FAC Explorer

Finding 562237 (2025-002)

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 $2,500 from the Reserve for Replacements account without required HUD authorization.
  • Impacted Requirements: This action violates the regulatory agreement with HUD, leading to non-compliance.
  • Recommended Follow-Up: The Organization should refund the unauthorized withdrawals and ensure future compliance with HUD regulations.

Finding Text

2025-002 Reportable Condition – Compliance: Criteria: The regulatory agreement requires HUD authorization to withdraw money from the Reserve for Replacements account. Condition: The Organization did not receive HUD authorization for two withdrawals totaling $2,500 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

2025-002 Reportable Condition — Compliance: Condition: The Organization did not receive HUD authorization for two withdrawals from the Reserves for Replacement account totaling $2,500 during the year. Action taken: $2,000 has been returned to the Reserves for Replacement account. Contact person: Nancy Jordan Completion date: May 15, 2025 Explanation of Disagreement: Not applicable Repeat finding: No

Categories

HUD Housing Programs

Other Findings in this Audit

  • 562236 2025-001
    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