FAC Explorer

Audit 176633

FY End
2022-03-31
Total Expended
$2.55M
Findings
2
Programs
1
Organization: Golden Thread Housing, Inc. (IA)
Year: 2022 Accepted: 2022-12-13
Auditor: Niewedde & Wiens Cpa's

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
179165 2022-003 Material Weakness - N
755607 2022-003 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $2.55M Yes 1

Contacts

Name Title Type
KA2DT4KNWPC8 Nancy Ford Auditee
6413422522 Jeff Wiens Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: 1. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Golden Thread Housing, Inc., HUD Project 074-EE040-NP-WAH and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). 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 2480500.

Finding Details

Finding 2022-003
Finding 2022-003: Replacement Reserves Section 202 Capital Advance Program, Assistance Listing 14.157 Material Weakness/Noncompliance Special Tests and Provisions Criteria: The Project is required to establish and maintain a replacement reserve to aid in the funding extraordinary maintenance, repair and replacement of capital items. An amount as required by HUD will be deposited monthly in the reserve fund. All disbursements from the reserve must be approved by HUD (24 CFR?891.405 and 891.605). Condition: During our audit we noted the Project had deposited a total of $12,456 for the year ended March 31, 2022, however the Project is required to deposit $18,000 annually. Cause: The Project did not deposit the required monthly amount of $1,500 for the entire year due to cash flow issues. Effect or Potential Effect: The Project was deficient in the amount of deposits required to be deposited in the replacement reserve by $5,544. Recommendation: The Project should make the required contributions monthly and fund the prior year deficiency of $5,544. In the future, if cash flow does not allow enough funds to make the deposit, the Project can request from HUD the monthly deposits be suspended. View of the Responsible Officials of the Auditee: Management agrees with the finding.
Finding 2022-003
Finding 2022-003: Replacement Reserves Section 202 Capital Advance Program, Assistance Listing 14.157 Material Weakness/Noncompliance Special Tests and Provisions Criteria: The Project is required to establish and maintain a replacement reserve to aid in the funding extraordinary maintenance, repair and replacement of capital items. An amount as required by HUD will be deposited monthly in the reserve fund. All disbursements from the reserve must be approved by HUD (24 CFR?891.405 and 891.605). Condition: During our audit we noted the Project had deposited a total of $12,456 for the year ended March 31, 2022, however the Project is required to deposit $18,000 annually. Cause: The Project did not deposit the required monthly amount of $1,500 for the entire year due to cash flow issues. Effect or Potential Effect: The Project was deficient in the amount of deposits required to be deposited in the replacement reserve by $5,544. Recommendation: The Project should make the required contributions monthly and fund the prior year deficiency of $5,544. In the future, if cash flow does not allow enough funds to make the deposit, the Project can request from HUD the monthly deposits be suspended. View of the Responsible Officials of the Auditee: Management agrees with the finding.