FAC Explorer

Audit 403827

FY End
2025-12-31
Total Expended
$1.78M
Findings
2
Programs
2
Organization: Rccc Villa (IA)
Year: 2025 Accepted: 2026-06-16
Auditor: TP ANDERSON & COMPANY PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1217683 2025-002 Material Weakness Yes N
1217684 2025-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $1.74M Yes 2
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $35,139 Yes 0

Contacts

Name Title Type
ENVVTEVF1QH5 Christy Hofsaess Auditee
5152230173 Tim McCartan Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of RCCC Villa, Project No. 074-EE045-WAH-IA, 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.
The Organization has received a U.S. Department of Housing and Urban Development capital advance under Section 202 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 consists of: 14.157 Section 202 Capital Advance $ 1,742,141

Finding Details

Finding 2025-002
Replacement Reserve: The Organization is required to make monthly deposits of $1,125 into a replacement reserve fund. We noted that 13 out of 12 of these deposits were made during the year. We also noted that the deposits that were made were made at irregular intervals rather than monthly. Criteria: Rules governing HUD projects with a capital advance loan required that monthly deposits be made into a replacement reserve account to aid in funding extraordinary maintenance and repair and replacement of capital items. Cause: Due to depositing funds to the reserve at irregular intervals. Effect: The project’s process to ensure timely deposits was not working properly. Recommendation: A procedure should be documented that ensures the monthly replacement reserve deposit is made. Response and Corrective Action Planned: We will develop a procedure ensuring that the monthly replacement reserve deposits are made timely. Conclusion: Response accepted.
Finding 2025-003
Tenant Security Deposits: The Organization is required to have enough cash in the tenant security deposits account to fully cover the corresponding tenant security deposits liability account. We noted that the balance in the deposits cash account is insufficient to cover the recorded liability Criteria: According to HUD requirements and standard accounting practices, tenant security deposits must be held in a separate, restricted account. The total cash held should at all times equal or exceed the recorded liability for tenant security deposits. Cause: Due to the use of tenant deposit funds for operational purposes and/or failure to reconcile the tenant security deposits cash account with the corresponding liability account on a regular basis. Effect: The project did not comply with requirements to maintain sufficient funds in the tenant security deposits account, which may result in an inability to fully refund tenant deposits upon move-out. Recommendation: Management should implement procedures to regularly reconcile the tenant security deposits cash account to the tenant security deposits liability account and transfer sufficient funds to ensure the account is fully funded at all times. Response and Corrective Action Planned: We will develop and implement procedures to ensure the tenant security deposits cash account is reconciled regularly and adequately funded to cover the corresponding liability. Conclusion: Response accepted.