FAC Explorer

Audit 390412

FY End
2025-06-30
Total Expended
$1.50M
Findings
2
Programs
1
Organization: Lowell Terrace Corporation Hud Project No. 101-Hd022-Np-Cmi (CO)
Year: 2025 Accepted: 2026-03-05
Auditor: FORVIS MAZARS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1176594 2025-002 Material Weakness Yes E
1176595 2025-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (SECTION 811) $117,236 Yes 1

Contacts

Name Title Type
S67UNL3VVKY5 Angela Oakley Auditee
3035043920 Jami Johnson Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Lowell Terrace Corporation 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 Lowell Terrace Corporation, it is not intended to and does not present the financial position, changes in net assets or cash flows of Lowell Terrace Corporation.
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.
Lowell Terrace Corporation has elected not to use the de minimis indirect cost rate allowed under the Uniform Guidance.
The federal loan program listed subsequently is administered directly by Lowell Terrace Corporation and the balance and transaction relating to this program is included in Lowell Terrace Corporation's basic financial statements. The loan outstanding at the beginning of the year and any loans made during the year are included in the federal expenditures presented in the Schedule. The balance of the loan outstanding at June 30, 2025 consists of: Assistance Listing Number 14.181 Program Name Supportive Housing for Persons with Disabilities (Section 811) Outstanding Balance at June 30, 2025 $ 1,379,200

Finding Details

Finding 2025-002
Finding: Eligibility Federal Assistance Listing No. 14.181 Supportive Housing for Persons with Disabilities (Section 811) U.S. Department of Housing and Urban Development Criteria or Specific Requirement: In accordance with 24 CFR section 891.410, section 5.230, and OMB No. 2502-0204, owner shall re-examine tenant eligibility at least every 12 months with respect to family income, composition and is required to obtain signed consent forms from assistance applicants. In accordance with HUD Multifamily Occupancy Handbook, Chapter 7, annual certification should be completed and submitted through TRACS within 15 months from previous year’s anniversary date. Condition: For two out of three testing selections, Lowell Terrace Corporation did not obtain and submit the required recertification within the required time period. Lowell Terrace Corporation has contracted out this process to a third-party vendor. Recertification was completed 16 months after previous year’s anniversary date. Our sampling methodology was no, and was not intended to be, statistically valid. Questioned Costs: N/A Effect: Recertification did not occur within the required time period. Cause: Lowell Terrace Corporation did not have controls to ensure timely completion of annual recertifications. Identification as a repeat finding: Not a repeat finding Recommendation: We recommend that the Lowell Terrace Corporation add monitoring controls to help ensure recertifications occur in accordance with 24 CFR section 891-410, section 5.230, and OMB No. 2502-0204. Views of Responsible Officials: The Organization agrees with the finding. See separate auditee document for planned corrective action.