FAC Explorer

Audit 405381

FY End
2025-09-30
Total Expended
$1.81M
Findings
2
Programs
2
Organization: Lutheran Gardens Apartments, INC Bougainvillea Gardens Apartment (VI)
Year: 2025 Accepted: 2026-06-29
Auditor: BERT SMITH & CO

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1220311 2025-001 Material Weakness Yes N
1220312 2025-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.58M Yes 2
14.U01 PROJECT RENTAL ASSISTANCE CONTRACT (PRAC) $226,658 Yes 0

Contacts

Name Title Type
DCYFW2EJJWK4 Junia John-Straker Auditee
3407724099 Keisha Bridgewater Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Lutheran Garden Apartments, Inc.’s Bougainvillea Gardens Apartments (Bougainvillea Gardens Apartments), Project Number 056-HD-023, under programs of the federal government for the year ended September 30, 2025. 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 Bougainvillea Gardens Apartments, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Bougainvillea Gardens Apartments.
Bougainvillea Garden Apartments has received a U.S. Department of Housing and Urban Development Capital Advance under Section 811 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Bougainvillea Gardens Apartments received no additional advances during the year. The balance of the capital advance outstanding at September 30, 2025, was $1,584,400.

Finding Details

Finding 2025-001
2025-001: Untimely Request for Rent Adjustment Federal Agency: U.S. Department of Housing and Urban Development Program Name: Supportive Housing for Persons with Disabilities (Section 811) ALN No.: 14.181 Compliance Requirements: Special Tests and Provisions Criteria: Pursuant to Housing Notice 2022-05, rent adjustment request should be submitted to HUD 120-days in advance of the contract anniversary date and must include supporting documents for adjustments to rents at contract renewal. Condition: The Project did not submit to HUD its rent adjustment request 120 days in advance of the contract anniversary date. Context This is a condition identified per review of the Project’s compliance with the specified compliance requirements. Effect: Noncompliance with HUD guidelines. Cause: Staffing issue precluded the timely submission of the rent adjustment request. Questioned Costs: Undetermined Recommendation: Management should adhere to HUD’s guidelines and submit rent adjustment requests to HUD 120 days in advance of the contract anniversary date. Views of Responsible Officials: As a result of staffing issues, we have not been timely with submitting
Finding 2025-002
2025-002: Special Test & Provisions - Residual Receipts Deposit Federal Agency: Department of Housing and Urban Development Program Name: Supportive Housing for Persons with Disabilities (Section 811) ALN No.: 14.181 Compliance Requirements: Special Tests and Provisions Condition: The Project did not make the required residual deposit within 60 days following the fiscal year ending September 30, 2024. Criteria: Residual Receipts are to be deposited with 60 days following the fiscal year-end. Context: The discrepancy was noted upon review and testing of residual receipts. Cause: Procedures were overlooked as a result of staffing issues Effect: Noncompliance with HUD guidelines. Questioned Costs: $0 Recommendation: Management should ensure that financial closing process is completed timely to facilitate the computation of any excess cash for deposit to the residual receipt account. Views of Responsible Officials: Surplus cash was deposited late; procedure was overlooked as a result of staffing issues.