FAC Explorer

Audit 318084

FY End
2024-05-31
Total Expended
$10.92M
Findings
2
Programs
1
Organization: Berkshire Retirement Home INC (MA)
Year: 2024 Accepted: 2024-08-28
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
485338 2024-001 Significant Deficiency - N
1061780 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $10.92M Yes 1

Contacts

Name Title Type
CBA2A1W61EV6 Edward Forfa Auditee
4134454056 Sean Morrison Auditor
No contacts on file

Notes to SEFA

Title: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Berkshire Retirement Home, Inc. under programs of the federal government for the year ended May 31, 2024. 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 Berkshire Retirement Home, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Berkshire Retirement Home, Inc. De Minimis Rate Used: N Rate Explanation: Berkshire Retirement Home, Inc. has not elected to use the 10% de minimis indirect cost rate as 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: ENDING LOAN BALANCE Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Berkshire Retirement Home, Inc. under programs of the federal government for the year ended May 31, 2024. 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 Berkshire Retirement Home, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Berkshire Retirement Home, Inc. De Minimis Rate Used: N Rate Explanation: Berkshire Retirement Home, Inc. has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The ending balance in the Section 232 loan was $10,700,495 at May 31, 2024.

Finding Details

Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 232 Mortgage Insurance for Nursing Homes Assistance Listing Number: 14.129 Award Period: June 1, 2023 – May 31, 2024 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The Project must obtain a fidelity bond that is equal to or exceeds two months gross potential collections. Condition: Actual fidelity bond coverage amount in FY2024 was less than 2 months of calculated gross potential collections. Questioned costs: $0 Context: No sampling, entire population tested. Cause: The Project did not update coverage amount to keep pace with revenue growth. Effect: Result of the finding is that actual fidelity bond coverage amount fell below the required minimum. Repeat finding: No Recommendation: The auditor recommends that management increase their coverage amount to come into compliance with HUD requirements, as well as develop policies and procedures to monitor required coverage minimums to ensure that actual coverage amount is kept at least at that level. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2024-001
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 232 Mortgage Insurance for Nursing Homes Assistance Listing Number: 14.129 Award Period: June 1, 2023 – May 31, 2024 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The Project must obtain a fidelity bond that is equal to or exceeds two months gross potential collections. Condition: Actual fidelity bond coverage amount in FY2024 was less than 2 months of calculated gross potential collections. Questioned costs: $0 Context: No sampling, entire population tested. Cause: The Project did not update coverage amount to keep pace with revenue growth. Effect: Result of the finding is that actual fidelity bond coverage amount fell below the required minimum. Repeat finding: No Recommendation: The auditor recommends that management increase their coverage amount to come into compliance with HUD requirements, as well as develop policies and procedures to monitor required coverage minimums to ensure that actual coverage amount is kept at least at that level. Views of responsible officials: There is no disagreement with the audit finding.