Audit 339321

FY End

2024-06-30

Total Expended

$949,843

Findings

2

Programs

1

Organization: Naf Senior Housing, Inc. (NE)

Year: 2024 Accepted: 2025-01-22

Auditor: Niewedde & Wiens Cpa's

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
519910	2024-002	Material Weakness	-	N
1096352	2024-002	Material Weakness	-	N

ALN	Program	Spent	Major	Findings
14.157	Supportive Housing for the Elderly	$949,843	Yes	1

Contacts

Name	Title	Type
R37ZPGLSWAN7	Lisa Linch	Auditee
4023624410	Jeffrey J Wiens	Auditor
No contacts on file

Notes to SEFA

Title: Debt balance Accounting Policies: 1. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of NAF Senior Housing, Inc., Eastlawn East - HUD Project No. 103-EE013 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). De Minimis Rate Used: N Rate Explanation: 3. The entity did not elect to use the 10% de minimus cost rate as covered in § 200.414 Indirect (F&A) costs. 2. The outstanding balance of the Section 202 Capital Advance Program mortgage at June 30, 2024 was $908,900.

Finding Details

Finding 2024-002

Finding 2024-002: Replacement Reserves Material Weakness Special Tests and Provisions Criteria: The Project should have procedures to account for its replacement reserve monthly and to review for any errors. Condition: The Project’s management, the Housing Authority of the City of Lexington, Nebraska, incorrectly handled a replacement reserve transaction and did not identify the error for it to be corrected by the fiscal year end. In April, 2024, the Project was approved to transfer $22,606.44 from its replacement reserve to its checking account to pay for capital improvements. In error, the management agent transferred funds of $22,606.44 from another program into the Project’s replacement reserve. The error was not caught and corrected as of our audit fieldwork date. Cause: The Project did not have procedures to reconcile approved replacement reserve withdrawals to the bank account and further was not adequately reviewing the account activity to identify errors. Effect or Potential Effect: The Project deposited funds into its replacement reserve from another program and did not identify the mistake or realize funds were not deposited into the checking account. Recommendation: The Project should have procedures in place to monitor approved withdrawals and transferred to the correct account and have reconciliation procedures to identify these errors. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Finding 2024-002

Finding 2024-002: Replacement Reserves Material Weakness Special Tests and Provisions Criteria: The Project should have procedures to account for its replacement reserve monthly and to review for any errors. Condition: The Project’s management, the Housing Authority of the City of Lexington, Nebraska, incorrectly handled a replacement reserve transaction and did not identify the error for it to be corrected by the fiscal year end. In April, 2024, the Project was approved to transfer $22,606.44 from its replacement reserve to its checking account to pay for capital improvements. In error, the management agent transferred funds of $22,606.44 from another program into the Project’s replacement reserve. The error was not caught and corrected as of our audit fieldwork date. Cause: The Project did not have procedures to reconcile approved replacement reserve withdrawals to the bank account and further was not adequately reviewing the account activity to identify errors. Effect or Potential Effect: The Project deposited funds into its replacement reserve from another program and did not identify the mistake or realize funds were not deposited into the checking account. Recommendation: The Project should have procedures in place to monitor approved withdrawals and transferred to the correct account and have reconciliation procedures to identify these errors. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.