FAC Explorer

Audit 370224

FY End
2024-12-31
Total Expended
$14.49M
Findings
1
Programs
1
Organization: Loretto Rest Realty Corporation (NY)
Year: 2024 Accepted: 2025-10-01
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1159583 2024-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $14.49M Yes 1

Contacts

Name Title Type
S5TCVL48GFF6 Cassandra Bulak Auditee
3154313891 Michelle Mundy, CPA Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Loretto Rest Realty Corporation, Inc. (the Organization), HUD Project No. 014-43223 and is presented on the accrual basis of accounting. 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, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Organization.
The Organization obtained from HUD a guarantee of its mortgage payable. The outstanding balance of the mortgage at December 31, 2024 was $13,807,954.

Finding Details

Finding 2024-001
Condition: The Organization did not submit its REAC Financial Data Schedule (FDS) for the year ended December 31, 2023, by the required due date. The REAC submission was filed on October 4, 2024, which was four days after the required deadline. Criteria: Per HUD’s Uniform Financial Reporting Standards and the OMB Uniform Guidance, recipients of HUD assistance are required to submit their annual audited financial statements and related REAC FDS electronically through the REAC system no later than nine months after the end of their fiscal year. Timely submission is necessary for HUD’s oversight and monitoring of program compliance. Cause: Management did not have adequate monitoring controls in place to ensure timely submission of the REAC FDS to HUD. The delay was attributed to administrative delays in processing the filing. Effect: Failure to submit the REAC FDS by the required deadline places the Organization at risk of noncompliance with HUD requirements or potential impacts on future funding and participation in HUD programs. Recommendation: We recommend that the Organization strengthen its internal controls to ensure timely submission of required reports, including the REAC FDS. Views of Responsible Officials and Planned Corrective Action: Management concurs with this finding. The Organization has implemented procedures to track HUD filing deadlines and to monitor and submit the REAC FDS timely going forward.