FAC Explorer

Audit 402675

FY End
2025-08-31
Total Expended
$903,989
Findings
1
Programs
2
Organization: Wesley Homes, Inc. (GA)
Year: 2025 Accepted: 2026-05-30
Auditor: MAULDIN & JENKINS LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1216189 2025-001 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $836,040 Yes 1
14.191 MULTIFAMILY HOUSING SERVICE COORDINATORS $67,949 Yes 0

Contacts

Name Title Type
HNMFH9AXUNF2 Terry Barcroft Auditee
4042825220 Jon Schultz Auditor
No contacts on file

Notes to SEFA

BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the “Schedule”) includes federal grant activity of Lanier Gardens under programs of the federal government for the year ended August 31, 2025. The information in the Schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Lanier Gardens, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Lanier Gardens.
AMOUNTS PASSED THROUGH TO SUBRECIPIENTS Lanier Gardens did not provide any federal awards to subrecipients during the fiscal year ended August 31, 2025.

Finding Details

Finding 2025-001
1. Criteria: The Project’s regulatory and grant agreements mandate that project funds be used solely for the benefit of the specific audited HUD project. The project is strictly prohibited from loaning or utilizing project funds for non-project purposes, including making disbursements or advances on behalf of other affiliated entities or projects without prior written consent from HUD. 2. Condition: During the review of related-party transactions and cash disbursements, it was noted that the Project disbursed restricted federal funds totaling $255,270 to cover the costs of an elevator replacement project on behalf of an affiliated entity. This transaction effectively functioned as an unauthorized loan or advance of project funds to an affiliated entity. 3. Cause: The Project utilizes a centralized cash account to manage and disburse payments to shared vendors across all its affiliates. While these entities share a management structure and vendor relationships, the internal control and accounting procedures failed to prevent or flag a disbursement made for separate cost objectives that did not benefit the project. 4. Effect: By utilizing project funds to pay for the expenses of related entities, the Organization diverted restricted federal funds away from the specific project for which they were intended. 5. Questioned Costs: $255,270 - Representing the total amount due from the affiliate entity for the unauthorized disbursement. 6. Recommendations: We recommend management establish and implement robust internal control policies that strictly prohibit the payment of non-project expenses from the Project funds. 7. Views of Responsible Officials: Management agrees with the findings and recommendations. Management will review and implement an updated cash disbursement procedure to ensure that Project funds are restricted solely to project-specific operations and are not disbursed on behalf of separate entities. 8. Current Status: Management is in the process of receiving the full reimbursement of the $255,270 from the affiliated entity.