FAC Explorer

Audit 29145

FY End
2022-08-31
Total Expended
$16.41M
Findings
6
Programs
2
Organization: Rannie Webster Foundation (NH)
Year: 2022 Accepted: 2022-12-21
Auditor: Wipfli LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33142 2022-001 Significant Deficiency Yes P
33143 2022-002 Significant Deficiency Yes P
33144 2022-003 Significant Deficiency - L
609584 2022-001 Significant Deficiency Yes P
609585 2022-002 Significant Deficiency Yes P
609586 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $16.26M Yes 3
93.498 Provider Relief Fund $150,314 - 0

Contacts

Name Title Type
FJBFS94BTNM1 Thomas Argue Auditee
6039648144 Lance Turgeon 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) has been prepared using the accrual basis of accounting and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements of Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The purpose of the Schedule is to present a summary of those activities of Rannie Webster Foundation (the Foundation) for the year ended August 31, 2022, which have been financed by the U.S. Government (Federal awards). For purposes of the Schedule, Federal awards include all Federal assistance entered into directly or indirectly between the Federal government and the Foundation. Because the Schedule presents only a selected portion of the activities of the Foundation, it is not intended to and does not present the financial position, changes in net assets and cash flows of the Foundation. Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: N Rate Explanation: The auditee did not use 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 15991643.
Title: Note 4 Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) has been prepared using the accrual basis of accounting and in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements of Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. The purpose of the Schedule is to present a summary of those activities of Rannie Webster Foundation (the Foundation) for the year ended August 31, 2022, which have been financed by the U.S. Government (Federal awards). For purposes of the Schedule, Federal awards include all Federal assistance entered into directly or indirectly between the Federal government and the Foundation. Because the Schedule presents only a selected portion of the activities of the Foundation, it is not intended to and does not present the financial position, changes in net assets and cash flows of the Foundation. Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Foundation expended a total of $150,314 of Provider Relief funds (PRF) and earned $17 of interest on the PRF proceeds. PRF interest earned is not reported on the Schedule of Expenditures of Federal Awards.

Finding Details

Finding 2022-001
Criteria: Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with generally accepted accounting principles. This is a repeat finding and was reported as finding 2021-001 in the prior year. Condition: Rannie Webster Foundation?s internal control over financial reporting does not end at the general ledger but extends to the financial statements and notes. As part of our professional services for the year ending August 31, 2022, Wipfli LLP assisted in drafting the financial statements and notes. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Because Rannie Webster Foundation relies on Wipfli LLP to provide the necessary understanding of current accounting and disclosure principles in the preparation of the financial statements and notes, a significant deficiency exists in Rannie Webster Foundation?s internal controls. Cause: Rannie Webster Foundation relies on the audit firm to prepare the annual financial statements and related footnote disclosures. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Effects or Potential Effects: The completeness of the financial statement disclosures and the accuracy of the overall financial presentation is negatively impacted as external auditors do not have the same comprehensive understanding of Rannie Webster Foundation as its internal staff. Auditor?s Recommendation: Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of responsible officials: Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor?s services and review and approve the financial statements and notes.
Finding 2022-002
Criteria: Rannie Webster Foundation's Regulatory Agreement with HUD requires the Foundation to maintain a debt service coverage ratio of 1.0. This is a repeat finding and was reported as finding 2021-002 in the prior year. Condition: Rannie Webster Foundation's debt service coverage ratio was calculated as below 1.0. Questioned Costs: None Cause: Rannie Webster Foundation experienced higher costs as a result of overall economic conditions and a higher costly dependency on contracted nursing services in the wake of healthcare hiring challenges. Effects or Potential Effects: Rannie Webster Foundation has been impacted by the COVID pandemic and the overall hiring crisis for healthcare workers. Auditor's Recommendation: Management should evaluate and consider cost-cutting measures or strategies to improve the financial results. View of responsible officials: Rannie Webster Foundation continues to feel the impact of the COVID pandemic but continues to seek cost-cutting measures to maintain the debt service coverage ratio.
Finding 2022-003
Criteria: Rannie Webster Foundation is required to submit quarterly financial reports to the lender. Condition: For three of the four financial reports submitted the supporting schedules did not agree to the financial information submitted. Questioned Costs: None Cause: The variance was caused by the timing of when the various reports were run and a lack of internal control over review and verification of the reports and supporting schedules. Effects or Potential Effects: Financial information reported was inaccurate or not properly supported by subledger schedules. Auditor's Recommendation: Management should run all financial reports as of the close of the quarter and review the subledgers to ensure agreement to the financial reports. View of responsible officials: The software changed some of the accounts that were grouped in the aging that needed to be manually updated in the report run by management. Management didn't see that the subledgers varied from the financial reports. Management will adjust their process going forward to ensure all reports are in agreement and complete.
Finding 2022-001
Criteria: Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with generally accepted accounting principles. This is a repeat finding and was reported as finding 2021-001 in the prior year. Condition: Rannie Webster Foundation?s internal control over financial reporting does not end at the general ledger but extends to the financial statements and notes. As part of our professional services for the year ending August 31, 2022, Wipfli LLP assisted in drafting the financial statements and notes. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Because Rannie Webster Foundation relies on Wipfli LLP to provide the necessary understanding of current accounting and disclosure principles in the preparation of the financial statements and notes, a significant deficiency exists in Rannie Webster Foundation?s internal controls. Cause: Rannie Webster Foundation relies on the audit firm to prepare the annual financial statements and related footnote disclosures. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Effects or Potential Effects: The completeness of the financial statement disclosures and the accuracy of the overall financial presentation is negatively impacted as external auditors do not have the same comprehensive understanding of Rannie Webster Foundation as its internal staff. Auditor?s Recommendation: Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of responsible officials: Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor?s services and review and approve the financial statements and notes.
Finding 2022-002
Criteria: Rannie Webster Foundation's Regulatory Agreement with HUD requires the Foundation to maintain a debt service coverage ratio of 1.0. This is a repeat finding and was reported as finding 2021-002 in the prior year. Condition: Rannie Webster Foundation's debt service coverage ratio was calculated as below 1.0. Questioned Costs: None Cause: Rannie Webster Foundation experienced higher costs as a result of overall economic conditions and a higher costly dependency on contracted nursing services in the wake of healthcare hiring challenges. Effects or Potential Effects: Rannie Webster Foundation has been impacted by the COVID pandemic and the overall hiring crisis for healthcare workers. Auditor's Recommendation: Management should evaluate and consider cost-cutting measures or strategies to improve the financial results. View of responsible officials: Rannie Webster Foundation continues to feel the impact of the COVID pandemic but continues to seek cost-cutting measures to maintain the debt service coverage ratio.
Finding 2022-003
Criteria: Rannie Webster Foundation is required to submit quarterly financial reports to the lender. Condition: For three of the four financial reports submitted the supporting schedules did not agree to the financial information submitted. Questioned Costs: None Cause: The variance was caused by the timing of when the various reports were run and a lack of internal control over review and verification of the reports and supporting schedules. Effects or Potential Effects: Financial information reported was inaccurate or not properly supported by subledger schedules. Auditor's Recommendation: Management should run all financial reports as of the close of the quarter and review the subledgers to ensure agreement to the financial reports. View of responsible officials: The software changed some of the accounts that were grouped in the aging that needed to be manually updated in the report run by management. Management didn't see that the subledgers varied from the financial reports. Management will adjust their process going forward to ensure all reports are in agreement and complete.