Audit 16186

FY End

2022-12-31

Total Expended

$18.99M

Findings

2

Programs

1

Organization: Regent at Apple Valley, LLC Dba: the Seasons at Apple Valley (MN)

Year: 2022 Accepted: 2023-04-25

Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
12125	2022-001	Significant Deficiency	Yes	P
588567	2022-001	Significant Deficiency	Yes	P

ALN	Program	Spent	Major	Findings
14.129	Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities	$18.99M	Yes	1

Contacts

Name	Title	Type
GMYQLML5MFD3	Scott Bjerketvedt	Auditee
6517664300	Chris Steinhoff	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of the Project under programs of the federal government for the yearended December 31, 2022. The information in this Schedule is presented in accordance withthe requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles,and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents only a selected portion of the operations of the Project, it is not intended to and doesnot present the financial position, changes in net assets, or cash flows of the Project.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following, as applicable, either the cost principles in OMB CircularA-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards, wherein certain types of expendituresare not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE_NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES (14.129) - Balances outstanding at the end of the audit period were $18,616,659.

Finding Details

Finding 2022-001

Federal agency: U.S. Department of Housing and Urban Development Criteria or specific requirement: Management is required to retain the HUD approved management agreement to ensure payments made are in accordance with HUD requirements. Condition: The Project does not have a HUD approved management agreement. Questioned costs: None Context: Management and HUD were unable to find the HUD approved agreement. Cause: Management did not retain the HUD approved management agreement. Effect: Due to the project not having a HUD approved management agreement, there is a possibility that management fees paid by the project are inaccurate. Repeat Finding: N/A Recommendation: Recommend that management work with HUD to have the current management agreement approved. Views of responsible officials: There is no disagreement with the audit finding.

Finding 2022-001

Federal agency: U.S. Department of Housing and Urban Development Criteria or specific requirement: Management is required to retain the HUD approved management agreement to ensure payments made are in accordance with HUD requirements. Condition: The Project does not have a HUD approved management agreement. Questioned costs: None Context: Management and HUD were unable to find the HUD approved agreement. Cause: Management did not retain the HUD approved management agreement. Effect: Due to the project not having a HUD approved management agreement, there is a possibility that management fees paid by the project are inaccurate. Repeat Finding: N/A Recommendation: Recommend that management work with HUD to have the current management agreement approved. Views of responsible officials: There is no disagreement with the audit finding.