Audit 309049

FY End

2023-12-31

Total Expended

$28.05M

Findings

4

Programs

1

Organization: Methodist Manor Retirement Community (IA)

Year: 2023 Accepted: 2024-06-17

Auditor: Williams & Company

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
400989	2023-002	-	-	P
400990	2023-003	Significant Deficiency	-	P
977431	2023-002	-	-	P
977432	2023-003	Significant Deficiency	-	P

ALN	Program	Spent	Major	Findings
10.766	Community Facilities Loans and Grants	$28.05M	Yes	2

Contacts

Name	Title	Type
SZ4ZD41LG6D3	Nicholas Landgraf	Auditee
7127321120	Alexandrea Keller	Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs are allocated, therefore no indirect cost rate is needed. The accompanying schedule of expenditures of federal awards (The "Schedule") includes the federal award activity of Methodist Manor Retirement Community 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 Methodist Manor Retirement Community, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Methodist Manor Retirement Community.

Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs are allocated, therefore no indirect cost rate is needed. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance.

Title: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs are allocated, therefore no indirect cost rate is needed. Methodist Manor Retirement Community has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Title: Note 4 - Loans Outstanding Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles in the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: No indirect costs are allocated, therefore no indirect cost rate is needed. The following loan balances were outstanding at December 31, 2023: Assistance Amount Listing Outstanding USDA - Community Facilities Loans and Grants 10.766 $ 2 7,977,840

Finding Details

Finding 2023-002

Criteria: The debt service reserve should have a separate general ledger account. Condition: During our review of compliance requirements for the Community Facilities Loans & Grants Cluster, we identified the funds were not in a separate general ledger account. Cause: The requirement was not met due to an oversight of management. Potential Effect: As a result, the Agency reserves the right to withdraw Agency funding. Recommendation: The Organization should setup a separate general ledger account for debt service reserve. Client Response: The Organization has setup a separate general ledger account.

Finding 2023-003

Criteria: The debt service reserve should have a separate general ledger account. Condition: During our review of compliance requirements for the Community Facilities Loans & Grants Cluster, we identified the funds were not in a separate general ledger account. Cause: The requirement was not met due to an oversight of management. Potential Effect: As a result, the Agency reserves the right to withdraw Agency funding. Recommendation: The Organization should setup a separate general ledger account for debt service reserve. Client Response: The Organization has setup a separate general ledger account.

Finding 2023-002

Criteria: The debt service reserve should have a separate general ledger account. Condition: During our review of compliance requirements for the Community Facilities Loans & Grants Cluster, we identified the funds were not in a separate general ledger account. Cause: The requirement was not met due to an oversight of management. Potential Effect: As a result, the Agency reserves the right to withdraw Agency funding. Recommendation: The Organization should setup a separate general ledger account for debt service reserve. Client Response: The Organization has setup a separate general ledger account.

Finding 2023-003

Criteria: The debt service reserve should have a separate general ledger account. Condition: During our review of compliance requirements for the Community Facilities Loans & Grants Cluster, we identified the funds were not in a separate general ledger account. Cause: The requirement was not met due to an oversight of management. Potential Effect: As a result, the Agency reserves the right to withdraw Agency funding. Recommendation: The Organization should setup a separate general ledger account for debt service reserve. Client Response: The Organization has setup a separate general ledger account.