FAC Explorer

Audit 381591

FY End
2025-09-30
Total Expended
$4.24M
Findings
1
Programs
1
Organization: Pittsfield Lowry, LLC (IL)
Year: 2025 Accepted: 2026-01-14
Auditor: RSM US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1168963 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.129 MORTGAGE INSURANCE NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES $4.24M Yes 1

Contacts

Name Title Type
G6K7CES93HJ1 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 Pittsfield Lowry, 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 $4,079,430.
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. 072-22113. Criteria or Specific Requirement: The regulatory agreement (form HUD 92466-E) specifies in Paragraph 5: “The Mortgagor agrees to deposit in a residual receipts fund any residual receipts realized from the operation of the mortgaged property. No distribution from such fund shall be made without the prior written approval of the Secretary. Any distribution from such fund, which the party receiving such distribution is not entitled to retain hereunder, shall be held in trust separate and apart from any other funds.” Condition: The Organization calculated surplus cash of $31,225 as of September 30, 2020 and surplus cash of $39,082 as of September 30, 2021, which includes the undeposited amount from September 30, 2020. This amount was not deposited into a residual receipts fund account. The Organization calculated surplus cash of $149,237 as of September 30, 2022, which includes the undeposited amount from September 30, 2021. The Organization has not deposited this amount into a separate residual receipts fund account within 90 days of the fiscal year-end. Cause: Required deposit of residual receipts in a separate residual receipts fund within 90 days of year-end was not made. 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. Repeat finding: This finding is a repeat finding (2024-001, 2023-002, 2022-002, 2021-002). Recommendation: Procedures should be implemented to ensure residual receipts are deposited into a separate fund within 90 days of year-end. The Organization should deposit in a separate residual receipts fund residual receipts of $149,237 realized from the operation of the mortgaged property in the prior year. Views of Responsible Officials: Management disagrees with finding 2025-001.