FAC Explorer

Audit 410251

FY End
2026-05-31
Total Expended
$10.47M
Findings
2
Programs
1
Organization: Berkshire Retirement Home INC (MA)
Year: 2026 Accepted: 2026-09-01
Auditor: CLIFTONLARSONALLEN LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1228619 2026-001 Material Weakness Yes N
1228620 2026-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
14.129 MORTGAGE INSURANCE NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES $10.47M Yes 2

Contacts

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

Notes to SEFA

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, 2026. 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.
The ending balance in the Section 232 loan was $10,230,038 at May 31, 2026.

Finding Details

Finding 2026-001
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, 2025 – May 31, 2026 Type of Finding: • Material Weakness in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The Project take distributions in excess of surplus cash. Condition: A distribution was taken in excess of surplus cash that was calculated as of 5/31/2025. Questioned costs: $95,897 Context: No sampling, entire population tested. Cause: Management mistakenly utilized an interim surplus cash calculation to determine the distribution amount, and not the final audited surplus cash calculation as of 5/31/2025. Effect: Resulted in a distribution in excess of allowable amount. Repeat finding: No Recommendation: We recommend that management update its policies and procedures over distributions from surplus cash, and ensure that the final audited calculation is utilized when making a distribution from surplus cash at year-end. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2026-002
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, 2025 – May 31, 2026 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 FY2026 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: Yes 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.