FAC Explorer

Audit 303809

FY End
2023-12-31
Total Expended
$1.79M
Findings
4
Programs
3
Organization: Berlin Retirement Homes, Inc. (MA)
Year: 2023 Accepted: 2024-04-17
Auditor: Wipfli LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
393679 2023-001 Significant Deficiency - B
393680 2023-002 Significant Deficiency - N
970121 2023-001 Significant Deficiency - B
970122 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.415 Rural Rental Housing Loans $1.56M Yes 2
14.195 Section 8 Housing Assistance Payments Program $201,639 Yes 0
10.427 Rural Rental Assistance Payments $18,873 - 0

Contacts

Name Title Type
MJQEUHH4JLB3 Cheryl Sharon Auditee
9788380442 Sheila McNeil Auditor
No contacts on file

Notes to SEFA

Title: Balance of Outstanding Loans Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Berlin Retirement Homes, Inc. dba Northbrook Village under programs of the federal government for the year ended December 31, 2023. 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 (Uniform Guidance). Because the schedule presents only a selected portion of the operations of Berlin Retirement Homes, Inc. dba Northbrook Village it is not intended to and does not present the financial position, changes in net position, or cash flows of Berlin Retirement Homes, Inc. dba Northbrook Village.(1) Expenditures reported on the Schedule 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: Berlin Retirement Homes, Inc. dba Northbrook Village has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. Loans outstanding at the beginning of the year and loans received during the year are included in the federal expenditures presented in the Schedule. There were no new loans received during year ended December 31, 2023. The balance of the loans outstanding at December 31, 2023 is $1,529,545, Program - Rural Rental Housing Loans, AL # 10.415.

Finding Details

Finding 2023-001
AL# 10.415 U.S. Department of Agriculture - Rural Development Questioned Cost: $242 Criteria – 40 cash disbursements were tested and two were noted as applicable to other projects of the management company. Condition - Expenses charged to project operations, whether for management agent services or other expenses, must be reasonable, typical, necessary and show a clear benefit to the residents of the property. Cause – The two payments were from a credit card statement with multiple invoices for various properties and although the invoice clearly stated the allocable property this was missed upon entry into the general ledger. Effects or Potential Effects – The project paid for expenses that were not allocable to the project. Auditor’s Recommendation - Invoices should be scrutinized closely and applied to the appropriate project. View of Responsible Officials – Management agrees with the finding and has implemented a corrective action plan.
Finding 2023-002
AL# 10.415 U.S. Department of Agriculture - Rural Development Questioned Cost: $14,048 Criteria: Deposits to the reserve account were not made in accordance with the requirements of the program. Condition - Owners, as required, shall establish a reserve for replacement account and make deposits in accordance with RD requirements, usually the loan agreement or other similar business agreement. Cause – There was a change in staffing and the new staff were not aware of the requirement for monthly deposits. Effects – The Project’s replacement reserve was underfunded for the year. Auditor’s Recommendation – Reserve deposits should be made timely. New staff should be trained on requirements for Rural Development Programs. View of Responsible Officials – Management agrees with the finding and has implemented a corrective action plan.
Finding 2023-001
AL# 10.415 U.S. Department of Agriculture - Rural Development Questioned Cost: $242 Criteria – 40 cash disbursements were tested and two were noted as applicable to other projects of the management company. Condition - Expenses charged to project operations, whether for management agent services or other expenses, must be reasonable, typical, necessary and show a clear benefit to the residents of the property. Cause – The two payments were from a credit card statement with multiple invoices for various properties and although the invoice clearly stated the allocable property this was missed upon entry into the general ledger. Effects or Potential Effects – The project paid for expenses that were not allocable to the project. Auditor’s Recommendation - Invoices should be scrutinized closely and applied to the appropriate project. View of Responsible Officials – Management agrees with the finding and has implemented a corrective action plan.
Finding 2023-002
AL# 10.415 U.S. Department of Agriculture - Rural Development Questioned Cost: $14,048 Criteria: Deposits to the reserve account were not made in accordance with the requirements of the program. Condition - Owners, as required, shall establish a reserve for replacement account and make deposits in accordance with RD requirements, usually the loan agreement or other similar business agreement. Cause – There was a change in staffing and the new staff were not aware of the requirement for monthly deposits. Effects – The Project’s replacement reserve was underfunded for the year. Auditor’s Recommendation – Reserve deposits should be made timely. New staff should be trained on requirements for Rural Development Programs. View of Responsible Officials – Management agrees with the finding and has implemented a corrective action plan.