Audit 303703

FY End

2023-12-31

Total Expended

$1.42M

Findings

4

Programs

1

Organization: Good Shepherd Housing (OH)

Year: 2023 Accepted: 2024-04-17

Auditor: Hw&co

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
393555	2023-002	Significant Deficiency	Yes	N
393556	2023-002	Significant Deficiency	Yes	N
969997	2023-002	Significant Deficiency	Yes	N
969998	2023-002	Significant Deficiency	Yes	N

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$111,145	Yes	1

Contacts

Name	Title	Type
HZNQN3FA7BF4	Chris Widman	Auditee
4199371801	Russell Majkrzak	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: Good Shepherd Housing Corporation has elected not to use the 10 percent de minimus cost rate as allowed under Uniform Guidance. Good Shepherd Housing Corporation has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The capital advance balance outstanding at the beginning of the year is included in the Federal expenditures presented in the Schedule. Good Shepherd Housing Corporation received no additional advances during the year. The balance of the capital advance outstanding at December 31, 2022 consists of: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were $1,311,700.

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. De Minimis Rate Used: N Rate Explanation: Good Shepherd Housing Corporation has elected not to use the 10 percent de minimus cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of Federal awards (the “Schedule”) includes the Federal award activity of Good Shepherd Housing 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 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 Good Shepherd Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Good Shepherd Housing Corporation.

Finding Details

Finding 2023-002

Reference Number: 2023-002 (S3800-010) Title and CFDA Number of Federal Program: Supportive Housing for the Elderly, Assistance Listing Number 14.157 (S3800-011) Type of Finding: Federal Award Finding (S3800-015) Finding Resolution Status: Unresolved (S3800-016) Information on Universe Population Size: Not applicable (S3800-017) Sample Size Information: Not applicable (S3800-018) Identification of Repeat Finding Reference Number: 2022-002 (S3800-019) Criteria: In accordance with the regulatory agreement, replacement reserve funds whether (S3800-020) in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America. Statement of Condition: Replacement reserve funds were invested in obligations other than in (S3800-030) accordance with the regulatory agreement. Cause: Management invested a portion of the replacement reserve funds in mutual (S3800-032) funds in an effort to generate higher investment income. Effect or Potential Effect: The effect of this deficiency, which cannot be quantified, is that replacement (S3800-033) reserve funds invested in mutual funds are exposed to various risks such as market and credit risks. Auditor Noncompliance Code: O-Investment for Reserves for Replacements (S3800-035) Questioned Cost: $0 (S3800-040) Reporting Views of Responsible Officials: See management’s response (S3800-150) (S3800-045) •FHA/Contract Number: 042EE171 (3800-037) •Questioned Costs: $0 (3800-038) Context: Replacement reserve funds should be deposited in accordance with the (S3800-050) regulatory agreement. Recommendation: We recommend that management invest replacement reserve in obligations (S3800-080) of, or fully guaranteed as to principal by, the United States of America. Auditor’s Summary of the Auditee’s Comments on the Finding and Recommendation: (S3800-090) Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project may incur. •Response Indicator: Disagree (3800-130) Response: (S3800-1500) Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project may incur. There is a cumulative net gain through December 31, 2023. Contact Person: Christopher P. Widman (S3800-160 to 180)

Finding 2023-002

Reference Number: 2023-002 (S3800-010) Title and CFDA Number of Federal Program: Supportive Housing for the Elderly, Assistance Listing Number 14.157 (S3800-011) Type of Finding: Federal Award Finding (S3800-015) Finding Resolution Status: Unresolved (S3800-016) Information on Universe Population Size: Not applicable (S3800-017) Sample Size Information: Not applicable (S3800-018) Identification of Repeat Finding Reference Number: 2022-002 (S3800-019) Criteria: In accordance with the regulatory agreement, replacement reserve funds whether (S3800-020) in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America. Statement of Condition: Replacement reserve funds were invested in obligations other than in (S3800-030) accordance with the regulatory agreement. Cause: Management invested a portion of the replacement reserve funds in mutual (S3800-032) funds in an effort to generate higher investment income. Effect or Potential Effect: The effect of this deficiency, which cannot be quantified, is that replacement (S3800-033) reserve funds invested in mutual funds are exposed to various risks such as market and credit risks. Auditor Noncompliance Code: O-Investment for Reserves for Replacements (S3800-035) Questioned Cost: $0 (S3800-040) Reporting Views of Responsible Officials: See management’s response (S3800-150) (S3800-045) •FHA/Contract Number: 042EE171 (3800-037) •Questioned Costs: $0 (3800-038) Context: Replacement reserve funds should be deposited in accordance with the (S3800-050) regulatory agreement. Recommendation: We recommend that management invest replacement reserve in obligations (S3800-080) of, or fully guaranteed as to principal by, the United States of America. Auditor’s Summary of the Auditee’s Comments on the Finding and Recommendation: (S3800-090) Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project may incur. •Response Indicator: Disagree (3800-130) Response: (S3800-1500) Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project may incur. There is a cumulative net gain through December 31, 2023. Contact Person: Christopher P. Widman (S3800-160 to 180)

Finding 2023-002

Reference Number: 2023-002 (S3800-010) Title and CFDA Number of Federal Program: Supportive Housing for the Elderly, Assistance Listing Number 14.157 (S3800-011) Type of Finding: Federal Award Finding (S3800-015) Finding Resolution Status: Unresolved (S3800-016) Information on Universe Population Size: Not applicable (S3800-017) Sample Size Information: Not applicable (S3800-018) Identification of Repeat Finding Reference Number: 2022-002 (S3800-019) Criteria: In accordance with the regulatory agreement, replacement reserve funds whether (S3800-020) in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America. Statement of Condition: Replacement reserve funds were invested in obligations other than in (S3800-030) accordance with the regulatory agreement. Cause: Management invested a portion of the replacement reserve funds in mutual (S3800-032) funds in an effort to generate higher investment income. Effect or Potential Effect: The effect of this deficiency, which cannot be quantified, is that replacement (S3800-033) reserve funds invested in mutual funds are exposed to various risks such as market and credit risks. Auditor Noncompliance Code: O-Investment for Reserves for Replacements (S3800-035) Questioned Cost: $0 (S3800-040) Reporting Views of Responsible Officials: See management’s response (S3800-150) (S3800-045) •FHA/Contract Number: 042EE171 (3800-037) •Questioned Costs: $0 (3800-038) Context: Replacement reserve funds should be deposited in accordance with the (S3800-050) regulatory agreement. Recommendation: We recommend that management invest replacement reserve in obligations (S3800-080) of, or fully guaranteed as to principal by, the United States of America. Auditor’s Summary of the Auditee’s Comments on the Finding and Recommendation: (S3800-090) Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project may incur. •Response Indicator: Disagree (3800-130) Response: (S3800-1500) Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project may incur. There is a cumulative net gain through December 31, 2023. Contact Person: Christopher P. Widman (S3800-160 to 180)

Finding 2023-002

Reference Number: 2023-002 (S3800-010) Title and CFDA Number of Federal Program: Supportive Housing for the Elderly, Assistance Listing Number 14.157 (S3800-011) Type of Finding: Federal Award Finding (S3800-015) Finding Resolution Status: Unresolved (S3800-016) Information on Universe Population Size: Not applicable (S3800-017) Sample Size Information: Not applicable (S3800-018) Identification of Repeat Finding Reference Number: 2022-002 (S3800-019) Criteria: In accordance with the regulatory agreement, replacement reserve funds whether (S3800-020) in the form of a cash deposit or invested in obligations of, or fully guaranteed as to principal by, the United States of America. Statement of Condition: Replacement reserve funds were invested in obligations other than in (S3800-030) accordance with the regulatory agreement. Cause: Management invested a portion of the replacement reserve funds in mutual (S3800-032) funds in an effort to generate higher investment income. Effect or Potential Effect: The effect of this deficiency, which cannot be quantified, is that replacement (S3800-033) reserve funds invested in mutual funds are exposed to various risks such as market and credit risks. Auditor Noncompliance Code: O-Investment for Reserves for Replacements (S3800-035) Questioned Cost: $0 (S3800-040) Reporting Views of Responsible Officials: See management’s response (S3800-150) (S3800-045) •FHA/Contract Number: 042EE171 (3800-037) •Questioned Costs: $0 (3800-038) Context: Replacement reserve funds should be deposited in accordance with the (S3800-050) regulatory agreement. Recommendation: We recommend that management invest replacement reserve in obligations (S3800-080) of, or fully guaranteed as to principal by, the United States of America. Auditor’s Summary of the Auditee’s Comments on the Finding and Recommendation: (S3800-090) Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project may incur. •Response Indicator: Disagree (3800-130) Response: (S3800-1500) Management is aware of such market and credit risks and, therefore the Project Sponsor (Good Shepherd Home) is committed to reimburse the Project for any net cumulative realized investment losses that the Project may incur. There is a cumulative net gain through December 31, 2023. Contact Person: Christopher P. Widman (S3800-160 to 180)