Audit 340740

FY End

2024-10-31

Total Expended

$3.59M

Findings

2

Programs

2

Organization: Shawmet Homes, Inc. (MO)

Year: 2024 Accepted: 2025-01-31

Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
520883	2024-002	Significant Deficiency	-	N
1097325	2024-002	Significant Deficiency	-	N

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 Moderate Rehabilitation	$719,683	-	0

Contacts

Name	Title	Type
PUMNK8JNCCK3	Fred Arreguin	Auditee
8165614240	Nathan Daniels	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 expenditrues 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 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 2024-002

Criteria: Handbook 4381.5 states that whenever possible, owners/agents should take immediate action to address problems or concerns registered by the resident.Condition: From a sample of 25 work orders tested, it was determined that the property did not document, following its procedures, the completion of problems and or concerns registered by residents in a timely manner, for all 25 selections. This was not a statistically valid sample. 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. Effect: The Organization failed to adequately monitor its procedures related to the documentation work performed in response to resident problems and or concerns. Cause: The Organization had significant staffing turnover and training issues resulting in lack of documentation as well as oversight. Recommendation: The Organization should 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 the necessary documentation showing that resident problems or concerns were responded to in a timely manner is being completed.

Finding 2024-002

Criteria: Handbook 4381.5 states that whenever possible, owners/agents should take immediate action to address problems or concerns registered by the resident.Condition: From a sample of 25 work orders tested, it was determined that the property did not document, following its procedures, the completion of problems and or concerns registered by residents in a timely manner, for all 25 selections. This was not a statistically valid sample. 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. Effect: The Organization failed to adequately monitor its procedures related to the documentation work performed in response to resident problems and or concerns. Cause: The Organization had significant staffing turnover and training issues resulting in lack of documentation as well as oversight. Recommendation: The Organization should 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 the necessary documentation showing that resident problems or concerns were responded to in a timely manner is being completed.