Audit 310213

FY End
2023-12-31
Total Expended
$5.45M
Findings
4
Programs
7
Organization: One Roof Community Housing (MN)
Year: 2023 Accepted: 2024-06-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
403066 2023-001 Material Weakness - I
403067 2023-001 Material Weakness - I
979508 2023-001 Material Weakness - I
979509 2023-001 Material Weakness - I

Contacts

Name Title Type
J5TRL7GBE353 Vickie Hartley Auditee
2182490381 Elizabeth F. Barchenger Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 1) 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. 2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: One Roof Community Housing has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of One Roof Community Housing and its subsidiaries (One Roof) 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 (the Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Program Income Accounting Policies: 1) 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. 2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: One Roof Community Housing has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. In accordance with terms of the CDFI grant, program income totaling $2,636 was used for allowable costs under the grant agreement in addition to the original award amount. In accordance with the terms of the HOME and CDBG grants, program income totaling $845,402 was used for allowable costs under the grant agreements in addition to the original award amounts. Program income is included in the schedule of expenditures of federal awards when used for allowable costs under the grant agreements
Title: Loan or Loan Guarantee Programs Accounting Policies: 1) 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. 2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: One Roof Community Housing has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Federal expenditures for the HOME Investment Partnership Program include $508,595 of new advances received during the year for loans which the grantor imposes continuing compliance requirements. The balance of the loans outstanding as of December 31, 2023 is $508,595.

Finding Details

Criteria - Uniform Guidance requires that One Roof determine whether any individual or entity receiving federal funds is currently debarred, suspended, excluded, or disqualified by the Department of the Treasury, or any other Federal department or agency, and reported within 30 days. Based on this criteria, One Roof was required to determine whether vendors selected to complete the construction of the housing project known as Plover Place were debarred, suspended, excluded, or disqualified prior to making any payments to them. Condition - One Roof did not perform any procedures to determine whether vendors that were selected were currently debarred, suspended, excluded, or disqualified. Context - We tested a sample of the vendors selected for the construction of Plover Place. The results of our testing indicated that none of the vendors selected were suspended or debarred. Cause - One Roof personnel were not aware of this requirement. Effect - Disbursement of federal funds to a person or entity that is currently debarred or suspended could occur and not be reported. Failure to report such a disbursement may result in required repayment of the federal award received by One Roof and render One Roof ineligible to apply for additional federal awards in future funding rounds. Recommendation - We recommend that management implement a policy to test whether individuals or entities receiving funds are currently debarred or suspended, and to report the results if necessary. Auditee’s comments and response - One Roof is in the process of updating policies to include testing if individuals or entities that are vendors for One Roof are debarred or suspended. Responsible party for corrective action: Peter Krieger, Housing Development & Construction Director.
Criteria - Uniform Guidance requires that One Roof determine whether any individual or entity receiving federal funds is currently debarred, suspended, excluded, or disqualified by the Department of the Treasury, or any other Federal department or agency, and reported within 30 days. Based on this criteria, One Roof was required to determine whether vendors selected to complete the construction of the housing project known as Plover Place were debarred, suspended, excluded, or disqualified prior to making any payments to them. Condition - One Roof did not perform any procedures to determine whether vendors that were selected were currently debarred, suspended, excluded, or disqualified. Context - We tested a sample of the vendors selected for the construction of Plover Place. The results of our testing indicated that none of the vendors selected were suspended or debarred. Cause - One Roof personnel were not aware of this requirement. Effect - Disbursement of federal funds to a person or entity that is currently debarred or suspended could occur and not be reported. Failure to report such a disbursement may result in required repayment of the federal award received by One Roof and render One Roof ineligible to apply for additional federal awards in future funding rounds. Recommendation - We recommend that management implement a policy to test whether individuals or entities receiving funds are currently debarred or suspended, and to report the results if necessary. Auditee’s comments and response - One Roof is in the process of updating policies to include testing if individuals or entities that are vendors for One Roof are debarred or suspended. Responsible party for corrective action: Peter Krieger, Housing Development & Construction Director.
Criteria - Uniform Guidance requires that One Roof determine whether any individual or entity receiving federal funds is currently debarred, suspended, excluded, or disqualified by the Department of the Treasury, or any other Federal department or agency, and reported within 30 days. Based on this criteria, One Roof was required to determine whether vendors selected to complete the construction of the housing project known as Plover Place were debarred, suspended, excluded, or disqualified prior to making any payments to them. Condition - One Roof did not perform any procedures to determine whether vendors that were selected were currently debarred, suspended, excluded, or disqualified. Context - We tested a sample of the vendors selected for the construction of Plover Place. The results of our testing indicated that none of the vendors selected were suspended or debarred. Cause - One Roof personnel were not aware of this requirement. Effect - Disbursement of federal funds to a person or entity that is currently debarred or suspended could occur and not be reported. Failure to report such a disbursement may result in required repayment of the federal award received by One Roof and render One Roof ineligible to apply for additional federal awards in future funding rounds. Recommendation - We recommend that management implement a policy to test whether individuals or entities receiving funds are currently debarred or suspended, and to report the results if necessary. Auditee’s comments and response - One Roof is in the process of updating policies to include testing if individuals or entities that are vendors for One Roof are debarred or suspended. Responsible party for corrective action: Peter Krieger, Housing Development & Construction Director.
Criteria - Uniform Guidance requires that One Roof determine whether any individual or entity receiving federal funds is currently debarred, suspended, excluded, or disqualified by the Department of the Treasury, or any other Federal department or agency, and reported within 30 days. Based on this criteria, One Roof was required to determine whether vendors selected to complete the construction of the housing project known as Plover Place were debarred, suspended, excluded, or disqualified prior to making any payments to them. Condition - One Roof did not perform any procedures to determine whether vendors that were selected were currently debarred, suspended, excluded, or disqualified. Context - We tested a sample of the vendors selected for the construction of Plover Place. The results of our testing indicated that none of the vendors selected were suspended or debarred. Cause - One Roof personnel were not aware of this requirement. Effect - Disbursement of federal funds to a person or entity that is currently debarred or suspended could occur and not be reported. Failure to report such a disbursement may result in required repayment of the federal award received by One Roof and render One Roof ineligible to apply for additional federal awards in future funding rounds. Recommendation - We recommend that management implement a policy to test whether individuals or entities receiving funds are currently debarred or suspended, and to report the results if necessary. Auditee’s comments and response - One Roof is in the process of updating policies to include testing if individuals or entities that are vendors for One Roof are debarred or suspended. Responsible party for corrective action: Peter Krieger, Housing Development & Construction Director.