FAC Explorer

Audit 2917

FY End
2023-06-30
Total Expended
$26.54M
Findings
2
Programs
2
Organization: Advanced Living Inc.'s Schwenckfeld Manor (PA)
Year: 2023 Accepted: 2023-11-13
Auditor: Eisneramper LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1674 2023-001 - - P
578116 2023-001 - - P

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $24.15M Yes 1
14.195 Section 8 Housing Assistance Payments Program $2.39M Yes 0

Contacts

Name Title Type
HRNEMCRL5LE7 Randy James Auditee
2153620227 Michael Mostochuk Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards are reported using 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 15863621.

Finding Details

Finding 2023-001
Criteria: In accordance with regulatory agreements under the HUD Consolidated Audit Guide, residual receipts from the operation should be deposited to the residual receipts reserve account within 90 days from year-end. Condition: The Project did not deposit the residual receipts from fiscal year 2022 into the reserve account. Effect: Advanced Living Inc.'s Schwenckfeld Manor may lose its federal assistance if does not comply with the deposit requirements under regulatory agreements. Cause: Management of Advanced Living Inc.'s Schwenckfeld Manor did not monitor the timely deposit of residual receipts. Questioned Costs: The Project had the residual receipts of $153,831 as calculated on the audited financial statements for the year ended June 30, 2022. Recommendation: The Project should more closely monitor its timely deposit of residual receipts as required by the regulatory agreement. Management's Response: This issue was also raised last year. Management had asked HUD for guidance but it was not officially addressed. Management made the same request this year and HUD is looking into the possibility of using the residual receipts to pay the owner advance off. As of today, management has not received definitive guidance. Management will follow the recommendation received from HUD.
Finding 2023-001
Criteria: In accordance with regulatory agreements under the HUD Consolidated Audit Guide, residual receipts from the operation should be deposited to the residual receipts reserve account within 90 days from year-end. Condition: The Project did not deposit the residual receipts from fiscal year 2022 into the reserve account. Effect: Advanced Living Inc.'s Schwenckfeld Manor may lose its federal assistance if does not comply with the deposit requirements under regulatory agreements. Cause: Management of Advanced Living Inc.'s Schwenckfeld Manor did not monitor the timely deposit of residual receipts. Questioned Costs: The Project had the residual receipts of $153,831 as calculated on the audited financial statements for the year ended June 30, 2022. Recommendation: The Project should more closely monitor its timely deposit of residual receipts as required by the regulatory agreement. Management's Response: This issue was also raised last year. Management had asked HUD for guidance but it was not officially addressed. Management made the same request this year and HUD is looking into the possibility of using the residual receipts to pay the owner advance off. As of today, management has not received definitive guidance. Management will follow the recommendation received from HUD.