FAC Explorer

Audit 408881

FY End
2025-12-31
Total Expended
$1.13M
Findings
2
Programs
7
Organization: Neighborhood Housing Services of the Black Hills, Inc. (SD)
Year: 2025 Accepted: 2026-08-11
Auditor: KETEL THORSTENSON LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1226238 2025-001 Material Weakness Yes L
1226239 2025-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $351,441 Yes 1
21.020 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS PROGRAM $350,000 Yes 1
21.000 NeighborWorks America $278,000 Yes 0
10.447 RURAL MULTI-FAMILY HOUSING REVITALIZATION DEMONSTRATION PROGRAM (MPR) $59,417 Yes 0
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $50,000 Yes 0
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $23,893 Yes 0
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $12,658 Yes 0

Contacts

Name Title Type
KHGMMT4L7ZV9 Mike Walker Auditee
6055781401 Jean Schroeder Auditor
No contacts on file

Notes to SEFA

Note 1: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization 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 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 the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows as of December 31, 2025. 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
Note 2: The Organization has not elected to use the de minimis indirect cost rate as allowed under the Uniform Guidance.
Note 3: The Organization has received U.S. Department of Agriculture direct loans. The total loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule of Expenditures of Federal Awards. The Organization received no additional loans during the year. The balance of the loans outstanding at December 31, 2025 totaled $323,750.

Finding Details

Finding 2025-001
#2025-001 FINDING: Preparation of Consolidated Financial Statements and Schedule of Expenditures of Federal Awards (SEFA) Federal Programs Affected: Rural Housing Service Loan Balance AL # 10.766; Community Development Financial Institutions AL # 21.020 Compliance Requirements: Reporting Questioned Costs: None Condition and Cause: As a matter of practicality and efficiency, we have assisted in drafting the consolidated financial statements and SEFA, in both form and content, based on information provided by management during the audit. Criteria and Effect: Management and those charged with governance are ultimately responsible for preparing and presenting the consolidated financial statements and SEFA in accordance with the applicable financial reporting framework. The auditor’s responsibility for the consolidated financial statements and SEFA is to express an opinion on them based on the audit evidence obtained. Repeat Finding from Prior Year: Yes, prior year finding 2024-001. Recommendation: Management and if applicable, governance, should review the consolidated financial statements and SEFA for accuracy of account balances and context of note disclosures. Management and governance should inquire of the auditors about any balances or disclosures which management does not understand or cannot reconcile to internal records prior to signing the management representation letter. Response/Correction Action Plan: Management is in agreement with the finding. See Correction Action Plan.