FAC Explorer

Audit 34506

FY End
2022-12-31
Total Expended
$1.93M
Findings
2
Programs
9
Organization: Neighborhood Housing Services of the Black Hills, Inc. (SD)
Year: 2022 Accepted: 2023-07-18
Auditor: Ketel Thorstenson LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38842 2022-001 Material Weakness - L
615284 2022-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
21.024 Community Development Financial Institutions Rapid Response Program (cdfi Rrp) $1.13M Yes 1
10.766 Community Facilities Loans and Grants $375,492 - 0
21.000 Neighborworks America $132,200 - 0
21.020 Community Development Financial Institutions Program $92,984 - 0
14.239 Home Investment Partnerships Program $63,000 - 0
14.169 Housing Counseling Assistance Program $46,183 - 0
10.447 The Rural Development (rd) Multi-Family Housing Revitalization Demonstration Program (mpr) $45,420 - 0
10.433 Rural Housing Preservation Grants $26,925 - 0
14.181 Supportive Housing for Persons with Disabilities $18,662 - 0

Contacts

Name Title Type
KHGMMT4L7ZV9 Mike Walker Auditee
6055781401 Jean Smith Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended December 31, 2022. 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, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows as of December 31, 2022. 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization has received U.S. Department of Agriculture direct loans. The total loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule of Expenditures of Federal Awards. The Organization received no additional loans during the year. The balance of the loans outstanding at December 31, 2022 totaled $367,806.

Finding Details

Finding 2022-001
FINDING ? FINANCIAL STATEMENT AUDIT Material Weakness #2022-001 FINDING: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards (SEFA) and Audit Adjustments Federal Programs Affected: CDFI Rapid Response Program (CDFI RRP) ALN Number 21.024 Compliance Requirements: Reporting Questioned Costs: None Condition and Cause: We were requested to draft the audited consolidated financial statements, related footnote disclosures and SEFA as part of our regular audit services. Ultimately, it is your responsibility to provide for the preparation of your financial statements, disclosures and SEFA, and the responsibility of the auditor to determine the fairness of presentation with those statements. From a practical standpoint, we do these items for you at the same time in connection with our audit, which is not unusual for an organization of your size. However, auditing standards require us to communicate this situation to you in writing as an internal control deficiency. During the course of our engagement, we proposed and posted an audit adjustment to increase the allowance for doubtful accounts and to record property taxes payable for entities handled by the management company. These areas were not reviewed as part of year-end preparation for the audit. Criteria and Effect: This finding could result in a material misstatement to the financial statements and SEFA that may not have been prevented or detected by you. Repeat Finding from Prior Year: N/A ? Uniform Guidance not applicable in prior year. Recommendation: It is the responsibility of management to make the ultimate decision whether to accept the degree of risk associated with this condition because of cost or other considerations. We have reviewed in detail with management a draft of the auditor prepared financial statements, to include all audit adjustments and the SEFA, for accuracy and have answered any questions you had. We are satisfied the appropriate steps have been taken to provide you with the completed financial statements. Management should also consider contracting for additional time from the external CPA to assist in reviewing all accounts. The allowance analysis will need to be expanded in future years to comply with new accounting standards. Response/Correction Action Plan: Management is in agreement with the finding. See Correction Action Plan.
Finding 2022-001
FINDING ? FINANCIAL STATEMENT AUDIT Material Weakness #2022-001 FINDING: Preparation of Financial Statements and Schedule of Expenditures of Federal Awards (SEFA) and Audit Adjustments Federal Programs Affected: CDFI Rapid Response Program (CDFI RRP) ALN Number 21.024 Compliance Requirements: Reporting Questioned Costs: None Condition and Cause: We were requested to draft the audited consolidated financial statements, related footnote disclosures and SEFA as part of our regular audit services. Ultimately, it is your responsibility to provide for the preparation of your financial statements, disclosures and SEFA, and the responsibility of the auditor to determine the fairness of presentation with those statements. From a practical standpoint, we do these items for you at the same time in connection with our audit, which is not unusual for an organization of your size. However, auditing standards require us to communicate this situation to you in writing as an internal control deficiency. During the course of our engagement, we proposed and posted an audit adjustment to increase the allowance for doubtful accounts and to record property taxes payable for entities handled by the management company. These areas were not reviewed as part of year-end preparation for the audit. Criteria and Effect: This finding could result in a material misstatement to the financial statements and SEFA that may not have been prevented or detected by you. Repeat Finding from Prior Year: N/A ? Uniform Guidance not applicable in prior year. Recommendation: It is the responsibility of management to make the ultimate decision whether to accept the degree of risk associated with this condition because of cost or other considerations. We have reviewed in detail with management a draft of the auditor prepared financial statements, to include all audit adjustments and the SEFA, for accuracy and have answered any questions you had. We are satisfied the appropriate steps have been taken to provide you with the completed financial statements. Management should also consider contracting for additional time from the external CPA to assist in reviewing all accounts. The allowance analysis will need to be expanded in future years to comply with new accounting standards. Response/Correction Action Plan: Management is in agreement with the finding. See Correction Action Plan.