FAC Explorer

Audit 381382

FY End
2025-06-30
Total Expended
$11.43M
Findings
2
Programs
1
Organization: Villa Caridad 122-Ee183-Wah-Np (CA)
Year: 2025 Accepted: 2026-01-13
Auditor: COHNREZNICK LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1168918 2025-001 Material Weakness Yes E
1168919 2025-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $565,635 Yes 1

Contacts

Name Title Type
CJSZQK5GB154 Rosa Paredes Auditee
8059677508 Nicholas S. Mathias Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Villa Caridad, HUD Project No.: 122-EE183-WAH-NP, under programs of the federal government for the year ended June 30, 2025. 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 Villa Caridad, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Villa Caridad. For the year ended June 30, 2025, no awards were passed through to subrecipients.
Villa Caridad has received a United States Department of Housing and Urban Development direct capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Villa Caridad received no additional capital advances during the year. The balance of the capital advance outstanding at June 30, 2025 consists of: Federal Asisstance Program Name Outstanding Balance Listing Number at June 30, 2025 14.157 Supportive Housing for the Elderly (Section 202) $ 10,864,400

Finding Details

Finding 2025-001
Name of Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Assistance Listing Number: 14.157 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Program. Condition In connection with out lease file review, we noted the following deficiency: * 1 out of 1 new tenant tested did not have an EIV-system income verification performed in a timely fashion Cause Management's policies with respect to the determination of tenant eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Effect or Potential Effect The procedures for determining tenant eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance code: Section 202 program administration Finding Resolution Status: In process Views of Responsible Officials The management company acknowledges the importance of EIV documentation and the timeliness required for generating reports for documentation and review within specified deadlines. To ensure ongoing compliance with these regulations, management will continue the training protocol that is in place annually and will periodically review files to ensure procedures are properly followed going forward.