Texas · Nonprofit · $2M-$10M in federal spending

SUNRAY COMMUNITY INC.

Flower Mound, TX

The FY2025 single audit reports 1 finding: 1 significant deficiency, 1 repeat, 1 with questioned costs. Audits on file for FY2023–FY2025: FY2023, FY2024, FY2025.

Score: 22 of 100 (FY2025 audit)

The sum of eight parts, each read from the audit. How the score works.

Part	Rule	Points	Max
Material weaknesses	8 points each	0	24
Significant deficiencies	3 points each	3	9
Repeat findings	5 points each	5	15
Longest repeat chain	2 years 3, 3 years 6, 4 years 9, 5+ years 12	6	12
Modified major-program opinions	qualified 8 each; any adverse or disclaimer 15	8	15
Questioned costs	known amount of $25,000 or more, by share and dollars	0	15
Going concern	auditor included a going-concern paragraph	0	5
Prior-year lateness	prior-year audit late or not filed, scored only with a finding	0	5
Score		22	100

Federal funding, FY2025

$2,564,906 in federal awards spent, across 1 program. Largest funding agencies:

Agency	Spent
Department of Housing and Urban Development	$2,564,906

FY2025 audit

FAC record: 2025-12-GSAFAC-0000426542
Fiscal year end: December 31, 2025
Accepted by FAC: September 29, 2026
Federal spending: $2,564,906 · 1 program
Major programs: 1; qualified opinion on 1
Questioned costs: $4,578 known
Score: 22 of 100

Finding 2025-001

significant deficiencyrepeat findingquestioned costsmodified opinion

Program: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157)
Compliance requirement: Other
Repeat: Chain of 3 audit years; prior finding 2024-001
Questioned costs: $4,578 (known)
FAC record: FY2025 audit on fac.gov

Finding text from the filing

Finding 2025-001: Significant Deficiency

Finding #2025-001: Supportive Housing for the Elderly, Assistance Listing 14.157

Condition: The Company expensed management fees during 2025 in excess of the maximum amount of management fees approved by HUD.

Criteria: The Company’s property management fees must follow the HUD approved management agreement.

Effect: The Company expensed management fees in excess of approved HUD Form 9839.

Questioned Cost: $4,578

Cause: Oversight

Repeat Finding: Yes

Recommendation: The Company should monitor property management fees to ensure the management fees follow the terms set forth in the property management agreement.

Auditor’s Comment: An adjusting journal entry was made to reduce property management fees to be in compliance with HUD and an accounts receivable - other from the property management company was created for the overpayment.

FY2024 audit

FAC record: 2024-12-GSAFAC-0000383501
Fiscal year end: December 31, 2024
Accepted by FAC: September 29, 2025
Federal spending: $2,539,666 · 1 program
Major programs: 1
Questioned costs: $26,877 known
Score: 44 of 100

Finding 2024-001

significant deficiencyrepeat findingquestioned costs

Program: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157)
Compliance requirement: Other
Repeat: Chain of 2 audit years; prior finding 2023-001
Questioned costs: $11,882 (known)
FAC record: FY2024 audit on fac.gov

Finding text from the filing

Finding #2024-001: Supportive Housing for the Elderly, Assistance Listing 14.157 Type of Finding: Significant deficiency Condition: The Company expensed management fees during 2024 in excess of the maximum amount of management fees approved by HUD.

Criteria: The Company’s property management fees must follow the HUD approved management agreement.

Effect: The Company expensed management fees in excess of approved HUD Form 9839.

Questioned Cost: $11,882

Cause: New property management company

Repeat Finding: Yes

Recommendation: The Company should monitor property management fees to ensure the management fees follow the terms set forth in the property management agreement.

Auditor’s Comment: An adjusting journal entry was made to reduce property management fees to be in compliance with HUD.

Finding 2024-002

material weaknessmodified opinion

Program: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157)
Compliance requirement: Activities allowed or unallowed
FAC record: FY2024 audit on fac.gov

Finding text from the filing

Finding #2024-002: Supportive Housing for the Elderly, Assistance Listing 14.157 Type of Finding: Material Weakness Condition: The property management company failed to maintain property insurance coverage on the property during 2024.

Criteria: The Company is required to maintain property insurance.

Effect: The Company was uninsured from April 2024 through February 2025

Questioned Cost: N/A

Cause: New property management company failed to renew property insurance

Repeat Finding: No

Recommendation: The Property management company should review policies and procedures to ensure compliance with requirements and to ensure property is properly insured.

Auditor’s Comment: The property management company has obtained property insurance effective March 2025. Finding 2024-002 cleared.

Finding 2024-003

significant deficiencyrepeat findingquestioned costs

Program: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157)
Compliance requirement: Special tests and provisions
Repeat: Chain of 3 audit years; prior finding 2023-002
Questioned costs: $14,400 (known)
FAC record: FY2024 audit on fac.gov

Finding text from the filing

Finding #2024-003: Supportive Housing for the Elderly, Assistance Listing 14.157

Type of Finding: Significant deficiency

Condition: At December 2023, the Company obtained approval from HUD to suspend replacement reserve deposits for twelve months beginning January 2024. However, the Company continued to make the deposits into the replacement reserve during 2024.

Criteria: The HUD regulatory agreement requires the Company to make 12 monthly deposits into the replacement reserve account unless HUD approves the suspension.

Effect: The Company had obtained approval to suspend the HUD deposits, however, the Company made the monthly reserve deposits.

Questioned Cost: $14,400

Cause: New property management company

Repeat Finding: Yes

Recommendation: The Company should monitor the monthly deposits and should request an approval from HUD to withdrawal the 2024 deposits.

Auditor’s Comment: During December 2023, the Company obtained approval from HUD to suspend monthly deposits to the replacement reserve account for 2024 as it was determined that the replacement reserve account was overfunded. The property management company continued to make the monthly deposits. The property management company plans to request a withdrawal from the replacement reserve.

Finding 2024-004

significant deficiencyquestioned costs

Program: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157)
Compliance requirement: Activities allowed or unallowed
Questioned costs: $595 (known)
FAC record: FY2024 audit on fac.gov

Finding text from the filing

Finding #2024-004: Supportive Housing for the Elderly, Assistance Listing 14.157

Type of Finding: Significant deficiency

Condition: The Company closed the residual receipts account during 2024.

Criteria: The HUD regulatory agreement requires the Company to maintain a residual receipts account.

Effect: The Company closed the residual receipts account and is in violation of the HUD regulatory agreement.

Questioned Cost: $595

Cause: New property management company

Repeat Finding: No

Recommendation: The Company should re-open the residual receipts account and deposit $595 into the residual receipts account.

Auditor’s Comment: The Company plans to open the residual receipt account and deposit $595 and deposit the surplus cash of $3,038.

FY2023 audit

FAC record: 2023-12-GSAFAC-0000044037
Fiscal year end: December 31, 2023
Accepted by FAC: August 20, 2024
Federal spending: $2,531,753 · 1 program
Major programs: 1
Score: 11 of 100

Finding 2023-001

significant deficiency

Program: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157)
Compliance requirement: Other
FAC record: FY2023 audit on fac.gov

Finding text from the filing

Finding #2023-001: Section 202 Capital Advance, Assistance Listing 14.157 Condition: The Company paid management fees during 2021 and 2022 in excess of the maximum amount of management fees approved by HUD. Criteria: The Company’s property management fees must follow the HUD approved management agreement. Effect: The Company overpaid property management fees in 2021 and 2022. Questioned Cost: $6,719 Cause: Oversight Repeat Finding: No Recommendation: The Company should monitor property management fees to ensure the management fees follow the terms set forth in the property management agreement. Auditor’s Comment: We recommend the Company reduce current management fees by $6,719 during 2023 to account for excess management

Finding 2023-002

repeat findingother matters

Program: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157)
Compliance requirement: Special tests and provisions
Repeat: Chain of 2 audit years; prior finding 2022-002
FAC record: FY2023 audit on fac.gov

Finding text from the filing

Finding #2023-002: Section 202 Capital Advance, Assistance Listing 14.157 Type of Finding: Other Matter Condition: The Company made 7 monthly deposits into the replacement reserve account. Criteria: The HUD regulatory agreement requires the Company to make 12 monthly deposits into the replacement reserve account. Effect: The Company is not in compliance with the HUD regulatory agreement. Questioned Cost: $6,000 Cause: Lack of available funds Repeat Finding: Yes Recommendation: The Company should monitor the monthly deposits and should request a suspension in replacement reserve deposits from HUD. Auditor’s Comment: During December 2023, the Company obtained an approval from HUD to suspend monthly deposits to the replacement reserve account for 2024 as it was determined that the replacement reserve account was overfunded. Finding 2023-002 cleared.