FAC Explorer

Audit 305923

FY End
2023-12-31
Total Expended
$1.10M
Findings
2
Programs
2
Organization: Shawl II Senior Housing of Montague (MI)
Year: 2023 Accepted: 2024-05-09
Auditor: Maner Costerisan

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396257 2023-001 Significant Deficiency - J
972699 2023-001 Significant Deficiency - J

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $943,977 Yes 1
14.195 Section 8 Housing Assistance Payments Program $160,905 - 0

Contacts

Name Title Type
ZWMKLLNNVLA3 Mary Zywot Auditee
3133088890 Keith R. Pfeifle, CPA Auditor
No contacts on file

Notes to SEFA

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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: SHAWL II, Senior Housing of Montague has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001- Considered a significant deficiency in internal control over compliance. Federal Program: Mortgage Insurance for the Purchase or Refinancing of Multifamily Housing Projects ALN #: 14.155 Federal agency: U.S. Department of Housing and Urban Development (HUD) Criteria: Organization management is responsible for ensuring the management fees are paid in accordance with the HUD approved management certification. Condition: The Organization overpaid management fees by $250 for the year ended December 31, 2023. Questioned costs: $250 Cause: Organization did not adjust the HUD-prescribed percentage of rental and other receipts used to calculate management fees after increasing rent rates during 2023. Effect: Management fees were overpaid for the year ended December 31, 2023. Recommendation: The HUD-prescribed percentage of rental and other receipts used to calculate management fees should be adjusted after changes to rent rates to ensure that the management fees charged are under the per-unit-per-month amount outlines in the management agent certification. Management Comments: We agree with the facts and circumstances of this finding and will pay back the 250 dollars that is owed back to the organization. Auditor Noncompliance Code: J – Unauthorized management fees
Finding 2023-001
Finding 2023-001- Considered a significant deficiency in internal control over compliance. Federal Program: Mortgage Insurance for the Purchase or Refinancing of Multifamily Housing Projects ALN #: 14.155 Federal agency: U.S. Department of Housing and Urban Development (HUD) Criteria: Organization management is responsible for ensuring the management fees are paid in accordance with the HUD approved management certification. Condition: The Organization overpaid management fees by $250 for the year ended December 31, 2023. Questioned costs: $250 Cause: Organization did not adjust the HUD-prescribed percentage of rental and other receipts used to calculate management fees after increasing rent rates during 2023. Effect: Management fees were overpaid for the year ended December 31, 2023. Recommendation: The HUD-prescribed percentage of rental and other receipts used to calculate management fees should be adjusted after changes to rent rates to ensure that the management fees charged are under the per-unit-per-month amount outlines in the management agent certification. Management Comments: We agree with the facts and circumstances of this finding and will pay back the 250 dollars that is owed back to the organization. Auditor Noncompliance Code: J – Unauthorized management fees