FAC Explorer

Audit 353314

FY End
2024-12-31
Total Expended
$6.08M
Findings
10
Programs
2
Organization: Murphy Senior Living, INC (MO)
Year: 2024 Accepted: 2025-04-10
Auditor: Cbiz CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
554689 2024-001 Significant Deficiency Yes P
554690 2024-001 Significant Deficiency Yes P
554691 2024-002 Significant Deficiency - P
554692 2024-002 Significant Deficiency - P
554693 2024-003 Significant Deficiency - P
1131131 2024-001 Significant Deficiency Yes P
1131132 2024-001 Significant Deficiency Yes P
1131133 2024-002 Significant Deficiency - P
1131134 2024-002 Significant Deficiency - P
1131135 2024-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
14.134 Mortgage Insurance Rental Housing $5.08M Yes 2
14.182 Section 8 New Construction and Substantial Rehabilitation $998,398 Yes 3

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: 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: 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: 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: 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, 2024 and 2023 were $4,839,641 and $5,080,246, respectively.

Finding Details

Finding 2024-001
S3800-010 Finding Reference Number: 2024-01 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: 2023-01 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, 2023 to HUD within the required timeframe. The financial statements were due March 31, 2024, but were not submitted until November 22, 2024, 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 noncompliance 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, 2023, 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 2024-001
S3800-010 Finding Reference Number: 2024-01 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: 2023-01 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, 2023 to HUD within the required timeframe. The financial statements were due March 31, 2024, but were not submitted until November 22, 2024, 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 noncompliance 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, 2023, 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 2024-002
S3800-010 Finding Reference Number: 2024-02 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 Federal Audit Clearinghouse (FAC) guidance, non-profit entity project owners/agents are required to submit the data collection form and audited financial statements 30 days after the receipt of the auditors' report or 9 months after the end of the fiscal year. S3800-030 Statement of Condition: The Project failed to submit the data collection form and financial statements for the year ended December 31, 2023 to FAC within the required timeframe. The data collection form and financial statements were due September 30, 2024, but were not submitted until November 26, 2024, resulting in a delay. S3800-032 Cause: Records were not completed sufficiently to submit the FAC information in a timely manner. S3800-033 Effect or Potential Effect: The failure to submit the data collection form and financial statements on time places the project in non-compliance with Office of Management and Budget's (OMB) financial reporting requirements. This non-compliance may result in administrative actions by OMB, 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 FAC requirements. S3800-050 Context: For the year ended December 31, 2023, the Project did not file the FAC data collection form 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 2024-002
S3800-010 Finding Reference Number: 2024-02 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 Federal Audit Clearinghouse (FAC) guidance, non-profit entity project owners/agents are required to submit the data collection form and audited financial statements 30 days after the receipt of the auditors' report or 9 months after the end of the fiscal year. S3800-030 Statement of Condition: The Project failed to submit the data collection form and financial statements for the year ended December 31, 2023 to FAC within the required timeframe. The data collection form and financial statements were due September 30, 2024, but were not submitted until November 26, 2024, resulting in a delay. S3800-032 Cause: Records were not completed sufficiently to submit the FAC information in a timely manner. S3800-033 Effect or Potential Effect: The failure to submit the data collection form and financial statements on time places the project in non-compliance with Office of Management and Budget's (OMB) financial reporting requirements. This non-compliance may result in administrative actions by OMB, 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 FAC requirements. S3800-050 Context: For the year ended December 31, 2023, the Project did not file the FAC data collection form 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 2024-003
S3800-010 Finding Reference Number: 2024-03 S3800-011 Title and CFDA Number of Federal Program: Section 8 Housing Project-Based Cluster 14.182 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, management must implement approved rent changes on the effective date approved by HUD or the Contract Administrator. In some cases, this date may reflect a retroactive approval, and management must change the tenant certification and adjust the monthly subsidy voucher. Revised data must be transmitted to the Contract Administrator or to TRACS to reflect the retroactive changes. S3800-030 Statement of Condition: The Project received an approved rent increase effective September 1, 2024. The Project failed to implement the HUD approved rate increase on the effective approval date. S3800-032 Cause: Oversite was due to staff changes. S3800-033 Effect or Potential Effect: The failure to implement rate increase may result in an understatement of revenues and delayed cash receipts. 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: R – Section 8 program administrations 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 rate changes are implemented timely in accordance with HUD requirements. S3800-050 Context: For the year ended December 31, 2024, the Project did not implement approved rent rate increase on the approved effective date. 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 2024-001
S3800-010 Finding Reference Number: 2024-01 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: 2023-01 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, 2023 to HUD within the required timeframe. The financial statements were due March 31, 2024, but were not submitted until November 22, 2024, 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 noncompliance 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, 2023, 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 2024-001
S3800-010 Finding Reference Number: 2024-01 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: 2023-01 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, 2023 to HUD within the required timeframe. The financial statements were due March 31, 2024, but were not submitted until November 22, 2024, 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 noncompliance 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, 2023, 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 2024-002
S3800-010 Finding Reference Number: 2024-02 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 Federal Audit Clearinghouse (FAC) guidance, non-profit entity project owners/agents are required to submit the data collection form and audited financial statements 30 days after the receipt of the auditors' report or 9 months after the end of the fiscal year. S3800-030 Statement of Condition: The Project failed to submit the data collection form and financial statements for the year ended December 31, 2023 to FAC within the required timeframe. The data collection form and financial statements were due September 30, 2024, but were not submitted until November 26, 2024, resulting in a delay. S3800-032 Cause: Records were not completed sufficiently to submit the FAC information in a timely manner. S3800-033 Effect or Potential Effect: The failure to submit the data collection form and financial statements on time places the project in non-compliance with Office of Management and Budget's (OMB) financial reporting requirements. This non-compliance may result in administrative actions by OMB, 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 FAC requirements. S3800-050 Context: For the year ended December 31, 2023, the Project did not file the FAC data collection form 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 2024-002
S3800-010 Finding Reference Number: 2024-02 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 Federal Audit Clearinghouse (FAC) guidance, non-profit entity project owners/agents are required to submit the data collection form and audited financial statements 30 days after the receipt of the auditors' report or 9 months after the end of the fiscal year. S3800-030 Statement of Condition: The Project failed to submit the data collection form and financial statements for the year ended December 31, 2023 to FAC within the required timeframe. The data collection form and financial statements were due September 30, 2024, but were not submitted until November 26, 2024, resulting in a delay. S3800-032 Cause: Records were not completed sufficiently to submit the FAC information in a timely manner. S3800-033 Effect or Potential Effect: The failure to submit the data collection form and financial statements on time places the project in non-compliance with Office of Management and Budget's (OMB) financial reporting requirements. This non-compliance may result in administrative actions by OMB, 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 FAC requirements. S3800-050 Context: For the year ended December 31, 2023, the Project did not file the FAC data collection form 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 2024-003
S3800-010 Finding Reference Number: 2024-03 S3800-011 Title and CFDA Number of Federal Program: Section 8 Housing Project-Based Cluster 14.182 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, management must implement approved rent changes on the effective date approved by HUD or the Contract Administrator. In some cases, this date may reflect a retroactive approval, and management must change the tenant certification and adjust the monthly subsidy voucher. Revised data must be transmitted to the Contract Administrator or to TRACS to reflect the retroactive changes. S3800-030 Statement of Condition: The Project received an approved rent increase effective September 1, 2024. The Project failed to implement the HUD approved rate increase on the effective approval date. S3800-032 Cause: Oversite was due to staff changes. S3800-033 Effect or Potential Effect: The failure to implement rate increase may result in an understatement of revenues and delayed cash receipts. 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: R – Section 8 program administrations 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 rate changes are implemented timely in accordance with HUD requirements. S3800-050 Context: For the year ended December 31, 2024, the Project did not implement approved rent rate increase on the approved effective date. 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.