FAC Explorer

Audit 50461

FY End
2022-12-31
Total Expended
$2.18M
Findings
2
Programs
2
Organization: Baker Park, Inc. (MN)
Year: 2022 Accepted: 2023-04-05
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
61668 2022-001 Significant Deficiency - E
638110 2022-001 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.74M Yes 1
14.195 Section 8 Housing Assistance Payments Program $438,395 - 0

Contacts

Name Title Type
KR4AVBFS41X6 Eric Vanden Hull Auditee
6053129345 Julie Kafka Auditor
No contacts on file

Notes to SEFA

Title: Mortgage Note Payable Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Baker Park does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Loan balances at the beginning of the year are included in the federal expenditures presented in the schedule. The balance of the loan was $1,699,014 at December 31, 2022.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Baker Park does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Baker Park, Inc., HUD Project No. 092-11246, under programs of the federal government for the year ended December 31, 2022. The information is presented in accordance with the requirements of Title 2 U.S. Code ofFederal 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 Baker Park, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Baker Park.

Finding Details

Finding 2022-001
2022-001 U.S. Department of Housing and Urban Development Federal Financial Assistance Listing #14.155 Section 223(f) Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CRF 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Our testing of tenant files identified one instance where a tenant?s medical expenses were incorrectly calculated. Cause: There was a lapse in the internal control process for maintaining tenant files within compliance requirements. Effect: Lack of compliance with designed internal controls over tenant files could adversely affect Baker Park, Inc.?s compliance with HUD regulations. Context/Sampling: A nonstatistical sample of 10 tenant files out of 61 total tenants residing in the project during the year, including move-in and move-out residents, was selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend management review policies and procedures with applicable employees and remind them of the importance of following regulations regarding the maintenance of tenant files. Form 50059 should be updated, as needed. Views of Responsible Officials: Management agrees with the finding and recommendation.
Finding 2022-001
2022-001 U.S. Department of Housing and Urban Development Federal Financial Assistance Listing #14.155 Section 223(f) Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Eligibility Significant Deficiency in Internal Control over Compliance Criteria: 2 CRF 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Our testing of tenant files identified one instance where a tenant?s medical expenses were incorrectly calculated. Cause: There was a lapse in the internal control process for maintaining tenant files within compliance requirements. Effect: Lack of compliance with designed internal controls over tenant files could adversely affect Baker Park, Inc.?s compliance with HUD regulations. Context/Sampling: A nonstatistical sample of 10 tenant files out of 61 total tenants residing in the project during the year, including move-in and move-out residents, was selected for testing. Repeat Finding from Prior Year: No Recommendation: We recommend management review policies and procedures with applicable employees and remind them of the importance of following regulations regarding the maintenance of tenant files. Form 50059 should be updated, as needed. Views of Responsible Officials: Management agrees with the finding and recommendation.