Audit 363196

FY End
2025-03-31
Total Expended
$27.75M
Findings
2
Programs
1
Organization: Orlando Rehabilitation Group (FL)
Year: 2025 Accepted: 2025-07-28

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
572073 2025-001 Material Weakness - A
1148515 2025-001 Material Weakness - A

Contacts

Name Title Type
E17KLBD9ZJ98 Susan Shain Auditee
5612234161 Nathin Davenport Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - 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 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: ORG has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Orlando Rehabilitation Group, Inc. (“ORG”) under a program of the federal government for the year ended March 31, 2025. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of ORG, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of ORG.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on 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 not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: ORG has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on 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 not allowable or are limited as to reimbursement.
Title: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported on 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 not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: ORG has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. ORG has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 - Federal Loan Programs Accounting Policies: Expenditures reported on 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 not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: ORG has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan programs listed subsequently are administered directly by ORG, and balances and transactions relating to these programs are included in ORG's financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at March 31, 2025 consists of: Mortgage Insurance Nursing $ 27,050,093 Home Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Program Name Outstanding Balance at March 31, 2025 Assistance Listing Number 14.129

Finding Details

Information on the Federal Program: Assistance Listing number: 14.129 Program Title: Insurance - Nursing Home, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Agency: United States Department of Housing and Urban Development Finding Year: 2025 Criteria or specific requirement: Unauthorized loans of project funds. Owners shall not, without written consent of HUD, assign, transfer, dispose of or encumber a personal property of the project, including rents, or pay out any funds except for reasonable operating expenses and necessary repairs. Condition: During 2025, ORG made cash advances approximating $2,675,000 to notfor- profit entities that provide skilled nursing services not authorized by HUD. Cause: Funds were advanced without prior written approval. Effect or potential effect: By advancing funds without U.S. HUD authorization, there is potential that U.S. HUD will not approve the advance and require the funds to be repaid in a manner that was different from what ORG originally planned on. Questioned costs: $2,675,000 of advanced project funds. Identification as a repeat finding: Not applicable Recommendation: ORG should request written approval from U.S. HUD on the allowability of the $2,675,000 advances to other not-for-profit entities that provide skilled nursing services. In the event that HUD does not approve the advance, ORG should seek repayment of such advances. Views of responsible officials and planned corrective actions: See attached management’s correction action plan.
Information on the Federal Program: Assistance Listing number: 14.129 Program Title: Insurance - Nursing Home, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Agency: United States Department of Housing and Urban Development Finding Year: 2025 Criteria or specific requirement: Unauthorized loans of project funds. Owners shall not, without written consent of HUD, assign, transfer, dispose of or encumber a personal property of the project, including rents, or pay out any funds except for reasonable operating expenses and necessary repairs. Condition: During 2025, ORG made cash advances approximating $2,675,000 to notfor- profit entities that provide skilled nursing services not authorized by HUD. Cause: Funds were advanced without prior written approval. Effect or potential effect: By advancing funds without U.S. HUD authorization, there is potential that U.S. HUD will not approve the advance and require the funds to be repaid in a manner that was different from what ORG originally planned on. Questioned costs: $2,675,000 of advanced project funds. Identification as a repeat finding: Not applicable Recommendation: ORG should request written approval from U.S. HUD on the allowability of the $2,675,000 advances to other not-for-profit entities that provide skilled nursing services. In the event that HUD does not approve the advance, ORG should seek repayment of such advances. Views of responsible officials and planned corrective actions: See attached management’s correction action plan.