Audit 304794

FY End

2023-12-31

Total Expended

$1.31M

Findings

2

Programs

2

Organization: L.w. Fraser Independent Living Project, Inc., Sheridan Court (MN)

Year: 2023 Accepted: 2024-04-26

Auditor: Bouley Pllp

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
394939	2023-001	Significant Deficiency	-	P
971381	2023-001	Significant Deficiency	-	P

ALN	Program	Spent	Major	Findings
14.134	U.s. Department of Housing and Urban Development	$1.11M	Yes	1
14.195	Section 8 Housing Assistance Payments	$206,227	-	0

Contacts

Name	Title	Type
NFJLJ91XNQ73	James Olson	Auditee
6127988320	Jadin C. Bragg	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 the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The 10-percent de minimis indirect cost rate allowed under the Uniform Guidance is not applicable to the Organization since the Organization has no cost reimbursable grants or contracts. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of L. W. Fraser Independent Living Project, Inc., Sheridan Court, HUD Project No. 092-11227 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, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Project, it is not intended to and does not present the financial position, changes in net deficit, or cash flows of L. W. Fraser Independent Living Project, Inc., Sheridan Court

Title: U.S. Department of Housing and Urban Development Loan Program 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. The 10-percent de minimis indirect cost rate allowed under the Uniform Guidance is not applicable to the Organization since the Organization has no cost reimbursable grants or contracts. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate Sheridan Court has received a U.S. Department of Housing and Urban Development direct loan under Section 207 pursuant to Section 223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Sheridan Court received no additional loans during the year.

Finding Details

Finding 2023-001

Type of Finding: Significant Deficiency Criteria: The Project is responsible for ensuring proper cut-off of accounts payable to help ensure the financial statements are prepared in accordance with U.S. GAAP. Condition: Two invoices were noted as being improperly excluded from the accounts payable listing. Cause: The Project posted invoices received after year-end to January 2024 rather than reflecting them within 2023. Questioned Costs: None Effect: Procedures were not in place to ensure costs incurred prior to year-end were properly reflected within accounts payable. Recommendation: We recommend the Project strengthen procedures to ensure proper cut-off is achieved for accounts payable. Views of Responsible Officials: Management concurs with the finding and recommendations. Auditor’s Summary of Auditee’s Comments: The Project posted invoices after year-end to January 2024 rather than reflecting them within 2023. Management concurs with the finding and recommendations. Management’s Response: Management concurs with the finding and recommendations. Management will implement an additional review step to evaluate the timing of when such costs are incurred in order to ensure accounts payable includes all applicable invoices.

Finding 2023-001

Type of Finding: Significant Deficiency Criteria: The Project is responsible for ensuring proper cut-off of accounts payable to help ensure the financial statements are prepared in accordance with U.S. GAAP. Condition: Two invoices were noted as being improperly excluded from the accounts payable listing. Cause: The Project posted invoices received after year-end to January 2024 rather than reflecting them within 2023. Questioned Costs: None Effect: Procedures were not in place to ensure costs incurred prior to year-end were properly reflected within accounts payable. Recommendation: We recommend the Project strengthen procedures to ensure proper cut-off is achieved for accounts payable. Views of Responsible Officials: Management concurs with the finding and recommendations. Auditor’s Summary of Auditee’s Comments: The Project posted invoices after year-end to January 2024 rather than reflecting them within 2023. Management concurs with the finding and recommendations. Management’s Response: Management concurs with the finding and recommendations. Management will implement an additional review step to evaluate the timing of when such costs are incurred in order to ensure accounts payable includes all applicable invoices.