FAC Explorer

Audit 397480

FY End
2025-06-30
Total Expended
$4.00M
Findings
2
Programs
2
Organization: 3250 Sacramento Housing, Inc. (CA)
Year: 2025 Accepted: 2026-04-01
Auditor: LINDQUIST VON HUSEN & JOYCE LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1205753 2025-001 Material Weakness Yes N
1205754 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $769,980 Yes 0
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $219,249 Yes 1

Contacts

Name Title Type
ZBC1KAXYBXM9 Kate McKean Auditee
5108414410 Cathy Hwang Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant and loan activity of 3250 Sacramento Housing, Inc. and is presented on the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts, presented in, or used in the preparation of, the basic financial statements. The purpose of the Schedule is to present a summary of those activities of 3250 Sacramento Housing, Inc. for the year ended June 30, 2025, which have been financed by the U.S. Government. For purposes of the Schedule, federal awards include all federal assistance entered into directly and indirectly between 3250 Sacramento Housing, Inc. and the federal government. 3250 Sacramento Housing, Inc. elected not to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
The accompanying Schedule includes $3,776,180 in expenditures from prior years for which continuing compliance is required.
See the Notes to the SEFA for chart/table

Finding Details

Finding 2025-001
Finding No. 2025-001 – Compliance over Timely Deposit of Annual Residual Receipts Finding #: 2025-001 Assistance Listing #: 14.157 Program (or Cluster) Name: Section 202 Supportive Housing for Elderly Persons Compliance Requirement: Residual receipts account Project Title: Capital Advance Agreement Award Date: December 1, 1998 Award Period of Performance: December 1998 to October 2040 Federal Agency: U.S. Department of Housing and Urban Development Project Title: Project Rental Assistance Contract Award Date: June 1, 2024 June 1, 2025 Award Period of Performance: June 2024 to May 2025 June 2025 to May 2026 Federal Agency: U.S. Department of Housing and Urban Development Criteria or specific requirement: The U.S. Department of Housing and Urban Development (HUD) regulations require the any surplus cash in the project funds account at the end of the fiscal year be deposited to the residual receipts cash account within 90 days following the year end. Condition: When performing procedures over residual receipts deposits, the auditor noted that the Project had surplus cash of $20,756 available for the fiscal year ended June 30, 2024. However, there were no deposits to the residual receipts account made within 90 days after June 30, 2024. Context: The annual audit for the fiscal year ended Juen 30, 2024 was issued in October 2024, and the surplus cash was deposited into the residual receipts account in March 2025. Questioned costs: None. Effect: 3250 Sacramento was not deemed properly complied with the HUD residual receipts compliance requirement. Cause: The final amount for the deposit of residual receipts was communicated internally; however, the deposit was not finalized. 3250 Sacramento received a notice from HUD that the receipt had not been received, and immediately sent out the deposit as soon as the oversight came to light. Repeat finding from prior year: No. Recommendation: 3250 Sacramento should develop an operating plan in order to ensure that the required residual receipts deposits are made timely each year. Views of responsible officials and planned corrective actions: This was an isolated incident for the fiscal year ending June 30, 2024. As soon as the oversight was identified, management took action to remedy it. In addition, management has updated the process to send out residual receipts deposits once management has a draft audit completed, versus waiting until after the final audit to ensure deposits are made before the 9/30 deadline. If there are any changes post audit completion, they should be immaterial and would be deposited as soon as management has the final numbers. This will ensure timely deposits. Confirmation of deposits is tracked and will be followed up on regularly to ensure management do not miss the residual receipts distributions from surplus cash in the future. Whether sampling was statistically valid: Sampling was not statistically valid for this finding.