EIN: 411752558
UEI: UHWXM5TPP5H3
Audited by: CliftonLarsonAllen LLP
Oversight agency: 10 [Department of Agriculture]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on November 10, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by May 10, 2026 (117 days ago).
What is a management decision? →Of the five income statement reports sampled, one was not reported correctly. Context: Of the five sampled income statement reports, all five were properly reviewed with one of the samples being incorrectly reported. Cause: There was an error in the reporting process as not all amounts were reported. Effect: Incorrect reporting for the grant. Repeat Finding: No. Recommendation: We recommend ensuring all income statement items are properly reviewed and reported to the USDA. Views of Responsible Officials and Planned Corrective Actions: No disagreement with the finding. Management Response: The year-end actual income statements will be prepared by the Portfolio Accountant based on year-end policies and procedures. The income statement will be reviewed by the Property Director, the Finance Director, initialed and then entered into MINC.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Agriculture Federal Program Title: Rural Rental Housing Loans Federal Assistance Listing Number: 10.415 Federal Award Identification Number(s) and Year(s): AMAS000000191197-2018, AMAS000000191198-2018, AMAS000000191199-2018, AMAS000000315075-2018, AMAS000000017171-2017, AMAS000000017172-2017, AMAS000001490130-2024 Award Period: 01/01/24 to 12/31/24 Type of Finding: • Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Review the supporting records and ascertain whether all applicable data elements were included in the sampled reports. Condition: Of the five income statement reports sampled, one was not reported correctly. Context: Of the five sampled income statement reports, all five were properly reviewed with one of the samples being incorrectly reported. Cause: There was an error in the reporting process as not all amounts were reported. Effect: Incorrect reporting for the grant. Repeat Finding: No. Recommendation: We recommend ensuring all income statement items are properly reviewed and reported to the USDA. Views of Responsible Officials and Planned Corrective Actions: No disagreement with the finding. Management Response: The year-end actual income statements will be prepared by the Portfolio Accountant based on year-end policies and procedures. The income statement will be reviewed by the Property Director, the Finance Director, initialed and then entered into MINC.
Rural Rental Housing Loans - Federal Assistance Listing #10.415 Recommendation: We recommend ensuring all income statement items are properly reviewed and reported to the USDA. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The year-end actual income statements will be prepared by the Portfolio Accountant based on year-end policies and procedures. The income statement will be reviewed by the Property Director, the Finance Director, initialed and then entered into MINC. Names of the contact persons responsible for corrective action: Julie Schueller, Finance Director and Deanna Hemmesch, Executive Director Planned completion date for corrective action plan: December 31, 2025
Of the five balance sheet reports sampled, none were properly reviewed. Context: Of the five sampled balance sheet reports, all five did not retain proper review and approval. Cause: The Organization did not follow its process involving indication of preparation and review of the balance sheet reports. Effect: Risk of incorrect reporting for the grant. Repeat Finding: No. Recommendation: We recommend ensuring the proper preparation and review of the balance sheets with indication of review with a sign off. Views of Responsible Officials and Planned Corrective Actions: No disagreement with the finding. Management Response: The year-end actual income statements will be prepared by the Portfolio Accountant based on year-end policies and procedures. The income statement will be reviewed by the Property Director, the Finance Director, initialed and then entered into MINC.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Agriculture Federal Program Title: Rural Rental Housing Loans Federal Assistance Listing Number: 10.415 Federal Award Identification Number(s) and Year(s): AMAS000000191197-2018, AMAS000000191198-2018, AMAS000000191199-2018, AMAS000000315075-2018, AMAS000000017171-2017, AMAS000000017172-2017, AMAS000001490130-2024 Award Period: 01/01/24 to 12/31/24 Type of Finding: • Material Weakness in Internal Control over Major Federal Programs Criteria or Specific Requirement: Review the supporting records and ascertain whether all applicable data elements were included in the sampled reports. Condition: Of the five balance sheet reports sampled, none were properly reviewed. Context: Of the five sampled balance sheet reports, all five did not retain proper review and approval. Cause: The Organization did not follow its process involving indication of preparation and review of the balance sheet reports. Effect: Risk of incorrect reporting for the grant. Repeat Finding: No. Recommendation: We recommend ensuring the proper preparation and review of the balance sheets with indication of review with a sign off. Views of Responsible Officials and Planned Corrective Actions: No disagreement with the finding. Management Response: The year-end actual income statements will be prepared by the Portfolio Accountant based on year-end policies and procedures. The income statement will be reviewed by the Property Director, the Finance Director, initialed and then entered into MINC.
Rural Rental Housing Loans - Federal Assistance Listing #10.415 Recommendation: We recommend ensuring the proper preparation and review of the balance sheets with indication of review with a sign off. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The year-end actual income statements will be prepared by the Portfolio Accountant based on year-end policies and procedures. The income statement will be reviewed by the Property Director, the Finance Director, initialed and then entered into MINC. Names of the contact persons responsible for corrective action: Julie Schueller, Finance Director and Deanna Hemmesch, Executive Director Planned completion date for corrective action plan: December 31, 2025
FAC accepted this audit on September 27, 2024 — management decision was due March 27, 2025.
During our testing of the six Rural Development projects, we noted six had no documented review to ensure adequate funding. Context: Each of the six Rural Development projects were reviewed to ensure proper funding and review over security deposits, and six were noted with no indication of review. Cause: The Organization tracks security deposits for tenants but does not have a documented review process to verify the accounts are adequately funded. Effect: Potential for insufficient funds to remit all security deposits to tenants. Repeat Finding: Yes. Recommendation: The Organization should review security deposits as a part of month-end close procedures. Views of Responsible Officials and Planned Corrective Actions: No disagreement with the finding. The Organization will implement a review step during the tracking of security deposits to verify the security deposit asset is equal to or greater than the security deposit liability and will correct any that are underfunded.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Agriculture Federal Program Title: Rural Rental Housing Loans Federal Assistance Listing Number: 10.415 Federal Award Identification Number(s) and Year(s): AMAS000000191197-2018, AMAS000000191198-2018, AMAS000000191199-2018, AMAS000000315075-2018, AMAS000000017171-2017, AMAS000000017172-2017 Award Period: 01/01/23 to 12/31/23 Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Funds collected as a security deposit shall be kept separate from other funds and shall remain equal to or exceed the outstanding obligations. Management or another appropriate individual should review to ensure adequate funding. Condition: During our testing of the six Rural Development projects, we noted six had no documented review to ensure adequate funding. Context: Each of the six Rural Development projects were reviewed to ensure proper funding and review over security deposits, and six were noted with no indication of review. Cause: The Organization tracks security deposits for tenants but does not have a documented review process to verify the accounts are adequately funded. Effect: Potential for insufficient funds to remit all security deposits to tenants. Repeat Finding: Yes. Recommendation: The Organization should review security deposits as a part of month-end close procedures. Views of Responsible Officials and Planned Corrective Actions: No disagreement with the finding. The Organization will implement a review step during the tracking of security deposits to verify the security deposit asset is equal to or greater than the security deposit liability and will correct any that are underfunded.
Rural Rental Housing Loans - Federal Assistance Listing #10.415 Recommendation: The Organization should review security deposits as a part of month-end close procedures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will implement a review step during the tracking of security deposits to verify the security deposit asset is equal to or greater than the security deposit liability and will correct any that are underfunded. Names of the contact persons responsible for corrective action: Julie Schueller, Finance Director and Deanna Hemmesch, Executive Director Planned completion date for corrective action plan: December 31, 2024
2022-003
FAC accepted this audit on September 7, 2023 — management decision was due March 7, 2024.
During our testing of the six Rural Development projects, we noted four had underfunded security deposit assets in relation to the security deposit liability. Questioned Costs: $1,011 Context: Each of the six Rural Development projects were reviewed to ensure proper funding over security deposits, and four were noted to be underfunded. Cause: During the tracking of security deposits, long-term tenants accrued interest at higher rates over time, resulting in a larger than expected interest accrual, which management did not prepare for, resulting in those projects to be underfunded (the security deposit cash is less than the liability). Effect: Potential for insufficient funds to remit all security deposits to tenants. Repeat Finding: No. Recommendation: The Organization should ensure the security deposit asset is equal to or greater than the security deposit liability in the event that any or all security deposits are required to be returned to tenants to ensure the Organization would have sufficient funding to do so. Views of Responsible Officials and Planned Corrective Actions: No disagreement with the finding. The Organization will implement a review step during the tracking of security deposits to verify the security deposit asset is equal to or greater than the security deposit liability and will correct any that are underfunded.
Show full finding ▾Hide full finding ▴Federal Agency: U.S. Department of Agriculture Federal Program Title: Rural Rental Housing Loans Federal Assistance Listing Number: 10.415 Federal Award Identification Number(s) and Year(s): AMAS000000191197-2018, AMAS000000191198-2018, AMAS000000315075-2018, AMAS000000017172-2017 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 01/01/22 to 12/31/22 Type of Finding: ? Significant Deficiency in Internal Control over Major Federal Programs Criteria or Specific Requirement: Funds collected as a security deposit shall be kept separate from other funds and shall remain equal to or exceed outstanding security deposit obligations. Condition: During our testing of the six Rural Development projects, we noted four had underfunded security deposit assets in relation to the security deposit liability. Questioned Costs: $1,011 Context: Each of the six Rural Development projects were reviewed to ensure proper funding over security deposits, and four were noted to be underfunded. Cause: During the tracking of security deposits, long-term tenants accrued interest at higher rates over time, resulting in a larger than expected interest accrual, which management did not prepare for, resulting in those projects to be underfunded (the security deposit cash is less than the liability). Effect: Potential for insufficient funds to remit all security deposits to tenants. Repeat Finding: No. Recommendation: The Organization should ensure the security deposit asset is equal to or greater than the security deposit liability in the event that any or all security deposits are required to be returned to tenants to ensure the Organization would have sufficient funding to do so. Views of Responsible Officials and Planned Corrective Actions: No disagreement with the finding. The Organization will implement a review step during the tracking of security deposits to verify the security deposit asset is equal to or greater than the security deposit liability and will correct any that are underfunded.
Department of Agriculture: Rural Development Central Minnesota Housing Partnership, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2022. Audit period: January 1, 2022 ? December 31, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS 2022-001 Financial Statement Preparation Recommendation: The Organization should continue to evaluate their internal staff and expertise to determine if an internal control policy over annual financial reporting is beneficial. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to weigh the cost benefits surrounding the financial statement preparation. Due to the complexity of the consolidated financial statements, it has been determined cost prohibitive to take on the entire process of creating the consolidated financial statement and will continue to collaborate with the auditors to complete this process. Names of the contact persons responsible for corrective action: Julie Schueller, Finance Director and Deanna Hemmesch, Executive Director Planned completion date for corrective action plan: December 31, 2023 2022-002 Material Audit Adjustments Recommendation: The Organization should continue review and establish month end and year end processes to ensure the account balances are accurately recording in accordance with GAAP. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management continues to review and establish month end and year end procedures to reduce the number of entries needed to ensure the financial statements are properly stated in accordance with GAAP. Management does acknowledge the fact that with the eliminating entries needed to consolidate the financial statements, this comment will likely not be removed in the near future but will continue to work on reducing entries on the individual entities within the consolidation. Names of the contact persons responsible for corrective action: Julie Schueller, Finance Director and Deanna Hemmesch, Executive Director
FAC accepted this audit on November 8, 2022 — management decision was due May 8, 2023.
FAC accepted this audit on July 26, 2021 — management decision was due January 26, 2022.
During our testing, we noted the Organization did not have adequate internal controls designed to ensure that accurate amounts are reported on the balance sheet reports. Questioned costs: N/A Context: Five out of five balance sheet reports selected for testing did not have accurate amounts reported. Sampling was a statistically valid sample. Cause: Management believes that the reporting software is cumbersome and they do not have a separate individual in accounting to ensure that the balance sheet reports for Rural Rental Housing Loans program are accurately reported. Effect: Inaccurate amounts were reported. Repeat Finding: No Recommendation: An individual should be assigned to ensure that the balance sheet reports are accurate prior to submission. Views of responsible officials and planned corrective actions: No disagreement with the finding. The process is a two-step process the PA will prepare the reports and the PD will review and make any necessary corrections. The review process will start in January, so all necessary corrections can be made in a timely fashion to allow the report to be submitted to USDA no later than March 31. The PA will enter the information in to MINC. The incorrect balance sheet reports were re-submitted on May 19, 2021.
Show full finding ▾Hide full finding ▴Type of Finding: Internal Control over Compliance or Compliance Findings Federal agency: U.S. Department of Agriculture Federal program title: Rural Rental Housing Loans CFDA Number: 10.415 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 1/1/20 - 12/31/20 Criteria or specific requirement: Ending balances of the accounts listed on the Form RD 3560-7, in Part III should match the balances listed on the balance sheet for the Organization. Condition: During our testing, we noted the Organization did not have adequate internal controls designed to ensure that accurate amounts are reported on the balance sheet reports. Questioned costs: N/A Context: Five out of five balance sheet reports selected for testing did not have accurate amounts reported. Sampling was a statistically valid sample. Cause: Management believes that the reporting software is cumbersome and they do not have a separate individual in accounting to ensure that the balance sheet reports for Rural Rental Housing Loans program are accurately reported. Effect: Inaccurate amounts were reported. Repeat Finding: No Recommendation: An individual should be assigned to ensure that the balance sheet reports are accurate prior to submission. Views of responsible officials and planned corrective actions: No disagreement with the finding. The process is a two-step process the PA will prepare the reports and the PD will review and make any necessary corrections. The review process will start in January, so all necessary corrections can be made in a timely fashion to allow the report to be submitted to USDA no later than March 31. The PA will enter the information in to MINC. The incorrect balance sheet reports were re-submitted on May 19, 2021.
MATERIAL WEAKNESS 2020-004: Reconciliation of Financial Reports Required by Rural Development Recommendation: The Organization should adopt specific policies/procedures of internal control to ensure accurate financial reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. CMHP Parent Co.: Action taken in response to finding: CMHP will continue to review financial statements internally monthly and make any necessary corrections prior to presentation at the monthly Board of Director meetings. CMHP will work closely with the PM Department to make sure reports between the two are reconciled properly on a monthly basis. The CMHP Board of Directors reviews and approves the financial statements monthly and the Board Treasurer approves the monthly check register. Name(s) of the contact person(s) responsible for corrective action: Julie Shueller will prepare and Deanna Hemmesch and Board of Directors will review. Planned completion date for corrective action plan: December 31, 2022 Property Management Division of CMHP: Action taken in response to the finding: We have had significant staff turnover. Three of the four positions in the property management team turned over; these include the Property Director, Portfolio Manager and Property Administrator ?property accountant?. Action planned in response to finding: We will continue to review the balance sheet on a monthly basis. We will be making necesssary correction/journal entries on a monthly basis. We will continue to prepare the SCHEDULE A, which is a one page summary capturing everything in a checks and balance format, from the previous month to the current month of Operating Cash, beginning and ending bank balances, occupancy, accounts receivable, prepaids and security deposits. Name(s) of the contact person(s) responsible for corrective action: Amy Kuether PD will review Julie Schueller PA will prepare. If the U.S. Department of Agriculture has questions regarding this plan, please call Julie Schueller at 320-259-0393.
FAC accepted this audit on September 27, 2020 — management decision was due March 27, 2021.
FAC accepted this audit on September 18, 2019 — management decision was due March 18, 2020.
GSA_MIGRATION
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GSA_MIGRATION
2017-005
FAC accepted this audit on September 13, 2018 — management decision was due March 13, 2019.
GSA_MIGRATION
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