Audit 302213

FY End

2022-06-30

Total Expended

$3.00M

Findings

4

Programs

1

Organization: Lss Housing Jamestown, Inc. (ND)

Year: 2022 Accepted: 2024-04-02

Auditor: Eide Bailly

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
392081	2022-004	Material Weakness	Yes	ABEN
392082	2022-004	Material Weakness	Yes	ABEN
968523	2022-004	Material Weakness	Yes	ABEN
968524	2022-004	Material Weakness	Yes	ABEN

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$48,493	Yes	1

Contacts

Name	Title	Type
R3Z3DGVV1TA3	Dawn Helmowski	Auditee
7015510489	Reggie MacMaster	Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: LSS Housing Jamestown, Inc. does not draw for the indirect administrative expense and has not elected to use the 10% de minimus cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of LSS Housing Jamestown, Inc. under programs of the federal government for the year ended June 30, 2022. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 LSS Housing Jamestown, Inc., it is not intended to and does not present the financial position, changes in net assets or cash flows of LSS Housing Jamestown, Inc..

Title: Loan Program Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: LSS Housing Jamestown, Inc. does not draw for the indirect administrative expense and has not elected to use the 10% de minimus cost rate. Expenditures reported in this schedule consist of the beginning of the year outstanding loan balance plus advances made on the loan during the year. The outstanding balance at June 30, 2022 was $2,951,000.

Finding Details

Finding 2022-004

U.S. Department of Housing and Urban Development Federal Financial Assistance Listing # 14.157 Supportive Housing for the Elderly (Section 202) Project Rental Assistance Contract Number: ND99S091001 Project Number: 094-EE008-NP-WAH Activities Allowed/Unallowed and Allowable Costs/Cost Principles/Eligibility/Special Tests and Provisions Material Weakness in Internal Control over Compliance Criteria – CFR Section 200.334 indicates that financial records, supporting documentation, and all other entity records pertinent to federal awards must be retained for a period of three years. Condition – The Organization does not have an internal control system designed to provide for the appropriate retention of documentation supporting the transactions of the Organization and eligibility determinations of tenants at the project. As a result, through the transition of management, supporting documentation for expense transactions and tenant eligibility were destroyed and not able to be recreated. Cause – Due to a lack of control policies and proper enforcement, documents were inadvertently destroyed. Effect – Inadequate controls over document retention for the Organization could result in inaccurate transactions being recorded within the Organization’s financial statements or ineligible tenants occupying the units, which could result in non-compliance. Questioned Costs – None Reported. Context/Sampling – Not Applicable. Repeat Finding from Prior Year(s) – Yes, prior year finding 2021-004 Recommendation – It is the responsibility of management and those charged with governance to develop and enforce proper controls and monitoring over document retention policies. Views of Responsible Officials – Management agrees with the finding.

Finding 2022-004

U.S. Department of Housing and Urban Development Federal Financial Assistance Listing # 14.157 Supportive Housing for the Elderly (Section 202) Project Rental Assistance Contract Number: ND99S091001 Project Number: 094-EE008-NP-WAH Activities Allowed/Unallowed and Allowable Costs/Cost Principles/Eligibility/Special Tests and Provisions Material Weakness in Internal Control over Compliance Criteria – CFR Section 200.334 indicates that financial records, supporting documentation, and all other entity records pertinent to federal awards must be retained for a period of three years. Condition – The Organization does not have an internal control system designed to provide for the appropriate retention of documentation supporting the transactions of the Organization and eligibility determinations of tenants at the project. As a result, through the transition of management, supporting documentation for expense transactions and tenant eligibility were destroyed and not able to be recreated. Cause – Due to a lack of control policies and proper enforcement, documents were inadvertently destroyed. Effect – Inadequate controls over document retention for the Organization could result in inaccurate transactions being recorded within the Organization’s financial statements or ineligible tenants occupying the units, which could result in non-compliance. Questioned Costs – None Reported. Context/Sampling – Not Applicable. Repeat Finding from Prior Year(s) – Yes, prior year finding 2021-004 Recommendation – It is the responsibility of management and those charged with governance to develop and enforce proper controls and monitoring over document retention policies. Views of Responsible Officials – Management agrees with the finding.

Finding 2022-004

U.S. Department of Housing and Urban Development Federal Financial Assistance Listing # 14.157 Supportive Housing for the Elderly (Section 202) Project Rental Assistance Contract Number: ND99S091001 Project Number: 094-EE008-NP-WAH Activities Allowed/Unallowed and Allowable Costs/Cost Principles/Eligibility/Special Tests and Provisions Material Weakness in Internal Control over Compliance Criteria – CFR Section 200.334 indicates that financial records, supporting documentation, and all other entity records pertinent to federal awards must be retained for a period of three years. Condition – The Organization does not have an internal control system designed to provide for the appropriate retention of documentation supporting the transactions of the Organization and eligibility determinations of tenants at the project. As a result, through the transition of management, supporting documentation for expense transactions and tenant eligibility were destroyed and not able to be recreated. Cause – Due to a lack of control policies and proper enforcement, documents were inadvertently destroyed. Effect – Inadequate controls over document retention for the Organization could result in inaccurate transactions being recorded within the Organization’s financial statements or ineligible tenants occupying the units, which could result in non-compliance. Questioned Costs – None Reported. Context/Sampling – Not Applicable. Repeat Finding from Prior Year(s) – Yes, prior year finding 2021-004 Recommendation – It is the responsibility of management and those charged with governance to develop and enforce proper controls and monitoring over document retention policies. Views of Responsible Officials – Management agrees with the finding.

Finding 2022-004

U.S. Department of Housing and Urban Development Federal Financial Assistance Listing # 14.157 Supportive Housing for the Elderly (Section 202) Project Rental Assistance Contract Number: ND99S091001 Project Number: 094-EE008-NP-WAH Activities Allowed/Unallowed and Allowable Costs/Cost Principles/Eligibility/Special Tests and Provisions Material Weakness in Internal Control over Compliance Criteria – CFR Section 200.334 indicates that financial records, supporting documentation, and all other entity records pertinent to federal awards must be retained for a period of three years. Condition – The Organization does not have an internal control system designed to provide for the appropriate retention of documentation supporting the transactions of the Organization and eligibility determinations of tenants at the project. As a result, through the transition of management, supporting documentation for expense transactions and tenant eligibility were destroyed and not able to be recreated. Cause – Due to a lack of control policies and proper enforcement, documents were inadvertently destroyed. Effect – Inadequate controls over document retention for the Organization could result in inaccurate transactions being recorded within the Organization’s financial statements or ineligible tenants occupying the units, which could result in non-compliance. Questioned Costs – None Reported. Context/Sampling – Not Applicable. Repeat Finding from Prior Year(s) – Yes, prior year finding 2021-004 Recommendation – It is the responsibility of management and those charged with governance to develop and enforce proper controls and monitoring over document retention policies. Views of Responsible Officials – Management agrees with the finding.