FAC Explorer

Audit 324360

FY End
2023-12-31
Total Expended
$10.01M
Findings
4
Programs
2
Organization: Henry C. Nevins Home, Inc. (MA)
Year: 2023 Accepted: 2024-10-10
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
502132 2023-002 Significant Deficiency - N
502133 2023-002 Significant Deficiency - N
1078574 2023-002 Significant Deficiency - N
1078575 2023-002 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 $5.42M Yes 1
14.151 Supplemental Loan Insurance Multifamily Rental Housing $4.59M Yes 1

Contacts

Name Title Type
FJR4BMTWKYH4 Joyce Shannon Auditee
9786861050 Jennifer Corliss Auditor
No contacts on file

Notes to SEFA

Title: ENDING LOAN BALANCE Accounting Policies: BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Henry C. Nevins Home, Inc. under programs of the federal government for the year ended December 31, 2023. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Henry C. Nevins Home, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Henry C. Nevins Home, Inc. SUMMARY OF SIGNIFICANT 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Nonprofit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Henry C. Nevins Home, Inc. has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The ending Section 232 loan balance is $5,250,398 at December 31, 2023. The ending Section 241a loan balance is $4,513,840 at December 31, 2023.

Finding Details

Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 232 Mortgage Insurance for Nursing Homes and Section 241(a) Supplemental Loan Insurance Multifamily Rental Housing Assistance Listing Number: 14.129 and 14.151 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: HUD requires the Organization to maintain fidelity bond coverage of at least two months cash collections. Condition: The fidelity bond obtained by the Organization was below requirements for the period under audit. In March 2024, the Organization increased the fidelity bond to an appropriate amount. Questioned costs: None Context: The Organization's resident service revenue increased in the current year, to an amount that is higher than historical fidelity bond coverage. Cause:. The Organization did not compare an estimate of two months of cash collections to existing fidelity bond coverage and increase the coverage appropriately. Effect: There were no negative effects to the Project. Repeat Finding: No. Recommendation: We recommend that the Organization obtain the requisite fidelity bond coverage and to monitor the coverage to ensure it is in compliance with HUD requirements. Views of responsible officials: Fidelity bond was increased accordingly.
Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 232 Mortgage Insurance for Nursing Homes and Section 241(a) Supplemental Loan Insurance Multifamily Rental Housing Assistance Listing Number: 14.129 and 14.151 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: HUD requires the Organization to maintain fidelity bond coverage of at least two months cash collections. Condition: The fidelity bond obtained by the Organization was below requirements for the period under audit. In March 2024, the Organization increased the fidelity bond to an appropriate amount. Questioned costs: None Context: The Organization's resident service revenue increased in the current year, to an amount that is higher than historical fidelity bond coverage. Cause:. The Organization did not compare an estimate of two months of cash collections to existing fidelity bond coverage and increase the coverage appropriately. Effect: There were no negative effects to the Project. Repeat Finding: No. Recommendation: We recommend that the Organization obtain the requisite fidelity bond coverage and to monitor the coverage to ensure it is in compliance with HUD requirements. Views of responsible officials: Fidelity bond was increased accordingly.
Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 232 Mortgage Insurance for Nursing Homes and Section 241(a) Supplemental Loan Insurance Multifamily Rental Housing Assistance Listing Number: 14.129 and 14.151 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: HUD requires the Organization to maintain fidelity bond coverage of at least two months cash collections. Condition: The fidelity bond obtained by the Organization was below requirements for the period under audit. In March 2024, the Organization increased the fidelity bond to an appropriate amount. Questioned costs: None Context: The Organization's resident service revenue increased in the current year, to an amount that is higher than historical fidelity bond coverage. Cause:. The Organization did not compare an estimate of two months of cash collections to existing fidelity bond coverage and increase the coverage appropriately. Effect: There were no negative effects to the Project. Repeat Finding: No. Recommendation: We recommend that the Organization obtain the requisite fidelity bond coverage and to monitor the coverage to ensure it is in compliance with HUD requirements. Views of responsible officials: Fidelity bond was increased accordingly.
Finding 2023-002
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 232 Mortgage Insurance for Nursing Homes and Section 241(a) Supplemental Loan Insurance Multifamily Rental Housing Assistance Listing Number: 14.129 and 14.151 Award Period: January 1, 2023 through December 31, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria or specific requirement: HUD requires the Organization to maintain fidelity bond coverage of at least two months cash collections. Condition: The fidelity bond obtained by the Organization was below requirements for the period under audit. In March 2024, the Organization increased the fidelity bond to an appropriate amount. Questioned costs: None Context: The Organization's resident service revenue increased in the current year, to an amount that is higher than historical fidelity bond coverage. Cause:. The Organization did not compare an estimate of two months of cash collections to existing fidelity bond coverage and increase the coverage appropriately. Effect: There were no negative effects to the Project. Repeat Finding: No. Recommendation: We recommend that the Organization obtain the requisite fidelity bond coverage and to monitor the coverage to ensure it is in compliance with HUD requirements. Views of responsible officials: Fidelity bond was increased accordingly.