FAC Explorer

Audit 49539

FY End
2022-12-31
Total Expended
$7.05M
Findings
6
Programs
1
Organization: Living Independently for the Elderly, INC (NY)
Year: 2022 Accepted: 2023-09-28
Auditor: Hmm CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43909 2022-001 - Yes P
43910 2022-002 - Yes P
43911 2022-003 - Yes P
620351 2022-001 - Yes P
620352 2022-002 - Yes P
620353 2022-003 - 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 $7.05M Yes 3

Contacts

Name Title Type
D6H7YDWY5HG7 Anastasios Markopoulos Auditee
9147398511 Joseph Martello Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grantactivity of Living Independently for the Elderly, Inc. under programs of the federal government for the yearended December 31. The information in this schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements of Federal Awards (Uniform Guidance). Because the Schedulepresents only a selected portion of the operations of Living Independently for the Elderly, Inc., it is notintended to and does not present the financial position, changes in net assets or cash flows of LivingIndependently for the Elderly, Inc.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expendituresare recognized following the cost principles contained in Uniform Guidance, wherein certain types ofexpenditures are not allowable or are limited as to reimbursement. Negative amounts shown on theSchedule represent adjustments or credit made in the normal course of business to amounts reported asexpenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. MORTGAGE INSURANCE_NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES (14.129) - Balances outstanding at the end of the audit period were 7009597.

Finding Details

Finding 2022-001
Finding 2022-001 - Mortgage Status Criteria: LIFE, Inc. did not pay Mortgage and Escrow payments timely, in violation of section 3-5 of the Consolidated HUD Audit Guide. Condition: Procedures must be in place to ensure that the mortgage and escrow payments are made by the due date. Cause: LIFE, Inc. was operating at a net loss in 2022 and did not have the necessary cash flow to pay the outstanding HUD balances. Effect: The payments were late in 2022 and LIFE, Inc. incurred additional interest expense. Compliance Code: Q Recommendation: The auditee must implement procedures to ensure that the mortgage is paid by the due date. Views of Responsible Officials and Planned Corrective Action: LIFE, Inc. agrees with the finding and recommendation. In May 2023, the Management of Bethel Springvale Nursing Home, Inc. (the Center) closed on the asset purchase agreement and the proceeds were used to payoff all LIFE, Inc.'s HUD mortgage and escrow balances.
Finding 2022-002
Finding 2022-002 - Unauthorized Receivable Balance Criteria: LIFE, Inc. has an unauthorized receivable balance due from a non-HUD related party greater than the balance at closing in July 2001, in violation of section 3-5 of the Consolidated HUD Audit Guide. Condition: Procedures must be in place to ensure project funds are not used for non-entity purposes unless expressly authorized by HUD. Cause: The related party is in financial hardship and LIFE, Inc. had loaned monies to this non-HUD related party greater than the balance allowed. Effect: The payments put a strain on cash flow. Compliance Code: Z Recommendation: The auditee bring the receivable balance back to the July 2001 level at closing. Views of Responsible Officials and Planned Corrective Actions: LIFE, Inc. agrees with the finding and recommendation. LIFE, Inc. entered into a repayment plan to bring the receivable balance back to the July 2002 level at closing. In May 2023, the Management of Bethel Springvale Nursing Home, Inc. (the Center) closed on the asset purchase agreement and the proceeds were used to payoff all HUD mortgage and escrow balances.
Finding 2022-003
Finding 2022-003 - Reserve for Replacement Criteria: LIFE, Inc. did not pay reserve for replacement timely, in violation of section 3-5 of the Consolidated HUD Audit Guide. Condition: Procedures must be in place to ensure that the reserve for replacement deposits are made by the due date. Cause: LIFE, Inc. was operating at a net loss in 2022 and did not have the necessary cash flow to pay the required reserve for replacement amounts. Effect: The payments were late in 2022 and LIFE, Inc. incurred no additional interest for deposits being late. Compliance Code: N Recommendation: The auditee must implement procedures to ensure that the reserve for replacement amounts are paid by the due date. Views of Responsible Officials and Planned Corrective Actions: LIFE, Inc. agrees with the finding and recommendation. In May 2023, the Management of Bethel Springvale Nursing Home, Inc. (the Center) closed on the asset purchase agreement and the proceeds were used to payoff all LIFE, Inc.'s HUD balances owed.
Finding 2022-001
Finding 2022-001 - Mortgage Status Criteria: LIFE, Inc. did not pay Mortgage and Escrow payments timely, in violation of section 3-5 of the Consolidated HUD Audit Guide. Condition: Procedures must be in place to ensure that the mortgage and escrow payments are made by the due date. Cause: LIFE, Inc. was operating at a net loss in 2022 and did not have the necessary cash flow to pay the outstanding HUD balances. Effect: The payments were late in 2022 and LIFE, Inc. incurred additional interest expense. Compliance Code: Q Recommendation: The auditee must implement procedures to ensure that the mortgage is paid by the due date. Views of Responsible Officials and Planned Corrective Action: LIFE, Inc. agrees with the finding and recommendation. In May 2023, the Management of Bethel Springvale Nursing Home, Inc. (the Center) closed on the asset purchase agreement and the proceeds were used to payoff all LIFE, Inc.'s HUD mortgage and escrow balances.
Finding 2022-002
Finding 2022-002 - Unauthorized Receivable Balance Criteria: LIFE, Inc. has an unauthorized receivable balance due from a non-HUD related party greater than the balance at closing in July 2001, in violation of section 3-5 of the Consolidated HUD Audit Guide. Condition: Procedures must be in place to ensure project funds are not used for non-entity purposes unless expressly authorized by HUD. Cause: The related party is in financial hardship and LIFE, Inc. had loaned monies to this non-HUD related party greater than the balance allowed. Effect: The payments put a strain on cash flow. Compliance Code: Z Recommendation: The auditee bring the receivable balance back to the July 2001 level at closing. Views of Responsible Officials and Planned Corrective Actions: LIFE, Inc. agrees with the finding and recommendation. LIFE, Inc. entered into a repayment plan to bring the receivable balance back to the July 2002 level at closing. In May 2023, the Management of Bethel Springvale Nursing Home, Inc. (the Center) closed on the asset purchase agreement and the proceeds were used to payoff all HUD mortgage and escrow balances.
Finding 2022-003
Finding 2022-003 - Reserve for Replacement Criteria: LIFE, Inc. did not pay reserve for replacement timely, in violation of section 3-5 of the Consolidated HUD Audit Guide. Condition: Procedures must be in place to ensure that the reserve for replacement deposits are made by the due date. Cause: LIFE, Inc. was operating at a net loss in 2022 and did not have the necessary cash flow to pay the required reserve for replacement amounts. Effect: The payments were late in 2022 and LIFE, Inc. incurred no additional interest for deposits being late. Compliance Code: N Recommendation: The auditee must implement procedures to ensure that the reserve for replacement amounts are paid by the due date. Views of Responsible Officials and Planned Corrective Actions: LIFE, Inc. agrees with the finding and recommendation. In May 2023, the Management of Bethel Springvale Nursing Home, Inc. (the Center) closed on the asset purchase agreement and the proceeds were used to payoff all LIFE, Inc.'s HUD balances owed.