FAC Explorer

Audit 349655

FY End
2023-12-31
Total Expended
$750,281
Findings
8
Programs
2
Organization: Weston Senior Citizens Housing, Inc. (MO)
Year: 2023 Accepted: 2025-03-28
Auditor: Welch & Associates LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
538982 2023-001 Material Weakness - ABN
538983 2023-002 Material Weakness - E
538984 2023-003 Significant Deficiency - N
538985 2023-004 Significant Deficiency - N
1115424 2023-001 Material Weakness - ABN
1115425 2023-002 Material Weakness - E
1115426 2023-003 Significant Deficiency - N
1115427 2023-004 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $686,376 Yes 4
10.427 Rural Rental Assistance Payments $7,742 - 0

Contacts

Name Title Type
LSJ3ZULGYM33 Tamara Wallace Auditee
8162334250 Brian Welch Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the GAAP 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 shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the De Minimis10% Indirect Cost Rate The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Weston Senior Citizen's Housing, Inc. (the Organization) 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards ( Uniform Guidance). Because the Schedule presents only a selected portion of operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Note 4. Balance of Outstanding Loan Accounting Policies: Expenditures reported on the Schedule are reported on the GAAP 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 shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The Organization did not elect to use the De Minimis10% Indirect Cost Rate The balance of the insured loan, Section 515 as of December 31, 2023 was $664,599.

Finding Details

Finding 2023-001
S3800-010: Finding Reference Number 2023-001 (Material Weakness) S3800-011: Program Information Federal Program: Rural Rental Housing Loans (Section 515) Federal Agency: Department of Agriculture (USDA) Assistance Listing #: 10.415 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: A/B - Activities Allowed or Unallowed and Allowable Costs/Cost Principles and N - Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The regulatory agreement requires that the Organization’s books and records are maintained in accordance with USDA guidelines and generally accepted accounting principles (GAAP). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 financial statements and federal award program, we noted the Organization’s books are not maintained in accordance with GAAP. Several misstatements were identified by the auditor in the unaudited financial statements and accounts of the Organization. We noted that the beginning net assets did not agree with the prior year net assets. We also note that several accounts including mortgage interest and mortgage balance did not agree to supporting documentation. We proposed adjusting entries including a prior period adjustment to correct those accounts, which were accepted by management. S3800-032: Cause The Organization lacks adequate internal controls to ensure that books and records are kept accurately and completely.S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement to maintain accurate and complete books and accounts. S3800-035: Auditor Non-Compliance Code S – Internal Control Deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to maintain books and records in accordance with USDA guidelines and GAAP. S3800-080: Recommendation The Organization should follow their policies and procedures to ensure that accounting records are kept accurate and complete, and a responsible official should review and sign off on the monthly financial statements. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2024 S3800-150: Response See Corrective Action Plan
Finding 2023-002
S3800-010: Finding Reference Number 2023-002 (Material Weakness) S3800-011: Program Information Federal Program: Rural Rental Housing Loans (Section 515) Federal Agency: Department of Agriculture (USDA) Assistance Listing #: 10.415 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: E - Eligibility S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 46 S3800-018: Sample Size Information 7 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria Per 7 CFR Part 3560, Rural Housing Service, Department of Agriculture, Direct Multi-Family Housing Loans and Grants; multi-family housing projects must follow specific guidelines for determining eligibility and determining whether they are in compliance with provisions in the Management Plan. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 federal awards program, we noted that the Organization did not have the necessary documentation related to eligibility for four tenants in their files. S3800-032: Cause The Organization did not follow USDA required procedures for eligibility per its Management Plan. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of USDA related to determining initial eligibility and recertification, thus ineligible tenants could have resided at the project. S3800-035: Auditor Non-Compliance Code Z - Other S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to tenant eligibility in accordance with their Management Plan. S3800-080: Recommendation The Organization should follow procedures to ensure tenant eligibility and the Organization should review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2024 S3800-150: Response See Corrective Action Plan
Finding 2023-003
S3800-010: Finding Reference Number 2023-003 (Significant Deficiency) S3800-011: Program Information Federal Program: Rural Rental Housing Loans (Section 515) Federal Agency: Department of Agriculture (USDA) Assistance Listing #: 10.415 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 126 S3800-018: Sample Size Information 13 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria 7 CFR Part 3560, Rural Housing Service, Department of Agriculture, Direct Multi-Family Housing Loans and Grants; management agents of multifamily housing are required to follow specific guidelines and determine requirements are being met for residents requesting maintenance of property via a maintenance system in compliance with the Management Plan. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 federal awards programs, we noted that USDA requirements related to maintaining housing projects were not properly followed. We tested a sample of thirteen maintenance requests and noted that a maintenance system was not in place, as the Organization doesn’t log the maintenance requests into a system for tracking and resolution but uses paper maintenance request forms. S3800-032: Cause The Organization did not follow USDA required procedures for maintaining housing quality standards per its Management Plan. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of USDA related to ensuring a properly functioning maintenance system is in place to provide decent, safe, and sanitary housing. S3800-035: Auditor Non-Compliance Code: S – Internal control deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials The Organization will adopt a policy to ensure tenants requesting maintenance of property is being maintained properly in the maintenance system and we will review the accuracy of the documentation being processed in the maintenance system on a quarterly basis. S3800-050: Context The Organization is required to establish a maintenance system and provide a decent, safe, and sanitary housing project in accordance with their Management Plan. S3800-080: Recommendation The Organization should adopt a policy to ensure tenants requesting maintenance of property is being maintained properly in the maintenance system and they will review the accuracy of the documentation being processed in the maintenance system on a quarterly basis. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2024 S3800-150: Response See Corrective Action Plan
Finding 2023-004
S3800-010: Finding Reference Number 2023-004 (Significant Deficiency) S3800-011: Program Information Federal Program: Rural Rental Housing Loans (Section 515) Federal Agency: Department of Agriculture (USDA) Assistance Listing #: 10.415 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 28 S3800-018: Sample Size Information 5 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria Per 7 CFR Part 3560, Rural Housing Service, Department of Agriculture, Direct Multi-Family Housing Loans and Grants; multi-family housing projects must follow specific guidelines for filling rental unit vacancies by maintaining a waiting list in compliance with provisions in the Management Plan. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 federal awards program, we noted that the Organization did not follow waiting list procedures and requirements for two tenants, as a qualified applicant who applied before another applicant did not move-in until after the latter applicant. S3800-032: Cause The Organization did not follow USDA required procedures for rental unit vacancies per its Management Plan. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of USDA related to rental unit vacancies; and did not administer the program in accordance with USDA policies and guidelines. S3800-035: Auditor Non-Compliance Code Z - Other S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to rental unit vacancies and maintaining their waiting list in accordance with their Management Plan. S3800-080: Recommendation The Organization should follow procedures to ensure occupancy according to USDA guidelines. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2024 S3800-150: Response See Corrective Action Plan
Finding 2023-001
S3800-010: Finding Reference Number 2023-001 (Material Weakness) S3800-011: Program Information Federal Program: Rural Rental Housing Loans (Section 515) Federal Agency: Department of Agriculture (USDA) Assistance Listing #: 10.415 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: A/B - Activities Allowed or Unallowed and Allowable Costs/Cost Principles and N - Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria The regulatory agreement requires that the Organization’s books and records are maintained in accordance with USDA guidelines and generally accepted accounting principles (GAAP). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 financial statements and federal award program, we noted the Organization’s books are not maintained in accordance with GAAP. Several misstatements were identified by the auditor in the unaudited financial statements and accounts of the Organization. We noted that the beginning net assets did not agree with the prior year net assets. We also note that several accounts including mortgage interest and mortgage balance did not agree to supporting documentation. We proposed adjusting entries including a prior period adjustment to correct those accounts, which were accepted by management. S3800-032: Cause The Organization lacks adequate internal controls to ensure that books and records are kept accurately and completely.S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement to maintain accurate and complete books and accounts. S3800-035: Auditor Non-Compliance Code S – Internal Control Deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to maintain books and records in accordance with USDA guidelines and GAAP. S3800-080: Recommendation The Organization should follow their policies and procedures to ensure that accounting records are kept accurate and complete, and a responsible official should review and sign off on the monthly financial statements. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2024 S3800-150: Response See Corrective Action Plan
Finding 2023-002
S3800-010: Finding Reference Number 2023-002 (Material Weakness) S3800-011: Program Information Federal Program: Rural Rental Housing Loans (Section 515) Federal Agency: Department of Agriculture (USDA) Assistance Listing #: 10.415 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: E - Eligibility S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 46 S3800-018: Sample Size Information 7 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria Per 7 CFR Part 3560, Rural Housing Service, Department of Agriculture, Direct Multi-Family Housing Loans and Grants; multi-family housing projects must follow specific guidelines for determining eligibility and determining whether they are in compliance with provisions in the Management Plan. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 federal awards program, we noted that the Organization did not have the necessary documentation related to eligibility for four tenants in their files. S3800-032: Cause The Organization did not follow USDA required procedures for eligibility per its Management Plan. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of USDA related to determining initial eligibility and recertification, thus ineligible tenants could have resided at the project. S3800-035: Auditor Non-Compliance Code Z - Other S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to tenant eligibility in accordance with their Management Plan. S3800-080: Recommendation The Organization should follow procedures to ensure tenant eligibility and the Organization should review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2024 S3800-150: Response See Corrective Action Plan
Finding 2023-003
S3800-010: Finding Reference Number 2023-003 (Significant Deficiency) S3800-011: Program Information Federal Program: Rural Rental Housing Loans (Section 515) Federal Agency: Department of Agriculture (USDA) Assistance Listing #: 10.415 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 126 S3800-018: Sample Size Information 13 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria 7 CFR Part 3560, Rural Housing Service, Department of Agriculture, Direct Multi-Family Housing Loans and Grants; management agents of multifamily housing are required to follow specific guidelines and determine requirements are being met for residents requesting maintenance of property via a maintenance system in compliance with the Management Plan. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 federal awards programs, we noted that USDA requirements related to maintaining housing projects were not properly followed. We tested a sample of thirteen maintenance requests and noted that a maintenance system was not in place, as the Organization doesn’t log the maintenance requests into a system for tracking and resolution but uses paper maintenance request forms. S3800-032: Cause The Organization did not follow USDA required procedures for maintaining housing quality standards per its Management Plan. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of USDA related to ensuring a properly functioning maintenance system is in place to provide decent, safe, and sanitary housing. S3800-035: Auditor Non-Compliance Code: S – Internal control deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials The Organization will adopt a policy to ensure tenants requesting maintenance of property is being maintained properly in the maintenance system and we will review the accuracy of the documentation being processed in the maintenance system on a quarterly basis. S3800-050: Context The Organization is required to establish a maintenance system and provide a decent, safe, and sanitary housing project in accordance with their Management Plan. S3800-080: Recommendation The Organization should adopt a policy to ensure tenants requesting maintenance of property is being maintained properly in the maintenance system and they will review the accuracy of the documentation being processed in the maintenance system on a quarterly basis. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2024 S3800-150: Response See Corrective Action Plan
Finding 2023-004
S3800-010: Finding Reference Number 2023-004 (Significant Deficiency) S3800-011: Program Information Federal Program: Rural Rental Housing Loans (Section 515) Federal Agency: Department of Agriculture (USDA) Assistance Listing #: 10.415 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 28 S3800-018: Sample Size Information 5 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria Per 7 CFR Part 3560, Rural Housing Service, Department of Agriculture, Direct Multi-Family Housing Loans and Grants; multi-family housing projects must follow specific guidelines for filling rental unit vacancies by maintaining a waiting list in compliance with provisions in the Management Plan. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended December 31, 2023 federal awards program, we noted that the Organization did not follow waiting list procedures and requirements for two tenants, as a qualified applicant who applied before another applicant did not move-in until after the latter applicant. S3800-032: Cause The Organization did not follow USDA required procedures for rental unit vacancies per its Management Plan. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of USDA related to rental unit vacancies; and did not administer the program in accordance with USDA policies and guidelines. S3800-035: Auditor Non-Compliance Code Z - Other S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to rental unit vacancies and maintaining their waiting list in accordance with their Management Plan. S3800-080: Recommendation The Organization should follow procedures to ensure occupancy according to USDA guidelines. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date June 30, 2024 S3800-150: Response See Corrective Action Plan