FAC Explorer

Audit 397951

FY End
2025-06-30
Total Expended
$7.55M
Findings
1
Programs
1
Organization: The Towers LLC (MN)
Year: 2025 Accepted: 2026-04-07
Auditor: MAHONEY ULBRICH CHRISTIANSEN & RUSS PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1206068 2025-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.134 MORTGAGE INSURANCE RENTAL HOUSING $7.55M Yes 1

Contacts

Name Title Type
DPXGJETMGVN7 Vicky Dwyer Auditee
7633771800 Josh Russell Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of The Towers, LLC 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 The Towers, LLC, it is not intended to and does not present the financial position, changes in net assets, or cash flows of The Towers, LLC.

Finding Details

Finding 2025-001
Federal Agency - U.S. Department of Housing and Urban Development Office of Housing - Federal Housing Commissioner Assistance Listing Number 14.134 - Mortgage Insurance - Rental Housing Category of Finding - Unauthorized management fees Criteria - The HUD Regulatory Agreement requires HUD approval for any changes in the management agent of the Project and/or management fees charged to the Project. Condition - The Project signed a new management agreement effective July 1, 2022. The agreement is with a new management company that is wholly owned by the previous management company, and also increases the management fees charged to the Project. These changes have not been approved by HUD. Cause - The Project was required to make the change in management companies due to updated requirements for assisted living facilities required by the State of Minnesota. Management began the process of requesting HUD approval for these changes but did not receive approval from HUD before making the changes. Effect - The Project was not in compliance with the Regulatory Agreement. Identification of Repeat Finding - 2024-001 Questioned Costs - $21,412 Recommendation - Management should ensure that HUD approval is obtained before making any changes in management agent or management fees.