FAC Explorer

Audit 178616

FY End
2022-12-31
Total Expended
$3.41M
Findings
2
Programs
2
Organization: Elders Lodge Corporation (MN)
Year: 2022 Accepted: 2023-05-25
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
194837 2022-001 - - AF
771279 2022-001 - - AF

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $299,902 - 0
14.239 Home Investment Partnerships Program $200,000 - 0

Contacts

Name Title Type
VTXGAHJAVSS5 Sue Whirry Auditee
6516449600 Tyler Swenson Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE 1 BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of Elders Lodge Corporation under programs of the federalgovernment for the year ended December 31, 2022. The information in this Schedule ispresented in accordance with the requirements of 2 CFR Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations ofElders Lodge Corporation, it is not intended to and does not present the financial position,changes in net deficit, or cash flows of Elders Lodge Corporation. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 2908100. HOME INVESTMENT PARTNERSHIPS PROGRAM (14.239) - Balances outstanding at the end of the audit period were 200000.

Finding Details

Finding 2022-001
2022 ? 001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for the Elderly (Section 202 Capital Advance) Assistance Listing Number: 14.157 Award Period: January 1, 2022 through December 31, 2022 Type of Finding: ? Other Matters Criteria or specific requirement: The Organization is required to receive HUD Approval prior to using funds in the replacement reserve fund. Condition: During our testing, we noted the Organization did not receive HUD Approval prior to withdrawal of replacement reserve funds for a capital expenditure. Although email approval was provided for the original bid, the required HUD Approval form was not submitted to HUD. Questioned costs: $18,940 Context: During our testing, it was noted that the Organization did not receive proper HUD approval for a replacement reserve withdrawal. Cause: The Organization was unaware that additional approval was needed prior to withdrawing funds. Effect: The project withdrew funds without proper HUD approval. Repeat Finding: Not a repeated finding. Recommendation: We recommend the Organization submit the request for HUD approval immediately. Views of responsible officials: There is no disagreement with the audit finding. The organization has submitted the request for approval in March 2023.
Finding 2022-001
2022 ? 001 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for the Elderly (Section 202 Capital Advance) Assistance Listing Number: 14.157 Award Period: January 1, 2022 through December 31, 2022 Type of Finding: ? Other Matters Criteria or specific requirement: The Organization is required to receive HUD Approval prior to using funds in the replacement reserve fund. Condition: During our testing, we noted the Organization did not receive HUD Approval prior to withdrawal of replacement reserve funds for a capital expenditure. Although email approval was provided for the original bid, the required HUD Approval form was not submitted to HUD. Questioned costs: $18,940 Context: During our testing, it was noted that the Organization did not receive proper HUD approval for a replacement reserve withdrawal. Cause: The Organization was unaware that additional approval was needed prior to withdrawing funds. Effect: The project withdrew funds without proper HUD approval. Repeat Finding: Not a repeated finding. Recommendation: We recommend the Organization submit the request for HUD approval immediately. Views of responsible officials: There is no disagreement with the audit finding. The organization has submitted the request for approval in March 2023.