FAC Explorer

Audit 405032

FY End
2025-12-31
Total Expended
$2.82M
Findings
1
Programs
2
Organization: Benet Place (MN)
Year: 2025 Accepted: 2026-06-26
Auditor: CLIFTONLARSONALLEN LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1219022 2025-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $2.58M Yes 1
14.182 LOWER INCOME HOUSING ASSISTANCE PROGRAM_SECTION 8 NEW CONSTRUCTION/SUBSTANTIAL REHABILITATION $246,612 Yes 0

Contacts

Name Title Type
PJEZWJE7H5P3 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 Benet Place under programs of the federal government for the year ended December 31, 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 Benet Place, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Benet Place.
The balance of the HUD capital advance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. There were no additional HUD loans during the year. The balance of the HUD insured mortgage outstanding at December 31, 2025, is as follows: Program Title / Federal Assistance Listing Number / Amount Outstanding U.S. Department of Housing and Urban Development: Section 202 Capital Advance / 14.157 / $2,577,938

Finding Details

Finding 2025-002
Finding Number 2025-002 In Process Federal Agency U.S. Dept. of Housing and Urban Development Federal Program Name Section 202 Capital Advance Assistance Listing Number 14.157 Federal Award Identification Number and Year MN46S931002 - 1993 Award Period 2025 Compliance Requirement Affected N - Reserve for Replacements Deposits Type of Finding Significant Deficiency in Compliance and Internal Control over Major Federal Program Criteria Management is responsible for maintaining required monthly deposits into the Replacement Reserve account in accordance with the form HUD-9250 Condition The project only made ten of the 12 required deposits for 2025. Questioned Costs $22,844 Context Management did not make the $11,422 payment for July and October. Cause Managements controls did not identify and correct the lack of payment due to turning off automatic payments, on a timely basis. Effect The Replacement Reserve was underfunded by two deposits during 2025. Repeat Finding No Recommendation The Project should establish and follow a consistent monthly review process to ensure all deposits are made on a timely basis. Views of Responsible Officials and Planned Corrective Actions There is no disagreement with the audit finding. Management Response Management continues to review and establish processes related to review and approval to ensure monthly replacement reserve deposits are made. The missed July payment was made April of 2026. The missed October deposit has not yet been paid as the property does not have the cash on hand to make the payment. Management will be working with HUD to resolved.