FAC Explorer

Audit 345073

FY End
2024-06-30
Total Expended
$1.85M
Findings
2
Programs
2
Organization: Indian Center Housing Corporation (NE)
Year: 2024 Accepted: 2025-03-06
Auditor: Hbe LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
525914 2024-001 Significant Deficiency - A
1102356 2024-001 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.56M Yes 1
14.195 Section 8 Housing Assistance Programs $288,664 - 0

Contacts

Name Title Type
UU31TP8SKZY3 Steve Peregrine Auditee
4025800411 Patrick Meyer Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: See form tab for basis of presentation, indirect costs, subrecipients and loan notes. De Minimis Rate Used: N Rate Explanation: The Organization did not use an indirect cost rate. This schedule includes the Federal awards activity of the Organization and is presented on the accrual basis of accounting. Grant awards are considered expended when the expense transactions associated with the grant occur. The outstanding loan balance is considered expended as long as the Federal government imposes continuing compliance requirements. The information in this schedule is presented in accordance with Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Title: Indirect Costs Accounting Policies: See form tab for basis of presentation, indirect costs, subrecipients and loan notes. De Minimis Rate Used: N Rate Explanation: The Organization did not use an indirect cost rate. The Organization did not elect to use the ten percent de minimis indirect cost rate as allowed in the Uniform Guidance, 2 CFR 200.414.
Title: Subrecipients Accounting Policies: See form tab for basis of presentation, indirect costs, subrecipients and loan notes. De Minimis Rate Used: N Rate Explanation: The Organization did not use an indirect cost rate. The Organization provided no federal awards to subrecipients.
Title: Loan Accounting Policies: See form tab for basis of presentation, indirect costs, subrecipients and loan notes. De Minimis Rate Used: N Rate Explanation: The Organization did not use an indirect cost rate. The federal expenditure amount of $1,558,385 represents an outstanding mortgage note of which $1,512,235 was outstanding at June 30, 2024. The note bears interest at 4.05% and repayment is required for a term of 40 years. The final payment is due January 1, 2045.

Finding Details

Finding 2024-001
Information on the Federal Program: Assistance Living Number 14.157 - U.S. Department of Housing and Urban Development-Elderly Supportive Housing/Section 202 Direct Loan. Grant Identifying Number – 103-EH059-NP-WAH/L8. Compliance Requirement: Allowable Activities/Costs. Material Noncompliance. Criteria: Program requirements state that only properly supported allowable costs be charged to the program. Condition: The system of internal controls did not prevent the improper payments of questioned costs of expenses for a property that was not the Indian Center Housing Corporation d/b/a The Indian Center property. Cause: Improper payments were made for properties that were not Indian Center Housing Corporation d/b/a The Indian Center. Effect or protentional effect: The control deficiency may allow for the payment of improper expenses and questioned costs per HUD guidelines. Questioned Costs: $25,344. Context: Of the $18,699 of costs sampled $1,005 represented questioned costs. Additionally, based on the questioned costs identified, a projection was performed for the total population in the program during the year. Of the total population of $471,564, likely questioned costs based on the projection was $25,344. Recommendation: The Indian Center Housing Corporation d/b/a The Indian Center should improve its internal control procedures to ensure proper payment of expenses and questioned costs. Views of responsible officials: The improper payments were returned in the subsequent year. Indian Center Housing Corporation d/b/a The Indian Center will review its procedures to ensure that only proper expenses are paid.
Finding 2024-001
Information on the Federal Program: Assistance Living Number 14.157 - U.S. Department of Housing and Urban Development-Elderly Supportive Housing/Section 202 Direct Loan. Grant Identifying Number – 103-EH059-NP-WAH/L8. Compliance Requirement: Allowable Activities/Costs. Material Noncompliance. Criteria: Program requirements state that only properly supported allowable costs be charged to the program. Condition: The system of internal controls did not prevent the improper payments of questioned costs of expenses for a property that was not the Indian Center Housing Corporation d/b/a The Indian Center property. Cause: Improper payments were made for properties that were not Indian Center Housing Corporation d/b/a The Indian Center. Effect or protentional effect: The control deficiency may allow for the payment of improper expenses and questioned costs per HUD guidelines. Questioned Costs: $25,344. Context: Of the $18,699 of costs sampled $1,005 represented questioned costs. Additionally, based on the questioned costs identified, a projection was performed for the total population in the program during the year. Of the total population of $471,564, likely questioned costs based on the projection was $25,344. Recommendation: The Indian Center Housing Corporation d/b/a The Indian Center should improve its internal control procedures to ensure proper payment of expenses and questioned costs. Views of responsible officials: The improper payments were returned in the subsequent year. Indian Center Housing Corporation d/b/a The Indian Center will review its procedures to ensure that only proper expenses are paid.