FAC Explorer

Audit 300798

FY End
2023-12-31
Total Expended
$4.55M
Findings
2
Programs
2
Organization: Lyngblomsten Apartments, Inc. (MN)
Year: 2023 Accepted: 2024-03-29
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
389906 2023-001 - - P
966348 2023-001 - - P

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $3.74M Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $803,864 Yes 0

Contacts

Name Title Type
MFAZTA25EY76 Todd Fliflet Auditee
6516325310 Tyler Swenson Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION 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. The Corporation has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Corporation has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Corporation. under programs of the federal government for the year ended December 31, 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 the Corporation, it is not intended to and does not present the financial position, changes in net deficit, or cash flows of the Corporation.

Finding Details

Finding 2023-001
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Mortgage Insurance Under Section 207, Pursuant to Section 223(f) CFDA Number: 14.157 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: • Other matters Criteria or specific requirement: The Corporation is required to make a deposit into the replacement reserve account. Condition: The required deposit into the replacement reserve account for July 2023 was underfunded and late. Questioned costs: $70.25. Context: During our review of the replacement reserve, it was noted it was underfunded. Cause: The Corporation’s requirement to make a deposit for the periods January 2023 - June 2023 and August 2023 - December 2023 was waived. Management did not notice that the one month’s deposit was underfunded. Effect: The Project was out of compliance with the one deposit into the replacement reserve fund, as required by the Project's regulatory agreement. Repeat Finding: Not a repeated finding. Recommendation: Management should immediately make the proper deposit into the replacement reserve fund and should consistently follow their internal control procedures over replacement reserve deposits to ensure deposit are made paid timely and for the correct amount. Views of responsible officials: There is no disagreement with the audit finding. Management properly funded the replacement reserve in March 2024.
Finding 2023-001
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Mortgage Insurance Under Section 207, Pursuant to Section 223(f) CFDA Number: 14.157 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: • Other matters Criteria or specific requirement: The Corporation is required to make a deposit into the replacement reserve account. Condition: The required deposit into the replacement reserve account for July 2023 was underfunded and late. Questioned costs: $70.25. Context: During our review of the replacement reserve, it was noted it was underfunded. Cause: The Corporation’s requirement to make a deposit for the periods January 2023 - June 2023 and August 2023 - December 2023 was waived. Management did not notice that the one month’s deposit was underfunded. Effect: The Project was out of compliance with the one deposit into the replacement reserve fund, as required by the Project's regulatory agreement. Repeat Finding: Not a repeated finding. Recommendation: Management should immediately make the proper deposit into the replacement reserve fund and should consistently follow their internal control procedures over replacement reserve deposits to ensure deposit are made paid timely and for the correct amount. Views of responsible officials: There is no disagreement with the audit finding. Management properly funded the replacement reserve in March 2024.