FAC Explorer

Audit 307011

FY End
2023-09-30
Total Expended
$2.08M
Findings
2
Programs
2
Organization: St Croix Valley Supportive Housing for the Elderly, Inc. (WI)
Year: 2023 Accepted: 2024-05-23
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398342 2023-001 Material Weakness - C
974784 2023-001 Material Weakness - C

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.93M Yes 1
14.195 Section 8 Housing Assistance Payments Program $146,833 - 0

Contacts

Name Title Type
KK42WV2QK447 David Dobosenski Auditee
7154830549 Nicole Folkerts Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Project under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 assets, or cash flows of the Project. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Section 202 Capital Advance included as Net Assets With Donor Restrictions had a balance of $1,934,000 at September 30, 2023. De Minimis Rate Used: N Rate Explanation: The Project has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Capital Advance Assistance Listing Number: 14.157 Federal Award Identification Number and Year: WI39S971003-23Z-2023 Award Period: 10/1/2022-9/30/2023 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: HUD requires the Organization to make monthly deposits into the Reserve for Replacement. Condition: The entity was required to make monthly deposits of $2,017 into the replacement reserve account for all 12 months of the fiscal year ending September 30, 2023. Deposits into the replacement reserve were not made for the months of February-September 2023. This resulted in a delinquent balance of $16,136 as of September 30, 2023. Known Questioned costs: $16,136 Cause: The entity relied on monthly auto-transfers set up through the bank to make the deposits. These monthly auto-transfers stopped in February 2023 by an undetermined user or system error. Effect: The Organization is in violation of HUD regulations, which could result in penalties or other enforcement actions. The Organization may not have sufficient funds to cover necessary repairs or replacements of building components, which could lead to deferred maintenance and decreased property values. The Organization may have to use operating funds to cover replacement reserve expenses, which could strain the entity's cash flow and limit its ability to make other necessary expenditures. Recommendation: Accounting staff should reconcile the Replacement Reserve account on a periodic (monthly or quarterly) basis to ensure the monthly transfers are being made. Management should also make the deposit to fully fund the replacement reserve as soon as possible. Views of responsible officials: Management is in agreement with the finding and has since corrected the issue.
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Capital Advance Assistance Listing Number: 14.157 Federal Award Identification Number and Year: WI39S971003-23Z-2023 Award Period: 10/1/2022-9/30/2023 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: HUD requires the Organization to make monthly deposits into the Reserve for Replacement. Condition: The entity was required to make monthly deposits of $2,017 into the replacement reserve account for all 12 months of the fiscal year ending September 30, 2023. Deposits into the replacement reserve were not made for the months of February-September 2023. This resulted in a delinquent balance of $16,136 as of September 30, 2023. Known Questioned costs: $16,136 Cause: The entity relied on monthly auto-transfers set up through the bank to make the deposits. These monthly auto-transfers stopped in February 2023 by an undetermined user or system error. Effect: The Organization is in violation of HUD regulations, which could result in penalties or other enforcement actions. The Organization may not have sufficient funds to cover necessary repairs or replacements of building components, which could lead to deferred maintenance and decreased property values. The Organization may have to use operating funds to cover replacement reserve expenses, which could strain the entity's cash flow and limit its ability to make other necessary expenditures. Recommendation: Accounting staff should reconcile the Replacement Reserve account on a periodic (monthly or quarterly) basis to ensure the monthly transfers are being made. Management should also make the deposit to fully fund the replacement reserve as soon as possible. Views of responsible officials: Management is in agreement with the finding and has since corrected the issue.