Audit 397299

Finding 2024-001 - Section 232 - Mortgage Insurance - Nursing Homes, Intermediate Care Facilities, and Board and Care Homes and Assisted Living Facilities, Assistance Listing # 14.129 Condition: St. Camillus Residential Health Care Facility (the Facility) has an outstanding receivable from its affiliate, Integrity Home Care Services, Inc. (Integrity), amounting to $463,081. Criteria: The HUD regulatory agreement prohibits, without the prior written approval of the HUD secretary the disbursement or payment of any funds except for the usual operating expenses and necessary repairs of the Project. Cause: Due to the past financial performance of Integrity it was necessary to provide operating funds to Integrity and repayment of the receivable balance was not able to be achieved by December 31, 2025. Effect: Funds have been provided to an affiliate through affiliate transactions that were not repaid as of the end of the year resulting in an outstanding receivable balance at December 31, 2025. Recommendation: The Facility management should contact HUD representative if the previously communicated repayment plan changed significantly.