FAC Explorer

Audit 370901

FY End
2024-12-31
Total Expended
$4.89M
Findings
1
Programs
1
Organization: Lgarpa CORP Dba Lgar Health & Rehabilitation (PA)
Year: 2024 Accepted: 2025-10-16
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1160610 2024-001 Material Weakness 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 $4.89M Yes 1

Contacts

Name Title Type
S2R4YLB5M4K8 Joann Bazanos Auditee
4128259000 Brandon Harlan Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of LGARPa, Corp. d/b/a LGAR Health and Rehabilitation Center (the Organization), FHA Project Number 033-43136, under program 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 (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 Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Additionally, due to the different reporting requirements of the financial statements from those of the above Schedule, some amounts presented may differ from amounts presented in or used in, the preparation of the financial statements.
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 limited as to reimbursement.
LGARPa, Corp. d/b/a LGAR Health and Rehabilitation Center, FHA Project Number 033-43136, has an outstanding loan balance of $4,662,280 with continuing compliance requirements as of December 31, 2024. The loan program is included in the federal expenditures presented in the Schedule. The amount of federal expenditures represents the outstanding principal balance as of January 1, 2024.
The Organization has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The Organization operates as a nonprofit skilled nursing facility under the following tax identification number: 25-1735895.

Finding Details

Finding 2024-001
Section III - Federal Award Findings and Questioned Costs Finding 2024-001: Significant Deficiency in Internal Controls Over Compliance - Debt Payments Federal Program: U.S. Department of Housing and Urban Development Mortgage Insurance, Nursing Home (Section 232) Assistance Listing Number: 14.129 Federal Agency: U.S. Department of Housing and Urban Development Pass-Through Agency: N/A Questioned Costs: N/A Criteria: In accordance with the terms of its debt agreements, the Organization is required to make timely principal and interest payments as scheduled. Condition: During the year under audit, the Organization did not make two scheduled debt service payments when due as a result of insufficient available funds. The payments were subsequently remitted after the due dates; however, the Organization was in noncompliance with the terms of its debt agreements at the time of the missed payments. Effect: Failure to make timely debt service payments exposes the client to potential default under its debt agreements Cause: The missed payments were due to cash flow constraints. Recommendation: We recommend management strengthen its cash flow forecasting and monitoring processes to ensure that adequate funds are reserved and available to make debt service payments when due. View of Responsible Officials: Management of the Company agrees with this finding. Current Status: Management is aware of the requirement to make timely debt service payments and has implemented procedures to ensure funds are available when payments are due. As of the date of this report, the Organization is current on all required debt service payments.