FAC Explorer

Audit 44235

FY End
2022-12-31
Total Expended
$15.12M
Findings
2
Programs
1
Organization: National Church Residences Chillicothe Land Holdings, Inc. (OH)
Year: 2022 Accepted: 2023-03-28
Auditor: Hw&co

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
44820 2022-001 - - P
621262 2022-001 - - P

Programs

ALN Program Spent Major Findings
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities $15.12M Yes 1

Contacts

Name Title Type
CYNNYD6SLRL7 Julie Fratianne Auditee
6142733508 Anthony Lanasa Auditor
No contacts on file

Notes to SEFA

Title: U.S. Department of Housing and Urban Development loan program Accounting Policies: Expenditures reported on the schedule of expenditures of Federal awards 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. De Minimis Rate Used: N Rate Explanation: Chillicothe Land Holdings has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Chillicothe Land Holdings has received a U.S. Department of Housing and Urban Development (HUD) insured mortgage under Section 232/223(f) of the National Housing Act. The loan balance outstanding at the beginning of the year is included in the Federal expenditures presented in the schedule. Chillicothe Land Holdings received no additional loans during the year. The balance of the loan outstanding at December 31, 2022 consists of: Federal Assistance Listing Number: 14.129; Program Name: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities; Outstanding Balance at December 31, 2022: $14,748,670
Title: Basis of presentation Accounting Policies: Expenditures reported on the schedule of expenditures of Federal awards 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. De Minimis Rate Used: N Rate Explanation: Chillicothe Land Holdings has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The schedule of expenditures of Federal awards includes the Federal award activity of National Church Residences Chillicothe Land Holdings, Inc. (Chillicothe Land Holdings) under the Federal government for the year ended December 31, 2022. 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 of expenditures of Federal awards presents only a selected portion of the operations of Chillicothe Land Holdings, it is not intended to and does not present the financial position, changes in net deficit, or cash flows of Chillicothe Land Holdings.

Finding Details

Finding 2022-001
Reference Number (S3800-010) 2022-001 Title and Federal Assistance Listing Number of Federal Program (S3800-011) Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities ? Federal Assistance Listing Number 14.129 Criteria (S3800-020) The affiliated lessee (Traditions at Chillicothe) received a level K deficiency during a complaint/infection control survey conducted by the Ohio Department of Health (ODH) completed on February 8, 2022. A level K deficiency is considered a pattern of immediate jeopardy to resident health or safety. The level K deficiency was not reported to HUD and the lender within the required 2 business days of receiving notice of the violation. Cause (S3800-0032) National Church Residences Chillicothe Land Holdings, Inc. is required to be in compliance with the borrower regulatory agreement that requires the level K deficiency to be reported to HUD and the lender within 2 business days of receiving the notice of the violation. Effect or Potential Effect (S3800-033) A level K deficiency was noted during a complaint/infection control survey conducted by ODH and was not reported to HUD and the lender within 2 business days of receiving the notice of the violation which is required by the borrower regulatory agreement. Recommendation (S3800-080) Management is required to notify HUD and the lender, which was completed on March 23, 2023. Auditor?s Summary of the Auditee?s Comments on Findings and Recommendations (S3800-090) Management of the affiliated lessee (Traditions at Chillicothe) agrees with the finding. The deficiency is an isolated incident and is not reoccurring. The affiliated lessee has implemented a sufficient plan of correction in order to mitigate the deficiency and all situations alike moving forward.
Finding 2022-001
Reference Number (S3800-010) 2022-001 Title and Federal Assistance Listing Number of Federal Program (S3800-011) Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities ? Federal Assistance Listing Number 14.129 Criteria (S3800-020) The affiliated lessee (Traditions at Chillicothe) received a level K deficiency during a complaint/infection control survey conducted by the Ohio Department of Health (ODH) completed on February 8, 2022. A level K deficiency is considered a pattern of immediate jeopardy to resident health or safety. The level K deficiency was not reported to HUD and the lender within the required 2 business days of receiving notice of the violation. Cause (S3800-0032) National Church Residences Chillicothe Land Holdings, Inc. is required to be in compliance with the borrower regulatory agreement that requires the level K deficiency to be reported to HUD and the lender within 2 business days of receiving the notice of the violation. Effect or Potential Effect (S3800-033) A level K deficiency was noted during a complaint/infection control survey conducted by ODH and was not reported to HUD and the lender within 2 business days of receiving the notice of the violation which is required by the borrower regulatory agreement. Recommendation (S3800-080) Management is required to notify HUD and the lender, which was completed on March 23, 2023. Auditor?s Summary of the Auditee?s Comments on Findings and Recommendations (S3800-090) Management of the affiliated lessee (Traditions at Chillicothe) agrees with the finding. The deficiency is an isolated incident and is not reoccurring. The affiliated lessee has implemented a sufficient plan of correction in order to mitigate the deficiency and all situations alike moving forward.