FAC Explorer

Audit 405031

FY End
2025-11-30
Total Expended
$1.66M
Findings
2
Programs
2
Organization: Bethel Manor Ii, INC (MN)
Year: 2025 Accepted: 2026-06-26
Auditor: CLIFTONLARSONALLEN LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1219020 2025-002 Material Weakness Yes N
1219021 2025-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $1.39M Yes 2
14.182 LOWER INCOME HOUSING ASSISTANCE PROGRAM_SECTION 8 NEW CONSTRUCTION/SUBSTANTIAL REHABILITATION $439 Yes 0

Contacts

Name Title Type
UHUMLPGC5ZB1 Doug Harrison Auditee
8173045727 Nicole Folkerts Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the project under programs of the federal government for the period ended November 30, 2025. 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 the project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the project.
The Section 223(f) HUD Mortgage Payable had an outstanding balance of $1,341,465 at November 30, 2025.

Finding Details

Finding 2025-002
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 223(f) HUD Insured Mortgage Note Listing Number: 14.155 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A FAIN number and year: 800010775-2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Project is required to make a deposit into the residual receipts account within 90 days after year end in the amount of any surplus cash. Condition: Management did not make the deposit before March 31, 2025. Questioned costs: None Context: The project made the deposit in May 2025 rather than before March 31st. Cause: The project did not have the controls in place to ensure the deposit was made timely. Effect: The project did not make the $3,208 deposit into the residual receipts account until after the required due date. Repeat Finding: N/A Recommendation: We recommend management ensure they have controls and processes in place to make the residual receipts deposit timely. Views of the responsible official and planned corrective actions: No disagreements with the finding.
Finding 2025-003
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 223(f) HUD Insured Mortgage Note Listing Number: 14.155 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A FAIN number and year: 800010775-2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The security deposit liability needs to be funded by a security deposit asset equal to or greater than the liability. Condition: As of November 30, 2025, the security deposit asset account was underfunded by $339. Questioned costs: None Context: Funds were not transferred to the security deposit cash account to fully cover the liability. Cause: The project did not have the controls in place to ensure the liability was fully covered at all times. Effect: The security deposit asset account was underfunded. Repeat Finding: N/A Recommendation: We recommend management ensure they have controls and processes in place to ensure the security deposit liability account is properly funded at all times. Views of the responsible official and planned corrective actions: No disagreements with the finding.