FAC Explorer

Audit 401445

FY End
2025-12-31
Total Expended
$1.05M
Findings
1
Programs
2
Organization: Shawl II Senior Housing of Montague (MI)
Year: 2025 Accepted: 2026-05-15
Auditor: MANER COSTERISAN

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1214699 2025-001 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $873,552 Yes 1
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $172,013 Yes 0

Contacts

Name Title Type
ZWMKLLNNVLA3 Mary Zywot Auditee
3133088890 Keith R. Pfeifle, CPA Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of SHAWL II, Senior Housing of Montague under programs of the federal government for the year ended December 31, 2025. 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 SHAWL II, Senior Housing of Montague, it is not intended to and does not present the financial position, changes in net deficit or cash flows of SHAWL II, Senior Housing of Montague.
Expenditures reported on the Schedule are reported on the accrual 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 (if any) shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented where available. SHAWL II, Senior Housing of Montague has elected not to use the 15-percent de minimis indirect cost rate allowed under the Uniform Guidance.
SHAWL II, Senior Housing of Montague has a mortgage insured by U.S. Department of Housing and Urban Development under Section 223(f) of the National Housing Act. The mortgage is included in the federal expenditures presented in the Schedule. SHAWL II, Senior Housing of Montague received no additional capital advances, or loans, during the year. The balance of the mortgage at December 31, 2025, was $836,708.

Finding Details

Finding 2025-001
Finding 2025-001 -Considered to be immaterial noncompliance Condition: Based on the prior year surplus cash computation, the Project was required to deposit $10,582 to the residual receipts account. As of December 31, 2025, this required deposit had not been made to the residual receipts account. Criteria: Per the Regulatory Agreement and HUD requirements, surplus cash remaining after allowable distributions must be deposited into the residual receipts account. Residual receipts deposits are required to be made in the amount determined by the surplus cash calculation and must be maintained in the residual receipts account for project purposes in accordance with HUD regulations. Effect: Failure to deposit the required amount into the residual receipts account resulted in noncompliance with HUD requirements related to the proper handling and restriction of project funds. Cause: The required residual receipts deposit was not made because management did not properly identify the amount due from the prior year surplus cash calculation and did not complete the required transfer to the residual receipts account. Questioned Costs: $10,582, representing the required residual receipts deposit that had not been made as of December 31, 2025. Recommendation: We recommend that management implement procedures to review the surplus cash computation each year and ensure that all required residual receipts deposits are made timely in accordance with HUD requirements. Management Comments: We agree with the facts and circumstances described above. Subsequent to year end, the Project deposited the required amount of $10,582 to the residual receipts account, and the account is now in compliance with HUD requirements. Management has implemented procedures to review the surplus cash computation annually and ensure that all required residual receipts deposits are made on a timely basis going forward. Auditor Noncompliance Code: B – Failure to make required residual receipts deposits