be funded as soon as the HUD assistance payments are received.