Audit 304370

FY End
2023-12-31
Total Expended
$8.35M
Findings
2
Programs
1
Organization: West Liberty Care Center, INC (OH)
Year: 2023 Accepted: 2024-04-24
Auditor: Hw&co

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
394362 2023-001 Significant Deficiency - N
970804 2023-001 Significant Deficiency - N

Contacts

Name Title Type
ZLE3VEEJDPW5 Michael Ray Auditee
9374655065 Rachel Smathers Auditor
No contacts on file

Notes to SEFA

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 follow 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: West Liberty Care Center, Inc. and Affiliates has elected not to use the 10 percent de minimus cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of Federal awards includes the Federal award activity of West Liberty Care Center, Inc. under programs of the Federal government for the year ended December 31, 2023. The companies that received and expended the Federal awards included in the schedule for the year ended December 31, 2023 include West Liberty Care Center, Inc. (E.I.N 34-1137582). 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 West Liberty Care Center, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of West Liberty Care Center, Inc.
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 follow 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: West Liberty Care Center, Inc. and Affiliates has elected not to use the 10 percent de minimus cost rate as allowed under the Uniform Guidance. West Liberty Care Center, Inc. has received a U.S. Department of Housing and Urban Development (HUD) direct loan under Section 232, pursuant to Section 223(f) of the National Housing Act. West Liberty Care Center, Inc. The loan balance outstanding at the beginning of the year is included in the Federal expenditures presented in the schedule. West Liberty Care Center, Inc. and Affiliates received no additional loans during the year. The balance of the loan outstanding at December 31, 2023 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, 2023 - $ 8,190,788
Title: Noncash assistance Accounting Policies: Expenditures reported on the schedule of expenditures of Federal awards are reported on the accrual basis of accounting. Such expenditures follow 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: West Liberty Care Center, Inc. and Affiliates has elected not to use the 10 percent de minimus cost rate as allowed under the Uniform Guidance. West Liberty Care Center, Inc. and Affiliates did not receive any donated noncash assistance for the year ended

Finding Details

Title and CFDA Number of Federal Program (S3800-011) - U.S. Department of Housing and Urban Development, HUD-insured mortgage – CFDA No. 14.129 Type of Finding (S3800-015) - FA = Federal Award Finding Identification of Repeat Finding (S3800-019) - No Criteria or Special Requirement (S3800-020) - The Community was required to obtain written approval from HUD prior to surrendering 13 licensed beds to the State of Ohio that were collateral for the HUD-insured mortgage. Condition (S3800-030) - The Community did not obtain HUD’s approval prior to requesting and obtaining approval from the Ohio Department of Health (ODH) to reduce the licensed beds from 87 to 74 for the nursing facility during April 2023. Auditor Noncompliance Code (S3800-035) - Z Questioned Costs (S3800-040) - None Context (S3800-050) - Compliance testing. Effect (S3800-060) - The collateral of the mortgaged property was changed prior to HUD’s approval and HUD has identified this as a Tier 2 flag. Cause (S3800-070) - The Community requested a bed reduction from ODH for the nursing facility to reduce monthly expenses for unoccupied licensed beds. Recommendation (S3800-080) - The Community should adhere to the Regulatory Agreement and obtain HUD’s approval prior to taking any actions listed in the Regulatory Agreement. Auditor’s Summary of the Auditee’s Comments on the Finding and Recommendation (S3800-090) - The Organization’s management agrees with the finding and is working with HUD to obtain the necessary approval. Response Indicator (S3800-130) - Agree Completion Date (S3800-140) - Open - not completed Management’s Response (S3800-150) - Management is in the process of working with HUD to obtain the necessary approval.
Title and CFDA Number of Federal Program (S3800-011) - U.S. Department of Housing and Urban Development, HUD-insured mortgage – CFDA No. 14.129 Type of Finding (S3800-015) - FA = Federal Award Finding Identification of Repeat Finding (S3800-019) - No Criteria or Special Requirement (S3800-020) - The Community was required to obtain written approval from HUD prior to surrendering 13 licensed beds to the State of Ohio that were collateral for the HUD-insured mortgage. Condition (S3800-030) - The Community did not obtain HUD’s approval prior to requesting and obtaining approval from the Ohio Department of Health (ODH) to reduce the licensed beds from 87 to 74 for the nursing facility during April 2023. Auditor Noncompliance Code (S3800-035) - Z Questioned Costs (S3800-040) - None Context (S3800-050) - Compliance testing. Effect (S3800-060) - The collateral of the mortgaged property was changed prior to HUD’s approval and HUD has identified this as a Tier 2 flag. Cause (S3800-070) - The Community requested a bed reduction from ODH for the nursing facility to reduce monthly expenses for unoccupied licensed beds. Recommendation (S3800-080) - The Community should adhere to the Regulatory Agreement and obtain HUD’s approval prior to taking any actions listed in the Regulatory Agreement. Auditor’s Summary of the Auditee’s Comments on the Finding and Recommendation (S3800-090) - The Organization’s management agrees with the finding and is working with HUD to obtain the necessary approval. Response Indicator (S3800-130) - Agree Completion Date (S3800-140) - Open - not completed Management’s Response (S3800-150) - Management is in the process of working with HUD to obtain the necessary approval.