FAC Explorer

Audit 319191

FY End
2023-12-31
Total Expended
$3.60M
Findings
4
Programs
1
Organization: Hegemon Crest Senior Housing Inc. (OH)
Year: 2023 Accepted: 2024-09-10
Auditor: Tidwell Group LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496299 2023-001 - - N
496300 2023-002 - - N
1072741 2023-001 - - N
1072742 2023-002 - - N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $3.60M Yes 2

Contacts

Name Title Type
FTTKVSMN5JK1 Stephen Tepner Auditee
3176457123 Damien Cassell Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: (a) 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. (b) Hegemon Crest Senior Housing, Inc. has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. (c) The outstanding balance of loan and loan guarantee program at December 31, 2023 with continuing compliance requirements which are reported as federal expenditures on the accompanying schedule of expenditures of federal awards was $3,350,300. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimus cost rate. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Hegemon Crest Senior Housing, Inc. and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.

Finding Details

Finding 2023-001
S3800-010 Finding Reference Number: 2023-1 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria The Regulatory Agreement requires annual deposits to be made into the reserve for replacements. S3800-030 Statement of Condition The Corporation did not make all required annual deposits into the reserve for replacements. S3800-035 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S3800-037 FHA/Contract Number 043-EE085 S3800-038 Questioned Costs $1,462 S3800-050 Context The Corporation did not make all required annual deposits to the reserve for replacements. S3800-060 Effect Not making required deposits could result in insufficient funds to cover repairs and replacements. S3800-070 Cause Management oversight. S3800-080 Recommendation The Corporation should deposit $1,462 into the reserve for replacements.
Finding 2023-002
S3800-010 Finding Reference Number: 2023-2 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria The HUD Regulatory Agreement requires the property to be in full compliance with all HUD Regulations. S3800-030 Statement of Condition On June 8, 2023, the property had a Management and Occupancy Review and received a below average score of 53.5. S3800-035 Auditor Non-Compliance Code Z - Other - Below Average MOR S3800-037 FHA/Contract Number 043-EE085 S3800-038 Questioned Costs None S3800-050 Context During the year ended December 31, 2023, the property had a Management and Occupancy Review. S3800-060 Effect Based on the results of the inspection, the Corporation was out of compliance with the Regulatory Agreement. S3800-070 Cause There are changes and corrections that need to be completed surrounding leasing and occupancy in order for the Corporation to be in compliance with the requirements of the Regulatory Agreement. S3800-080 Recommendation All required changes and corrections should be made in accordance with the Management and Occupancy Review and the Regulatory Agreement.
Finding 2023-001
S3800-010 Finding Reference Number: 2023-1 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria The Regulatory Agreement requires annual deposits to be made into the reserve for replacements. S3800-030 Statement of Condition The Corporation did not make all required annual deposits into the reserve for replacements. S3800-035 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S3800-037 FHA/Contract Number 043-EE085 S3800-038 Questioned Costs $1,462 S3800-050 Context The Corporation did not make all required annual deposits to the reserve for replacements. S3800-060 Effect Not making required deposits could result in insufficient funds to cover repairs and replacements. S3800-070 Cause Management oversight. S3800-080 Recommendation The Corporation should deposit $1,462 into the reserve for replacements.
Finding 2023-002
S3800-010 Finding Reference Number: 2023-2 S3800-015 Type of Finding Federal Award Finding S3800-020 Criteria The HUD Regulatory Agreement requires the property to be in full compliance with all HUD Regulations. S3800-030 Statement of Condition On June 8, 2023, the property had a Management and Occupancy Review and received a below average score of 53.5. S3800-035 Auditor Non-Compliance Code Z - Other - Below Average MOR S3800-037 FHA/Contract Number 043-EE085 S3800-038 Questioned Costs None S3800-050 Context During the year ended December 31, 2023, the property had a Management and Occupancy Review. S3800-060 Effect Based on the results of the inspection, the Corporation was out of compliance with the Regulatory Agreement. S3800-070 Cause There are changes and corrections that need to be completed surrounding leasing and occupancy in order for the Corporation to be in compliance with the requirements of the Regulatory Agreement. S3800-080 Recommendation All required changes and corrections should be made in accordance with the Management and Occupancy Review and the Regulatory Agreement.