FAC Explorer

Audit 8865

FY End
2023-06-30
Total Expended
$22.54M
Findings
4
Programs
2
Organization: Caring Heart Rehabilitation and Nursing Center, INC (PA)
Year: 2023 Accepted: 2023-12-29
Auditor: Hirsch Dinter & CO CPAS

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6887 2023-001 - Yes N
6888 2023-002 - - N
583329 2023-001 - Yes N
583330 2023-002 - - N

Programs

ALN Program Spent Major Findings
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $22.08M Yes 2
93.498 Provider Relief Fund $457,747 - 0

Contacts

Name Title Type
FJX5R8LEJFU3 Arnold Heinemann Auditee
9148799007 Perry Dinter Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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 and OMB Circular A-122, Cost Principles for Non-profit Organizations where in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Caring Heart Rehabilitation and Nursing Center, Inc, Project No. 034-22108 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Caring Heart Rehabilitation and Nursing Center, Inc, Project No. 034-22108 under programs of the federal government for the year ended June 30, 2023. 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 Caring Heart Rehabilitation and Nursing Center, Inc, Project No. 034-22108, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Caring Heart Rehabilitation and Nursing Center, Inc, Project No. 034-22108.
Title: Summary of Significant Accounting Policies Accounting Policies: 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 and OMB Circular A-122, Cost Principles for Non-profit Organizations where in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Caring Heart Rehabilitation and Nursing Center, Inc, Project No. 034-22108 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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 and OMB Circular A-122, Cost Principles for Non-profit Organizations where in certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Federal Loan Guarantee Program Accounting Policies: 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 and OMB Circular A-122, Cost Principles for Non-profit Organizations where in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Caring Heart Rehabilitation and Nursing Center, Inc, Project No. 034-22108 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The federal loan guarantee program listed subsequently is administered directly by Caring Heart Rehabilitation and Nursing Center, Inc, Project No. 034-22108, and balances and transactions relating to this program are included in Caring Heart Rehabilitation and Nursing Center, Inc Project No. 034-22108’s basic financial statements. The balance of the loan outstanding as of June 30, 2023 consists of $21,407,385 for listing number 14.129.:
Title: Indirect Cost Rate Accounting Policies: 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 and OMB Circular A-122, Cost Principles for Non-profit Organizations where in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Caring Heart Rehabilitation and Nursing Center, Inc, Project No. 034-22108 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Caring Heart Rehabilitation and Nursing Center, Inc, Project No. 034-22108 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: American Rescule Plan Distribution - 93.498 Accounting Policies: 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 and OMB Circular A-122, Cost Principles for Non-profit Organizations where in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Caring Heart Rehabilitation and Nursing Center, Inc, Project No. 034-22108 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Caring Heart Rehabilitation and Nursing Center, Inc received funds of $457,747 in the year ending June 30, 2023 as part of the America Rescue Plan Act. The funds are to be used to cover expenses incurred personal care homes and assisted living residences relating to COVID-19. Caring Heart Rehabilitation and Nursing Center, Inc recognized this grant income on its statement of operations and changes in net assets for the year ended June 30, 2023, as the terms and conditions of the grant was satisfied.
Title: Subsequent Events Accounting Policies: 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 and OMB Circular A-122, Cost Principles for Non-profit Organizations where in certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Caring Heart Rehabilitation and Nursing Center, Inc, Project No. 034-22108 has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has evaluated subsequent events and transaction for potential recognition or disclosure in the Schedule of Expenditures of Federal Award through September 28, 2023, the date the Schedule of Expenditures of Federal Awards was available to be issued.

Finding Details

Finding 2023-001
Condition: The Project did not comply with HUD’s annual filing requirement prior to the deadline. Criteria: Projects are required to ensure that financial status reports are presented in accordance with the terms of the applicable agreement between the Project and HUD. Context: Audited financial statements are due to HUD and REAC no later than 90 days after the fiscal year end. Cause: Due to a change in audit firms engaged to conduct the annual audit, the annual filing was not completed timely. Effect: Untimely financial reporting. Identification as a Repeat Finding: Yes, see prior audit finding 2022-001. Recommendation: The Project should implement policies and procedures to ensure that annual financial reports are filed prior to deadlines. Amount of Questioned Cost: None Reporting Views of Responsible Officials: Management agrees with the finding and has implemented policies and procedures to ensure that this does not recur. Please refer to management’s corrective action plan. The Project plans to comply for the year ending June 30, 2024.
Finding 2023-002
Condition: The Project did not comply with HUD’s timeline requirements for surplus cash deposits to the residual receipts account. Criteria: Projects are required to ensure that surplus cash is deposited to the residual receipts account within 90 days after the fiscal year end, in accordance with the terms of the regulatory agreement between the Project and HUD. Context: Surplus cash must be deposited to residual receipts within 90 days of the fiscal year end. Cause: Due to untimely filings of annual financial statements and turnover in personnel, surplus cash calculations were not completed timely, causing surplus cash deposits to the residual receipts account to be delayed as well. Effect: Untimely deposits of surplus cash to the residual receipts account. Identification as a Repeat Finding: N/A Recommendation: The Project should implement policies and procedures to ensure that deposits to the residual receipts account are done in a timely manner. Amount of Questioned Cost: None Reporting Views of Responsible Officials: Management agrees with the finding and implemented policies and procedures to ensure that this does not recur. Please refer to management’s corrective action plan. As of the date of these financial statements, this finding has already been corrected.
Finding 2023-001
Condition: The Project did not comply with HUD’s annual filing requirement prior to the deadline. Criteria: Projects are required to ensure that financial status reports are presented in accordance with the terms of the applicable agreement between the Project and HUD. Context: Audited financial statements are due to HUD and REAC no later than 90 days after the fiscal year end. Cause: Due to a change in audit firms engaged to conduct the annual audit, the annual filing was not completed timely. Effect: Untimely financial reporting. Identification as a Repeat Finding: Yes, see prior audit finding 2022-001. Recommendation: The Project should implement policies and procedures to ensure that annual financial reports are filed prior to deadlines. Amount of Questioned Cost: None Reporting Views of Responsible Officials: Management agrees with the finding and has implemented policies and procedures to ensure that this does not recur. Please refer to management’s corrective action plan. The Project plans to comply for the year ending June 30, 2024.
Finding 2023-002
Condition: The Project did not comply with HUD’s timeline requirements for surplus cash deposits to the residual receipts account. Criteria: Projects are required to ensure that surplus cash is deposited to the residual receipts account within 90 days after the fiscal year end, in accordance with the terms of the regulatory agreement between the Project and HUD. Context: Surplus cash must be deposited to residual receipts within 90 days of the fiscal year end. Cause: Due to untimely filings of annual financial statements and turnover in personnel, surplus cash calculations were not completed timely, causing surplus cash deposits to the residual receipts account to be delayed as well. Effect: Untimely deposits of surplus cash to the residual receipts account. Identification as a Repeat Finding: N/A Recommendation: The Project should implement policies and procedures to ensure that deposits to the residual receipts account are done in a timely manner. Amount of Questioned Cost: None Reporting Views of Responsible Officials: Management agrees with the finding and implemented policies and procedures to ensure that this does not recur. Please refer to management’s corrective action plan. As of the date of these financial statements, this finding has already been corrected.