FAC Explorer

Audit 45901

FY End
2022-12-31
Total Expended
$2.27M
Findings
4
Programs
2
Organization: Northland Lutheran Housing for the Elderly, Inc. (WI)
Year: 2022 Accepted: 2023-04-26
Auditor: Wipfli LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47384 2022-003 Significant Deficiency - B
47385 2022-004 Significant Deficiency - L
623826 2022-003 Significant Deficiency - B
623827 2022-004 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.78M Yes 2
14.195 Section 8 Housing Assistance Payments Program $489,104 - 0

Contacts

Name Title Type
YVUBTFXF8NN9 Darrell Lancour Auditee
7157325870 Kim Heller Auditor
No contacts on file

Notes to SEFA

Title: Mortgage Insurance for the Purchase of Existing Multifamily Housing Project Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The Project has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Northland Lutheran Housing for the Elderly, Inc. (HUD Project No. 075-11049) has a loan that is insured by HUD under Section 207/223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Project received no additional loans during the year. The balance of the loan outstanding at December 31, 2022, is $1,716,414.
Title: Subrecipient Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The Project has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Project passed no federal awards through to subrecipients.
Title: Basis of Presentation Accounting Policies: 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. De Minimis Rate Used: N Rate Explanation: The Project has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Northland Lutheran Housing for the Elderly, Inc. (HUD Project No. 075-11049) under a program of the federal government for the year ended December 31, 2022. The information in the 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 Northland Lutheran Housing for the Elderly, Inc. (HUD Project No. 075-11049), it is not intended to and does not present the financial position, changes in net assets, or cash flows of Northland Lutheran Housing for the Elderly, Inc. (HUD Project No. 075-11049).

Finding Details

Finding 2022-003
U.S. Department of Housing and Urban Development Finding 2022.003, CFDA #14.155 Section 223(f) ? Insured Mortgage Condition: The Project has receivables, totaling $9,689, from related parties at December 31, 2022. Criteria: The Project may only distribute funds to affiliates up to the amount required for management fees, or as reimbursement for payroll, benefits, and operating expenses. Amounts in excess are unauthorized distributions. Cause: During 2022, a transfer was inadvertently made from the wrong bank account. Effect: The Project is in violation of its regulatory agreement. Recommendation: The Project should request the affiliate repay the amounts due and monitor funds to assure payments to affiliates are only for management fees, or as reimbursement for payroll, benefits, and operating expenses. View of Responsible Officials: Subsequent to yearend, the Project requested and was repaid from the affiliate. The Project will continue to monitor related party activity to ensure the Project does not pay reimbursements or advances to affiliates in excess of allowed expenditures.
Finding 2022-004
U.S. Department of Housing and Urban Development Finding 2022.004, CFDA #14.155 Section 223(f) ? Insured Mortgage Condition: The Project did not properly file the audit package and data collection form submission with the Federal Audit Clearinghouse by the required deadline for the year ended December 31, 2021. Criteria: The Federal Audit Clearinghouse requites the Project to submit the audit package and data collection form the earlier of 30 days after receipt of the auditor?s report or 9 months after the end of the fiscal year. Cause: In testing the required report submission, we observed that the annual data collection form and audit report submission were not filed by the required due date. Effect: If the report submission is not filed by the required deadline, the Project is out of compliance with the terms and conditions of its Federal awards. Recommendation: We recommend the Project review its processes and procedures and develop a tracking spreadsheet to aid in monitoring reporting requirements and help ensure the deadlines are properly met. View of Responsible Officials: The Project will review its processes and procedures over reporting submissions required under its Federal awards and will submit the audit report and data collection form for the year ended December 31, 2022, within the required deadline.
Finding 2022-003
U.S. Department of Housing and Urban Development Finding 2022.003, CFDA #14.155 Section 223(f) ? Insured Mortgage Condition: The Project has receivables, totaling $9,689, from related parties at December 31, 2022. Criteria: The Project may only distribute funds to affiliates up to the amount required for management fees, or as reimbursement for payroll, benefits, and operating expenses. Amounts in excess are unauthorized distributions. Cause: During 2022, a transfer was inadvertently made from the wrong bank account. Effect: The Project is in violation of its regulatory agreement. Recommendation: The Project should request the affiliate repay the amounts due and monitor funds to assure payments to affiliates are only for management fees, or as reimbursement for payroll, benefits, and operating expenses. View of Responsible Officials: Subsequent to yearend, the Project requested and was repaid from the affiliate. The Project will continue to monitor related party activity to ensure the Project does not pay reimbursements or advances to affiliates in excess of allowed expenditures.
Finding 2022-004
U.S. Department of Housing and Urban Development Finding 2022.004, CFDA #14.155 Section 223(f) ? Insured Mortgage Condition: The Project did not properly file the audit package and data collection form submission with the Federal Audit Clearinghouse by the required deadline for the year ended December 31, 2021. Criteria: The Federal Audit Clearinghouse requites the Project to submit the audit package and data collection form the earlier of 30 days after receipt of the auditor?s report or 9 months after the end of the fiscal year. Cause: In testing the required report submission, we observed that the annual data collection form and audit report submission were not filed by the required due date. Effect: If the report submission is not filed by the required deadline, the Project is out of compliance with the terms and conditions of its Federal awards. Recommendation: We recommend the Project review its processes and procedures and develop a tracking spreadsheet to aid in monitoring reporting requirements and help ensure the deadlines are properly met. View of Responsible Officials: The Project will review its processes and procedures over reporting submissions required under its Federal awards and will submit the audit report and data collection form for the year ended December 31, 2022, within the required deadline.