Audit 375764

FY End
2025-06-30
Total Expended
$1.98M
Findings
7
Programs
1

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1165262 2025-001 Material Weakness Yes E
1165263 2025-001 Material Weakness Yes E
1165264 2025-001 Material Weakness Yes E
1165265 2025-001 Material Weakness Yes E
1165266 2025-001 Material Weakness Yes E
1165267 2025-001 Material Weakness Yes E
1165268 2025-001 Material Weakness Yes E

Programs

ALN Program Spent Major Findings
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $90,743 Yes 1

Contacts

Name Title Type
MNABSCQDBP85 Steve Schuring Auditee
3193640259 Ross Van Laar Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Affordance Housing Network, Inc. (AHNI) under programs of the federal government for the year ended June 30, 2025. 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 AHNI, it is not intended to and does not present the financial position, changes in net assets, or cash flows of AHNI.
There were no awards passed through to subrecipients.
The HOME Investment Partnerships Program Loans included on the schedule of expenditures of federal awards are payable to the Iowa Finance Authority and the City of Cedar Rapids and are reported at the beginning balances for the year ended June 30, 2025. These loans range from $216,441 to $1,177,976, do not require any payments and bear interest ranging from 0% to 4.90% with final payments due ranging from 2027 to 2030. One of the notes were forgiven during the year ended June 30, 2025. Until the loans are repaid, the outstanding balances will be reported as federal expenditures due to the continuing compliance requirements included in the loan agreement. As of June 30, 2025, the remaining balance outstanding under the loans was $1,335,708.

Finding Details

Noncompliance/Material Weakness: Auditing Finding 2024-003 – Review of Tenant File Calculations for Errors Identification of the federal program: Assistance Listing Number 14.239 Home Investment Partnership Program Condition: From the selections of tenant-based rental assistance for testing, the auditor noted one file with incorrect calculations of rental assistance. Criteria: Under the requirements of the major federal program tenant rental assistance is calculated using tenant asset and income verification procedures with a calculation applied to determine the level of assistance based on a tenant’s ability to pay. Incorrect calculations lead to variances from rental assistance allowed under the terms of the agreement. Cause: AHNI’s Assistant Property Manager is the primary team member responsible for assembling the tenant files and providing the information for requesting rental and security deposit assistance. The tenant files were processed without a review and the auditor noted no monitoring procedure in place to ensure calculations are performed and documented in accordance with the terms of the agreements. Effect or potential effect: Incorrect calculations could potentially impact future funding from government agencies. Questioned costs: None (immaterial) Context: From a sample of 25 rental/security deposit transactions (selected as individual tenant files), auditor noted one with incorrect or questioned calculations. On the file, the calculated rental assistance was less than auditor calculation. Recommendation: We recommend management implement processes and controls to have a review of each tenant certification to ensure rental amounts are calculated correctly. View of responsible officials and planned corrective actions: Management agrees with the finding. See attached letter.