FAC Explorer

Audit 322755

FY End
2023-12-31
Total Expended
$1.15M
Findings
2
Programs
3
Organization: Augustana Lutheran Homes Inc. Dba: Gloria Dei Manor (MN)
Year: 2023 Accepted: 2024-09-30
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499878 2023-002 Significant Deficiency - N
1076320 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.08M Yes 1
14.191 Multifamily Housing Service Coordinators $39,365 - 0
14.182 Section 8 New Construction and Substantial Rehabilitation $30,480 - 0

Contacts

Name Title Type
H6JZRKBFK3F9 Shelley Kendrick Auditee
6517664300 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 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 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. Section 202 Flexible Subsidy Assistance Loan had outstanding balances of $1,069,689 at December 31, 2023. De Minimis Rate Used: Y 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 2023-002
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 202 Direct Loan and Flexible Subsidy Assistance Loan Assistance Listing Number: 14.157 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A FAIN number and year: MFSC179241 - 2019 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Project is required to maintain a separate security deposit cash account equal to or greater than the security deposit liability. Condition: The Security Deposit Asset account is under funded by $8,700 at December 31, 2023. Questioned costs: None Context: Management did not transfer cash from operating checking to the security deposit cash account until June of 2024 to ensure the liability was properly funded. Cause: The internal control system in place did not properly alert management to ensure the liability was properly funded. Effect: The security deposit cash account does not have adequate funds to reimburse all tenants that have paid in a security deposit. Repeat Finding: N/A Recommendation: All security deposit activity should be run through this account to ensure it is being properly utilized. Comparisons should be performed monthly to ensure the balance is maintained at a minimum equal to the security deposit liability. Views of responsible officials: There is no disagreement with the audit finding. Management Response: Management will continue to monitor the account to ensure properly funded. Management has transferred the $8,700 deficiency into the security deposit account on June 13, 2024.
Finding 2023-002
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 202 Direct Loan and Flexible Subsidy Assistance Loan Assistance Listing Number: 14.157 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A FAIN number and year: MFSC179241 - 2019 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Project is required to maintain a separate security deposit cash account equal to or greater than the security deposit liability. Condition: The Security Deposit Asset account is under funded by $8,700 at December 31, 2023. Questioned costs: None Context: Management did not transfer cash from operating checking to the security deposit cash account until June of 2024 to ensure the liability was properly funded. Cause: The internal control system in place did not properly alert management to ensure the liability was properly funded. Effect: The security deposit cash account does not have adequate funds to reimburse all tenants that have paid in a security deposit. Repeat Finding: N/A Recommendation: All security deposit activity should be run through this account to ensure it is being properly utilized. Comparisons should be performed monthly to ensure the balance is maintained at a minimum equal to the security deposit liability. Views of responsible officials: There is no disagreement with the audit finding. Management Response: Management will continue to monitor the account to ensure properly funded. Management has transferred the $8,700 deficiency into the security deposit account on June 13, 2024.