FAC Explorer

Audit 395211

FY End
2025-08-31
Total Expended
$8.15M
Findings
1
Programs
2
Organization: Ablelight Residence Fremont Inc (WI)
Year: 2025 Accepted: 2026-03-27
Auditor: BAKER TILLY US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1190942 2025-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $7.32M Yes 0
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $827,397 Yes 1

Contacts

Name Title Type
NLSGGYJVJC98 Errol Meinholz Auditee
9202459275 Krista K. Pankop, CPA Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Ablelight Residence Fremont Inc. (the Organization) under programs of the federal government for the year ended August 31, 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 Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
The mortgage balance at loan inception is included in the federal expenditures presented in the Schedule. The mortgage balance at August 31, 2025 is as follows: Program Name: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Federal Assistance Listing Number: 14.155 Outstanding Balance: $7,256,459

Finding Details

Finding 2025-002
Agency: U.S. Department of Housing and Urban Development Program and Assistance Listing Number: Project-Based Rental Assistance, 14.195, Section 8 Project Number CA39T791002 Condition: We found that the operating cash account balance was over the Federal Deposit Insurance Corporation (FDIC) limit of $250,000 during the year ended August 31, 2025, however, the Organization was not actively monitoring the financial institution credit rating as required by HUD. Criteria: Uniform Guidance requires the Organization to have adequate controls to ensure it remains in compliance with activities allowed or unallowed. This includes the operating cash account being maintained in FDIC insured accounts or monitoring the credit rating of the financial institution where the funds are held to ensure the security of the cash balance. Questioned costs: The amount of questioned costs cannot be determined. Context: While the escrow deposits, reserve for replacements funds and the residual receipts reserve funds are required to be held with the mortgage holder, all remaining cash is required to be FDIC insured or the financial institution credit rating must be monitored by the Organization. The operating cash account was over the threshold and the financial institution rating was not being actively monitored by management. Effect: The Organization was not in compliance with the requirements of the federal program as it relates to activities allowed or unallowed.. Cause: Management was not aware of the requirement to have the funds insured or monitoring the bank credit rating. Recommendation: We recommend management develop internal processes and controls surrounding activities allowed or unallowed. This includes following the requirements as outlined by HUD to have the operating cash be FDIC insured or actively be monitoring the credit rating of the financial institution. Management response: Management will implement quarterly reviews of HUD cash balances as well as review the credit ratings of the financial institutions holding HUD cash balances.