Audit 337480

FY End

2024-05-31

Total Expended

$1.58M

Findings

4

Programs

1

Organization: Mizpah Assisted Living Services, INC (MO)

Year: 2024 Accepted: 2025-01-13

Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
518996	2024-001	Significant Deficiency	Yes	L
518997	2024-002	Significant Deficiency	Yes	L
1095438	2024-001	Significant Deficiency	Yes	L
1095439	2024-002	Significant Deficiency	Yes	L

ALN	Program	Spent	Major	Findings
14.129	Section 232 Insured Mortgage Note Payable	$1.58M	Yes	2

Contacts

Name	Title	Type
PF5RVJ6L2WN4	Joe Girardi	Auditee
3418021938	Jeffrey Heitgerd	Auditor
No contacts on file

Notes to SEFA

Title: 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 OMB Circular A-122, Cost Principles for Non-Profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Mizpah Assisted Living Services, Inc., has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: Mizpah Assisted Living Services, Inc., has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Mizpah Assisted Living Services, Inc., under programs of the federal government for the year ended May 31, 2024. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Mizpah Assisted Living Services, Inc., it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Mizpah Assisted Living Services, Inc. At May 31, 2024, the balance of Mizpah Assisted Living Services, Inc.’s HUD mortgage is $1,506,650, as represented by the Insured Mortgage Note Payable federal program above.

Finding Details

Finding 2024-001

Criteria or specific requirement: Financial Report Requirements requires quarterly financial reports to be prepared and due within 60 days after the end of the reporting quarter. Condition: Quarterly financial statements were not submitted to loan servicer within the 60 day period requirement for at least one quarter. The Project was not able to provide support on the timing of each quarterly financial statement submitted. Questioned costs: None Context: During our testing, it was noted that the Project did not submit reports for the quarter ended August 31, 2023 until November 17, 2023. Support for the timing of the November 30, 2023 and February 29, 2024 quarterly financials was not provided. Cause: Turnover in controller position lead to oversight of the requirement and maintenance of support. Effect: The quarterly report was not submitted in time in accordance with the Regulatory Agreement. Repeat finding: Yes Recommendation: We recommend the Project review controls to include processes to ensure timely submission. Views of responsible officials: There is no disagreement with the audit finding.

Finding 2024-002

Criteria or specific requirement: Financial Report Requirements required performance reports for required action plan to be submitted within 30 days of period end. Condition: The performance reports for the quarters ended June 30, 2023 and September 30, 2023 were submitted, but the Project was not able to support when. Questioned costs: None Context: During our testing, it was noted that the Project was not able to support the performance reports for the quarters referenced above were submitted within the required 30 days. Cause: Turnover in controller position lead to oversight of the requirement and maintenance of support. Effect: The quarterly report was not submitted in time in accordance with the Special Circumstances as defined in the HUD Handbook. Repeat finding: Yes Recommendation: We recommend the Project review controls to include processes to ensure timely submission. Views of responsible officials: There is no disagreement with the audit finding. Management believes all reporting has been cured because HUD acknowledged their compliance upon filing the quarter ended December 31, 2023 quarterly performance reports.

Finding 2024-001

Criteria or specific requirement: Financial Report Requirements requires quarterly financial reports to be prepared and due within 60 days after the end of the reporting quarter. Condition: Quarterly financial statements were not submitted to loan servicer within the 60 day period requirement for at least one quarter. The Project was not able to provide support on the timing of each quarterly financial statement submitted. Questioned costs: None Context: During our testing, it was noted that the Project did not submit reports for the quarter ended August 31, 2023 until November 17, 2023. Support for the timing of the November 30, 2023 and February 29, 2024 quarterly financials was not provided. Cause: Turnover in controller position lead to oversight of the requirement and maintenance of support. Effect: The quarterly report was not submitted in time in accordance with the Regulatory Agreement. Repeat finding: Yes Recommendation: We recommend the Project review controls to include processes to ensure timely submission. Views of responsible officials: There is no disagreement with the audit finding.

Finding 2024-002

Criteria or specific requirement: Financial Report Requirements required performance reports for required action plan to be submitted within 30 days of period end. Condition: The performance reports for the quarters ended June 30, 2023 and September 30, 2023 were submitted, but the Project was not able to support when. Questioned costs: None Context: During our testing, it was noted that the Project was not able to support the performance reports for the quarters referenced above were submitted within the required 30 days. Cause: Turnover in controller position lead to oversight of the requirement and maintenance of support. Effect: The quarterly report was not submitted in time in accordance with the Special Circumstances as defined in the HUD Handbook. Repeat finding: Yes Recommendation: We recommend the Project review controls to include processes to ensure timely submission. Views of responsible officials: There is no disagreement with the audit finding. Management believes all reporting has been cured because HUD acknowledged their compliance upon filing the quarter ended December 31, 2023 quarterly performance reports.