Audit 361502

FY End
2024-12-31
Total Expended
$1.01M
Findings
2
Programs
2
Year: 2024 Accepted: 2025-07-07
Auditor: Wipfli LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
570519 2024-001 - - E
1146961 2024-001 - - E

Contacts

Name Title Type
CM5AX18EZJL3 Patrick McFarland Auditee
7634834747 John Hemming Auditor
No contacts on file

Notes to SEFA

Title: Capital advance Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Grasslands Housing, Inc. under programs of the federal government for the year ended December 31, 2024. The information in this schedule is presented in accordance with requirements of the 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 Grasslands Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Grasslands Housing, Inc. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Grasslands Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The balance of the capital advance from the Department of Housing and Urban Development at December 31, 2024 was $885,889.
Title: Sub-recipients Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Grasslands Housing, Inc. under programs of the federal government for the year ended December 31, 2024. The information in this schedule is presented in accordance with requirements of the 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 Grasslands Housing, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Grasslands Housing, Inc. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Grasslands Housing, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Grasslands Housing, Inc. does not have subrecipients or subrecipient expenditures.

Finding Details

Housing Inspections Federal Program Information: Funding agency: U.S. Department of Housing and Urban Development Title: Mortgage Insurance for the Purchase or Refinancing of Existing Multi Family Housing Projects AL number: 14.155 Criteria or Specific Requirement: In accordance with 24 CFR 5.705(c), inspection of U.S. Department of Housing and Urban Development (HUD) housing must be performed annually. Condition: Internal controls over tenant files doe not appear to be effective. Testing procedures revealed inspections were not performed in 2024. Questioned Costs: None Effect: The lack of inspections to support compliance with HUD's inspection requirements may increase the risk of HUD withholding assistance if the units do not meet the housing quality standards set by HUD. Cause: Individuals responsible for reviewing tenant files did not ensure tenant inspections were current and in compliance with HUD inspection requirements. Auditor's Recommendation: We recommend Grasslands Housing, Inc. implement procedures or processes to ensure all required documentation is included in the file and that all annual updates to the files are made timely. View of Responsible Officials: Management agrees and has prepared a correction action plan.
Housing Inspections Federal Program Information: Funding agency: U.S. Department of Housing and Urban Development Title: Mortgage Insurance for the Purchase or Refinancing of Existing Multi Family Housing Projects AL number: 14.155 Criteria or Specific Requirement: In accordance with 24 CFR 5.705(c), inspection of U.S. Department of Housing and Urban Development (HUD) housing must be performed annually. Condition: Internal controls over tenant files doe not appear to be effective. Testing procedures revealed inspections were not performed in 2024. Questioned Costs: None Effect: The lack of inspections to support compliance with HUD's inspection requirements may increase the risk of HUD withholding assistance if the units do not meet the housing quality standards set by HUD. Cause: Individuals responsible for reviewing tenant files did not ensure tenant inspections were current and in compliance with HUD inspection requirements. Auditor's Recommendation: We recommend Grasslands Housing, Inc. implement procedures or processes to ensure all required documentation is included in the file and that all annual updates to the files are made timely. View of Responsible Officials: Management agrees and has prepared a correction action plan.