FAC Explorer

Audit 321819

FY End
2023-12-31
Total Expended
$759,865
Findings
2
Programs
3
Organization: Central Minnesota Housing Partnership, Inc. (MN)
Year: 2023 Accepted: 2024-09-27
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499028 2023-003 Significant Deficiency Yes N
1075470 2023-003 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $632,314 Yes 1
14.267 Continuum of Care Program $95,601 - 0
10.427 Rural Rental Assistance Payments $31,950 - 0

Contacts

Name Title Type
UHWXM5TPP5H3 Deanna Hemmesch Auditee
3202580671 Nicole Folkerts 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 the cost principles contained in the Uniform Guidance, 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. The Organization did not have any payments to subrecipients during the year ended December 31, 2023. De Minimis Rate Used: N Rate Explanation: Central Minnesota Housing Partnership, Inc. has not 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 Central Minnesota Housing Partnership, Inc. 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 Central Minnesota Housing Partnership, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Central Minnesota Housing Partnership, Inc.
Title: Rural Rental Housing Loans Accounting Policies: 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. 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. The Organization did not have any payments to subrecipients during the year ended December 31, 2023. De Minimis Rate Used: N Rate Explanation: Central Minnesota Housing Partnership, Inc. has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The rural rental housing loans programs listed subsequently are administered directly by Central Minnesota Housing Partnership, Inc. and balances and transactions relating to these programs are included in Central Minnesota Housing Partnership, Inc.’s basic consolidated financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at December 31, 2023 consists of: FEDERAL LOAN PROGRAMS Amount Program Title FAL Number Outstanding Rural Rental Housing Loans 10.415 607,310

Finding Details

Finding 2023-003
Federal Agency: U.S. Department of Agriculture Federal Program Title: Rural Rental Housing Loans Federal Assistance Listing Number: 10.415 Federal Award Identification Number(s) and Year(s): AMAS000000191197-2018, AMAS000000191198-2018, AMAS000000191199-2018, AMAS000000315075-2018, AMAS000000017171-2017, AMAS000000017172-2017 Award Period: 01/01/23 to 12/31/23 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Funds collected as a security deposit shall be kept separate from other funds and shall remain equal to or exceed the outstanding obligations. Management or another appropriate individual should review to ensure adequate funding. Condition: During our testing of the six Rural Development projects, we noted six had no documented review to ensure adequate funding. Context: Each of the six Rural Development projects were reviewed to ensure proper funding and review over security deposits, and six were noted with no indication of review. Cause: The Organization tracks security deposits for tenants but does not have a documented review process to verify the accounts are adequately funded. Effect: Potential for insufficient funds to remit all security deposits to tenants. Repeat Finding: Yes. Recommendation: The Organization should review security deposits as a part of month-end close procedures. Views of Responsible Officials and Planned Corrective Actions: No disagreement with the finding. The Organization will implement a review step during the tracking of security deposits to verify the security deposit asset is equal to or greater than the security deposit liability and will correct any that are underfunded.
Finding 2023-003
Federal Agency: U.S. Department of Agriculture Federal Program Title: Rural Rental Housing Loans Federal Assistance Listing Number: 10.415 Federal Award Identification Number(s) and Year(s): AMAS000000191197-2018, AMAS000000191198-2018, AMAS000000191199-2018, AMAS000000315075-2018, AMAS000000017171-2017, AMAS000000017172-2017 Award Period: 01/01/23 to 12/31/23 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Funds collected as a security deposit shall be kept separate from other funds and shall remain equal to or exceed the outstanding obligations. Management or another appropriate individual should review to ensure adequate funding. Condition: During our testing of the six Rural Development projects, we noted six had no documented review to ensure adequate funding. Context: Each of the six Rural Development projects were reviewed to ensure proper funding and review over security deposits, and six were noted with no indication of review. Cause: The Organization tracks security deposits for tenants but does not have a documented review process to verify the accounts are adequately funded. Effect: Potential for insufficient funds to remit all security deposits to tenants. Repeat Finding: Yes. Recommendation: The Organization should review security deposits as a part of month-end close procedures. Views of Responsible Officials and Planned Corrective Actions: No disagreement with the finding. The Organization will implement a review step during the tracking of security deposits to verify the security deposit asset is equal to or greater than the security deposit liability and will correct any that are underfunded.