FAC Explorer

Audit 412295

FY End
2025-12-31
Total Expended
$2.70M
Findings
1
Programs
2
Organization: Triangle Elderly Housing Corporation (NC)
Year: 2025 Accepted: 2026-09-26
Auditor: O DOUGLAS COVINGTON CPA PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1236809 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $2.33M Yes 1
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $371,038 Yes 0

Contacts

Name Title Type
E88GFF7XTFB5 Sandy Godwin Auditee
9199346066 O. Douglas Covington Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal grant activity of Triangle Elderly Housing Corporation 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 Triangle Elderly Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Triangle Elderly Housing Corporation.
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Triangle Elderly Housing Corporation has elected not to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance.
The Section 223(f) Loan represents the outstanding balance as of the balance sheet date. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Triangle Elderly Housing Corporation received no additional loans during the year. The balance of the loan outstanding at December 31, 2025, consists of: Assistance Listing Number – 14.155, Program Name – Section 223(f) Loan, Outstanding Balance December 31, 2025 - $2,256,299.

Finding Details

Finding 2025-001
Finding 2025-001 – Replacement Reserve Account Underfunding Finding Resolution Status: Corrected subsequent to year-end. The Project’s replacement reserve account was underfunded by $2,028 at December 31, 2025. The underfunding was corrected after year-end through deposit of the required amount to the replacement reserve account. Population Size: 12 monthly replacement reserve deposit calculations. Sample Size: 12 monthly replacement reserve deposit calculations. Criteria: HUD rules, regulations, and the Project’s applicable regulatory agreement require the Project to make required deposits to the reserve for replacement account. Required replacement reserve deposits must be calculated and deposited in accordance with HUD requirements, including adjustments resulting from HUD-approved increases in contract rents or other required changes to the monthly reserve deposit amount. Condition: At December 31, 2025, the replacement reserve account was underfunded by $2,028. This amount related to the unresolved underfunding previously reported in the Finding 2024-001. This is a repeat finding. During 2025, the mortgage company corrected the replacement reserve deposit calculation for the current-year deposit requirement; however, the mortgage company did not include the prior-year underfunding of $2,028 in the calculation as requested by the Management Agent. As a result, the prior-year underfunding remained outstanding at December 31, 2025. Cause: The underfunding occurred because the mortgage company corrected only the current-year replacement reserve deposit calculation and did not include the prior-year underfunding identified in Finding 2024-001 as requested by the Management Agent. Effect: The Project’s replacement reserve account was underfunded by $2,028. Recommendation: Because the $2,028 underfunding was corrected subsequent to year-end, no additional deposit is required for this specific amount. Questioned Costs: $2,028