Audit 17525

FY End

2022-12-31

Total Expended

$2.16M

Findings

2

Programs

2

Organization: Alexandria Senior Housing, Inc. Dba: Winona Shores (MN)

Year: 2022 Accepted: 2023-04-23

Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
12622	2022-001	Significant Deficiency	-	P
589064	2022-001	Significant Deficiency	-	P

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$2.06M	Yes	1
14.182	Section 8 New Construction and Substantial Rehabilitation	$103,426	-	0

Contacts

Name	Title	Type
UBQLFLDJZ793	Scott Bjerketvedt	Auditee
6517664300	Nicole Folkerts	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of the Project under programs of the federal government for the yearended December 31, 2022. The information in this Schedule is presented in accordance withthe requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents only a selected portion of the operations of the Project, it is not intended to and doesnot present the financial position, changes in net assets, or cash flows of the Project.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, either the cost principles in OMB CircularA-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards, wherein certain types of expendituresare not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were $2,058,800.

Finding Details

Finding 2022-001

Federal agency: U.S. Department of Housing and Urban Development Criteria or specific requirement: Per the regulatory agreement a monthly deposit is to be made into the replacement reserve. Per HUD-9250, starting January 1, 2022 that monthly amount is $1,846 which equates to an annual deposit of $22,152. Condition: The Project only deposited $20,306 into the replacement reserve for the year ended December 31, 2022. Context: Management did not make the December 2022 deposit. Cause: Managements controls did not identify and correct the lack of payment on a timely basis. Effect: The replacement reserve was underfunded $1,846 at December 31, 2022. Repeat Finding: No Recommendation: Recommend that a catchup payment is made as soon or possible to make the replacement reserve whole. Views of responsible officials: There is no disagreement with the audit finding. Management made the required catchup payment on February 27, 2023.

Finding 2022-001

Federal agency: U.S. Department of Housing and Urban Development Criteria or specific requirement: Per the regulatory agreement a monthly deposit is to be made into the replacement reserve. Per HUD-9250, starting January 1, 2022 that monthly amount is $1,846 which equates to an annual deposit of $22,152. Condition: The Project only deposited $20,306 into the replacement reserve for the year ended December 31, 2022. Context: Management did not make the December 2022 deposit. Cause: Managements controls did not identify and correct the lack of payment on a timely basis. Effect: The replacement reserve was underfunded $1,846 at December 31, 2022. Repeat Finding: No Recommendation: Recommend that a catchup payment is made as soon or possible to make the replacement reserve whole. Views of responsible officials: There is no disagreement with the audit finding. Management made the required catchup payment on February 27, 2023.