FAC Explorer

Audit 414644

FY End
2026-06-30
Total Expended
$1.70M
Findings
1
Programs
2
Organization: Ausable Valley Apartments, Inc. (MI)
Year: 2026 Accepted: 2026-10-06
Auditor: MANER COSTERISAN

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1240013 2026-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $1.47M Yes 1
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $228,841 Yes 0

Contacts

Name Title Type
K1BRTKYKCBL6 Tim Kalbfleisch Auditee
9892627388 Keith Pfeifle Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of AuSable Valley Apartments, Inc., and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the equirements 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 AuSable Valley Apartments, Inc., it is not intended to and does not present the financial position, changes in net deficit or cash flows of AuSable Valley Apartments, Inc.
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. AuSable Valley Apartments, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or before September 30, 2024, and also has not elected to use the 15-percent de minimis indirect cost rate allowed under Uniform Guidance for awards executed on or after October 1, 2024.
See Notes to SEFA for table.

Finding Details

Finding 2026-001
Finding Number 2026-001: Significant Deficiency in Internal Control over Major Federal Program Compliance: Special Tests and Provisions - Residual Receipts Requirements Federal Program: U.S. Department of Housing and Urban Development ALN 14.155 - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Condition: The Project did not make the required residual receipt deposits in the amount $9,910 for the year ending June 30, 2025. Criteria: Project management is responsible for depositing funds into the residual receipts account when a surplus cash amount is calculated within 90 days after the close of the fiscal year. Effect: The surplus cash amount was not deposited therefore making the balance in the residual receipts account understated and not correctly showing amount subject to HUD recapture. Cause: Procedures to deposit surplus cash into the residual receipts account were not followed. Recommendation: The Project should deposit $9,910 into the residual receipts account. Additionally, procedures should be followed to ensure management identifies the need for required deposits. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits.