Audit 304437

FY End

2023-05-31

Total Expended

$1.66M

Findings

4

Programs

1

Organization: Mizpah Assisted Living Services, INC (MO)

Year: 2023 Accepted: 2024-04-24

Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
394562	2023-001	Significant Deficiency	-	L
394563	2023-002	Significant Deficiency	-	L
971004	2023-001	Significant Deficiency	-	L
971005	2023-002	Significant Deficiency	-	L

ALN	Program	Spent	Major	Findings
14.129	Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities	$1.66M	Yes	2

Contacts

Name	Title	Type
PF5RVJ6L2WN4	Joseph Girardi	Auditee
3147260111	Jeffrey Heitgerd	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Mizpah Assisted Living Services, Inc., under programs of the federal government for the year ended May 31, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Mizpah Assisted Living Services, Inc., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Mizpah Assisted Living Services, Inc. At May 31, 2023, the balance of Mizpah Assisted Living Services, Inc.’s HUD mortgage is $1,583,445, as represented by the Insured Mortgage Note Payable federal program above. De Minimis Rate Used: Y Rate Explanation: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Mizpah Assisted Living Services, Inc., has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. MORTGAGE INSURANCE_NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES (14.129) - Balances outstanding at the end of the audit period were 1583445.

Finding Details

Finding 2023-001

2023 – 001 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Financial Report Requirements requires quarterly financial reports to be prepared and due within 60 days after the end of the reporting quarter. Condition: Quarterly financial statements not submitted to loan servicer within the 60 day period allotted, as the first quarter report was not submitted until November 4, 2022. Questioned costs: None Context: During our testing, it was noted that the Project did not submit reports until 3 days after they were due for the 1st quarter. Cause: Turnover in controller position lead to oversight of this being submitted in time. Effect: The quarterly report was not submitted in time in accordance with the Regulatory Agreement. Repeat finding: Not a repeat finding Recommendation: We recommend the Project review controls to include processes to ensure timely submission. Views of responsible officials: There is no disagreement with the audit finding.

Finding 2023-002

2023 – 002 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Financial Report Requirements required performance reports for required action plan to be submitted within 30 days of period end. Condition: The first 2 quarter reports, for period ending September 30, 2022 and December 31, 2022, were submitted one day late, on October 31, 2022 and January 31, 2023 respectively. Questioned costs: None Context: During our testing, it was noted that the Project did not submit for first two quarters within the required time. These were subsequently submitted and accepted by HUD. Cause: Turnover in controller position lead to oversight of this being submitted in time. Effect: The quarterly report was not submitted in time in accordance with the Special Circumstances as defined in the HUD Handbook. Repeat finding: Not a repeat finding Recommendation: We recommend the Project review controls to include processes to ensure timely submission. Views of responsible officials: There is no disagreement with the audit finding.

Finding 2023-001

2023 – 001 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Financial Report Requirements requires quarterly financial reports to be prepared and due within 60 days after the end of the reporting quarter. Condition: Quarterly financial statements not submitted to loan servicer within the 60 day period allotted, as the first quarter report was not submitted until November 4, 2022. Questioned costs: None Context: During our testing, it was noted that the Project did not submit reports until 3 days after they were due for the 1st quarter. Cause: Turnover in controller position lead to oversight of this being submitted in time. Effect: The quarterly report was not submitted in time in accordance with the Regulatory Agreement. Repeat finding: Not a repeat finding Recommendation: We recommend the Project review controls to include processes to ensure timely submission. Views of responsible officials: There is no disagreement with the audit finding.

Finding 2023-002

2023 – 002 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Financial Report Requirements required performance reports for required action plan to be submitted within 30 days of period end. Condition: The first 2 quarter reports, for period ending September 30, 2022 and December 31, 2022, were submitted one day late, on October 31, 2022 and January 31, 2023 respectively. Questioned costs: None Context: During our testing, it was noted that the Project did not submit for first two quarters within the required time. These were subsequently submitted and accepted by HUD. Cause: Turnover in controller position lead to oversight of this being submitted in time. Effect: The quarterly report was not submitted in time in accordance with the Special Circumstances as defined in the HUD Handbook. Repeat finding: Not a repeat finding Recommendation: We recommend the Project review controls to include processes to ensure timely submission. Views of responsible officials: There is no disagreement with the audit finding.