FAC Explorer

Audit 325324

FY End
2024-06-30
Total Expended
$18.34M
Findings
2
Programs
2
Organization: Advanced Living Inc.'s Schwenckfeld Manor (PA)
Year: 2024 Accepted: 2024-10-21
Auditor: Eisneramper LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
503262 2024-001 - Yes P
1079704 2024-001 - Yes P

Programs

ALN Program Spent Major Findings
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $15.86M Yes 1
14.195 Project-Based Rental Assistance (pbra) $2.47M Yes 0

Contacts

Name Title Type
HRNEMCRL5LE7 Randall James Auditee
2153620227 Michael Mostochuk Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Expenditures reported on the accompanying schedule of expenditures of federal awards are reported using 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: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS (14.155) - Balances outstanding at the end of the audit period were 15552550.

Finding Details

Finding 2024-001
Criteria: In accordance with regulatory agreements under the HUD Consolidated Audit Guide, residual receipts from the operation should be deposited to the residual receipts reserve account within 90 days from the year-end. Condition: The Project did not deposit the residual receipts from fiscal year 2023 into the reserve account. Effect: Advanced Living Inc.’s Schwenckfeld Manor may lose its federal assistance if does not comply with the deposit requirements under regulatory agreements. Cause: Management of Advanced Living Inc.’s Schwenckfeld Manor did not monitor the timely deposit of residual receipts. Questioned Costs: The Project had the residual receipts of $204,886 as calculated on the audited financial statements for the year ended June 30, 2023. Recommendation: The Project should more closely monitor its timely deposit of residual receipts as required by the regulatory agreement. Management's Response: Management had asked HUD for guidance in this matter during September of the fiscal year, but it was not officially addressed. Management made the same request this year and HUD is looking into the possibility of using the residual receipts to pay the owner advance off. As of today, management has not received definitive guidance. Management will follow the recommendation received from HUD and deposit the residual receipts with HUD.
Finding 2024-001
Criteria: In accordance with regulatory agreements under the HUD Consolidated Audit Guide, residual receipts from the operation should be deposited to the residual receipts reserve account within 90 days from the year-end. Condition: The Project did not deposit the residual receipts from fiscal year 2023 into the reserve account. Effect: Advanced Living Inc.’s Schwenckfeld Manor may lose its federal assistance if does not comply with the deposit requirements under regulatory agreements. Cause: Management of Advanced Living Inc.’s Schwenckfeld Manor did not monitor the timely deposit of residual receipts. Questioned Costs: The Project had the residual receipts of $204,886 as calculated on the audited financial statements for the year ended June 30, 2023. Recommendation: The Project should more closely monitor its timely deposit of residual receipts as required by the regulatory agreement. Management's Response: Management had asked HUD for guidance in this matter during September of the fiscal year, but it was not officially addressed. Management made the same request this year and HUD is looking into the possibility of using the residual receipts to pay the owner advance off. As of today, management has not received definitive guidance. Management will follow the recommendation received from HUD and deposit the residual receipts with HUD.