FAC Explorer

Audit 353384

FY End
2024-12-31
Total Expended
$2.24M
Findings
4
Programs
2
Organization: Chaska Manor Dba: Talheim (MN)
Year: 2024 Accepted: 2025-04-11
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554817 2024-001 Significant Deficiency - N
554818 2024-002 Significant Deficiency - N
1131259 2024-001 Significant Deficiency - N
1131260 2024-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.69M Yes 2
14.195 Project-Based Rental Assistance (pbra) $549,756 - 0

Contacts

Name Title Type
Q495APTH1H43 Nicole Chwala Auditee
9202064983 Dawn Yarrington 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, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Chaska Manor dba: Talheim has elected 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 Chaska Manor dba: Talheim under programs of the federal government for the year ended December 31, 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 Chaska Manor dba: Talheim, it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Chaska Manor dba: Talheim.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Chaska Manor dba: Talheim has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Of the federal expenditures presented in the Schedule, the Corporation did not provide federal awards to subrecipients during the year ended December 31, 2024.
Title: FEDERAL AWARD PROGRAMS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Chaska Manor dba: Talheim has elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule represent the loan balance at the beginning of the audit period. Amounts outstanding as of December 31, 2024, under this program total $1,631,297.

Finding Details

Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multi-Family Housing Units Assistance Listing Number: 14.155 Federal Award Identification Number and Year: 092-EH098-WAC-L8 - 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and immaterial noncompliance. Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of regulatory agreement. Chaska Manor dba: Talheim should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted that Chaska Manor dba: Talheim did not have adequate internal controls designed to ensure replacement reserve deposits were updated based on the provisions of the regulatory agreement. Questioned costs: $3,205 Context: During our testing, it was noted that Chaska Manor dba: Talheim did not update the October and November 2024 replacement reserve deposits as prescribed in the regulatory agreement. Cause: Chaska Manor dba: Talheim was unaware the bank did not update the October and November 2024 replacement reserve deposits. Effect: Noncompliance with the HUD regulatory agreement. Recommendation: We recommend that management develop procedures to ensure replacement reserve deposits are updated timely to ensure compliance with the HUD regulatory agreement. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multi-Family Housing Units Assistance Listing Number: 14.155 Federal Award Identification Number and Year: 092-EH098-WAC-L8 - 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and immaterial noncompliance. Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of regulatory agreement. Chaska Manor dba: Talheim should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted that Chaska Manor dba: Talheim did not have adequate internal controls designed to ensure deposits held over FDIC limits were monitored quarterly to ensure consistency with the minimally acceptable ratings as established by the Government National Association. Questioned costs: None. Context: During our testing, it was noted that Chaska Manor dba: Talheim operating account was over the FDIC limits and did not have documentation showing that the Project monitored the institution’s rating on a quarterly basis. Cause: Chaska Manor dba: Talheim was unaware of this requirement. Effect: Noncompliance with the HUD regulatory agreement. Recommendation: We recommend that management develop procedures to ensure requirements are monitored, documented, and reviewed to ensure compliance with the HUD regulatory agreement. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multi-Family Housing Units Assistance Listing Number: 14.155 Federal Award Identification Number and Year: 092-EH098-WAC-L8 - 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and immaterial noncompliance. Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of regulatory agreement. Chaska Manor dba: Talheim should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted that Chaska Manor dba: Talheim did not have adequate internal controls designed to ensure replacement reserve deposits were updated based on the provisions of the regulatory agreement. Questioned costs: $3,205 Context: During our testing, it was noted that Chaska Manor dba: Talheim did not update the October and November 2024 replacement reserve deposits as prescribed in the regulatory agreement. Cause: Chaska Manor dba: Talheim was unaware the bank did not update the October and November 2024 replacement reserve deposits. Effect: Noncompliance with the HUD regulatory agreement. Recommendation: We recommend that management develop procedures to ensure replacement reserve deposits are updated timely to ensure compliance with the HUD regulatory agreement. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multi-Family Housing Units Assistance Listing Number: 14.155 Federal Award Identification Number and Year: 092-EH098-WAC-L8 - 2024 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and immaterial noncompliance. Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires compliance with the provisions of regulatory agreement. Chaska Manor dba: Talheim should have internal controls designed to ensure compliance with those provisions. Condition: During our testing, we noted that Chaska Manor dba: Talheim did not have adequate internal controls designed to ensure deposits held over FDIC limits were monitored quarterly to ensure consistency with the minimally acceptable ratings as established by the Government National Association. Questioned costs: None. Context: During our testing, it was noted that Chaska Manor dba: Talheim operating account was over the FDIC limits and did not have documentation showing that the Project monitored the institution’s rating on a quarterly basis. Cause: Chaska Manor dba: Talheim was unaware of this requirement. Effect: Noncompliance with the HUD regulatory agreement. Recommendation: We recommend that management develop procedures to ensure requirements are monitored, documented, and reviewed to ensure compliance with the HUD regulatory agreement. Views of responsible officials: There is no disagreement with the audit finding.