Audit 39627

FY End

2022-12-31

Total Expended

$2.62M

Findings

Programs

Organization: One Roof Community Housing (MN)

Year: 2022 Accepted: 2023-06-20

Auditor: Mahoney Ulbrich Christiansen & Russ PA

Organization Exclusion Status:

Checking exclusion status...

Findings

ID	Ref	Severity	Repeat	Requirement
42931	2022-001	Material Weakness	-	I
42932	2022-001	Material Weakness	-	I
42933	2022-001	Material Weakness	-	I
42934	2022-001	Material Weakness	-	I
619373	2022-001	Material Weakness	-	I
619374	2022-001	Material Weakness	-	I
619375	2022-001	Material Weakness	-	I
619376	2022-001	Material Weakness	-	I

Programs

ALN	Program	Spent	Major	Findings
14.239	Home Investment Partnerships Program	$500,736	-	0
14.218	Community Development Block Grants/entitlement Grants	$401,636	-	0
21.000	Neighborworks America	$350,500	-	0
21.020	Community Development Financial Institutions Program	$62,275	Yes	1
14.252	Section 4 Capacity Building for Community Development and Affordable Housing	$44,696	-	0
14.169	Housing Counseling Assistance Program	$23,200	-	0

Contacts

Name	Title	Type
J5TRL7GBE353	Vickie Hartley	Auditee
2182490381	Elizabeth F. Barchenger	Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Note 2. Summary of Significant Accounting Policies1) 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.2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Note 3. De Minimis Indirect Cost RateOne Roof Community Housing has elected not to use the 10-percent de minimis indirect cost rateallowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of One Roof Community Housing and its subsidiaries (One Roof) under programs of the federal government for the year ended December 31, 2022. 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 (the Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.

Title: Note 4. Program Income Accounting Policies: Note 2. Summary of Significant Accounting Policies1) 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.2) Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Note 3. De Minimis Indirect Cost RateOne Roof Community Housing has elected not to use the 10-percent de minimis indirect cost rateallowed under the Uniform Guidance. In accordance with terms of the CDFI grant, program income totaling $62,275 was used for allowable costs under the grant agreement in addition to the original award amount. In accordance with the terms of the HOME and CDBG grants, program income totaling $902,372 was used for allowable costs under the grant agreements in addition to the original award amounts. Program income is included in the schedule of expenditures of federal awards when used for allowable costs under the grant agreements.

Finding Details

Finding 2022-001

SECTION II - FINDINGS - FINANCIAL STATEMENTS AUDIT No matters were reported SECTION III ? FINDINGS AND QUESTIONED COSTS -MAJOR FEDERAL AWARD PROGRAM AUDIT 2022-001: Debarred, suspended, excluded, or disqualified individual or entity Federal Department: Department of the Treasury Assistance Listing #: 21.020 Internal Controls Material Weakness Category of Finding ? Procurement, Suspension, and Debarment Criteria - The CDFI grant agreements require that One Roof determine whether any individual or entity receiving any portion of assistance is currently debarred, suspended, excluded, or disqualified by the Department of the Treasury, or any other Federal department or agency, and report any funds awarded to these individuals or entities to CDFI within 30 days. Condition - One Roof currently does not perform any procedures to determine if a person or entity receiving any assistance is currently debarred or suspended. Context - We tested 4 loans funded using CDFI funds during the audit. The results of our testing indicated that none of these 4 loans were given to debarred or suspended individuals or entities. Cause - One Roof personnel were not aware of this requirement. Effect - Disbursement of CDFI assistance to a person or entity that is currently debarred or suspended could occur and not be reported. Failure to report such a disbursement may result in required repayment of assistance received by One Roof and render One Roof ineligible to apply for additional assistance from CDFI in future funding rounds. Recommendation - We recommend that management implement a policy to test whether individuals or entities receiving funds are currently suspended or debarred, and to report the results to CDFI in a timely manner. Auditee?s comments and response - One Roof is in the process of updating policies to include a process to determine if individuals or entities that apply for loans are debarred or suspended. Responsible party for corrective action: Jackie Kemp, Senior Director - Housing Programs

Finding 2022-001