FAC Explorer

Audit 55803

FY End
2022-12-31
Total Expended
$907,302
Findings
8
Programs
2
Organization: Aneta Homes Inc. (ND)
Year: 2022 Accepted: 2023-09-17
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59620 2022-001 Material Weakness Yes N
59621 2022-002 Material Weakness Yes L
59622 2022-001 Material Weakness Yes N
59623 2022-002 Material Weakness Yes L
636062 2022-001 Material Weakness Yes N
636063 2022-002 Material Weakness Yes L
636064 2022-001 Material Weakness Yes N
636065 2022-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.427 Rural Rental Assistance Payments $16,570 - 0
10.415 Rural Rental Housing Loans $1,469 Yes 2

Contacts

Name Title Type
SQS4RUDFLCV9 Terry Hanson Auditee
7017462545 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. RURAL RENTAL HOUSING LOANS (10.415) - Balances outstanding at the end of the audit period were 886277.
Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the accompanying schedule of expenditures of federal awards (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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The schedule includes the federal award activity of the Aneta Homes, Inc. (the Company) 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 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 Aneta Homes, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Aneta Homes, Inc.

Finding Details

Finding 2022-001
Finding 2022-001 ? Material Weakness ? Reserve for Replacement Criteria The Program is required to make monthly deposits to a Reserve for Replacement account in accordance with their regulatory agreement. Condition: The Program did not comply with requirement related to deposits into the reserve for replacement account. The Program made no deposits in the current year, the required deposits in to the reserve for replacement account for the year ended December 31, 2022 were $29,109. Per Rural Development, the ending balance as of December 31, 2022 should be $449,637. Cause: The Program has been unable to provide enough cash flow to make the required reserves and a waiver was not obtained. Effect: Non-compliance with Reserve for Replacement requirements. Repeat Finding: This is a repeat of prior year finding 2021-001. Recommendation: The Program should work with its lender to ensure compliance with the replacement reserve in future periods. Response: The Program agrees with the finding and is trying to work with USDA Rural Development to find ways to increase the cash flows of the property and lease more units.
Finding 2022-002
Finding 2022-002 ? Material Weakness ? Reporting Criteria All borrowers who have a Section 515 Rural Rental Housing (RRH) loan or a Section 514 Off-Farm Labor Housing loan must comply with the financial reporting requirements of the Guide. Year-end reporting requirements include the use of Forms RD 3560-7, Multiple Family Housing Project Budget/Utility Allowance Budget Actuals and Form RD 3560-10, MFH Borrower Balance Sheet. Condition: The Program did not submit the required Form RD 3560-7 or 3560-10 reports in a timely manner. Cause: Lack of internal controls to ensure timely submission. Effect: Non-compliance with reporting requirements. Repeat Finding: This is a repeat of prior year finding 2021-002. Recommendation: We recommend the Program review its internal control policies and procedures to ensure timely reporting. Response: The Program agrees with the finding and will implement controls to ensure timely reporting for future submissions.
Finding 2022-001
Finding 2022-001 ? Material Weakness ? Reserve for Replacement Criteria The Program is required to make monthly deposits to a Reserve for Replacement account in accordance with their regulatory agreement. Condition: The Program did not comply with requirement related to deposits into the reserve for replacement account. The Program made no deposits in the current year, the required deposits in to the reserve for replacement account for the year ended December 31, 2022 were $29,109. Per Rural Development, the ending balance as of December 31, 2022 should be $449,637. Cause: The Program has been unable to provide enough cash flow to make the required reserves and a waiver was not obtained. Effect: Non-compliance with Reserve for Replacement requirements. Repeat Finding: This is a repeat of prior year finding 2021-001. Recommendation: The Program should work with its lender to ensure compliance with the replacement reserve in future periods. Response: The Program agrees with the finding and is trying to work with USDA Rural Development to find ways to increase the cash flows of the property and lease more units.
Finding 2022-002
Finding 2022-002 ? Material Weakness ? Reporting Criteria All borrowers who have a Section 515 Rural Rental Housing (RRH) loan or a Section 514 Off-Farm Labor Housing loan must comply with the financial reporting requirements of the Guide. Year-end reporting requirements include the use of Forms RD 3560-7, Multiple Family Housing Project Budget/Utility Allowance Budget Actuals and Form RD 3560-10, MFH Borrower Balance Sheet. Condition: The Program did not submit the required Form RD 3560-7 or 3560-10 reports in a timely manner. Cause: Lack of internal controls to ensure timely submission. Effect: Non-compliance with reporting requirements. Repeat Finding: This is a repeat of prior year finding 2021-002. Recommendation: We recommend the Program review its internal control policies and procedures to ensure timely reporting. Response: The Program agrees with the finding and will implement controls to ensure timely reporting for future submissions.
Finding 2022-001
Finding 2022-001 ? Material Weakness ? Reserve for Replacement Criteria The Program is required to make monthly deposits to a Reserve for Replacement account in accordance with their regulatory agreement. Condition: The Program did not comply with requirement related to deposits into the reserve for replacement account. The Program made no deposits in the current year, the required deposits in to the reserve for replacement account for the year ended December 31, 2022 were $29,109. Per Rural Development, the ending balance as of December 31, 2022 should be $449,637. Cause: The Program has been unable to provide enough cash flow to make the required reserves and a waiver was not obtained. Effect: Non-compliance with Reserve for Replacement requirements. Repeat Finding: This is a repeat of prior year finding 2021-001. Recommendation: The Program should work with its lender to ensure compliance with the replacement reserve in future periods. Response: The Program agrees with the finding and is trying to work with USDA Rural Development to find ways to increase the cash flows of the property and lease more units.
Finding 2022-002
Finding 2022-002 ? Material Weakness ? Reporting Criteria All borrowers who have a Section 515 Rural Rental Housing (RRH) loan or a Section 514 Off-Farm Labor Housing loan must comply with the financial reporting requirements of the Guide. Year-end reporting requirements include the use of Forms RD 3560-7, Multiple Family Housing Project Budget/Utility Allowance Budget Actuals and Form RD 3560-10, MFH Borrower Balance Sheet. Condition: The Program did not submit the required Form RD 3560-7 or 3560-10 reports in a timely manner. Cause: Lack of internal controls to ensure timely submission. Effect: Non-compliance with reporting requirements. Repeat Finding: This is a repeat of prior year finding 2021-002. Recommendation: We recommend the Program review its internal control policies and procedures to ensure timely reporting. Response: The Program agrees with the finding and will implement controls to ensure timely reporting for future submissions.
Finding 2022-001
Finding 2022-001 ? Material Weakness ? Reserve for Replacement Criteria The Program is required to make monthly deposits to a Reserve for Replacement account in accordance with their regulatory agreement. Condition: The Program did not comply with requirement related to deposits into the reserve for replacement account. The Program made no deposits in the current year, the required deposits in to the reserve for replacement account for the year ended December 31, 2022 were $29,109. Per Rural Development, the ending balance as of December 31, 2022 should be $449,637. Cause: The Program has been unable to provide enough cash flow to make the required reserves and a waiver was not obtained. Effect: Non-compliance with Reserve for Replacement requirements. Repeat Finding: This is a repeat of prior year finding 2021-001. Recommendation: The Program should work with its lender to ensure compliance with the replacement reserve in future periods. Response: The Program agrees with the finding and is trying to work with USDA Rural Development to find ways to increase the cash flows of the property and lease more units.
Finding 2022-002
Finding 2022-002 ? Material Weakness ? Reporting Criteria All borrowers who have a Section 515 Rural Rental Housing (RRH) loan or a Section 514 Off-Farm Labor Housing loan must comply with the financial reporting requirements of the Guide. Year-end reporting requirements include the use of Forms RD 3560-7, Multiple Family Housing Project Budget/Utility Allowance Budget Actuals and Form RD 3560-10, MFH Borrower Balance Sheet. Condition: The Program did not submit the required Form RD 3560-7 or 3560-10 reports in a timely manner. Cause: Lack of internal controls to ensure timely submission. Effect: Non-compliance with reporting requirements. Repeat Finding: This is a repeat of prior year finding 2021-002. Recommendation: We recommend the Program review its internal control policies and procedures to ensure timely reporting. Response: The Program agrees with the finding and will implement controls to ensure timely reporting for future submissions.