FAC Explorer

Audit 352155

FY End
2024-06-30
Total Expended
$1.29M
Findings
2
Programs
2
Organization: Miles City Eagles Manor (MT)
Year: 2024 Accepted: 2025-03-31
Auditor: Fj & Associates PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
553475 2024-001 Significant Deficiency Yes P
1129917 2024-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.164 Flexible Subsidy $1.14M Yes 1
14.149 Rental Supplement, Section 8 $155,342 - 0

Contacts

Name Title Type
KM8WP7MSLEN5 Karen Burkett Auditee
4063325320 Scott Farnes Auditor
No contacts on file

Notes to SEFA

Title: 1. Scope of Audit Pursuant to Uniform Guidance Accounting Policies: The Organization’s Schedule of Expenditures of Federal Awards has been prepared using the same basis of accounting as the June 30, 2024 financial statements of the Organization. The Organization reports to HUD using the accrual basis of accounting. A complete description of the basis of accounting is included in note 1 to those financial statements. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal award programs of the Organization. All federal awards received directly from federal agencies as well as federal awards passed through other governmental agencies or other entities are included in the Schedule. The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 2. Basis of Presentation Accounting Policies: The Organization’s Schedule of Expenditures of Federal Awards has been prepared using the same basis of accounting as the June 30, 2024 financial statements of the Organization. The Organization reports to HUD using the accrual basis of accounting. A complete description of the basis of accounting is included in note 1 to those financial statements. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization’s Schedule of Expenditures of Federal Awards has been prepared using the same basis of accounting as the June 30, 2024 financial statements of the Organization. The Organization reports to HUD using the accrual basis of accounting. A complete description of the basis of accounting is included in note 1 to those financial statements.
Title: 3. Contingencies Accounting Policies: The Organization’s Schedule of Expenditures of Federal Awards has been prepared using the same basis of accounting as the June 30, 2024 financial statements of the Organization. The Organization reports to HUD using the accrual basis of accounting. A complete description of the basis of accounting is included in note 1 to those financial statements. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. In connection with various federal grant programs, the Organization is obligated to administer related programs and spend the funds in accordance with regulatory restrictions, and is subject to audit by grantor agencies and other auditors. In cases of noncompliance, the agencies involved may require the Organization to refund program funds.
Title: 4. Federal Funded and Insured Loans Accounting Policies: The Organization’s Schedule of Expenditures of Federal Awards has been prepared using the same basis of accounting as the June 30, 2024 financial statements of the Organization. The Organization reports to HUD using the accrual basis of accounting. A complete description of the basis of accounting is included in note 1 to those financial statements. De Minimis Rate Used: N Rate Explanation: The Project has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The loan balances at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of the outstanding federally insured loans at June 30, 2024 is $1,138,002.

Finding Details

Finding 2024-001
Delinquent Debt Payments Noncompliance Information: Underpayment of the Flex Subsidy Loan. Condition: The Organization has a HUD insured loan to which it is not making payments. The loan is in default and can be called at any moment. The balance of the loan is $1,138,002 and $50,091 in accrued interest for the current year. In total, the Organization owes $1,188,093 on its loan to HUD. Criteria: The Organization is required to make monthly payments on its loan from HUD. Effect: The Property is out of compliance with HUD rules and regulations for the Flex Sub Loan. Recommendations: We recommend that the Project negotiate with HUD to decrease the monthly payments and bring the loan current and implement procedures to ensure that future amounts due on the contingent mortgage are paid in a timely manner. Auditee Response: On June 1, 2020, the Organization reached out to HUD with a plan to resolve the delinquent payments. Suggestions were to either forgive the loan or to have the payments be made from surplus cash. The Organization has not received correspondence concerning these suggestions as of the date on this report.
Finding 2024-001
Delinquent Debt Payments Noncompliance Information: Underpayment of the Flex Subsidy Loan. Condition: The Organization has a HUD insured loan to which it is not making payments. The loan is in default and can be called at any moment. The balance of the loan is $1,138,002 and $50,091 in accrued interest for the current year. In total, the Organization owes $1,188,093 on its loan to HUD. Criteria: The Organization is required to make monthly payments on its loan from HUD. Effect: The Property is out of compliance with HUD rules and regulations for the Flex Sub Loan. Recommendations: We recommend that the Project negotiate with HUD to decrease the monthly payments and bring the loan current and implement procedures to ensure that future amounts due on the contingent mortgage are paid in a timely manner. Auditee Response: On June 1, 2020, the Organization reached out to HUD with a plan to resolve the delinquent payments. Suggestions were to either forgive the loan or to have the payments be made from surplus cash. The Organization has not received correspondence concerning these suggestions as of the date on this report.