FAC Explorer

Audit 37803

FY End
2022-06-30
Total Expended
$1.25M
Findings
2
Programs
2
Organization: Miles City Eagles Manor (MT)
Year: 2022 Accepted: 2022-12-12
Auditor: Fj & Associates PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34754 2022-001 Material Weakness Yes P
611196 2022-001 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
14.164 Flexible Subsidy $1.14M Yes 1
14.149 Rent Supplements_rental Housing for Lower Income Families $111,111 - 0

Contacts

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

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: 1. Scope of Audit Pursuant to Uniform Guidance The Schedule of Expenditures of Federal Awards (the Schedule) presents the activity of all federal awardprograms of the Organization. All federal awards received directly from federal agencies as well asfederal 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 UniformGuidance. 2. Basis of Presentation The Organizations Schedule of Expenditures of Federal Awards has been prepared using the same basisof accounting as the June 30, 2022 financial statements of the Organization. The Organization reports toHUD using the accrual basis of accounting. A complete description of the basis of accounting is includedin note 1 to those financial statements. 3. Contingencies In connection with various federal grant programs, the Organization is obligated to administer relatedprograms and spend the funds in accordance with regulatory restrictions, and is subject to audit bygrantor agencies and other auditors. In cases of noncompliance, the agencies involved may require theOrganization to refund program funds. 4. Federal Funded and Insured Loans The loan balances at the beginning of the year and loans made during the year are included in the federalexpenditures presented in the Schedule. The balance of the outstanding federally insured loans at June 30,2022 is $1,138,002. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. FLEXIBLE SUBSIDY (14.164) - Balances outstanding at the end of the audit period were 1138002.

Finding Details

Finding 2022-001
2022-001 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 Organization owes $101,164 in delinquent payments and $27,331 in accrued interest for the current year. In total, the Organization owes $128,495 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 2022-001
2022-001 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 Organization owes $101,164 in delinquent payments and $27,331 in accrued interest for the current year. In total, the Organization owes $128,495 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.