FAC Explorer

Finding 1216342 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-02
Audit: 402862
Organization: CEDAR LANE SENIOR LIVING COMMUNITY, LLC (MD)
Auditor: CITRIN COOPERMAN

AI Summary

  • Issue: The Organization entered into a note payable for an HVAC unit without obtaining required HUD approval.
  • Trend: This could indicate a pattern of non-compliance with regulatory requirements for financing agreements.
  • Follow-up: Review all recent financing agreements to ensure compliance and obtain necessary approvals moving forward.

Finding Text

During May 2025, the Organization entered into a note payable for the purchase of an HVAC unit totaling $83,000. The note bears interest at 10.31%, requires monthly payments through April 2030, and is collateralized by the HVAC unit. The Organization did not obtain HUD approval before executing the note.

Corrective Action Plan

Management concurs and subsequent to year-end the Organization notified HUD of the additional indebtedness and repaid the outstanding balance.

Categories

Procurement, Suspension & Debarment HUD Housing Programs

Other Findings in this Audit

  • 1216340 2025-001
    Material Weakness Repeat
  • 1216341 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $5.31M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $1.82M
14.191 MULTIFAMILY HOUSING SERVICE COORDINATORS $121,870