FAC Explorer

Audit 401818

FY End
2025-06-30
Total Expended
$1.37M
Findings
5
Programs
2
Organization: Friends Alliance Housing Ii,inc D/b/a Friendship House (LA)
Year: 2025 Accepted: 2026-05-20
Auditor: TIMOTHY PRIEST

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1215148 2025-009 Material Weakness Yes B
1215149 2025-010 Material Weakness Yes E
1215150 2025-011 Material Weakness Yes L
1215151 2025-012 Material Weakness Yes J
1215152 2025-013 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.28M Yes 5
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $90,551 Yes 0

Contacts

Name Title Type
S162WMWKU857 Dave Mancina Auditee
9856266538 Timothy Priest Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of Friends Alliance Housing, I I, Inc. d/b/a Friendship House HUD Project No. 0 64-HD07 4, 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 Friends Alliance Housing, II, Inc. d/b/a Friendship House it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of Friends Alliance Housing, II, Inc. d/b/a Friendship House.
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 Project has received a U.S. Department of Housing and Urban Development direct capital advance under Section 811. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received no additional capital advances during the year. The balance of the capital advance outstanding at June 30, 2025, consists of: AL Number 14.181 Program Name Supportive Housing for Persons with Disabilities (Section 811) Capital Advance Balance at June 30, 2025 ($) 1,282,950
The Project has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2025-009
Condition: The Project incurred unsupported costs, costs charged to the incorrect entity, and duplicate payments totaling $21,082.78. Criteria: Uniform Guidance requires that costs be properly supported, allowable, and allocable to the Federal program. Cause: Controls over disbursements were not effectively designed or implemented. Effect: Federal funds were used for unallowable or unsupported purposes. Questioned Costs: $21,082.78. Recommendation: Strengthen controls over invoice review, ensure proper documentation, and verify charges are allocable to the Project prior to payment.
Finding 2025-010
Condition: The Project disposed of a vehicle during the year without obtaining prior approval from HUD. Criteria: Federal regulations require prior approval for disposition of equipment acquired with Federal funds. Cause: Lack of awareness of HUD approval requirements. Effect: Noncompliance with Federal equipment management requirements. Questioned Costs: $8,700. Recommendation: Implement procedures to ensure HUD approval is obtained prior to disposing of any Federally funded assets.
Finding 2025-011
Condition: The Project did not make required deposits into the Reserve for Replacement account totaling $3,600. Criteria: HUD Regulatory Agreement requires periodic deposits into the reserve account. Cause: Oversight in monitoring required deposits. Effect: Noncompliance with HUD reserve requirements. Recommendation: Establish monitoring controls to ensure all required reserve deposits are made timely.
Finding 2025-012
Condition: The Project did not submit required REAC reporting within the prescribed timeframe. Criteria: HUD requires timely submission of required reporting. Cause: Delays in preparation and review processes. Effect: Noncompliance with reporting requirements. Recommendation: Implement procedures to ensure timely preparation and submission of required reports.
Finding 2025-013
Condition: The Project did not maintain required flood insurance coverage during the audit period. Criteria: HUD regulations require continuous insurance coverage for insured properties. Cause: Failure to monitor insurance policy status. Effect: Exposure to uninsured risk and noncompliance with HUD requirements. Recommendation: Implement procedures to ensure required insurance coverage is maintained at all times.