FAC Explorer

Audit 317201

FY End
2023-12-31
Total Expended
$1.48M
Findings
4
Programs
2
Organization: Western Iowa Housing Corporation (IA)
Year: 2023 Accepted: 2024-08-14
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
481067 2023-004 Material Weakness - L
481068 2023-005 Material Weakness - L
1057509 2023-004 Material Weakness - L
1057510 2023-005 Material Weakness - L

Programs

ALN Program Spent Major Findings
14.239 Home Investment Partnerships Program $94,375 - 0
14.181 Supportive Housing for Persons with Disabilities $40,778 - 0

Contacts

Name Title Type
Z7SBUJJHXNN6 Matt Zima Auditee
7122567888 Ashley Mahoney 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, 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Western Iowa Housing Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Western Iowa Housing Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Western Iowa Housing Corporation 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 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 Western Iowa Housing Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Western Iowa Housing Corporation.
Title: HUD CAPITAL ADVANCE Accounting Policies: 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Western Iowa Housing Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Western Iowa Housing Corporation has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The balance of the HUD capital advance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. There were no additional HUD loans during the year.

Finding Details

Finding 2023-004
Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program Name: Section 811 Capital Advance Assistance Listing Number: 14.181 Type of Finding:  Material Weakness in Internal Control over Compliance Criteria or specific requirement: Project is required to deposit funds into the repair and replacement escrow monthly, with amount set by U.S. Department of Housing and Urban Development. Condition: The Project made an annual deposit instead of monthly deposits. The Project also didn’t have the expected amount in the replacement reserve account. Questioned costs: $20,494 Context: During our testing, it was noted that the Project was making one annual deposit into the replacement reserve instead of the required monthly deposits. Also noted the replacement reserve accounts was $20,494 lower than expected. Cause: Management oversight. Effect: The interest amounts accrued on the replacement reserve account were less than expected. Recommendation: We recommend the Project deposit the proper amount monthly and maintain the proper amount in the account. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-005
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 811 Capital Advance Assistance Listing Number: 14.181 Type of Finding:  Material Weakness in Internal Control over Compliance Criteria or specific requirement: Project is required to maintain a residual receipts account and deposit surplus cash. Condition: The Project did not have a separate account for residual receipts and had surplus cash during the year. Questioned costs: $35,636 Context: During our testing, it was noted that the Project did not have a residual receipts account set up. Surplus cash of $35,636 was not deposited into a separate account. Cause: Management oversight. Effect: The Project was not incompliance with the regulatory agreement. Recommendation: We recommend the Project set a separate account for residual receipts and deposit surplus cash into this account within 60 days of year-end. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-004
Federal Agency: U.S. Department of Housing and Urban DevelopmentFederal Program Name: Section 811 Capital Advance Assistance Listing Number: 14.181 Type of Finding:  Material Weakness in Internal Control over Compliance Criteria or specific requirement: Project is required to deposit funds into the repair and replacement escrow monthly, with amount set by U.S. Department of Housing and Urban Development. Condition: The Project made an annual deposit instead of monthly deposits. The Project also didn’t have the expected amount in the replacement reserve account. Questioned costs: $20,494 Context: During our testing, it was noted that the Project was making one annual deposit into the replacement reserve instead of the required monthly deposits. Also noted the replacement reserve accounts was $20,494 lower than expected. Cause: Management oversight. Effect: The interest amounts accrued on the replacement reserve account were less than expected. Recommendation: We recommend the Project deposit the proper amount monthly and maintain the proper amount in the account. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-005
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 811 Capital Advance Assistance Listing Number: 14.181 Type of Finding:  Material Weakness in Internal Control over Compliance Criteria or specific requirement: Project is required to maintain a residual receipts account and deposit surplus cash. Condition: The Project did not have a separate account for residual receipts and had surplus cash during the year. Questioned costs: $35,636 Context: During our testing, it was noted that the Project did not have a residual receipts account set up. Surplus cash of $35,636 was not deposited into a separate account. Cause: Management oversight. Effect: The Project was not incompliance with the regulatory agreement. Recommendation: We recommend the Project set a separate account for residual receipts and deposit surplus cash into this account within 60 days of year-end. Views of responsible officials: There is no disagreement with the audit finding.