FAC Explorer

Audit 381588

FY End
2025-09-30
Total Expended
$6.82M
Findings
1
Programs
1
Organization: Marion Williamson County Parkway, LLC (IL)
Year: 2025 Accepted: 2026-01-14
Auditor: RSM US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1168962 2025-001 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
14.129 MORTGAGE INSURANCE NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES $6.82M Yes 1

Contacts

Name Title Type
LW49DU6DZLK6 Brian Burger Auditee
3093431550 Michelle Vancil Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Marion Williamson County Parkway, LLC (the Organization) under programs of the federal government for the year ended September 30, 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 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 deficit, or cash flows of the Organization.
The amount reported on the Schedule is reported on the accrual basis of accounting and is the HUD-insured mortgage loan balance outstanding as of October 1, 2024.
The Organization has not yet elected to use the 10% de minimis indirect cost rate as allowed under Uniform Guidance.
As of September 30, 2025, the Organization had a HUD-insured mortgage loan balance outstanding of $6,590,049.
There was no noncash federal assistance received by the Organization during the year.
The Organization maintains property and liability insurance which management believes is sufficient to meet its needs. None of the insurance is directly funded by federal awards.
The Organization did not pass-through any federal awards to subrecipients during the year ended September 30, 2025.

Finding Details

Finding 2025-001
Identifying Number: 2025-001 Information on the Federal Program: ALN #14.129, U.S. Department of Housing and Urban Development: Mortgage Insurance – Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities, HUD Project No. 072-22106. Criteria or Specific Requirement: The regulatory agreement (form HUD 92466-E) specifies in Paragraph 21: “The Mortgagor shall not reduce or expand, allow to be reduced, cause the expansion or reduction of the bed capacity, or change any bed to a different category (e.g., skilled to unskilled, etc.) without the consent of HUD. Any change in the bed capacity (without the consent of HUD) will violate this Agreement.” Condition: The Organization expanded the licensed bed size of the mortgaged property by 12 skilled nursing beds before obtaining an approval from HUD. Cause: The Organization increased the number of licensed beds before obtaining HUD approval. Effect: Noncompliance with the HUD compliance requirements per the regulatory agreement. Questioned Costs: Not applicable. Context: The population was tested 100%, therefore was statistically valid. This instance is isolated to this one bed change. Repeat Finding: This finding is a repeat finding (2024-001, 2023-001, 2022-001, 2021-001, 2020-001, 2019-001, 2018-001, 2017-001, 2016-001, 2015-001 and 2014-001). Recommendation: Procedures should be implemented to ensure HUD approval is obtained before bed changes are made on the mortgaged property. The Organization should also obtain approval after-the-fact for the specific bed change noted above. Views of Responsible Officials: Management agrees with finding 2025-001.