FAC Explorer

Audit 304796

FY End
2023-12-31
Total Expended
$1.66M
Findings
2
Programs
2
Organization: Fraser Independent Living Project Iii, Inc., Excelsior Court (MN)
Year: 2023 Accepted: 2024-04-26
Auditor: Bouley Pllp

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
394941 2023-001 Significant Deficiency - P
971383 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.181 U.s. Department of Housing and Urban Development $1.60M Yes 1
14.195 Section 8 Housing Assistance Payments $62,669 - 0

Contacts

Name Title Type
XD88UC67FMY5 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 Fraser Independent Living Project III, Inc., Excelsior Court (Excelsior Court) 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 Excelsior 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 Excelsior Court has received a U.S. Department of Housing and Urban Development direct loan under Section 811 Capital Advance 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. Excelsior Court received no additional loans during the year.

Finding Details

Finding 2023-001
Criteria: The Project is responsible for ensuring proper recording of depreciation expense to help ensure the financial statements are prepared in accordance with U.S. GAAP. Condition: Depreciation expense was overstated. Cause: The Project improperly rolled forward accumulated depreciation from 2022 resulting in too high of depreciation expense being recorded in order to reconcile to ending accumulated depreciation as noted on the schedule. Questioned Costs: None Effect: Procedures were not in place to ensure that depreciation schedules were properly rolled forward from 2022. Recommendation: We recommend the Project strengthen procedures to ensure proper rollforward of depreciation schedules. Views of Responsible Officials: Management concurs with the finding and recommendations. Auditor’s Summary of Auditee’s Comments: improperly rolled forward accumulated depreciation from 2022 resulting in too high of depreciation expense being recorded in order to reconcile to ending accumulated depreciation as noted on the schedule. Management’s Response: Management concurs with the finding and recommendations. Management concurs with the finding and recommendations. Management will implement an additional review step to ensure opening balances on the depreciation schedules are in agreement with the prior year ending balances.
Finding 2023-001
Criteria: The Project is responsible for ensuring proper recording of depreciation expense to help ensure the financial statements are prepared in accordance with U.S. GAAP. Condition: Depreciation expense was overstated. Cause: The Project improperly rolled forward accumulated depreciation from 2022 resulting in too high of depreciation expense being recorded in order to reconcile to ending accumulated depreciation as noted on the schedule. Questioned Costs: None Effect: Procedures were not in place to ensure that depreciation schedules were properly rolled forward from 2022. Recommendation: We recommend the Project strengthen procedures to ensure proper rollforward of depreciation schedules. Views of Responsible Officials: Management concurs with the finding and recommendations. Auditor’s Summary of Auditee’s Comments: improperly rolled forward accumulated depreciation from 2022 resulting in too high of depreciation expense being recorded in order to reconcile to ending accumulated depreciation as noted on the schedule. Management’s Response: Management concurs with the finding and recommendations. Management concurs with the finding and recommendations. Management will implement an additional review step to ensure opening balances on the depreciation schedules are in agreement with the prior year ending balances.