FAC Explorer

Audit 403348

FY End
2025-12-31
Total Expended
$2.24M
Findings
4
Programs
2
Organization: South Seven Senior Village (WA)
Year: 2025 Accepted: 2026-06-09
Auditor: AIKEN & SANDERS INC P S

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1217209 2025-001 Material Weakness Yes N
1217210 2025-001 Material Weakness Yes N
1217211 2025-002 Material Weakness Yes E
1217212 2025-002 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $748,754 Yes 0
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $77,455 Yes 2

Contacts

Name Title Type
ZK5WJTQMNE14 Holly Morgan Auditee
4255517636 Nikki Wells 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 Project. The information 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). The amounts presented in the Schedule agree to the amounts presented in or used in the preparation of the basic financial statements.
The Schedule is presented using the accrual basis of accounting, which is described in the note of summary of significant accounting policies to the Project's basic financial statements. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement.
The Project has elected not to use the 15% de minimis cost rate as covered in the Uniform Guidance.
Beginning Balance Current Year Activity Ending Balance Supportive housing for the elderly - section 202 $ 1,409,364 $ - $ 1,409,364 Home investment partnership program 748,754 - 748,754 Total $ 2,158,118 $ - $ 2,158,118

Finding Details

Finding 2025-001
2025-001 - Noncompliance with HUD Requirements for Restricted Reserve Accounts - Significant Deficiency Criteria for Specific Requirements: According to HUD Handbook 4350.1 REV-1 and 24 CFR section 891.605, the Replacement Reserve Account must receive monthly deposits in the HUD-approved amount, and any withdrawals also require prior HUD approval. All funds in the Replacement Reserve Account must be maintained in a separate account and used solely for HUD-approved capital replacements. Condition: During the course of our engagement, we identified the following instances of noncompliance with HUD requirements: Withdrawals of $14,853 were made from the Replacement Reserve account without HUD approval. Required monthly deposits of $575 were not made to the Replacement Reserve account for October 2025, and no HUD waiver was obtained. Questioned Cost: There were no questioned costs associated with the condition identified. Cause: The noncompliance occurred due to management’s lack of awareness of HUD requirements related to approval for withdrawals and required monthly deposits. Effect: Restricted reserve accounts were not maintained in accordance with HUD requirements, which may result in HUD questioning or disallowing the withdrawals and deposits. This also reflects a weakness in internal controls over compliance with HUD regulations. Auditor's Recommendation: We recommend that management work with HUD to obtain approval or resolution for the unapproved withdrawals, deposit the missed Replacement Reserve amounts, and establish recurring transfers to ensure compliance going forward. In addition, management should strengthen internal controls and provide staff training so that HUD approval is obtained before withdrawals and deposits are made in a timely manner.
Finding 2025-002
2025-002 – Incomplete Documentation for Tenant Eligibility ALN#14.157 - Significant Deficiency Criteria for Specific Requirements: The program requires the auditee to maintain adequate documentation supporting tenant eligibility determinations, including required application/eligibility support, lease documentation, background verification records, and other required tenant file documentation. Condition: During our testing of tenant eligibility for ALN #14.157, we selected 10 tenant files for review. We noted that background verification support was not provided for 3 out of the 10 samples tested. As a result, the auditee was unable to provide complete documentation to support compliance with the eligibility requirements for those tenants. Questioned Cost: There were no questioned costs associated with the condition identified. Cause: Management indicated that the supporting documentation could not be located due to changes in staff and file retention/maintenance practices. Effect: Without complete background verification documentation, the auditee cannot fully demonstrate that all tenants tested met applicable eligibility requirements. This increases the risk of noncompliance with program eligibility requirements. Auditor's Recommendation: We recommend that management implement a standardized tenant file checklist and centralized document retention process to ensure all required eligibility documentation, including background verification support, is obtained, reviewed, and retained. Management should also review existing tenant files and obtain or reconstruct missing documentation where possible.