Audit 342735

FY End

2024-09-30

Total Expended

$3.53M

Findings

2

Programs

3

Organization: Shoreline Plaza, Inc. (ID)

Year: 2024 Accepted: 2025-02-18

Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
523470	2024-002	Significant Deficiency	-	N
1099912	2024-002	Significant Deficiency	-	N

ALN	Program	Spent	Major	Findings
14.155	Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects	$2.95M	Yes	1
14.195	Project-Based Rental Assistance (pbra)	$499,670	-	0
14.191	Multifamily Housing Service Coordinators	$80,619	-	0

Contacts

Name	Title	Type
JHC7M2MAZP31	Diana Meo	Auditee
2082871065	Jodi Daugherty	Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in Subpart E – Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Corporation has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Shoreline Plaza, Inc. (the Corporation) under programs of the federal government for the year ended September 30, 2024. The information 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 Shoreline Plaza, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Shoreline Plaza, Inc.

Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in Subpart E – Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Corporation has not elected to use the 10% de minimis cost rate. Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in Subpart E – Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient.

Title: NOTE 3 - INDIRECT COST RATE Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in Subpart E – Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Corporation has not elected to use the 10% de minimis cost rate. The Corporation has not elected to use the 10% de minimis cost rate.

Title: NOTE 4 - LOAN PROGRAMS Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in Subpart E – Cost Principles of the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Corporation has not elected to use the 10% de minimis cost rate. Expenditures reported in this schedule consist of the beginning of the year outstanding loan balance. There were no advances made on the loan during the year. The outstanding balance at September 30, 2024 was $2,880,175.

Finding Details

Finding 2024-002

U.S. Department of Housing and Urban Development – Federal Financial Assistance Listing 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)) Special Tests and Provisions Significant Deficiency in Internal Control over Compliance 2024‐002 Management Fees Criteria: Pursuant to the HUD regulatory agreement, management fees are to be charged in accordance with the regulatory agreement. Condition: During our testing of management fees, we identified that the Corporation was overcharged management fees for $5,697. Cause: Inadequate controls over management fee calculations failed to identify that management fees were incorrectly calculated. Effect: The Corporation overcharged the management company for management fees in 2024. As of September 30, 2024, the management fees had been paid, thus an audit adjustment was proposed and recorded to reduce the management fee expense and record a receivable for excess management fees paid for 2024. Questioned Costs: None reported. Context/Sampling: No sampling was used. Repeat Finding from Prior Year(s): No Recommendation: Management should implement controls to ensure that management fees are calculated correctly in accordance with the HUD regulatory agreement. Views of Responsible Officials: Management agrees with the finding.

Finding 2024-002

U.S. Department of Housing and Urban Development – Federal Financial Assistance Listing 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)) Special Tests and Provisions Significant Deficiency in Internal Control over Compliance 2024‐002 Management Fees Criteria: Pursuant to the HUD regulatory agreement, management fees are to be charged in accordance with the regulatory agreement. Condition: During our testing of management fees, we identified that the Corporation was overcharged management fees for $5,697. Cause: Inadequate controls over management fee calculations failed to identify that management fees were incorrectly calculated. Effect: The Corporation overcharged the management company for management fees in 2024. As of September 30, 2024, the management fees had been paid, thus an audit adjustment was proposed and recorded to reduce the management fee expense and record a receivable for excess management fees paid for 2024. Questioned Costs: None reported. Context/Sampling: No sampling was used. Repeat Finding from Prior Year(s): No Recommendation: Management should implement controls to ensure that management fees are calculated correctly in accordance with the HUD regulatory agreement. Views of Responsible Officials: Management agrees with the finding.