FAC Explorer

Audit 316095

FY End
2023-12-31
Total Expended
$1.85M
Findings
2
Programs
2
Organization: Dayton's Bluff Neighborhood Housing Service, Inc. (MN)
Year: 2023 Accepted: 2024-07-29
Auditor: Lethert Skwira Schultz & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479546 2023-001 Material Weakness Yes P
1055988 2023-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $1.50M Yes 1
21.000 Neighborhood Reinvestment Expendable Grant $348,392 Yes 0

Contacts

Name Title Type
K4EKU8KDKGK6 Jim Erchul Auditee
6517746995 Kevin Stocke Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: De minimis cost rate not used due to nature of reward This schedule of federal awards includes the grant activity of Dayton's Bluff Neighborhood Housing Services And Subsidiary and is presented on the cash basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: De minimis cost rate not used due to nature of reward The Organization has not elected to use the 10-percent de minimus indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Auditor Preparation of the Financial Statements Material Weakness Criteria: Management is responsible for establishing and maintaining internal controls, including monitoring, and for the fair presentation in the financial statements of financial position, results of operations, and cash flows, including the notes to financial statements, in conformity with U.S. generally accepted accounting principles. Condition: As part of the audit, management requested the auditor to prepare a draft of the financial statements, including the related notes to financial statements and supplementary information. Generally Accepted Auditing Standards require auditors to report it as a finding when they prepare the complete annual reporting package for their clients. Management reviewed, approved, and accepted responsibility for those financial statements prior to their issuance. Cause: This deficiency is partially due to limited resources in the financial reporting process. Auditor assistance with preparation of the schedule of expenditures of federal awards is not unusual in an organization of this size. Effect: There is a reasonable possibility that the Organization would not be able to draft a complete and accurate financial statements. Recommendation: We recommend that Management continue to evaluate the cost benefit of preparing a draft of the audited financial statements, supplemental schedules, and disclosures. Managements Response: Management will continue to allow the audit firm to create the draft financial statements and related footnote disclosures, and will review and approve these prior to the issuance of the annual financial statements.
Finding 2023-001
Auditor Preparation of the Financial Statements Material Weakness Criteria: Management is responsible for establishing and maintaining internal controls, including monitoring, and for the fair presentation in the financial statements of financial position, results of operations, and cash flows, including the notes to financial statements, in conformity with U.S. generally accepted accounting principles. Condition: As part of the audit, management requested the auditor to prepare a draft of the financial statements, including the related notes to financial statements and supplementary information. Generally Accepted Auditing Standards require auditors to report it as a finding when they prepare the complete annual reporting package for their clients. Management reviewed, approved, and accepted responsibility for those financial statements prior to their issuance. Cause: This deficiency is partially due to limited resources in the financial reporting process. Auditor assistance with preparation of the schedule of expenditures of federal awards is not unusual in an organization of this size. Effect: There is a reasonable possibility that the Organization would not be able to draft a complete and accurate financial statements. Recommendation: We recommend that Management continue to evaluate the cost benefit of preparing a draft of the audited financial statements, supplemental schedules, and disclosures. Managements Response: Management will continue to allow the audit firm to create the draft financial statements and related footnote disclosures, and will review and approve these prior to the issuance of the annual financial statements.