FAC Explorer

Audit 408236

FY End
2026-03-31
Total Expended
$27.05M
Findings
2
Programs
1
Organization: Orlando Rehabilitation Group (FL)
Year: 2026 Accepted: 2026-07-30
Auditor: FORVIS MAZARS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1225078 2026-001 Material Weakness Yes AB
1225079 2026-002 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 $27.05M Yes 2

Contacts

Name Title Type
E17KLBD9ZJ98 Susan Shain Auditee
5612234161 Nathin Davenport Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of Orlando Rehabilitation Group, Inc. (“ORG”) under a program of the federal government for the year ended March 31, 2026. 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 Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of ORG, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of ORG.
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.
ORG has not elected to use the de minimis indirect cost rate allowed under the Uniform Guidance.
The federal loan programs listed subsequently are administered directly by ORG, and balances and transactions relating to these programs are included in ORG's consolidated financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at March 31, 2026 consists of: Assistance Listing Number Program Name Outstanding Balance at March 31, 2026 14.129 Mortgage Insurance Nursing Home Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities $ 26,329,337

Finding Details

Finding 2026-001
Information on the Federal Program: Assistance Listing number: 14.129 Program Title: Insurance - Nursing Home, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Agency: United States Department of Housing and Urban Development Finding Year: 2026 Criteria or Specific Requirement: Cash Disbursements All disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation. Project funds should only be used to pay for mortgage payments, required deposits to the reserve for replacement fund, reasonable expenses necessary for the operation and maintenance of the project, distributions of surplus cash as permitted, and repayment of owner advances from surplus cash or as authorized by HUD. Disbursements from a centralized account must clearly be traceable to each project. The actual cash position of each project in this account must be easily identifiable at all times without exception. Condition: During 2026, ORG made cash donations approximating $8,000,000 to not-for-profit entities that provide skilled nursing services not authorized by HUD. One of the not-for-profit entities share a common board chair with ORG. Cause: Management and governance oversight and were not aware of disbursement requirements. Effect or Potential Effect: By donating funds without HUD authorization, there is potential that HUD will not approve the donation and require the funds to be repaid in a manner that was different from what ORG originally planned on. Questioned Costs: $8,000,000 of donated project funds. Identification as a Repeat Finding: Not applicable Recommendation: ORG should request written approval from HUD on the allowability of the $8,000,000 donations to other not-for-profit entities that provide skilled nursing services. In the event that HUD does not approve the donations, ORG should seek repayment of such donations. Views of Responsible Officials and Planned Corrective Actions: See attached for management’s correction action plan.
Finding 2026-002
Information on the Federal Program: Assistance Listing number: 14.129 Program Title: Insurance - Nursing Home, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Agency: United States Department of Housing and Urban Development Finding Year: 2026 Criteria or Specific Requirement: Unauthorized Loans of Project Funds Owners shall not, without written consent of HUD, assign, transfer, dispose of or encumber a personal property of the project, including rents, or pay out any funds except for reasonable operating expenses and necessary repairs. Condition: During 2025, ORG made cash advances approximating $2,675,000 to not-for-profit entities that provide skilled nursing services, which share a common board chair with ORG, which was not authorized by HUD. As of March 31, 2026 the amount outstanding was $1,950,000. HUD approval is still pending. Cause: Funds were advanced without prior written approval from HUD. Effect or Potential Effect: By advancing funds without HUD authorization, there is potential that HUD will not approve the advance and require the funds to be repaid in a manner that was different from what ORG originally planned on. Questioned Costs: N/A. Identification as a Repeat Finding: Yes – Finding 2025-001 Recommendation: ORG should request written approval from HUD on the allowability of the $2,675,000 advances to other not-for-profit entities that provide skilled nursing services. In the event that HUD does not approve the advances, ORG should seek repayment of such advances. Views of Responsible Officials and Planned Corrective Actions: See attached for management’s correction action plan.