Audit 367392

FY End

2024-12-31

Total Expended

$1.49M

Findings

2

Programs

1

Organization: St. Croix Labor Union Mutual Homes, Inc. Phase I (NJ)

Year: 2024 Accepted: 2025-09-24

Auditor: Cohnreznick LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
1155087	2024-001	Material Weakness	Yes	F
1155088	2024-002	Material Weakness	Yes	E

ALN	Program	Spent	Major	Findings
14.195	Project-Based Rental Assistance (pbra)	$1.49M	Yes	2

Contacts

Name	Title	Type
CNYKEVH23B61	Stephen Grim	Auditee
6098676010	Mike Bisson	Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of St. Croix Labor Union Mutual Homes, Inc. (Phase I), HUD Project No. 056-44001, under programs of the federal government for the year ended December 31, 2024. 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 I), 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 I). For the year ended December 31, 2024, no awards were passed through to subrecipients.

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.

St. Croix Labor Union Mutual Homes, Inc. (Phase I) has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-001

Criteria In accordance with the (regulatory agreement/HAP contract), 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 0 on its 2024 NSPIRE 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 NSPIRE inspection. Questioned Costs N/A Recommendation Management should correct all findings noted in the NSPIRE Physical Inspection Report in the time frames requested in the physical inspection. Auditor Noncompliance Code: Failure to maintain property/open physical inspection. Finding Resolution Status: Maintenance team performed a 100% property inspection and subsequently made all repairs based on that inspection. As a result, the property underwent an NSPIRE inspection on July 17, 2025, which resulted in a score of a 77. Views of Responsible Officials Management agrees with the finding and the auditor's recommendations have been adopted. Maintenance team performed a 100% property inspection and subsequently made all repairs based on that inspection. As a result, the property underwent an NSPIRE inspection on July 17, 2025, which resulted in a score of a 77.

Finding 2024-002

Criteria In accordance with HUD program guidelines under which the Project operates, the annual tenant recertification Form 50059 is required to be signed by the tenant prior to the required annual recertification date. Condition In connection with lease file testing, we noted 4 out of 8 tenant files did not have annual tenant recertification Form 50059 completed timely. Cause Personnel responsible for tenant recertifications failed to obtain signatures on all Forms 50059 prior to the required annual recertification date. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Questioned Costs N/A Recommendation The cooperative should ensure that all Form 50059s are signed by the tenant prior to the required annual recertification date. Auditor Noncompliance Code: R - Section 8 program administration. Finding Resolution Status: In process. Views of Responsible Officials Management agrees with the finding and the auditor's recommendations have been adopted. The management's compliance department will schedule bi-annual on-site visits to provide training as well monitoring all the recertifications to ensure that they are completed timely.