FAC Explorer

Audit 56254

FY End
2022-12-31
Total Expended
$2.03M
Findings
2
Programs
2
Organization: St Francis of Assisi, INC Dba: Lakeland Shores Apartments (MN)
Year: 2022 Accepted: 2023-04-23
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
59785 2022-001 Significant Deficiency Yes P
636227 2022-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.73M Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $297,524 - 0

Contacts

Name Title Type
LAHAKKNNHCW8 Scott Bjerketvedt Auditee
6517664300 Nicole Folkerts 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 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 accordance withthe requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents only a selected portion of the operations of the Project, it is not intended to and doesnot 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. Suchexpenditures are recognized following, as applicable, either the cost principles in OMB CircularA-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards, wherein certain types of expendituresare not allowable or are limited as to reimbursement. The Project has not elected to use the10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were $1,705,475.

Finding Details

Finding 2022-001
Federal agency: U.S. Department of Housing and Urban Development Criteria or Specific Requirement: Per the regulatory agreement a monthly deposit is to be made into the replacement reserve. As of December 31, 2021, the Project was deficient in these deposits and was required to make a deposit for the amount of deficient deposits, $2,067. Condition: The Project did not make a deposit to satisfy the deficient deposits in the replacement reserve. Context: Management did not make a deposit for the deficient escrows from the prior year. Questioned Costs: N/A Cause: Managements controls did not identify and correct the lack of payment on a timely basis. Effect: The replacement reserve was underfunded $2,067 at December 31, 2022. Repeat Finding: 2021-002 Recommendation: Recommend that a catchup payment is made as soon or possible to make the replacement reserve whole. Views of Responsible Official: The deposit was made on April 1, 2023, making the replacement reserve fully funded.
Finding 2022-001
Federal agency: U.S. Department of Housing and Urban Development Criteria or Specific Requirement: Per the regulatory agreement a monthly deposit is to be made into the replacement reserve. As of December 31, 2021, the Project was deficient in these deposits and was required to make a deposit for the amount of deficient deposits, $2,067. Condition: The Project did not make a deposit to satisfy the deficient deposits in the replacement reserve. Context: Management did not make a deposit for the deficient escrows from the prior year. Questioned Costs: N/A Cause: Managements controls did not identify and correct the lack of payment on a timely basis. Effect: The replacement reserve was underfunded $2,067 at December 31, 2022. Repeat Finding: 2021-002 Recommendation: Recommend that a catchup payment is made as soon or possible to make the replacement reserve whole. Views of Responsible Official: The deposit was made on April 1, 2023, making the replacement reserve fully funded.