Audit 1482

FY End
2023-06-30
Total Expended
$2.71M
Findings
2
Programs
2
Organization: Benet Place (MN)
Year: 2023 Accepted: 2023-10-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
775 2023-001 Significant Deficiency - N
577217 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.58M Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $133,370 - 0

Contacts

Name Title Type
PJEZWJE7H5P3 Melissa Binnall Auditee
3202512700 Nicole Folkerts Auditor
No contacts on file

Notes to SEFA

Title: HUD CAPITAL ADVANCE Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Benet Place under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Benet Place, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Benet Place. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Benet Place has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The balance of the HUD capital advance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. There were no additional HUD loans during the year. The balance of the HUD insured mortgage outstanding at June 30, 2023, is as follows: Program Title : U.S. Department of Housing and Urban Development: Section 202 Capital Advance Federal Assistance Listing Number: 14.157 Amount Outstanding: $2,577,938

Finding Details

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 202 Capital Advance Federal Assistance Listing Number: 14.157 Federal Award Identification Number and Year: MN46S931002 - 1993 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Management is responsible for maintaining required monthly deposits into the Replacement Reserve account in accordance with form HUD-9250. Condition: The project did not make the correct monthly deposit that was required in order to be in compliance with HUD for the year under audit. Questioned Costs: $4 Cause: The project miscalculated the monthly amount to deposit as $1,293 when it should have been $1,293.33 causing a $4 deficiency as of year-end. Effect: The Replacement Reserve escrow balance was underfunded by $4 at June 30, 2023. Repeat Finding: No. Recommendation: Management should implement a process to ensure the required monthly deposit into the Replacement Reserve is in accordance with form HUD-9250. Views of Management: There is no disagreement with the audit finding. The Project made a deposit to correct the deficiency in the replacement reserve on August 30, 2023.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 202 Capital Advance Federal Assistance Listing Number: 14.157 Federal Award Identification Number and Year: MN46S931002 - 1993 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: July 1, 2022 through June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Management is responsible for maintaining required monthly deposits into the Replacement Reserve account in accordance with form HUD-9250. Condition: The project did not make the correct monthly deposit that was required in order to be in compliance with HUD for the year under audit. Questioned Costs: $4 Cause: The project miscalculated the monthly amount to deposit as $1,293 when it should have been $1,293.33 causing a $4 deficiency as of year-end. Effect: The Replacement Reserve escrow balance was underfunded by $4 at June 30, 2023. Repeat Finding: No. Recommendation: Management should implement a process to ensure the required monthly deposit into the Replacement Reserve is in accordance with form HUD-9250. Views of Management: There is no disagreement with the audit finding. The Project made a deposit to correct the deficiency in the replacement reserve on August 30, 2023.