FAC Explorer

Audit 20203

FY End
2022-12-31
Total Expended
$887,690
Findings
4
Programs
2
Organization: Cumberland Senior Housing Associates (PA)
Year: 2022 Accepted: 2023-09-28
Auditor: Smith Elliott Kearns & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20524 2022-003 - - L
20525 2022-004 - - N
596966 2022-003 - - L
596967 2022-004 - - N

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $790,573 Yes 2
10.427 Rural Rental Assistance Payments $97,117 - 0

Contacts

Name Title Type
CZVJEYU5TZU5 Kira Kessler Auditee
7172490789 Gregory P. Hall Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The schedule of expenditures of federal awards includes the federal grant activity of Cumberland Senior Housing Associates and is presented on the accrual basis of accounting. 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. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Under the U. S. Department of Agriculture (USDA) requirements, the amount of Federal Expenditures listed under the Community Housing Loan program represents the beginning of year loan balances for the USDA Loans. No funding was actually received or expended in the current year. The outstanding loan balances at December 31, 2022 amounted to $ 786,028.

Finding Details

Finding 2022-003
Criteria: Information regarding the tenants are to be entered into the USDA Management Interactive Network Connection (MINC) system on a monthly basis to allow for payment of the monthly rental assistance payment. Condition/Context: Tenant information was not submitted monthly during the period April through December 2022. This resulted in no payments for rental assistance received during this period. Cause: Management did not have access to the system due to a change in project managers and not following through timely to submit the required reports. Effect: The organization was owed $ 41,102 for past due rental assistance payments. This resulted in cash flow issues for the organization. Questioned Costs: None Repeat Finding: Not a repeat finding. Recommendation: Management needs to ensure information is entered timely into the MINC system to ensure rental assistance payments are received timely.
Finding 2022-004
Criteria: Payments are to occur timely on the Rural Rental Housing Loan to satisfy the principal balance and to fund the reserve account. Condition/Context: During the year ended five (5) months of loan payments were made and six (6) months of funding to the reserve account occurred. Cause: Due to not completing the tenant certification process timely. Effect: Cumberland Senior Housing Associates is out of compliance with the loan program. Questioned Costs: None Repeat Finding: Not a repeat finding. Recommendation: We recommend the certification be completed timely and the loan principal payments and funding of the reserve account be completed timely.
Finding 2022-003
Criteria: Information regarding the tenants are to be entered into the USDA Management Interactive Network Connection (MINC) system on a monthly basis to allow for payment of the monthly rental assistance payment. Condition/Context: Tenant information was not submitted monthly during the period April through December 2022. This resulted in no payments for rental assistance received during this period. Cause: Management did not have access to the system due to a change in project managers and not following through timely to submit the required reports. Effect: The organization was owed $ 41,102 for past due rental assistance payments. This resulted in cash flow issues for the organization. Questioned Costs: None Repeat Finding: Not a repeat finding. Recommendation: Management needs to ensure information is entered timely into the MINC system to ensure rental assistance payments are received timely.
Finding 2022-004
Criteria: Payments are to occur timely on the Rural Rental Housing Loan to satisfy the principal balance and to fund the reserve account. Condition/Context: During the year ended five (5) months of loan payments were made and six (6) months of funding to the reserve account occurred. Cause: Due to not completing the tenant certification process timely. Effect: Cumberland Senior Housing Associates is out of compliance with the loan program. Questioned Costs: None Repeat Finding: Not a repeat finding. Recommendation: We recommend the certification be completed timely and the loan principal payments and funding of the reserve account be completed timely.