Audit 30312

FY End
2022-09-30
Total Expended
$4.03M
Findings
2
Programs
2
Organization: Cheney Care Community (WA)
Year: 2022 Accepted: 2023-03-09

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
38032 2022-001 - Yes L
614474 2022-001 - Yes L

Contacts

Name Title Type
XKL5Z49JMY11 Ashley Healey Auditee
5092356196 Louis McCollum Auditor
No contacts on file

Notes to SEFA

Title: SECTION 232 MORTGAGE INSURANCE NURSING HOMES, INTERMEDIATE CARE FACILITIES, Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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. De Minimis Rate Used: N Rate Explanation: Cheney Care Community has not elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES LOAN BALANCE: The ending balance for the Section 232 Loan was $3,789,035 as of September 30, 2022.
Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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. De Minimis Rate Used: N Rate Explanation: Cheney Care Community has not elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. The schedule of expenditures of federal awards includes thefederal award activity of Cheney Care Community under programs of the federal government forthe year ended September 30, 2022. The information in this schedule is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). Because the Schedule presents only a selected portion of the operations ofCheney Care Community, it is not intended to and does not present the financial position,changes in net position, or cash flows of Cheney Care Community.
Title: CARES ACT GRANT Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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. De Minimis Rate Used: N Rate Explanation: Cheney Care Community has not elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. In accordance with the guidance from the U.S. Department of Health andHuman Services (HHS), Cheney Care Community included the expenditures for Provider ReliefFunds in the schedule for the year ended September 30, 2022 to align with HHS reportingguidelines. In accordance with accounting principles generally accepted in the United States ofAmerica, the funding associated with the Provider Relief Funds was recognized by Cheney CareCommunity during the year ended September 30, 2021 and is included in beginning net assets asof and for the year ended September 30, 2022.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards 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. De Minimis Rate Used: N Rate Explanation: Cheney Care Community has not elected to use the 10 percent de minimis indirect cost rate as allowed under Uniform Guidance. Cheney Care Community did not provide any federal awards tosubrecipients during the year ended September 30, 2022.

Finding Details

S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? Section 232 Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2021-002 S3800-020 Criteria ? Per the regulatory agreement Section 9(e), annual financial statements shall be submitted to HUD within 60 days of the end of the year. This requirement was extended to within 90 days of the end of the year by HUD. S3800-030 Statement of Condition ? Cheney Care Community did not meet the financial statement filing requirements for the year ended September 30, 2022. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause ? Additional time was required to obtain certain information to complete the financial statement audit due to remote audit environment. S3800-033 Effect or Potential Effect ? HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for noncompliance with the regulatory agreement. S3800-035 Auditor Non-Compliance Code ? Z (Other) S3800-037 FHA/Contract Number ? 171-22029 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Cheney Care Community recognizes that they did not submit to HUD within the allotted time period and will follow the HUD financial statement filing requirements going forward. S3800-080 Recommendation ? We recommend Cheney Care Community implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Cheney Care Community will follow the filing requirements of the regulatory agreement going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? February 9, 2023 S3800-150 Response ? Cheney Care Community will follow the filing requirements of the regulatory agreement going forward. S3800-160 Contact Person First Name ? Ashley S3800-180 Contact Person Last Name ? Healey
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? Section 232 Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 S3800-015 Type of Finding ? Federal Award Finding S3800-016 Finding Resolution Status ? Resolved S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? 2021-002 S3800-020 Criteria ? Per the regulatory agreement Section 9(e), annual financial statements shall be submitted to HUD within 60 days of the end of the year. This requirement was extended to within 90 days of the end of the year by HUD. S3800-030 Statement of Condition ? Cheney Care Community did not meet the financial statement filing requirements for the year ended September 30, 2022. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause ? Additional time was required to obtain certain information to complete the financial statement audit due to remote audit environment. S3800-033 Effect or Potential Effect ? HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for noncompliance with the regulatory agreement. S3800-035 Auditor Non-Compliance Code ? Z (Other) S3800-037 FHA/Contract Number ? 171-22029 S3800-038 Questioned Costs ? $0 S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Cheney Care Community recognizes that they did not submit to HUD within the allotted time period and will follow the HUD financial statement filing requirements going forward. S3800-080 Recommendation ? We recommend Cheney Care Community implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor?s Summary of Auditee Comments on the Findings and Recommendations ? Cheney Care Community will follow the filing requirements of the regulatory agreement going forward. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? February 9, 2023 S3800-150 Response ? Cheney Care Community will follow the filing requirements of the regulatory agreement going forward. S3800-160 Contact Person First Name ? Ashley S3800-180 Contact Person Last Name ? Healey