FAC Explorer

Audit 358406

FY End
2024-12-31
Total Expended
$18.24M
Findings
2
Programs
1
Organization: Regent at Apple Valley, LLC Dba: the Seasons at Apple Valley (MN)
Year: 2024 Accepted: 2025-06-10
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
564275 2024-001 Significant Deficiency Yes P
1140717 2024-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
14.129 Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $18.24M Yes 1

Contacts

Name Title Type
GMYQLML5MFD3 Doug Harrison Auditee
8173045727 Chris Steinhoff Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Project under programs of the federal government for the year ended December 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 the Project, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Project. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Section 232 HUD-Insured Mortgage had an outstanding balance of $17,842,633 at December 31, 2024. De Minimis Rate Used: N Rate Explanation: The Project has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-001
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 232 HUD-Insured Mortgage Listing Number: 14.129 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Management is required to retain the HUD approved management agreement to ensure payments made are in accordance with HUD requirements. Condition: The Project does not have a HUD approved management agreement. Questioned costs: None Context: Management and HUD were unable to find the HUD approved agreement. Cause: Management did not retain the HUD approved management agreement. Effect: Due to the project not having a HUD approved management agreement, there is a possibility that management fees paid by the project are inaccurate. Repeat Finding: 2023-001 Recommendation: Recommend that management work with HUD to have the current management agreement approved. Views of responsible officials: There is no disagreement with the audit finding. Management will contact HUD to obtain an approved management agreement.
Finding 2024-001
Federal agency: U.S. Department of Housing and Urban Development Federal program title: Section 232 HUD-Insured Mortgage Listing Number: 14.129 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Management is required to retain the HUD approved management agreement to ensure payments made are in accordance with HUD requirements. Condition: The Project does not have a HUD approved management agreement. Questioned costs: None Context: Management and HUD were unable to find the HUD approved agreement. Cause: Management did not retain the HUD approved management agreement. Effect: Due to the project not having a HUD approved management agreement, there is a possibility that management fees paid by the project are inaccurate. Repeat Finding: 2023-001 Recommendation: Recommend that management work with HUD to have the current management agreement approved. Views of responsible officials: There is no disagreement with the audit finding. Management will contact HUD to obtain an approved management agreement.