FAC Explorer

Audit 397875

FY End
2025-12-31
Total Expended
$2.57M
Findings
1
Programs
2
Organization: Silver Lake Housing, Inc. (TX)
Year: 2025 Accepted: 2026-04-07
Auditor: PITTSFORD SAMUELS PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1206034 2025-001 Material Weakness Yes M

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $2.05M Yes 0
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $245,175 Yes 1

Contacts

Name Title Type
L2HPAGL7NNG8 Linda Holder Auditee
7135269470 Nancy Mack Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal grant activity of Silver Lake Retirement Community and The Oaks Retirement Community, HUD Project No. 114-11228. 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 Silver Lake Retirement Community and The Oaks Retirement Community, it is not intended to and does not present the financial position, changes in net assets or cash flows of Silver Lake Retirement Community and The Oaks Retirement Community.
Expenditures reported in 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 reimbursements.
The Project has received a loan under section 207 of the National Housing Act of 1959. The loan balance at the beginning of the year is included in the federal expenditures presented in the schedule. The Project received no additional funds during the year. The balance of the mortgage at December 31, 2025 amounts to $1,995,798.
The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2025-001
Findings reference number: 2025-001 - Title and AL Number of Federal Program: Section 8 Housing Assistance, AL 14.195 - Type of finding: Federal Award (Compliance) - Resolution Status: In process - Population size: N/A - Sample size: N/A - Repeat finding: Yes. - Criteria: The tenant security deposits bank account should have enough cash to cover the tenant security deposit liability. - Condition: Review of the security deposit account showed that the balance as of December 31, 2025 was insufficient to cover the tenant security deposit liability. - Cause: The Project had a shortfall of operational cash and used some funds from the security deposit account in a prior year and has not had the funds to replenish the account. - Effect: The Project may not be able to refund the security deposit for tenants moving out. - Noncompliance code: M. Security deposits. - Questioned costs: N/A. - Reporting views of officials: Auditee agrees with the finding. - Contract Number: 114-11228 - Context: The funds were withdrawn in the prior year due to a shortfall of operating cash and the need for necessary repairs to the property. The Project has not had enough operating cash in the current year to replenish the withdrawal. - Recommendation: Management should transfer enough funds to the security deposit account to cover the tenant security deposit liability. - Auditee's Response: The reserve for replacement has ample funds to request reimbursements of qualified expenditures and Management plans to make a sizable request for funds in April 2026. If approved, management can fund the deficiency in the security deposits. Management is also going to request a Budget Based Rent increase in May 2026 for the property due to the extraordinary escalation of operating costs of the last three years. Management believes that with these steps it will be able to return to its previous cash flow position. - Completion date: 12.31.2026