Audit 399329

FY End

2025-12-31

Total Expended

$10.56M

Findings

1

Programs

1

Organization: Hartford Village (MI)

Year: 2025 Accepted: 2026-04-21

Auditor: MANER COSTERISAN

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1208307	2025-001	Material Weakness	Yes	M

ALN	Program	Spent	Major	Findings
14.138	MORTGAGE INSURANCE RENTAL HOUSING FOR THE ELDERLY	$10.56M	Yes	1

Contacts

Name	Title	Type
K5BAKTTJ3HN5	Tyler Luce	Auditee
2482812033	Keith Pfeifle	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Hartford Village under programs of the federal government for the year ended December 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 Hartford Village, it is not intended to and does not present the financial position, changes in net assets or cash flows of Hartford Village.

Expenditures reported on 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 reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. Hartford Village has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Hartford Village has a mortgage insured by U.S. Department of Housing and Urban Development under Section 231 of the National Housing Act. For the U.S. Department of Housing and Urban Development loan program, federal expenditures reported on the Schedule represent the outstanding loan balance at year-end, which is subject to continuing compliance requirements. Hartford Village received no additional capital advances, or loans, during the year. The balance of the mortgage at December 31, 2025, was $10,379,180.

Finding Details

Finding 2025-001

Finding 2025-001- Considered to be immaterial noncompliance. Condition: The Organization’s tenant security deposit account was underfunded at December 31, 2025. The balance maintained in the restricted security deposit account was less than the total tenant security deposit liability recorded in the general ledger. As a result, tenant security deposits were not fully funded in a separate account as required by HUD regulations. Criteria: Per the Regulatory Agreement and HUD Handbook 4370.2 REV-1, Chapter 2, and HUD Handbook 4350.3, tenant security deposits collected must be maintained in a separate, restricted account and the balance of the account must at all times equal or exceed the total liability for tenant security deposits. Effect: The underfunding of the tenant security deposit account resulted in noncompliance with HUD requirements related to the safeguarding of tenant funds. Organization cash was effectively used for purposes other than maintaining required tenant security deposit reserves. As a result, tenant security deposits were underfunded by $12,874. Cause: The underfunded balance occurred because management did not reconcile the tenant security deposit liability to the restricted security deposit account on a periodic basis to ensure the account remained fully funded. Recommendation: We recommend that management implement procedures to reconcile the tenant security deposit liability to the restricted security deposit account on a regular basis and ensure that sufficient funds are maintained in the account at all times in accordance with HUD requirements. Management Comments: We agree with the facts and circumstances described above. Subsequent to year end, the Organization will be opening a separate security deposit account to hold the cash. Auditor Noncompliance Code: M - Security Deposits.