FAC Explorer

Audit 56100

FY End
2022-12-31
Total Expended
$1.15M
Findings
2
Programs
3
Organization: Augustana Lutheran Homes Inc. Dba: Gloria Dei Manor (MN)
Year: 2022 Accepted: 2023-05-15
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
58985 2022-001 Significant Deficiency Yes N
635427 2022-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $1.10M Yes 1
14.191 Multifamily Housing Service Coordinators $36,387 - 0
14.182 Section 8 New Construction and Substantial Rehabilitation $18,164 - 0

Contacts

Name Title Type
H6JZRKBFK3F9 Scott Bjerketvedt Auditee
6517664300 Nicole Folkerts Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: BASIS OF PRESENTATIONThe accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of the Project under programs of the federal government for the yearended December 31, 2022. The information in this Schedule is presented in accordancewith the requirements of 2 CFR Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because theSchedule presents only a selected portion of the operations of the Project, it is not intendedto and does not present the financial position, changes in net assets, or cash flows of theProject.Expenditures reported on the Schedule are reported on the accrual basis of accounting.Such expenditures are recognized following, as applicable, either the cost principles inOMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principlescontained in Title 2, U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards, whereincertain 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. Section 202 Flexible Subsidy Assistance Loan had outstanding balances of $1,083,219 atDecember 31, 2022.

Finding Details

Finding 2022-001
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 202 Direct Loan and Flexible Subsidy Assistance Loan Assistance Listing Number: 14.157 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per the regulatory agreement a monthly deposit is to be made into the replacement reserve. Per HUD-9250, starting January 1, 2022 that monthly amount is $4,343.50 which equates to an annual deposit of $52,122. Condition: The Project only deposited $51,000 into the replacement reserve for the year ended December 31, 2022. Questioned costs: None Context: Management did not increase the replacement reserve deposit in accordance with HUD- 9250. Cause: Managements controls did not catch the lack of increase in payment. Effect: The replacement reserve was underfunded $1,122 at December 31, 2022. Management made the additional $1,122 deposit on February 24, 2023. Repeat Finding: Yes: 2021-001 Recommendation: Recommend that a catchup payment is made as soon or possible to make the replacement reserve whole. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-001
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 202 Direct Loan and Flexible Subsidy Assistance Loan Assistance Listing Number: 14.157 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per the regulatory agreement a monthly deposit is to be made into the replacement reserve. Per HUD-9250, starting January 1, 2022 that monthly amount is $4,343.50 which equates to an annual deposit of $52,122. Condition: The Project only deposited $51,000 into the replacement reserve for the year ended December 31, 2022. Questioned costs: None Context: Management did not increase the replacement reserve deposit in accordance with HUD- 9250. Cause: Managements controls did not catch the lack of increase in payment. Effect: The replacement reserve was underfunded $1,122 at December 31, 2022. Management made the additional $1,122 deposit on February 24, 2023. Repeat Finding: Yes: 2021-001 Recommendation: Recommend that a catchup payment is made as soon or possible to make the replacement reserve whole. Views of responsible officials: There is no disagreement with the audit finding.