FAC Explorer

Audit 306221

FY End
2023-12-31
Total Expended
$1.54M
Findings
6
Programs
3
Organization: Madelia Housing Inc. (MN)
Year: 2023 Accepted: 2024-05-14
Auditor: Mahoney Ulbrich Christiansen and Russ PA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396597 2023-001 Material Weakness - L
396598 2023-001 Material Weakness - L
396599 2023-001 Material Weakness - L
973039 2023-001 Material Weakness - L
973040 2023-001 Material Weakness - L
973041 2023-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
14.134 Mortgage Insurance_rental Housing $765,554 Yes 1
14.239 Home Investment Partnerships Program $565,500 - 1
14.195 Section 8 Housing Assistance Payments Program $205,771 - 1

Contacts

Name Title Type
C2M5FV412L38 Joleen Pfau Auditee
5073451290 Deanna Somvong Auditor
No contacts on file

Notes to SEFA

Title: Note 3: Loan Accounting Policies: Note 1: Basis of Presentation This schedule includes the federal grant activity of Madelia Housing, Inc. under programs of the federal government for the year ended December 31, 2023. The information presented 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 (the Uniform Guidance). Because the schedule presents only a selected portion of the operations of Madelia Housing, Inc., it is not intended to and does not present the balance sheet, statement of operations, or cash flows of Madelia Housing, Inc.. Note 2: Summary of Significant Accounting Policies (1) Expenditures reported on the Schedule are reported on the accrual basis of accounting, except for the insured mortgage as discussed below. (2) Madelia Housing, Inc.’s federal awards are not based on eligible costs incurred. Accordingly, Madelia Housing, Inc. has not made an election related to the use of the 10% de minimis indirect cost rate described in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: (2) Madelia Housing, Inc.’s federal awards are not based on eligible costs incurred. Accordingly, Madelia Housing, Inc. has not made an e ection related to the use of the 10% de minimis indirect cost rate described in the Uniform Guidance. Federal expenditures for the mortgage insurance rental housing program and HOME Investment Partnerships Program represent the December 31, 2022 balance of the mortgage and loan funded in previous years for which HUD imposes continuing compliance requirements. The balance of the mortgage and loan outstanding as of December 31, 2023 were $728,129 and $565,500, respectively.

Finding Details

Finding 2023-001
Criteria - Pursuant to 2 CFR section 200.512(a), the Single Audit reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition - The Corporation did not submit the Single Audit Reporting Package for the year ended December 31, 2022 within nine months after the end of the audit period (September 30, 2023). Cause - The Corporation was unaware of the reporting requirement. Effect - Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation - We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee’s comments and response - The Corporation will work on educating their board members on completing efficient and timely financial close and reporting procedures. Management believes their processes will ensure timely filing of the Single Audit Reporting Package in the future. Responsible party for corrective action: Chris Fischer, Board Secretary Repeat finding: No
Finding 2023-001
Criteria - Pursuant to 2 CFR section 200.512(a), the Single Audit reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition - The Corporation did not submit the Single Audit Reporting Package for the year ended December 31, 2022 within nine months after the end of the audit period (September 30, 2023). Cause - The Corporation was unaware of the reporting requirement. Effect - Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation - We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee’s comments and response - The Corporation will work on educating their board members on completing efficient and timely financial close and reporting procedures. Management believes their processes will ensure timely filing of the Single Audit Reporting Package in the future. Responsible party for corrective action: Chris Fischer, Board Secretary Repeat finding: No
Finding 2023-001
Criteria - Pursuant to 2 CFR section 200.512(a), the Single Audit reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition - The Corporation did not submit the Single Audit Reporting Package for the year ended December 31, 2022 within nine months after the end of the audit period (September 30, 2023). Cause - The Corporation was unaware of the reporting requirement. Effect - Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation - We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee’s comments and response - The Corporation will work on educating their board members on completing efficient and timely financial close and reporting procedures. Management believes their processes will ensure timely filing of the Single Audit Reporting Package in the future. Responsible party for corrective action: Chris Fischer, Board Secretary Repeat finding: No
Finding 2023-001
Criteria - Pursuant to 2 CFR section 200.512(a), the Single Audit reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition - The Corporation did not submit the Single Audit Reporting Package for the year ended December 31, 2022 within nine months after the end of the audit period (September 30, 2023). Cause - The Corporation was unaware of the reporting requirement. Effect - Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation - We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee’s comments and response - The Corporation will work on educating their board members on completing efficient and timely financial close and reporting procedures. Management believes their processes will ensure timely filing of the Single Audit Reporting Package in the future. Responsible party for corrective action: Chris Fischer, Board Secretary Repeat finding: No
Finding 2023-001
Criteria - Pursuant to 2 CFR section 200.512(a), the Single Audit reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition - The Corporation did not submit the Single Audit Reporting Package for the year ended December 31, 2022 within nine months after the end of the audit period (September 30, 2023). Cause - The Corporation was unaware of the reporting requirement. Effect - Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation - We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee’s comments and response - The Corporation will work on educating their board members on completing efficient and timely financial close and reporting procedures. Management believes their processes will ensure timely filing of the Single Audit Reporting Package in the future. Responsible party for corrective action: Chris Fischer, Board Secretary Repeat finding: No
Finding 2023-001
Criteria - Pursuant to 2 CFR section 200.512(a), the Single Audit reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. Condition - The Corporation did not submit the Single Audit Reporting Package for the year ended December 31, 2022 within nine months after the end of the audit period (September 30, 2023). Cause - The Corporation was unaware of the reporting requirement. Effect - Failure to submit the required Single Audit Reporting Package timely automatically results in the Corporation not qualifying for low-risk auditee status for the subsequent year's Single Audit. Recommendation - We recommend that the Corporation develop, document, and implement policies and procedures for to ensure timely submission of the Single Audit Reporting Package. Auditee’s comments and response - The Corporation will work on educating their board members on completing efficient and timely financial close and reporting procedures. Management believes their processes will ensure timely filing of the Single Audit Reporting Package in the future. Responsible party for corrective action: Chris Fischer, Board Secretary Repeat finding: No