FAC Explorer

Audit 385881

FY End
2025-09-30
Total Expended
$2.71M
Findings
1
Programs
4
Organization: Satellite St. Andrew's Manor, LLC (CA)
Year: 2025 Accepted: 2026-02-05
Auditor: APRIO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1172611 2025-001 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $1.25M Yes 1
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $1.17M Yes 0
14.164 OPERATING ASSISTANCE FOR TROUBLED MULTIFAMILY HOUSING PROJECTS $216,374 Yes 0
14.191 MULTIFAMILY HOUSING SERVICE COORDINATORS $75,930 Yes 0

Contacts

Name Title Type
GDLHLUM67MJ1 Jose Sanchez Auditee
5106470700 Courtney Sharp Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Satellite St. Andrew's Manor, LLC under programs of the federal government as of and for the year ended September 30, 2025. 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 ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the Company, it is not intended to and does not present the financial position, changes in net assets or cash flows of Satellite St. Andrew's Manor, LLC.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in OMB Circular A-122, "Cost Principles for Non-Profit Organizations" or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Satellite St. Andrew's Manor, LLC has elected not to use the 15% de minimis indirect cost rate allowed under Uniform Guidance.
Loan balances outstanding as of September 30, 2025 are as follows: Operating Assistance for Troubled Multifamily Housing Projects – Flexible Subsidy Loan - $216,374 HOME Investment Partnership Program Loan - $1,248,300

Finding Details

Finding 2025-001
Finding 2025-001: Reportable Finding Considered a Significant Deficiency - Activities Allowed and Unallowed Program name: HOME Investment Partnership Program Assistance Listing: 14.239 Federal award Identification number: Unknown Federal award year: 2025 Federal awarding agency: U.S. Department of Housing and Urban Development (HUD) Criteria: The HUD Regulatory Agreement does not allow the use of project funds to pay subordinate debt without the prior approval and consent of HUD. Statement of Condition: During the period ended September 30, 2025, the Company made payments from project funds for subordinate debt without the prior approval of HUD in the amount of $53,739. Cause: A management oversight use of project funds caused the amount to be paid without prior approval and consent of HUD. Effect or Potential Effect: The payment on subordinate debt resulted in an unauthorized distribution of operating funds. Amount of Questioned Costs: $ 53,739 Perspective: Funds from the project account were used to make payments on subordinate debt without prior approval and consent of HUD. Recommendation: We recommend that management implement controls to prevent the unauthorized distribution of project funds. Management's response and corrective action plan (unaudited): Management at Satellite Affordable Housing Associates Property Management (“SAHA PM”) is in agreement with the finding and intends to follow the requirements of the HUD Regulatory Agreement in the future. Management has reimbursed the property $28,539, an amount equal to HCD’s net cash flow payment from FY 2024. Management will seek HUD approval on form HUD-9250 for use of project funds that paid the $12,600 for FY 2025 and FY 2024.