FAC Explorer

Audit 373006

FY End
2025-06-30
Total Expended
$3.62M
Findings
1
Programs
2
Organization: Community Housing Services - Wedgewood Ii, Inc. (UT)
Year: 2025 Accepted: 2025-12-04
Auditor: FJ & ASSOCIATES PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1163431 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $3.52M Yes 1
14.195 Section 8 Housing Assistance Payments Program $106,548 Yes 0

Contacts

Name Title Type
U2WPP6M5D1K3 Michael Davenport Auditee
8013281050 Scott Farnes Auditor
No contacts on file

Notes to SEFA

The Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of the Organization. All federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies or other entities are included in the Schedule. The Organization has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Organization’s Schedule of Expenditures of Federal Awards has been prepared using the same basis of accounting as the June 30, 2025 financial statements of the Organization. The Organization reports to HUD using the accrual basis of accounting. A complete description of the basis of accounting is included in note 1 to those financial statements.
In connection with various federal grant programs, the Organization is obligated to administer related programs and spend the funds in accordance with regulatory restrictions, and is subject to audit by grantor agencies and other auditors. In cases of noncompliance, the agencies involved may require the Organization to refund program funds.
The end of the year loan balance for the Supportive Housing for the Elderly (Section 202) loan was $3,516,000.

Finding Details

Finding 2025-001
Security Deposit Cash Account Condition: The security deposit bank account balance at June 30, 2025 was insufficient to cover the liability due to the tenants in occupancy. The security deposits liability exceeded the security deposits held in trust by $1,701 at June 30, 2025. Criteria: Per HUD regulations, maintaining a fully funded security deposit account helps to ensure that management will be able to make refunds to all tenants. Effect: This resulted in the tenant security deposit account being under funded by $1,701 as of June 30, 2025. Cause: Management failed to maintain the deposit balance as required. Recommendation: We recommend that the Project take the necessary steps to fully fund the security deposit account. Auditee’s Response: The Project has taken the necessary steps to fully fund the security deposit account as of the report date.