FAC Explorer

Audit 410652

FY End
2025-12-31
Total Expended
$17.77M
Findings
2
Programs
3
Organization: Over the Rainbow Ass'n & Subsidiaries (IL)
Year: 2025 Accepted: 2026-09-09
Auditor: BAKER MEINZ & ASSOCIATES LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1229130 2025-001 Material Weakness Yes N
1229131 2025-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $15.42M Yes 1
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $948,986 Yes 1
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $835,794 Yes 0

Contacts

Name Title Type
J5ZXT2W8K7S7 Les Russo Auditee
8474245601 Brian Baker Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal award activity of Over the Rainbow Association and Subsidiaries 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 Over the Rainbow Association and Subsidiaries, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Over the Rainbow Association and Subsidiaries. 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. Over the Rainbow Association and Subsidiaries has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
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. Over the Rainbow Association and Subsidiaries has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Arboretum West Apartments received a U.S. Department of Housing and Urban Development Insured Mortgage under Section 223(f) of the National Housing Act of 1990 (Assistance Listing Number 14.155). The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Arboretum West Apartments received no additional loans during the year ended December 31, 2025. The balance of the loan outstanding at December 31, 2025 was $812,475.

Finding Details

Finding 2025-001
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT For the Hill Housing Facility FINDING 2025-001: SECTION 8, ASSISTANCE LISTING NUMBER 14.195 Condition: The Project repaid a portion of the sponsor loan payable (Due to Related Party) without obtaining HUD approval. The total amount of the unauthorized sponsor loan payment was $130,019. This is a repeat of Finding 2024-001. Criteria: HUD approval should be obtained prior to making a sponsor loan repayment. Effect: The Project's cash balance is $130,019 less than it should be. Context: The Sponsor loan payable at December 31, 2025 was tested. The test determined that a portion of the sponsor loan was repaid without obtaining HUD approval. Questioned Costs - $130,019, Cause: The Project repaid a portion of the sponsor loan without obtaining HUD approval. Recommendation: The Sponsor should contact HUD to obtain permission to retain the unauthorized sponsor loan payments. Views of Responsible Officials and Planned Corrective Actions: The Sponsor will work with HUD to detemine if the $130,019 needs to be paid back to the Project. Total - Department of Housing and Urban Development $130,019; Non-compliance code - R
Finding 2025-002
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT For the Rockford Supportive Housing Facility FINDING 2025-002: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested did not contain a move-in inspection report. Criteria: The tenant file should contain a move-in inspection report. Effect: There is no financial effect. Context: A sample of tenant files was selected to ensure that proper move-in documentation was included. The test found that one of the files tested was not in compliance. The non-compliance did not have a financial effect. The details and results of the sample are as follows: Population - 17, Dollars - N/A; Sample - 2, Dollars - N/A; Not in Compliance - 1, Dollars - N/A; Questioned Costs - None; Cause: A copy of the move-in inspection report was not obtained at the time of move-in. Recommendation: The Project should obtain a copy of the move-in inspection report, if possible. If the report cannot be located, the Project should document the file stating that an inspection was performed but the report has been misplaced. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. They will remind Project personnel of the importance of obtaining a copy of the move-in inspection report and placing it in the tenant file. Total-Department of Housing and Urban Development - None; Non-compliance code - R