Audit 292388

FY End
2022-09-30
Total Expended
$3.25M
Findings
4
Programs
2
Year: 2022 Accepted: 2024-02-27
Auditor: Wipfli LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
370700 2022-004 Significant Deficiency - L
370701 2022-005 Significant Deficiency - N
947142 2022-004 Significant Deficiency - L
947143 2022-005 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $3.10M Yes 2
93.498 Provider Relief Fund $148,367 - 0

Contacts

Name Title Type
J3B8B3AJZ514 Brian Voigt Auditee
3202437451 Tim Ritter Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (PRF), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the reporting periods 2 and 3. De Minimis Rate Used: N Rate Explanation: Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates. The information in this Schedule is presented in accordance with requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates. Federal award activity of Mother of Mercy (Taxpayer Identification Number (TIN) 41-6051127), Mother of Mercy Development, LLC (TIN 27-3818447), and Mother of Mercy Foundation (TIN 41-1992053) is included in the attached Schedule. The consolidated financial statements of Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates also includes the operations of Mercy Manor and Mercy Manor II, which received $63,816 and $35,190, respectively, in federal awards during 2022 and had $2,609,700 and $2,252,100, respectively, in capital advance mortgage balances outstanding that were considered to be federal awards. These amounts are not included in the attached Schedule because each entity is required to have separate audits performed under the Uniform Guidance.
Title: Subrecipients Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (PRF), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the reporting periods 2 and 3. De Minimis Rate Used: N Rate Explanation: Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates passed no federal awards through to subrecipients.
Title: Community Facilities Loans Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (PRF), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the reporting periods 2 and 3. De Minimis Rate Used: N Rate Explanation: Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates has an outstanding loan with the U.S. Department of Agriculture. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Mother of Mercy d/b/a Mother of Mercy Senior Living and Affiliates received no additional loans during the year. The balance of the loan balance at September 30, 2022, is $3,020,380.

Finding Details

Program Name: Community Facilities Loans and Grants Cluster Assistance Listing Numbers: 10.766 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Condition: The Organization did not meet its financial reporting obligations under the grant during the year. The Organization did not file the Data Collection Form (SFSAC) by the due date of June 30, 2023. Criteria: The Organization is required to file the Data Collection Form (SFSAC) within 30 days after receipt of audit or 9 months after year end, whichever is first. Cause: The Data Collection Form was not filed within the required period due to a delay in preparations for the audit. Effect: The Organization was not in compliance with federal regulations and the Community Facilities Loans and Grants Cluster. Recommendation: We recommend audit preparations are completed on a timely basis to ensure that the reporting deadline is met. View of Responsible Officials: Management acknowledges there were significant capacity issues as a result of turnover and a software system conversion during 2022, which caused constraints and resulted in the late audit completion and filing the SFSAC. Management will assure that the 2023 audit is submitted to the Federal Audit Clearinghouse by the due date of June 30, 2024.
Program Name: Community Facilities Loans and Grants Cluster Assistance Listing Numbers: 10.766 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Condition: The Organization did not meet its annual deposit requirement into the debt reserve fund. Criteria: The Organization is required to make monthly deposits of $1,495 into the debt reserve fund up until the account has been fully funded. Cause: During 2022, the Organization made monthly deposits into the debt reserve of $1,300, causing the annual deposits to be underfunded. Effect: The annual deposits into the debt reserve were underfunded by $2,070 for the year ended September 30, 2022. Recommendation: We recommend the Organization make a deposit to catchup the debt revenue fund to the correct balance had deposits of the full amount been correctly made. We also recommend the Organization adjust the monthly deposits going forward to $1,495, as stated in the USDA loan agreement. View of Responsible Officials: Management will review the loan agreements and discuss with USDA to determine if there have been any changes to the monthly reserve deposit requirement since the original loan agreement. If not, a catchup deposit will be made and the monthly deposits will be corrected.
Program Name: Community Facilities Loans and Grants Cluster Assistance Listing Numbers: 10.766 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Condition: The Organization did not meet its financial reporting obligations under the grant during the year. The Organization did not file the Data Collection Form (SFSAC) by the due date of June 30, 2023. Criteria: The Organization is required to file the Data Collection Form (SFSAC) within 30 days after receipt of audit or 9 months after year end, whichever is first. Cause: The Data Collection Form was not filed within the required period due to a delay in preparations for the audit. Effect: The Organization was not in compliance with federal regulations and the Community Facilities Loans and Grants Cluster. Recommendation: We recommend audit preparations are completed on a timely basis to ensure that the reporting deadline is met. View of Responsible Officials: Management acknowledges there were significant capacity issues as a result of turnover and a software system conversion during 2022, which caused constraints and resulted in the late audit completion and filing the SFSAC. Management will assure that the 2023 audit is submitted to the Federal Audit Clearinghouse by the due date of June 30, 2024.
Program Name: Community Facilities Loans and Grants Cluster Assistance Listing Numbers: 10.766 Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Condition: The Organization did not meet its annual deposit requirement into the debt reserve fund. Criteria: The Organization is required to make monthly deposits of $1,495 into the debt reserve fund up until the account has been fully funded. Cause: During 2022, the Organization made monthly deposits into the debt reserve of $1,300, causing the annual deposits to be underfunded. Effect: The annual deposits into the debt reserve were underfunded by $2,070 for the year ended September 30, 2022. Recommendation: We recommend the Organization make a deposit to catchup the debt revenue fund to the correct balance had deposits of the full amount been correctly made. We also recommend the Organization adjust the monthly deposits going forward to $1,495, as stated in the USDA loan agreement. View of Responsible Officials: Management will review the loan agreements and discuss with USDA to determine if there have been any changes to the monthly reserve deposit requirement since the original loan agreement. If not, a catchup deposit will be made and the monthly deposits will be corrected.