FAC Explorer

Audit 370520

FY End
2024-12-31
Total Expended
$3.54M
Findings
6
Programs
1
Organization: Shiloh Manor, Inc. (CT)
Year: 2024 Accepted: 2025-10-06
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1160116 2024-001 Material Weakness Yes N
1160117 2024-002 Material Weakness Yes A
1160118 2024-003 Material Weakness Yes N
1160119 2024-001 Material Weakness Yes N
1160120 2024-002 Material Weakness Yes A
1160121 2024-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.157 Supportive Housing for the Elderly $3.29M Yes 3

Contacts

Name Title Type
FRL7B3YLRVJ6 Kimalee Williams Auditee
8605285000 Robert Balchunas Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal award activity of Shiloh Manor, Inc., HUD Project No. 017-EE012, 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 Title 2 U.S. Code of Federal Regulations 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 Shiloh Manor, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Shiloh Manor, Inc.
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.
Shiloh Manor, Inc. has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Shiloh Manor, Inc. has received a U.S. Department of Housing and Urban Development capital advance under Section 202 of the National Housing Act. The balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. Shiloh Manor, Inc. received no additional advances during the year. The balance of the outstanding advance at December 31, 2024 consists of the following: Federal Assistance Listing Number Program Name Outstanding Balance at December 31, 2024 14.157 Supportive Housing for the Elderly (Section 202) - Capital Advance $3,286,743
There are no payments to subrecipients in any of the federal award programs during the year ended December 31, 2024.

Finding Details

Finding 2024-001
Special Tests and Provisions; Supportive Housing for the Elderly, Federal Assistance Listing Number 14.157 Criteria- In accordance with HUD Handbook 4571.3, Section 202 Supportive Housing for the Elderly, funds may only be used with the approval of HUD. Condition - As of December 31, 2024, management had not repaid $40,239 due to reserve for replacement. Cause - Inadequate cash flow to fund operations and return of funds to reserve for replacement. Effect or Potential Effect - Shiloh Manor, Inc. is not in compliance with the funding requirement of the reserve for replacement. Questioned Costs - None Context - On December 31, 2017, HUD had approved a loan to operations from the reserve for replacement of $40,239 to be repaid upon receipt of the past due subsidy. When the past due subsidy was received the property was unable to repay the loan because of an unexpected increase in vacancies as a result of tenant turnover. Identification as a Repeat Finding - This is a repeat finding (see prior year finding number 2023-001). Recommendation - Management should work with HUD to execute the loan waiver for the delinquent amount of $40,239. Auditor Noncompliance Code: N - Reserve for replacement deposits. Finding Resolution Status: In process. Views of Responsible Officials As of December 31, 2024 management has not repaid $40,239 due to reserve for replacement. The owner and agent met with HUD to discuss the loan repayment. It was determined that the loan payment would be deferred and absorbed into the budget-based increase submitted to HUD and currently under review.
Finding 2024-002
Activities Allowed or Unallowed; Supportive Housing for the Elderly, Federal Assistance Listing Number 14.157 Criteria - In accordance with HUD Handbook 4571.3, Section 202 Supportive Housing for the Elderly, loans are not permitted to be made from project cash without prior authorization from HUD. Condition - During the year ended December 31, 2023, the project paid payroll expenses in the amount of $76 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of December 31, 2024 is $76. Cause - Procedures were not in place to ensure that cash disbursements of projects funds were limited to project operating costs. Effect or Potential Effect - The payment of $76 is an unauthorized loan and therefore considered to be questioned costs. Questioned Costs - $76 Context - During 2023, the project paid payroll expenses for an affiliated entity from project cash account resulting in a receivable in the amount of $76. Identification as a Repeat Finding - This is a repeat finding (see prior year finding number 2023-002). Recommendation - Management should immediately reimburse the amount due to the project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code: G - Unauthorized loans from project assets. Finding Resolution Status: Completed. Views of Responsible Officials - Management reimbursed the funds to the project on September 4, 2025.
Finding 2024-003
Special Tests and Provisions; Supportive Housing for the Elderly, Federal Assistance Listing Number 14.157 Criteria - HUD regulatory agreement for Section 202 Supportive Housing for the Elderly requires that the project make timely monthly deposits to its replacement reserve. Condition - During the year ended December 31, 2024, the monthly deposits of $5,500 were not timely made. One payment was not made until February 2025. Cause - The project does not generate sufficient cash flow to make the required monthly deposits. Effect or Potential Effect - Failure to make monthly payments resulted in underfunding the replacement reserve and a violation of the regulatory agreement. Questioned Costs - None Context - The deposits were not made timely and only eleven deposits were made as of December 31, 2024. The twelfth deposit was made in February 2025. Identification as a Repeat Finding - This is a repeat finding (see prior year finding number 2023-003). Recommendation - Management should review the project budget to ensure that the replacement reserve is funded timely and in accordance with the terms of the regulatory agreement. Auditor Noncompliance Code: N - Reserve for replacement deposits. Finding Resolution Status: Completed. Views of Responsible Officials - The last amount of $5,500 of the reserve funding for 2024 was accounted for in February 2025 to fully fund for the 2024 year.