FAC Explorer

Audit 387855

FY End
2025-09-30
Total Expended
$1.18M
Findings
1
Programs
2
Organization: Hilltop Residence, Inc. (MN)
Year: 2025 Accepted: 2026-02-18
Auditor: CLIFTONLARSONALLEN LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1174157 2025-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $1.10M Yes 1
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $85,681 Yes 0

Contacts

Name Title Type
RTRCKTP8HD63 Carol Borgerson Auditee
3205987556 Ryan Strusz Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hilltop Residence, Inc. (HUD Project No. 092-11254) (the Project) under programs of the federal government 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 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 Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project
The Section 223(f)-lnsured Mortgage is considered a federal award until the outstanding balance is paid in full. At September 30, 2025, the Project’s outstanding balance is $1,067,178. The Section 223(f)-lnsured Mortgage is considered to be a major program in 2025.

Finding Details

Finding 2025-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects Assistance Listing Number: 14.155 Federal Award Identification Number and Year: MN46T801017 - 2025 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Inspection reports should be signed by both the tenant and the housing manager. Condition: One move-out inspection report did not include signatures from either party. Questioned costs: None Cause: Management oversight as part of the unit inspection process for move-outs. Effect: No effect on the financial statements. Repeat Finding: No Recommendation: The Project should ensure that all inspection reports are signed by both the tenant and housing manager. Views of responsible officials: Management will review policies and procedures to ensure compliance is met going forward.