FAC Explorer

Audit 337517

FY End
2024-09-30
Total Expended
$1.74M
Findings
2
Programs
2
Organization: Pine Cone Manor, Inc. 092-Ee039-Wac (MN)
Year: 2024 Accepted: 2025-01-13
Auditor: Cliftonlarson Allen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
519017 2024-001 Significant Deficiency - N
1095459 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.52M Yes 1
14.195 Project-Based Rental Assistance (pbra) $50,023 - 0

Contacts

Name Title Type
GXMFNF2NLGR7 Troy Hanson Auditee
7632414438 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 Section 202 Capital Advance had an outstanding balance of $1,518,058 at September 30, 2024. De Minimis Rate Used: N Rate Explanation: Pine Cone Manor, Inc. has elected not 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 Pine Cone Manor, Inc. under programs of the federal government for the year ended September 30, 2024. 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 Pine Cone Manor, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Pine Cone Manor, Inc.

Finding Details

Finding 2024-001
Federal Agency : U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Capital Advance Assistance Listing Number: 14.157 Federal Award Identification Number and Year: MN46S961004 - 1998 Award Period: June 1998 - June 2038 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters or immaterial Compliance Criteria or Specific Requirement: Management fees will be charged utilizing the HUD approved rate per the Management Agent's Certification Form HUD-9839-B Condition: During the testing of the management fee expense, it was noted that an amount in excess of the approved rate was charged, resulting in a receivable from the management agent. Questioned Costs: $1,460 Context: During the testing of the managent fee expense, it was noted that the amount expensed / paid was in excess of the HUD approved rate. Cause: The management agent converted the general ledger system used for the Organization at the beginning of the fiscal year. During that conversion, the incorrect management fee rate was entered into the system, causing the overpayment and receivable at year end. Effect: An excess payment was made, causing a receivable equal to an unauthorized loan. Repeat Finding: No Recommendation: Management should implement a review process of the management fee rate upon any changes to that rate or system utilized to calculate that rate to ensure the HUD approved rate is utilized. Management should repay the amount due the Organization.
Finding 2024-001
Federal Agency : U.S. Department of Housing and Urban Development Federal Program Name: Section 202 Capital Advance Assistance Listing Number: 14.157 Federal Award Identification Number and Year: MN46S961004 - 1998 Award Period: June 1998 - June 2038 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters or immaterial Compliance Criteria or Specific Requirement: Management fees will be charged utilizing the HUD approved rate per the Management Agent's Certification Form HUD-9839-B Condition: During the testing of the management fee expense, it was noted that an amount in excess of the approved rate was charged, resulting in a receivable from the management agent. Questioned Costs: $1,460 Context: During the testing of the managent fee expense, it was noted that the amount expensed / paid was in excess of the HUD approved rate. Cause: The management agent converted the general ledger system used for the Organization at the beginning of the fiscal year. During that conversion, the incorrect management fee rate was entered into the system, causing the overpayment and receivable at year end. Effect: An excess payment was made, causing a receivable equal to an unauthorized loan. Repeat Finding: No Recommendation: Management should implement a review process of the management fee rate upon any changes to that rate or system utilized to calculate that rate to ensure the HUD approved rate is utilized. Management should repay the amount due the Organization.