FAC Explorer

Audit 330074

FY End
2023-12-31
Total Expended
$6.29M
Findings
4
Programs
3
Organization: Murphy Senior Living, INC (MO)
Year: 2023 Accepted: 2024-11-26
Auditor: Marcum LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
512302 2023-001 Significant Deficiency - P
512303 2023-001 Significant Deficiency - P
1088744 2023-001 Significant Deficiency - P
1088745 2023-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.134 Mortgage Insurance Rental Housing $5.31M Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $966,881 Yes 1
14.191 Multifamily Housing Service Coordinators $10,571 - 0

Contacts

Name Title Type
PMLHSB3Y4EH5 Dawn Kleinschrodt Auditee
3148625955 Michael Potoczak Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: The Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Murphy Senior Living, Inc. and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Uniform Guidance. Because the Schedule presents only a selected portion of the operations of Murphy Senior Living, Inc., it is not intended to and does not present the financial position, changes in assets, or cash flows of Murphy Senior Living, Inc. Expenditures reflected in 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 either not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Murphy Senior Living, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Murphy Senior Living, Inc. and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Uniform Guidance. Because the Schedule presents only a selected portion of the operations of Murphy Senior Living, Inc., it is not intended to and does not present the financial position, changes in assets, or cash flows of Murphy Senior Living, Inc.
Title: Note 2 – Summary of Significant Accounting Policies Accounting Policies: The Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Murphy Senior Living, Inc. and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Uniform Guidance. Because the Schedule presents only a selected portion of the operations of Murphy Senior Living, Inc., it is not intended to and does not present the financial position, changes in assets, or cash flows of Murphy Senior Living, Inc. Expenditures reflected in 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 either not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Murphy Senior Living, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. Expenditures reflected in 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 either not allowable or limited as to reimbursement.
Title: Note 3 – Indirect Cost Rate Accounting Policies: The Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Murphy Senior Living, Inc. and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Uniform Guidance. Because the Schedule presents only a selected portion of the operations of Murphy Senior Living, Inc., it is not intended to and does not present the financial position, changes in assets, or cash flows of Murphy Senior Living, Inc. Expenditures reflected in 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 either not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Murphy Senior Living, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. Murphy Senior Living, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance.
Title: Note 4 - Other Assistance Accounting Policies: The Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of Murphy Senior Living, Inc. and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Uniform Guidance. Because the Schedule presents only a selected portion of the operations of Murphy Senior Living, Inc., it is not intended to and does not present the financial position, changes in assets, or cash flows of Murphy Senior Living, Inc. Expenditures reflected in 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 either not allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Murphy Senior Living, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under Uniform Guidance. The Organization’s loan with Gershman Mortgage is insured under Section 223(f) (CFDA #14.134 Mortgage Insurance Rental Housing). The outstanding loan balance at December 31, 2023 and 2022 were $5,080,246 and $5,313,981, respectively.

Finding Details

Finding 2023-001
S3800-010 Finding Reference Number: 2023-01 S3800-011 Title and CFDA Number of Federal Program: "Section 8 Housing Project-Based Cluster 14.182 Mortgage Insurance rental Housing 14.134" S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status Resolved S3800-017 Information on Universe Population Size: N/A S3800-018 Sample Size Information: N/A S3800-019 Identification of Repeat Finding and Finding Reference Number: N/A S3800-020 Criteria: Per HUD guidance, non-profit entity project owners/agents are required to submit audited or unaudited financial statements within 90 days after the end of the fiscal year. If an unaudited submission is filed, the audited submission is due 9 months after the end of the fiscal year. This requirement ensures HUD can monitor the financial health and compliance of the projects it insures or subsidizes. S3800-030 Statement of Condition: The Project failed to submit financial statements for the year ended December 31, 2022 to HUD within the required timeframe. The financial statements were due March 31, 2023, but were not submitted until May 11, 2023, resulting in a delay. S3800-032 Cause: Records were not completed sufficiently to submit the REAC report in a timely manner. S3800-033 Effect or Potential Effect: The failure to submit the financial statements on time places the project in non-compliance with HUD's financial reporting requirements. This non-compliance may result in administrative actions by HUD, including potential sanctions, future funding or renewal of contracts. S3800-035 Auditor Non-Compliance Code: Z - Other S3800-037 FHA/Contract Number: 085-11073 S3800-040 Questioned Costs: $-- S3800-045 Reporting Views of Responsible Officials: Management acknowledges the finding and is taking corrective actions to address the issue. The Project is seeking to hire additional staff and is committed to ensuring future financial statements are submitted in accordance with HUD requirements. S3800-050 Context: For the year ended December 31, 2022, the Project did not file the REAC report with HUD by the filing deadline. S3800-080 Recommendation: We recommend that the Project implement enhanced internal controls and procedures including establishing timelines for financial reporting, emphasizing key dates and deadlines to prevent late filing is in the future.
Finding 2023-001
S3800-010 Finding Reference Number: 2023-01 S3800-011 Title and CFDA Number of Federal Program: "Section 8 Housing Project-Based Cluster 14.182 Mortgage Insurance rental Housing 14.134" S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status Resolved S3800-017 Information on Universe Population Size: N/A S3800-018 Sample Size Information: N/A S3800-019 Identification of Repeat Finding and Finding Reference Number: N/A S3800-020 Criteria: Per HUD guidance, non-profit entity project owners/agents are required to submit audited or unaudited financial statements within 90 days after the end of the fiscal year. If an unaudited submission is filed, the audited submission is due 9 months after the end of the fiscal year. This requirement ensures HUD can monitor the financial health and compliance of the projects it insures or subsidizes. S3800-030 Statement of Condition: The Project failed to submit financial statements for the year ended December 31, 2022 to HUD within the required timeframe. The financial statements were due March 31, 2023, but were not submitted until May 11, 2023, resulting in a delay. S3800-032 Cause: Records were not completed sufficiently to submit the REAC report in a timely manner. S3800-033 Effect or Potential Effect: The failure to submit the financial statements on time places the project in non-compliance with HUD's financial reporting requirements. This non-compliance may result in administrative actions by HUD, including potential sanctions, future funding or renewal of contracts. S3800-035 Auditor Non-Compliance Code: Z - Other S3800-037 FHA/Contract Number: 085-11073 S3800-040 Questioned Costs: $-- S3800-045 Reporting Views of Responsible Officials: Management acknowledges the finding and is taking corrective actions to address the issue. The Project is seeking to hire additional staff and is committed to ensuring future financial statements are submitted in accordance with HUD requirements. S3800-050 Context: For the year ended December 31, 2022, the Project did not file the REAC report with HUD by the filing deadline. S3800-080 Recommendation: We recommend that the Project implement enhanced internal controls and procedures including establishing timelines for financial reporting, emphasizing key dates and deadlines to prevent late filing is in the future.
Finding 2023-001
S3800-010 Finding Reference Number: 2023-01 S3800-011 Title and CFDA Number of Federal Program: "Section 8 Housing Project-Based Cluster 14.182 Mortgage Insurance rental Housing 14.134" S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status Resolved S3800-017 Information on Universe Population Size: N/A S3800-018 Sample Size Information: N/A S3800-019 Identification of Repeat Finding and Finding Reference Number: N/A S3800-020 Criteria: Per HUD guidance, non-profit entity project owners/agents are required to submit audited or unaudited financial statements within 90 days after the end of the fiscal year. If an unaudited submission is filed, the audited submission is due 9 months after the end of the fiscal year. This requirement ensures HUD can monitor the financial health and compliance of the projects it insures or subsidizes. S3800-030 Statement of Condition: The Project failed to submit financial statements for the year ended December 31, 2022 to HUD within the required timeframe. The financial statements were due March 31, 2023, but were not submitted until May 11, 2023, resulting in a delay. S3800-032 Cause: Records were not completed sufficiently to submit the REAC report in a timely manner. S3800-033 Effect or Potential Effect: The failure to submit the financial statements on time places the project in non-compliance with HUD's financial reporting requirements. This non-compliance may result in administrative actions by HUD, including potential sanctions, future funding or renewal of contracts. S3800-035 Auditor Non-Compliance Code: Z - Other S3800-037 FHA/Contract Number: 085-11073 S3800-040 Questioned Costs: $-- S3800-045 Reporting Views of Responsible Officials: Management acknowledges the finding and is taking corrective actions to address the issue. The Project is seeking to hire additional staff and is committed to ensuring future financial statements are submitted in accordance with HUD requirements. S3800-050 Context: For the year ended December 31, 2022, the Project did not file the REAC report with HUD by the filing deadline. S3800-080 Recommendation: We recommend that the Project implement enhanced internal controls and procedures including establishing timelines for financial reporting, emphasizing key dates and deadlines to prevent late filing is in the future.
Finding 2023-001
S3800-010 Finding Reference Number: 2023-01 S3800-011 Title and CFDA Number of Federal Program: "Section 8 Housing Project-Based Cluster 14.182 Mortgage Insurance rental Housing 14.134" S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status Resolved S3800-017 Information on Universe Population Size: N/A S3800-018 Sample Size Information: N/A S3800-019 Identification of Repeat Finding and Finding Reference Number: N/A S3800-020 Criteria: Per HUD guidance, non-profit entity project owners/agents are required to submit audited or unaudited financial statements within 90 days after the end of the fiscal year. If an unaudited submission is filed, the audited submission is due 9 months after the end of the fiscal year. This requirement ensures HUD can monitor the financial health and compliance of the projects it insures or subsidizes. S3800-030 Statement of Condition: The Project failed to submit financial statements for the year ended December 31, 2022 to HUD within the required timeframe. The financial statements were due March 31, 2023, but were not submitted until May 11, 2023, resulting in a delay. S3800-032 Cause: Records were not completed sufficiently to submit the REAC report in a timely manner. S3800-033 Effect or Potential Effect: The failure to submit the financial statements on time places the project in non-compliance with HUD's financial reporting requirements. This non-compliance may result in administrative actions by HUD, including potential sanctions, future funding or renewal of contracts. S3800-035 Auditor Non-Compliance Code: Z - Other S3800-037 FHA/Contract Number: 085-11073 S3800-040 Questioned Costs: $-- S3800-045 Reporting Views of Responsible Officials: Management acknowledges the finding and is taking corrective actions to address the issue. The Project is seeking to hire additional staff and is committed to ensuring future financial statements are submitted in accordance with HUD requirements. S3800-050 Context: For the year ended December 31, 2022, the Project did not file the REAC report with HUD by the filing deadline. S3800-080 Recommendation: We recommend that the Project implement enhanced internal controls and procedures including establishing timelines for financial reporting, emphasizing key dates and deadlines to prevent late filing is in the future.