FAC Explorer

Audit 399458

FY End
2025-12-31
Total Expended
$3.09M
Findings
1
Programs
2
Organization: S.d.s.i. Housing Corporation, Inc. (KS)
Year: 2025 Accepted: 2026-04-22
Auditor: ROWE & GORGES LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1208468 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $2.69M Yes 1
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $398,858 Yes 0

Contacts

Name Title Type
WLC3W19JSEH1 Craig Wikoff Auditee
6202757521 Cynthia R Gorges Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal award activity of the Organization, 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
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. The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
The Organization has received a mortgage under Section 223(a)(7) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Organization received no additional loans during the year. The balance of the loan outstanding at December 31, 2025 is $2,589,651.

Finding Details

Finding 2025-001
Federal Program Section 223 Mortgage Insurance, Assistance Listing Number 14.157 Population, sample size, and instances of non-compliance The population consists of two reserve for replacements reimbursement requests. Both of the reimbursement requests were tested, and one instance of non-compliance was noted. Condition The Project received reimbursement from the reserve for replacements of $135,824 for roof repairs that were previously funded with insurance proceeds. Criteria Under HUD Occupancy Handbook 4350.3 REV-1, the reserve for replacements is generally used to help defray the costs of replacing a project's capital items. Effect The reserve for replacements is under funded by $135,824 due to the reimbursement of ineligible items. Cause A reimbursement request was submitted for major roof repairs which are traditionally contemplated as eligible for draws under HUD Occupancy Handbook 4350.3 REV-1. However, management did not consider the fact that such repairs had already been funded by insurance proceeds, so the major roof repairs resulted in no cost to the Project. Recommendation Management should return $135,824 to the reserve for replacements for the ineligible withdrawal. Reporting views of management Management agrees with the finding. Management will negotiate a payment plan with HUD to return the ineligible funds withdrawn from the reserve for replacements. Auditor Non-Compliance Code A - Unauthorized withdrawals from replacement reserve account