FAC Explorer

Audit 304836

FY End
2023-12-31
Total Expended
$17.21M
Findings
4
Programs
1
Organization: Chelsea Jewish Nursing Home, Inc. (MA)
Year: 2023 Accepted: 2024-04-29
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
394965 2023-001 Material Weakness Yes N
394966 2023-002 Material Weakness Yes N
971407 2023-001 Material Weakness Yes N
971408 2023-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $17.21M Yes 2

Contacts

Name Title Type
PVWNDDGRAEB7 Jennifer Santerre Auditee
9784715118 Matthew Kalil Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Chelsea Jewish Nursing Home, Inc., HUD Project No. 023-43347 (the Organization) 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 (the Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets (deficit), or cash flows of the Organization.The expenditures reported on this 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. The Organization has elected not to use the 10-percent de minims indirect cost rate as allowed under the Uniform Guidance. The Organization has not passed funds through to subrecipients at any point. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimus indirect cost rate allowed under Uniform Guidance.

Finding Details

Finding 2023-001
Criteria: HUD guidelines require cash to be maintained in financial institutions, which meet minimum Government National Mortgage Association (GNMA) ratings, when balances exceed federal insurance limits. Condition: The Organization maintains cash balances in excess of federally insured limits in a financial institution that does not meet HUD guidelines. Questioned Costs: None Context: The cash balance at December 31, 2023 was approximately $1,300,000, held in two financial institutions, which exceeded federal insurance limits by approximately $800,000. Effect: No negative effect was discovered during the audit. Cause: As the Organization is a community based nonprofit organization, management considers supporting a local bank to be a worthwhile endeavor. Repeat finding: Yes, prior year finding 2022-001. Recommendation: The Organization should transfer all funds to a financial institution that meets HUD guidelines.
Finding 2023-002
Criteria: The Project's Borrower Regulatory Agreement with HUD requires the Organization to deposit any excess surplus cash into a residual receipts account within 90 days after the end of the annual or semi-annual fiscal period for which surplus cash is calculated. Condition: The Organization had surplus cash as of June 30, 2021 which it had not deposited into a residual receipts account by September 2021 because the semi-annual calculation was not performed timely. The Organization deposited $622,564 of surplus cash for the period ended December 31, 2020 into the residual receipts account during 2022. Questioned Costs: None Context: The surplus cash balance was $2,111,922 at June 30, 2021. Effect: No negative effect was discovered during the audit. Cause: As the Organization had deficiencies in surplus cash in all prior periods except for December 31, 2020, management was not expecting a surplus cash position as of June 30, 2021 and a residual receipts account was therefore not established. The Organization has not deposited June 30, 2021 surplus cash in order to maintain sufficient levels of cash flow. Repeat finding: Yes, prior year finding 2022-002. Recommendation: Management should deposit the amount of surplus cash at June 30, 2021 into the residual receipts account as soon as possible and monitor surplus cash closely during each annual and semi-annual period.
Finding 2023-001
Criteria: HUD guidelines require cash to be maintained in financial institutions, which meet minimum Government National Mortgage Association (GNMA) ratings, when balances exceed federal insurance limits. Condition: The Organization maintains cash balances in excess of federally insured limits in a financial institution that does not meet HUD guidelines. Questioned Costs: None Context: The cash balance at December 31, 2023 was approximately $1,300,000, held in two financial institutions, which exceeded federal insurance limits by approximately $800,000. Effect: No negative effect was discovered during the audit. Cause: As the Organization is a community based nonprofit organization, management considers supporting a local bank to be a worthwhile endeavor. Repeat finding: Yes, prior year finding 2022-001. Recommendation: The Organization should transfer all funds to a financial institution that meets HUD guidelines.
Finding 2023-002
Criteria: The Project's Borrower Regulatory Agreement with HUD requires the Organization to deposit any excess surplus cash into a residual receipts account within 90 days after the end of the annual or semi-annual fiscal period for which surplus cash is calculated. Condition: The Organization had surplus cash as of June 30, 2021 which it had not deposited into a residual receipts account by September 2021 because the semi-annual calculation was not performed timely. The Organization deposited $622,564 of surplus cash for the period ended December 31, 2020 into the residual receipts account during 2022. Questioned Costs: None Context: The surplus cash balance was $2,111,922 at June 30, 2021. Effect: No negative effect was discovered during the audit. Cause: As the Organization had deficiencies in surplus cash in all prior periods except for December 31, 2020, management was not expecting a surplus cash position as of June 30, 2021 and a residual receipts account was therefore not established. The Organization has not deposited June 30, 2021 surplus cash in order to maintain sufficient levels of cash flow. Repeat finding: Yes, prior year finding 2022-002. Recommendation: Management should deposit the amount of surplus cash at June 30, 2021 into the residual receipts account as soon as possible and monitor surplus cash closely during each annual and semi-annual period.