FAC Explorer

Audit 54742

FY End
2022-12-31
Total Expended
$9.18M
Findings
4
Programs
1
Organization: Fairview Woods (MN)
Year: 2022 Accepted: 2023-09-14
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
58996 2022-001 Material Weakness - C
58997 2022-002 Significant Deficiency - M
635438 2022-001 Material Weakness - C
635439 2022-002 Significant Deficiency - M

Programs

ALN Program Spent Major Findings
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $9.18M Yes 2

Contacts

Name Title Type
PX1TXMLL7EL8 Todd Willett Auditee
6128743493 Matthew Wocken Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: 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 year ended December 31, 2022. 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. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Section 232 HUD-Insured Mortgage had an outstanding balance of $9,003,996 at December 31, 2022.

Finding Details

Finding 2022-001
2022-001 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 232 HUD Insured Mortgage Assistance Living Number: 14.129 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Compliance Criteria or Specific Requirement: Distributions are allowed to be made up to the amount of surplus cash based on a calculation at June 30 and December 31 annually. Condition: Management is responsible for reviewing the timing of the calculations the surplus cash distributions are made from to ensure the amount does not exceed the amount allowable. Questioned Costs: $79,072 Context: While performing audit procedures it was noted the distribution was based on the November surplus cash calculation and in excess of the amount available at June 30, 2022. Cause: The project distributed cash based on a November 30, 2022 surplus cash calculation in an amount more than the June 30 calculation. Effect: Cash distributed was more than the amount allowed Repeat Finding: No Recommendation: Recommend management review their policies to ensure distributions are made based on the biannual surplus cash calculations. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002
2022-002 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 232 HUD Insured Mortgage Assistance Living Number: 14.129 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Compliance Criteria or Specific Requirement: Cash held in excess of FDIC limits at financial institutions requires a quarterly review of the banks rating. Condition: Management is responsible for reviewing the quarterly bank ratings of the financial institutions where funds are held in excess of the FDIC limits. Questioned Costs: N/A Context: While performing audit procedures it was noted that the client was not monitoring the bank ratings on a quarterly basis. Cause: The project did not monitor the bank ratings for financial institutions where cash was in excess of the FDIC limits. Effect: Banks accounts were not monitored on a quarterly basis Repeat Finding: No Recommendation: Recommend management put a policy in place to monitor the bank rating quarterly for financial institutions the Project hold funds at. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-001
2022-001 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 232 HUD Insured Mortgage Assistance Living Number: 14.129 Type of Finding: ? Material Weakness in Internal Control over Compliance ? Compliance Criteria or Specific Requirement: Distributions are allowed to be made up to the amount of surplus cash based on a calculation at June 30 and December 31 annually. Condition: Management is responsible for reviewing the timing of the calculations the surplus cash distributions are made from to ensure the amount does not exceed the amount allowable. Questioned Costs: $79,072 Context: While performing audit procedures it was noted the distribution was based on the November surplus cash calculation and in excess of the amount available at June 30, 2022. Cause: The project distributed cash based on a November 30, 2022 surplus cash calculation in an amount more than the June 30 calculation. Effect: Cash distributed was more than the amount allowed Repeat Finding: No Recommendation: Recommend management review their policies to ensure distributions are made based on the biannual surplus cash calculations. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2022-002
2022-002 Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 232 HUD Insured Mortgage Assistance Living Number: 14.129 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Compliance Criteria or Specific Requirement: Cash held in excess of FDIC limits at financial institutions requires a quarterly review of the banks rating. Condition: Management is responsible for reviewing the quarterly bank ratings of the financial institutions where funds are held in excess of the FDIC limits. Questioned Costs: N/A Context: While performing audit procedures it was noted that the client was not monitoring the bank ratings on a quarterly basis. Cause: The project did not monitor the bank ratings for financial institutions where cash was in excess of the FDIC limits. Effect: Banks accounts were not monitored on a quarterly basis Repeat Finding: No Recommendation: Recommend management put a policy in place to monitor the bank rating quarterly for financial institutions the Project hold funds at. Views of Responsible Officials: There is no disagreement with the audit finding.