FAC Explorer

Audit 413868

FY End
2025-12-31
Total Expended
$14.96M
Findings
3
Programs
2
Organization: West Chicago Preservation Corporation 071-11482/il06m000208 (IL)
Year: 2025 Accepted: 2026-09-30
Auditor: RUBINBROWN LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1239004 2025-001 Material Weakness Yes A
1239005 2025-001 Material Weakness Yes A
1239006 2025-001 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $13.21M Yes 1
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $21,048 Yes 1

Contacts

Name Title Type
C1NJR4MMGPX7 Laura Selby Auditee
3126026500 Chris Langley Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards includes the federal program activity of West Chicago Preservation 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 (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. West Chicago Preservation Corporation (the Corporation) was organized as a Not-For-Profit Corporation under the laws of the State of Illinois on June 15, 1993 (inception) to acquire, hold, and operate an apartment complex in West Chicago, Illinois consisting of 189 units.
As of December 31, 2025, the loan balance is $12,913,248. The loan is insured under HUD Section 207, pursuant to Section 223(f).
The Corporation has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance, Section 414.

Finding Details

Finding 2025-001
S2700-005 Finding Reference Number - 2025-001 Significant Deficiency, Compliance Federal Award No. 14.155 and 14.195 U.S. Department Of Housing and Urban Development: Eligibility S2700-006 Finding Resolution Status - IN PROCESS S2700-007 Information On Universe And Population Size - Population consisted of 189 tenant files. Incomplete tenant file documentation limits HUD’s and management’s ability to verify tenant eligibility, income determinations, rent calculations, and ongoing program compliance, and may result in housing assistance payments being made to ineligible tenants or in incorrect amounts. S2700-008 Sample Size Information - A sample of 18 tenant files were selected for testing. S2700-009 Noncompliance Information - Incomplete documentation was retained in tenant files in violation of HUD record retention requirements. S2700-010 Statement Of Condition - During our review of 18 tenant files selected for testing, we noted that 9 files (50%) were missing required documentation necessary to support tenant eligibility, income verification, rent calculation, and/or annual or interim recertifications. S2700-020 Criteria - Per requirements of the U.S. Department of Housing and Urban Development program regulations and the Regulatory Agreement, owners and management agents are required to maintain complete and accurate tenant files, including documentation supporting eligibility, income determinations, rent calculations, and recertifications. Additionally, HUD record retention requirements require tenant files to be maintained for the required retention period. S2700-030 Effect Or Potential Effect - The Project was not in compliance with HUD regulations. S2700-040 Cause - The incomplete tenant file documentation was due to process gaps in ensuring all required documents were consistently collected and retained. Contributing factors included varying staff practices and the absence of a standardized review process to confirm file completeness. S2700-050 Recommendation - We recommend that the Corporation strengthen internal controls over tenant file management by providing additional training to staff and review all tenant files to ensure completeness. S2700-065 Amount Of Questioned Costs - Undetermined. Because required eligibility, income, and recertification documentation was missing from tenant files, the allowability of housing assistance payments related to the affected tenant files could not be determined. Quantifying questioned costs would require a complete review and reconstruction of eligibility documentation and subsidy calculations for the affected tenants for the applicable period. S2700-100 Reporting Views Of Responsible Officials - OPEN Identification As A Repeat Finding: This is not a repeat finding.