FAC Explorer

Audit 364597

FY End
2024-12-31
Total Expended
$9.76M
Findings
8
Programs
2
Organization: Henry C. Nevins Home, Inc. (MA)
Year: 2024 Accepted: 2025-08-20
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
574014 2024-002 Significant Deficiency - N
574015 2024-002 Significant Deficiency - N
574016 2024-003 Significant Deficiency - N
574017 2024-003 Significant Deficiency - N
1150456 2024-002 Significant Deficiency - N
1150457 2024-002 Significant Deficiency - N
1150458 2024-003 Significant Deficiency - N
1150459 2024-003 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 $5.25M Yes 2
14.151 Supplemental Loan Insurance Multifamily Rental Housing $4.51M Yes 2

Contacts

Name Title Type
FJR4BMTWKYH4 Sharon Walsh Auditee
9786827611 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, 2024. 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 $5,134,718 at December 31, 2024. The ending Section 241a loan balance is $4,460,949 at December 31, 2024.

Finding Details

Finding 2024-002
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, 2024 through December 31, 2024 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: HUD requires the Organization to make mortgage payments on a timely basis. Condition: Mortgage payments for February, March, April and May 2024 were not received by the mortgage company promptly. Questioned costs: None Context: February, March, April and May 2024 mortgage payments were received by the mortgage company subsequent to the 15th of the following month, which is considered late per HUD guidelines. Cause:. Mortgage payments were being funded with approved withdrawals from reserve accounts which delayed timing of payment. Effect: Late charges were assessed to the Project. Repeat Finding: No. Recommendation: Mortgage payments should be made by the due date. Views of responsible officials: Nevins was in touch with HUD monthly and developed a repayment plan but could not follow through. Nevins engaged with Alliance Health, Inc. for accounts receivable assistance in the fall of 2024 and then entered into a management agreement with Alliance Health, Inc. in June of 2025.
Finding 2024-002
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, 2024 through December 31, 2024 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: HUD requires the Organization to make mortgage payments on a timely basis. Condition: Mortgage payments for February, March, April and May 2024 were not received by the mortgage company promptly. Questioned costs: None Context: February, March, April and May 2024 mortgage payments were received by the mortgage company subsequent to the 15th of the following month, which is considered late per HUD guidelines. Cause:. Mortgage payments were being funded with approved withdrawals from reserve accounts which delayed timing of payment. Effect: Late charges were assessed to the Project. Repeat Finding: No. Recommendation: Mortgage payments should be made by the due date. Views of responsible officials: Nevins was in touch with HUD monthly and developed a repayment plan but could not follow through. Nevins engaged with Alliance Health, Inc. for accounts receivable assistance in the fall of 2024 and then entered into a management agreement with Alliance Health, Inc. in June of 2025.
Finding 2024-003
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, 2024 through December 31, 2024 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: HUD guidelines require Project cash to be maintained in financial institutions which meet minimum GNMA ratings when balances exceed federal insurance limits. Condition: The Organization maintains cash balances in excess of federally insured limits in financial institutions that do not meet HUD guidelines. Questioned costs: None Context: The cash balance as of December 31, 2024 was approximately $740,000, held in two financial institutions, which exceeded federal insurance limits by approximately $470,000. Cause:. As the Organization is a community based nonprofit organization, management considers supporting a local bank to be a worthwhile endeavor. Effect: No negative effect was discovered during the audit. Repeat Finding: No. Recommendation: The Organization should transfer all funds to a financial institution that meets HUD guidelines. Views of responsible officials: Nevins moved to this financial institution with the first HUD loan in 2015. This is a local bank that actively supports Nevin’s mission in the community. Given Nevin’s current financial struggles, the balance in the bank seldom exceeds the $250,000 threshold.
Finding 2024-003
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, 2024 through December 31, 2024 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: HUD guidelines require Project cash to be maintained in financial institutions which meet minimum GNMA ratings when balances exceed federal insurance limits. Condition: The Organization maintains cash balances in excess of federally insured limits in financial institutions that do not meet HUD guidelines. Questioned costs: None Context: The cash balance as of December 31, 2024 was approximately $740,000, held in two financial institutions, which exceeded federal insurance limits by approximately $470,000. Cause:. As the Organization is a community based nonprofit organization, management considers supporting a local bank to be a worthwhile endeavor. Effect: No negative effect was discovered during the audit. Repeat Finding: No. Recommendation: The Organization should transfer all funds to a financial institution that meets HUD guidelines. Views of responsible officials: Nevins moved to this financial institution with the first HUD loan in 2015. This is a local bank that actively supports Nevin’s mission in the community. Given Nevin’s current financial struggles, the balance in the bank seldom exceeds the $250,000 threshold.
Finding 2024-002
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, 2024 through December 31, 2024 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: HUD requires the Organization to make mortgage payments on a timely basis. Condition: Mortgage payments for February, March, April and May 2024 were not received by the mortgage company promptly. Questioned costs: None Context: February, March, April and May 2024 mortgage payments were received by the mortgage company subsequent to the 15th of the following month, which is considered late per HUD guidelines. Cause:. Mortgage payments were being funded with approved withdrawals from reserve accounts which delayed timing of payment. Effect: Late charges were assessed to the Project. Repeat Finding: No. Recommendation: Mortgage payments should be made by the due date. Views of responsible officials: Nevins was in touch with HUD monthly and developed a repayment plan but could not follow through. Nevins engaged with Alliance Health, Inc. for accounts receivable assistance in the fall of 2024 and then entered into a management agreement with Alliance Health, Inc. in June of 2025.
Finding 2024-002
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, 2024 through December 31, 2024 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: HUD requires the Organization to make mortgage payments on a timely basis. Condition: Mortgage payments for February, March, April and May 2024 were not received by the mortgage company promptly. Questioned costs: None Context: February, March, April and May 2024 mortgage payments were received by the mortgage company subsequent to the 15th of the following month, which is considered late per HUD guidelines. Cause:. Mortgage payments were being funded with approved withdrawals from reserve accounts which delayed timing of payment. Effect: Late charges were assessed to the Project. Repeat Finding: No. Recommendation: Mortgage payments should be made by the due date. Views of responsible officials: Nevins was in touch with HUD monthly and developed a repayment plan but could not follow through. Nevins engaged with Alliance Health, Inc. for accounts receivable assistance in the fall of 2024 and then entered into a management agreement with Alliance Health, Inc. in June of 2025.
Finding 2024-003
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, 2024 through December 31, 2024 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: HUD guidelines require Project cash to be maintained in financial institutions which meet minimum GNMA ratings when balances exceed federal insurance limits. Condition: The Organization maintains cash balances in excess of federally insured limits in financial institutions that do not meet HUD guidelines. Questioned costs: None Context: The cash balance as of December 31, 2024 was approximately $740,000, held in two financial institutions, which exceeded federal insurance limits by approximately $470,000. Cause:. As the Organization is a community based nonprofit organization, management considers supporting a local bank to be a worthwhile endeavor. Effect: No negative effect was discovered during the audit. Repeat Finding: No. Recommendation: The Organization should transfer all funds to a financial institution that meets HUD guidelines. Views of responsible officials: Nevins moved to this financial institution with the first HUD loan in 2015. This is a local bank that actively supports Nevin’s mission in the community. Given Nevin’s current financial struggles, the balance in the bank seldom exceeds the $250,000 threshold.
Finding 2024-003
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, 2024 through December 31, 2024 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: HUD guidelines require Project cash to be maintained in financial institutions which meet minimum GNMA ratings when balances exceed federal insurance limits. Condition: The Organization maintains cash balances in excess of federally insured limits in financial institutions that do not meet HUD guidelines. Questioned costs: None Context: The cash balance as of December 31, 2024 was approximately $740,000, held in two financial institutions, which exceeded federal insurance limits by approximately $470,000. Cause:. As the Organization is a community based nonprofit organization, management considers supporting a local bank to be a worthwhile endeavor. Effect: No negative effect was discovered during the audit. Repeat Finding: No. Recommendation: The Organization should transfer all funds to a financial institution that meets HUD guidelines. Views of responsible officials: Nevins moved to this financial institution with the first HUD loan in 2015. This is a local bank that actively supports Nevin’s mission in the community. Given Nevin’s current financial struggles, the balance in the bank seldom exceeds the $250,000 threshold.