FAC Explorer

Audit 290839

FY End
2023-10-31
Total Expended
$3.57M
Findings
2
Programs
2
Organization: Shawmet Homes, Inc. (MO)
Year: 2023 Accepted: 2024-02-16
Auditor: Mayer Hoffman McCann PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369551 2023-001 - - N
945993 2023-001 - - N

Programs

ALN Program Spent Major Findings
14.164 Operating Assistance for Troubled Multifamily Housing Projects $2.87M Yes 1
14.856 Lower Income Housing Assistance Program - Section 8 $705,752 Yes 0

Contacts

Name Title Type
PUMNK8JNCCK3 Fred Arreguin Auditee
8165614240 Jeff Carlstedt Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Shawmet Homes, Inc. has elected not to use the 10-percent de-minimis indirect cost rate allowed under the Uniform Guidance. Included in the total Federal Expenditures is a loan balance in the amount of $2,866,100, which originated on December 1, 1994. This funding was received upon execution of the Flexible Subsidy Residual Receipts Note and received during the year ended October 31, 1995. De Minimis Rate Used: N Rate Explanation: Shawmet Homes, Inc. has elected not to use the 10-percent de-minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Shawmet Homes, Inc. (the “Organization”) under programs of the federal government for the year ended October 31, 2023. 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 the Organization, it is not intended to and does not present the financial position, changes in net assets (deficit) or cash flows of the Organization.

Finding Details

Finding 2023-001
Management Functions – U.S. Department of Housing and Urban Development, Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing # 14.164 Criteria: Subsequent to October 31, 2023 the Organization was notified that it did not pass its physical Real Estate Assessment Center (“REAC”) inspection. Condition: The Organization did not pass its physical REAC inspection. Questioned Costs: None. The finding is related to the overall management of the property in compliance with the regulatory agreement, and not a specific expense. Context: The Organization’s control structure failed to monitor, detect, and correct deficiencies in the physical maintenance of the property. Effect: The Organization failed to adequately monitor its physical maintenance and detect and correct failures in its physical maintenance. Cause: The Organization did not adequately review and inspect its physical maintenance to ensure that the physical operation and maintenance of the property was operating effectively. Recommendation: The Organization should adopt a policy which requires periodic (more than annual) review of its operating and maintenance policies and procedures, as well as review by the individuals monitoring the operating and maintenance of the property, to ensure that physical maintenance of the property is within good standing. Identification as a Repeat Finding: This is not a repeat finding. Views of Responsible Officials and Corrective Actions: See Corrective Action Plan.
Finding 2023-001
Management Functions – U.S. Department of Housing and Urban Development, Operating Assistance for Troubled Multifamily Housing Projects, Assistance Listing # 14.164 Criteria: Subsequent to October 31, 2023 the Organization was notified that it did not pass its physical Real Estate Assessment Center (“REAC”) inspection. Condition: The Organization did not pass its physical REAC inspection. Questioned Costs: None. The finding is related to the overall management of the property in compliance with the regulatory agreement, and not a specific expense. Context: The Organization’s control structure failed to monitor, detect, and correct deficiencies in the physical maintenance of the property. Effect: The Organization failed to adequately monitor its physical maintenance and detect and correct failures in its physical maintenance. Cause: The Organization did not adequately review and inspect its physical maintenance to ensure that the physical operation and maintenance of the property was operating effectively. Recommendation: The Organization should adopt a policy which requires periodic (more than annual) review of its operating and maintenance policies and procedures, as well as review by the individuals monitoring the operating and maintenance of the property, to ensure that physical maintenance of the property is within good standing. Identification as a Repeat Finding: This is not a repeat finding. Views of Responsible Officials and Corrective Actions: See Corrective Action Plan.