FAC Explorer

Audit 397404

FY End
2025-12-31
Total Expended
$5.07M
Findings
1
Programs
2
Organization: Mount Zion Madison Street Properties (WA)
Year: 2025 Accepted: 2026-04-01
Auditor: RF COMPANY CPA'S P S

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1205687 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $2.56M Yes 0
14.134 MORTGAGE INSURANCE RENTAL HOUSING $2.51M Yes 1

Contacts

Name Title Type
DTB9S17JKYA3 Thomas E. Anderson Auditee
4255621200 Jared,postlethwaite CPA Auditor
No contacts on file

Notes to SEFA

For the year ended December 31, 2024, there were no awards passed through to subrecipients.
Under the U.S. Department of Housing and Urban Development Mortgage Insurance Rental Housing (the Note), Mount Zion Madison Street Properties received Mortgage Insurance for Rental Housing. The Note is secured by a deed of trust and provides for monthly payments of $11,951, including principal and interest at 3.18 percent until August 1, 2050. At December 31, 2024, $2,513,868 is outstanding. Under the U.S. Department of Housing and Urban Development Home Investment Partnerships Program (the Note), Mount Zion Madison Street Properties received a loan through the City of Seattle. The loan is secured by a deed of trust and accrues interest at 1 percent per annum and matures November 1, 2050. Interest is deferred and will be forgiven on maturity as long as the project remains in compliance with the terms and conditions of the loan documents. At December 31, 2024, $2,555,256 is outstanding.

Finding Details

Finding 2025-001
S3800-010 Finding Reference Number 2025-001 S3800-011 Title and Assistance Listing Number of Federal Program U.S. Department of Housing and Urban Home Investment Partnership Program, 14.239 S3800-015 Type of Finding Federal Award Finding S3800-016 Finding Resolution Status In Process S3800-017 Information on Universe Population Size N/A S3800-018 Sample Size Information N/A S3800-019 Identification of Repeat Finding and Reference Number No S3800-020 Criteria The organization must comply with HUD guidelines regarding residual receipts withdrawals. S3800-030 Statement of Condition Funds were withdrawn from residual receipts that were authorized by HUD to be withdrawn from the replacement reserve. S3800-032 Cause Clerical error S3800-033 Effect or Potential Effect The project was not in compliance with HUD guidelines for residual receipts withdrawals. S3800-035 Auditor Non-Compliance Code S3800-040 Questioned Costs $29,370 S3800-045 Reporting Views of Responsible Officials The Organization must comply with HUD guidelines regarding residual receipts withdrawals. S3800-037 FHA/Contract Number 12735486 S3800-038 Questioned Costs $29,370 S3800-080 Recommendation Management should have procedures in place to ensure HUD approved withdrawals are taken from the approved account. S3800-090 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Funds will be withdrawn from replacement reserve and deposited to the residual receipts account. S3800-130 Response Indicator Agree S3800-140 Completion Date 03/31/2026 S3800-150 Response Management agrees with the finding, and funds will be moved from the replacement reserve to the residual receipts account S3800-160 Contact Person First Name Thomas S3800-170 Contact Person Middle Initial E. S3800-180 Contact Person Last Name Anderson