FAC Explorer

Finding 562236 (2025-001)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2025-06-02
Audit: 357832
Organization: Desert Willow Apartments (CA)
Auditor: Anthony Apodaca Accountancy Corporation

AI Summary

  • Core Issue: The Organization withdrew $18,354 from the Residual Receipts account without required HUD authorization.
  • Impacted Requirements: This action violates the regulatory agreement, leading to non-compliance.
  • Recommended Follow-Up: The Organization should refund the unauthorized withdrawals and ensure future compliance with HUD regulations.

Finding Text

2025-001 Reportable Condition – Compliance: Criteria: The regulatory agreement requires HUD authorization to withdraw money from the Residual Receipts account. Condition: The Organization did not receive HUD authorization for three withdrawals totaling $18,354 during the year. Questioned cost: None Context: Occurring within the current accounting period. Cause: Management distributed money without HUD approval. Effect: The Project is not in compliance with the regulatory agreement. Recommendation: The Project should refund the distribution. Repeat finding: No Views of responsible official and planned corrective action: The current management agent concurs and will take immediate corrective action.

Corrective Action Plan

2025-001 Reportable Condition — Compliance: Condition: The Organization did not receive HUD authorization for three withdrawals from the Residual Receipts account totaling $18,354 during the year. Action taken: $5,000 has been returned to the Residual Receipts account. Contact person: Nancy Jordan Completion date: May 15, 2025 Explanation of Disagreement: Not applicable Repeat finding: No

Categories

HUD Housing Programs Cash Management

Other Findings in this Audit

  • 562237 2025-002
    Significant Deficiency
  • 1138678 2025-001
    Significant Deficiency
  • 1138679 2025-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.85M
14.326 Project Rental Assistance Demonstration (pra Demo) Program of Section 811 Supportive Housing for Persons with Disabilities $79,211