FAC Explorer

Audit 49296

FY End
2022-12-31
Total Expended
$7.39M
Findings
4
Programs
1
Organization: Bethel Springvale Nursing Home, INC (NY)
Year: 2022 Accepted: 2023-09-28
Auditor: Hmm CPAS LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
43906 2022-001 - Yes P
43907 2022-002 - Yes P
620348 2022-001 - Yes P
620349 2022-002 - Yes P

Programs

ALN Program Spent Major Findings
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $7.39M Yes 2

Contacts

Name Title Type
FKRKEQ4EBLK7 Anastasios Markopoulos Auditee
9147398511 Joseph Martello Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federalgrant activity of the Bethel Springvale Nursing Home, Inc. under programs of the federal governmentfor the year ended December 31, 2022. The information in this schedule is presented in accordancewith the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements of Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations of BethelSpringvale Nursing Home, Inc., it is not intended to and does not present the financial position,changes in net assets or cash flows of Bethel Springvale Nursing Home, Inc.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Negativeamounts shown on the Schedule represent adjustments or credit made in the normal course ofbusiness to amounts reported as expenditures in prior years. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. MORTGAGE INSURANCE_NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES (14.129) - Balances outstanding at the end of the audit period were 7228219.

Finding Details

Finding 2022-001
Finding 2022-001 - Mortgage Status Repeat Finding: Yes, 2021-001 Criteria: The Center did not pay mortgage and operating loss loan payments timely, in violation of section 3-5 of the Consolidated HUD Audit Guide. Condition: Procedures must be in place to ensure that the mortgage and operating loss loan payments are made timely. Cause: The Center did not have the necessary cash flow to pay the July 2021 through December 2022 mortgage and operating loss loan payments. Effect: The payments were late in 2022 and the Center incurred additional interest expense. Compliance Code: Q Recommendation: The auditee must implement procedures to ensure that the mortgage, operating loss loan and escrow are paid by the due date. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. In May 2023, the Center closed on the asset purchase agreement and the proceeds were used to payoff the HUD mortgage and operating loss loans in full.
Finding 2022-002
Finding 2022-002 - Reserve for Replacement Repeat Finding: Yes, 2021-002 Criteria: The Center did not pay reserve for replacement payments timely, in violation of section 3-5 of the Consolidated HUD Audit Guide. Condition: Procedures must be in place to ensure that the reserve for replacement deposits are made timely. Cause: The Center did not have the necessary cash flow to pay the April 2020 through December 2022 reserve for replacement payments. Effect: The payments were late in 2022 and the Center incurred no additional interest for deposits being late. Compliance Code: N Recommendation: The auditee must implement procedures to ensure that the reserve for replacement amounts are paid by the due date. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. In May 2023, the Center closed on the asset purchase agreement and the proceeds were used to payoff all outstanding balances.
Finding 2022-001
Finding 2022-001 - Mortgage Status Repeat Finding: Yes, 2021-001 Criteria: The Center did not pay mortgage and operating loss loan payments timely, in violation of section 3-5 of the Consolidated HUD Audit Guide. Condition: Procedures must be in place to ensure that the mortgage and operating loss loan payments are made timely. Cause: The Center did not have the necessary cash flow to pay the July 2021 through December 2022 mortgage and operating loss loan payments. Effect: The payments were late in 2022 and the Center incurred additional interest expense. Compliance Code: Q Recommendation: The auditee must implement procedures to ensure that the mortgage, operating loss loan and escrow are paid by the due date. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. In May 2023, the Center closed on the asset purchase agreement and the proceeds were used to payoff the HUD mortgage and operating loss loans in full.
Finding 2022-002
Finding 2022-002 - Reserve for Replacement Repeat Finding: Yes, 2021-002 Criteria: The Center did not pay reserve for replacement payments timely, in violation of section 3-5 of the Consolidated HUD Audit Guide. Condition: Procedures must be in place to ensure that the reserve for replacement deposits are made timely. Cause: The Center did not have the necessary cash flow to pay the April 2020 through December 2022 reserve for replacement payments. Effect: The payments were late in 2022 and the Center incurred no additional interest for deposits being late. Compliance Code: N Recommendation: The auditee must implement procedures to ensure that the reserve for replacement amounts are paid by the due date. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and recommendation. In May 2023, the Center closed on the asset purchase agreement and the proceeds were used to payoff all outstanding balances.