FAC Explorer

Audit 321112

FY End
2023-12-31
Total Expended
$843,058
Findings
2
Programs
1
Organization: St. Croix Labor Union Mutual Homes, Inc. Phase II (VI)
Year: 2023 Accepted: 2024-09-26
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498378 2023-001 Significant Deficiency - I
1074820 2023-001 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
14.195 Section 8 Housing Assistance Payments $843,058 Yes 1

Contacts

Name Title Type
GQHJNHJK3257 Alex Kotlyarevsky Auditee
6096468861 Mike Bisson 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, as applicable cost principles contained in the Uniform Guidance, wherein certain 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. The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of St. Croix Labor Union Mutual Homes, Inc. (Phase II), HUD Project No. 056-44046, under programs of the federal government for the year ended December 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 St. Croix Labor Union Mutual Homes, Inc. (Phase II), it is not intended to and does not present the financial position, changes in net assets, or cash flows of St. Croix Labor Union Mutual Homes, Inc. (Phase II). For the year ended December 31, 2023, no awards were passed through to subrecipients.
Title: Summary of significant accounting policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable cost principles contained in the Uniform Guidance, wherein certain 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. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement
Title: Indirect cost rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable cost principles contained in the Uniform Guidance, wherein certain 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. St. Croix Labor Union Mutual Homes, Inc. (Phase II) has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance

Finding Details

Finding 2023-001
Criteria In accordance with the regulatory agreement, management is required to maintain the property in good repair. Condition Management failed to maintain the property in good repair and received a score of 51c in its 2023 REAC Physical Inspection. Cause The procedures to ensure compliance with HUD regulations regarding physical condition of the property were not followed. Effect or Potential Effect The project was unable to obtain a passing score on its REAC inspection. Questioned Costs None Recommendation Management should correct all findings noted in the REAC Physical Inspection Report in the time frames requested in the physical inspection. Auditor Noncompliance Code Section 8 program administration I - Failure to maintain property/open physical inspection Finding Resolution Status In process Reporting Views of Responsible Officials The Cooperative agrees with the finding and the auditor's recommendations have been adopted.
Finding 2023-001
Criteria In accordance with the regulatory agreement, management is required to maintain the property in good repair. Condition Management failed to maintain the property in good repair and received a score of 51c in its 2023 REAC Physical Inspection. Cause The procedures to ensure compliance with HUD regulations regarding physical condition of the property were not followed. Effect or Potential Effect The project was unable to obtain a passing score on its REAC inspection. Questioned Costs None Recommendation Management should correct all findings noted in the REAC Physical Inspection Report in the time frames requested in the physical inspection. Auditor Noncompliance Code Section 8 program administration I - Failure to maintain property/open physical inspection Finding Resolution Status In process Reporting Views of Responsible Officials The Cooperative agrees with the finding and the auditor's recommendations have been adopted.