Corrective Action Plans

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As explained in Management’s response to Finding 2026-002, Baptist Retirement Village had been approved for MFCS’s reduced (25%) monthly sampling of annual recertifications based on the property’s prior compliance history, its continuous 100% review of move-in and interim certifications, and MFCS’s ...
As explained in Management’s response to Finding 2026-002, Baptist Retirement Village had been approved for MFCS’s reduced (25%) monthly sampling of annual recertifications based on the property’s prior compliance history, its continuous 100% review of move-in and interim certifications, and MFCS’s ongoing availability for certification and compliance support. Because errors were identified during this reduced-sample review, the property is returning to 100% file review for all certifications, which will remain in place until Baptist Retirement Village again meets all criteria for reduced sampling — two consecutive years without MOR resident-file findings, a minimum two-year site manager tenure, and at least one year of error-free annual recertifications. In addition, SPM is updating the standardized tenant file checklist and written internal control procedures covering eligibility determination, income/rent calculation, and required certifications, with a documented compliance sign-off required before a file is considered complete
As with other high-performing SPM-managed properties, Baptist Retirement Village had been approved for a reduced-sampling protocol under which Multifamily Compliance Services (MFCS) reviews 25% of annual recertifications monthly, selected on a rotating basis, while continuing to review 100% of all m...
As with other high-performing SPM-managed properties, Baptist Retirement Village had been approved for a reduced-sampling protocol under which Multifamily Compliance Services (MFCS) reviews 25% of annual recertifications monthly, selected on a rotating basis, while continuing to review 100% of all move-in and interim certification files. Properties are approved for this 25% protocol only when: (1) the resident file audit section of the property’s HUD Management and Occupancy Review scores decline, or on-site management turns over, the property returns to 100% file review for all certifications. Because the errors addressed in this finding were identified during the reduced-sample review, Baptist Retirement Village is returning to 100% file review for all certifications. In addition, SPM is correcting the three affected tenant files, including any retroactive adjustment to Total Tenant Payment and subsidy, and property personnel responsible for completing 50059s are receiving refresher training on income determination requirements under HUD Handbook 4350.3 REV-1.
SPM has developed and issued a new company-wide Extended Absence from the Apartment policy applicable to all HUD-assisted and LIHTC communities, including Section 8, PRAC, Section 202, and LIHTC properties. The policy requires written resident notice of any absence expected to exceed 14 consecutive ...
SPM has developed and issued a new company-wide Extended Absence from the Apartment policy applicable to all HUD-assisted and LIHTC communities, including Section 8, PRAC, Section 202, and LIHTC properties. The policy requires written resident notice of any absence expected to exceed 14 consecutive days; documentation supporting the reason for and expected length of the absence (e.g., a physician’s statement, discharge plan, or nursing facility admission/discharge documentation); a maximum absence of 90 consecutive days, extendable to a total of 180 days only with documentation supporting the need for additional time, with any absence beyond 90 days requiring written approval from the Divisional Vice President; and, when a medical absence triggers an interim certification, a determination of whether program rent requires adjustment based on income or benefit changes. All notices, documentation, approvals, and follow-up contacts must be logged on the new Extended Absence Request and Tracking Form and retained in the resident file. MFCS and property management staff — including the Property Manager, Regional Property Manager and Compliance Specialist — are being trained on this policy, and supervisory review of all extended-absence cases will confirm ongoing compliance going forward. Management is also reviewing the specific resident file identified in the finding and is coordinating with the HUD Account Manager to determine the appropriate disposition of assistance payments, certification corrections, and occupancy status in accordance with HUD requirements.
1. The Project Sponsor acknowledges the requirements of the HUD Regulatory Agreement regarding the safeguarding and segregation of tenant security deposits. With the transition of management in these areas, additional review controls were implemented, including monthly programmatic and financial rev...
1. The Project Sponsor acknowledges the requirements of the HUD Regulatory Agreement regarding the safeguarding and segregation of tenant security deposits. With the transition of management in these areas, additional review controls were implemented, including monthly programmatic and financial reviews of security deposit collections, postings, and account balances to ensure proper classification and maintenance of restricted funds. 2. On September 4, 2026, the $50 security deposit was transferred to the appropriate security deposit account, fully correcting the deficiency. Management will continue to perform monthly monitoring procedures to verify that all tenant security deposits are accurately recorded and maintained in compliance with HUD requirements.
The Cooperative returned the reimbursed funds to the replacement reserve. The management agent will implement a process to ensure that future reimbursed funds are returned to the replacement reserve as required by the regulatory agreement.
The Cooperative returned the reimbursed funds to the replacement reserve. The management agent will implement a process to ensure that future reimbursed funds are returned to the replacement reserve as required by the regulatory agreement.
Contact Person Misty Wanner, CFO Corrective Action Plan Management will obtain and retain all documentation as required by the federal agency. Completion Date The Organization will implement immediately.
Contact Person Misty Wanner, CFO Corrective Action Plan Management will obtain and retain all documentation as required by the federal agency. Completion Date The Organization will implement immediately.
SPM has an established process for preparing and reviewing replacement reserve reimbursement requests prior to submission to HUD. In this instance, the duplicate invoices were not identified during that review process and were subsequently included in the October 2025 request. HUD approved the reser...
SPM has an established process for preparing and reviewing replacement reserve reimbursement requests prior to submission to HUD. In this instance, the duplicate invoices were not identified during that review process and were subsequently included in the October 2025 request. HUD approved the reserve release based on the supporting documentation submitted; however, management recognizes its responsibility to ensure the accuracy and completeness of all reimbursement requests. To correct the issue, the property will reimburse the Replacement Reserve account for the duplicate amount of $31,482.32 and maintain documentation supporting the repayment. Management will also review prior replacement reserve reimbursement requests to confirm that no additional duplicate reimbursements exist. To prevent a recurrence, staff responsible for preparing and reviewing replacement reserve requests will be retrained on the review requirements, including verification against previously submitted reserve releases and supporting documentation. Management will also reinforce documentation and review procedures to ensure duplicate expenses are identified and resolved before future submissions are made.
Comments on the Finding and Each Recommendation: During the year ended May 31, 2026, $11,836 was withdrawn from the reserve for replacements without HUD approval. Management should transfer $11,836 from the operating account to the reserve for replacements account. Action(s) taken or planned on the ...
Comments on the Finding and Each Recommendation: During the year ended May 31, 2026, $11,836 was withdrawn from the reserve for replacements without HUD approval. Management should transfer $11,836 from the operating account to the reserve for replacements account. Action(s) taken or planned on the finding Agree. Management concurs with the finding and recommendation. On August 11, 2026, management transferred $11,836 from the operating account to the reserve for replacements account.
Finding 2026-001: Statement of condition #2026-001: Management fees of $3,192 were prepaid at May 31, 2026. Comments on the Finding and Each Recommendation: The Agent should reduce management fees charged in the following periods or repay the balance prepaid. Action(s) taken or planned on the findin...
Finding 2026-001: Statement of condition #2026-001: Management fees of $3,192 were prepaid at May 31, 2026. Comments on the Finding and Each Recommendation: The Agent should reduce management fees charged in the following periods or repay the balance prepaid. Action(s) taken or planned on the finding: The Agent reimbursed $3,192 to the Corporation on August 11, 2026.
Finding 2026-004: Utility Allowances Housing Choice Voucher, 14.871 Material Weakness/Noncompliance – Special Tests and Provisions Repeat Finding 2025-007 Criteria: The Authority must maintain an up-to-date utility allowance schedule. The Authority must review utility rate data for each utility cate...
Finding 2026-004: Utility Allowances Housing Choice Voucher, 14.871 Material Weakness/Noncompliance – Special Tests and Provisions Repeat Finding 2025-007 Criteria: The Authority must maintain an up-to-date utility allowance schedule. The Authority must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition: The Authority had not updated utility rates since the April 1, 2021 effective date schedules. The Authority had obtained new utility rates during the fiscal year but the new schedules were not implemented. Cause: It was a finding in the prior year that the Authority did not update the utility allowances. The Authority contacted a company to perform the analysis but the Authority felt it was too expensive and then failed to calculate the rates itself. The Authority then contacted another company but the process has not yet been completed. Effect or Potential Effect: The Authority did not comply with the requirements of 24 CFR §982.517. Recommendation: The Authority should review the requirements of 24 CFR §982.517 and establish a system of where the utility allowance is reviewed and documented during each fiscal year. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.
Finding 2026-003: HQS Quality Control Inspections Housing Choice Voucher, 14.871 Material Weakness/Noncompliance – Special Tests and Provisions Repeat Finding 2025-006 Criteria: 24 CFR §982.405 states the PHA must conduct supervisory qualify control HQS inspections. Condition: The Authority performe...
Finding 2026-003: HQS Quality Control Inspections Housing Choice Voucher, 14.871 Material Weakness/Noncompliance – Special Tests and Provisions Repeat Finding 2025-006 Criteria: 24 CFR §982.405 states the PHA must conduct supervisory qualify control HQS inspections. Condition: The Authority performed quality control inspections during the year; however, the Authority was not maintaining a log of inspections and had to search emails to find them. Further, the quality control inspections were not a random selection but selected by the original inspector. The Authority was not maintaining a log of all inspections for the quality control inspector to select from. Four of the 8 quality control inspections were done more than 90 days after the initial inspection. Cause: The Authority did not have procedures in place to randomly select inspections to perform quality control inspections on. Further, the Authority did not have a log of inspections and quality control inspections completed. Effect or Potential Effect: The Authority did not comply with the requirements of 24 CFR §982.405. Because inspections were not randomly selected, were not always performed within required timeframes, and were not adequately documented, the Authority did not have assurance that HQS inspections were being conducted consistently and in accordance with HUD requirements. Recommendation: The Authority should review the requirements of 24 CFR §982.405 and establish a system of where HQS inspections have a quality control sampling during each fiscal year. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.
Finding 2026-002: Compliance, Inadequate Compliance Monitoring, Regulatory Oversight, and Governance Housing Choice Voucher, 14.871 Material Weakness – Eligibility, Reporting and Special Tests and Provisions Repeat Finding 2025-004 Criteria: Management is responsible for establishing and maintaining...
Finding 2026-002: Compliance, Inadequate Compliance Monitoring, Regulatory Oversight, and Governance Housing Choice Voucher, 14.871 Material Weakness – Eligibility, Reporting and Special Tests and Provisions Repeat Finding 2025-004 Criteria: Management is responsible for establishing and maintaining effective internal controls over compliance that provide reasonable assurance the Housing Choice Voucher Program is administered in accordance with Federal statutes, regulations, and HUD requirements. Effective controls should include adequate monitoring of compliance requirements, timely implementation of regulatory changes, maintenance of current policies and procedures, and oversight sufficient to compensate for staffing limitations. HUD program requirements and regulatory changes should be reviewed and incorporated into the Authority's Administrative Plan in a timely manner. Similar control expectations are reflected in HCV compliance guidance addressing policy maintenance, Board oversight, monitoring of regulatory changes, and compensating controls where segregation of duties is limited. Condition: The Authority operates only the Housing Choice Voucher Program and employs a single individual responsible for substantially all program administration and compliance responsibilities. Because staffing levels do not permit traditional segregation of duties, the Authority should have established compensating monitoring and oversight controls. However, our audit identified significant weaknesses in the Authority's internal control structure over compliance. Specifically, we noted: • Compliance responsibilities were concentrated in one individual without independent review or documented monitoring procedures. • The Administrative Plan had not been updated to incorporate applicable HOTMA requirements. • Board minutes indicated the Authority was relying upon HUD Notices H-2025-03 and H-2025-07 when evaluating HOTMA implementation. These notices do not apply to the Housing Choice Voucher Program and the Authority was not utilizing the correct guidance in HUD PIH Notices. • The Authority had not established procedures to identify, evaluate, and implement applicable HUD PIH notices and other regulatory updates affecting the Voucher program. • Audit testing identified deficiencies in multiple compliance areas, indicating that compliance monitoring controls were not operating effectively. The existence of compliance deficiencies across multiple program areas demonstrates that the Authority's controls were not reasonably designed or operating effectively to ensure compliance with Federal program requirements. Similar conditions have been identified in other HCV compliance control assessments, including lack of monitoring of regulatory changes, inadequate Board oversight, and insufficient compensating controls where staffing is limited. Cause: The Authority has not established an effective system of internal control over compliance. Management and the Board of Commissioners did not implement sufficient compensating controls to address the risks associated with a single-employee operating structure. In addition, procedures were not established to ensure that changes in HUD regulations, notices, and program requirements were identified, evaluated, and incorporated into Authority policies and operational practices on a timely basis. Effect: The lack of effective compliance oversight increases the likelihood that material noncompliance with Federal program requirements could occur and not be prevented, detected, or corrected timely. Failure to maintain current policies and implement regulatory changes increases the risk of noncompliance in areas including tenant eligibility, rent calculations, utility allowances, inspections, reporting, and other program requirements. The deficiencies identified during the audit demonstrate that the Authority's control environment does not provide reasonable assurance of compliance with Housing Choice Voucher Program requirements. Recommendation: We recommend the Authority: 1. Establish formal procedures for monitoring compliance with Housing Choice Voucher Program requirements. 2. Update the Administrative Plan to incorporate all applicable HOTMA requirements and other current HUD guidance. 3. Develop a process for reviewing HUD PIH notices, regulatory updates, and other program guidance as issued. 4. Implement documented supervisory or independent compliance reviews to compensate for the lack of segregation of duties. 5. Provide periodic compliance reports to the Board of Commissioners and document Board oversight of corrective actions. 6. Establish written procedures to ensure significant regulatory changes are timely evaluated, adopted, and implemented. Views of Responsible Officials The Authority agrees with the finding.
Comments on the Finding and Recommendations Concur or do not concur with this finding – Concur Agree or disagree with auditor recommendation – Agree Corrective Action Taken or Planned Response to Findings Identified by Auditor Completion date or proposed completion date – September 30, 2026 Actions ...
Comments on the Finding and Recommendations Concur or do not concur with this finding – Concur Agree or disagree with auditor recommendation – Agree Corrective Action Taken or Planned Response to Findings Identified by Auditor Completion date or proposed completion date – September 30, 2026 Actions taken or Planned on the finding – Management will establish a separate Residual Receipts bank account and implement internal controls and procedures to ensure that future surplus cash deposits are made to the Residual Receipts account within the timeframe required by HUD.
CORRECTIVE ACTION PLAN FOR THE YEAR ENDED MARCH 31, 2026 U.S. Department of Housing and Urban Development Loretto O’Brien Road Housing Development Fund Company, Inc. (O’Brien Road Senior Apartments), HUD Project No. 014-EE262/NY06-S061-007 respectfully submits the following corrective action plan fo...
CORRECTIVE ACTION PLAN FOR THE YEAR ENDED MARCH 31, 2026 U.S. Department of Housing and Urban Development Loretto O’Brien Road Housing Development Fund Company, Inc. (O’Brien Road Senior Apartments), HUD Project No. 014-EE262/NY06-S061-007 respectfully submits the following corrective action plan for the year ended March 31, 2026. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #60 Syracuse, New York 13204 Audit period: April 1, 2025 – March 31, 2026 The findings from the 2026 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT (Continued) Finding 2026-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Recommendation: Our auditor’s recommended that we ensure sufficient operating cash flow to make all required reserve for replacement deposits in the future. Views of management and planned corrective action: Management concurs. The March payment was made on April 10, 2026. Action Taken: The March payment was made on April 10, 2026. Completion Date: April 10, 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821
Name of Auditee: Newark Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: March 31, 2026 CAP Prepared by: Yolanda Casselman, Executive Director Phone: (315) 331-1574 (A) Current Finding on the Schedule of Findings and Questioned Costs (1) Finding 2026-001 (a) ...
Name of Auditee: Newark Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: March 31, 2026 CAP Prepared by: Yolanda Casselman, Executive Director Phone: (315) 331-1574 (A) Current Finding on the Schedule of Findings and Questioned Costs (1) Finding 2026-001 (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendations, please see below for action taken. (b) Action taken - The Authority will implement a training and review process for all documentations and immediately obtain the missing documentation. (c) Planned implementation date of corrective action - Completed by March 31, 2027.
SIGNIFICANT DEFICIENCY Section 232 Mortgage Insurance for Nursing Homes – Assistance Listing No. 14.157 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 ...
SIGNIFICANT DEFICIENCY Section 232 Mortgage Insurance for Nursing Homes – Assistance Listing No. 14.157 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. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Fidelity Bond coverage was increased prior to fiscal yearend on 05/29/2026 following an internal review that showed that soaring revenues had outpaced the previously enacted increased coverage. The policy has been updated to review the monthly revenue to be sure there is sufficient minimum Fidelity Bond coverage prospectively. Name(s) of the contact person(s) responsible for corrective action: Edward Forfa, Executive Director, Berkshire Retirement Home, Inc. DBA Berkshire Place, 290 South Street, Pittsfield, MA 01201 413-445-4056 #160; eforfa@berskhireplace.com Planned completion date for corrective action plan: 05/29/2026
MATERIAL WEAKNESS Section 232 Mortgage Insurance for Nursing Homes – Assistance Listing No. 14.157 Recommendation: The auditor recommends that management update its policies and procedures over distributions from surplus cash and ensure that the final audited calculation is utilized when making a di...
MATERIAL WEAKNESS Section 232 Mortgage Insurance for Nursing Homes – Assistance Listing No. 14.157 Recommendation: The auditor recommends 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. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The surplus cash calculation used for the fiscal yearending 05/31/2025 inadvertently used the interim surplus cash calculation and not the final audited surplus cash calculation, which resulted in a slight overage in surplus cash distribution to its supporting charity organization. Once identified, provisions were made for immediate repayment, which was completed on 8/20/2026. The policy and procedure process was modified to ensure that the audited surplus cash calculation is used prior to any distribution. Name(s) of the contact person(s) responsible for corrective action: Edward Forfa, Executive Director, Berkshire Retirement Home, Inc. DBA Berkshire Place, 290 South Street, Pittsfield, MA 01201 413-445-4056 #160; eforfa@berskhireplace.com Planned completion date for corrective action plan: 08/20/2026
Audit Finding 2026-001: During our testing of tenant security deposits, it was discovered that the balance in the bank account maintained for tenant security deposits was insufficient to cover the liability for tenant security deposits payable. -Response: There was a temporary depletion of funds in ...
Audit Finding 2026-001: During our testing of tenant security deposits, it was discovered that the balance in the bank account maintained for tenant security deposits was insufficient to cover the liability for tenant security deposits payable. -Response: There was a temporary depletion of funds in the operating account, since they paid the amount of their insurance deductible to a vendor for urgent water damage remediation after an apartment fire on the property. This resulted in the operating account not having sufficient funds to cover the next payroll. Hence a temporary transfer of funds was made from the tenant security deposits account. Management is aware that the Regulatory Agreement stipulates maintaining sufficient funds in a separate tenant security deposit account to cover the liability for tenant security deposits payable and have since replenished the balance in the tenant security deposit account. The $1,900 was deposited back into the Security Deposit account on 08/17/2026. - Responsible Party: Linda G. Holder - Executive Director - Houston Housing Management Corporation - 1418 Preston St. - Houston, TX 77002
Finding 2026-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files - Noncompliance & Significant Deficiency Corrective Action Plan: We believe the issues discovered during the annual audit related to the calculation and verification of annual income can easily ...
Finding 2026-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files - Noncompliance & Significant Deficiency Corrective Action Plan: We believe the issues discovered during the annual audit related to the calculation and verification of annual income can easily be addressed by strengthening our internal existing quality control processes to ensure exceptions are identified and corrected timely. While we have already been doing quality control reviews, we will increase the frequency and sample size throughout the fiscal year. Person(s) Responsible: Brittany Savalick, HCV Department Anticipated Completion Date: 07/01/2026 Jaclyn Vinson Executive Director Vermilion Housing Authority 1607 Clyman Lane Danville, IL 61832 jvinson@vermilionhousing.com 217-444-3101
Condition: Management did not renew their property insurance which expired 10/27/25 until new coverage was executed effective date 7/8/26. Corrective Action: We obtained property/liability insurance for the period 7/8/26-10/27/27 as of 7/10/26. The organization will maintain a centralized insurance ...
Condition: Management did not renew their property insurance which expired 10/27/25 until new coverage was executed effective date 7/8/26. Corrective Action: We obtained property/liability insurance for the period 7/8/26-10/27/27 as of 7/10/26. The organization will maintain a centralized insurance and compliance calendar containing policy expiration dates, premium due dates, responsible parties, broker contact information and required documentation. Management will verify active insurance coverage monthly and retain current policies, certificates of insurance, invoices, and proof of payment in a centralized electronic file. The Finance Committee will review insurance coverage as part of its regular financial oversight and report to the full Board of Directors at the monthly meeting and no later than 90 days before policy expiration so that immediate action can take place. Person Responsible: Board President Date of Corrective Action: 7/10/26
2026-001 Public Housing Capital Fund Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to Procurement, Suspension and Debarment. Action Taken: Management will implement policies and procedures to ensure the Commission is...
2026-001 Public Housing Capital Fund Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to Procurement, Suspension and Debarment. Action Taken: Management will implement policies and procedures to ensure the Commission is in compliance with all grant requirements pertaining to the Public Housing Capital Grant. Anticipated Completion Date of Action: October 31, 2026
To Whom it May Concern, Orlando Rehabilitation Group, Inc. has a $2.7 million dollar advance on their balance sheet. These advances were made to unaffiliated not-for-profit healthcare organizations. These advances are to be repaid by these organizations. Orlando Rehabilitation Group, Inc., was unawa...
To Whom it May Concern, Orlando Rehabilitation Group, Inc. has a $2.7 million dollar advance on their balance sheet. These advances were made to unaffiliated not-for-profit healthcare organizations. These advances are to be repaid by these organizations. Orlando Rehabilitation Group, Inc., was unaware that such an advance was not permitted to be made. Kane Financial Services was also unaware. The plan to correct it includes the following action steps:  Seeking approval from HUD for the $2.7M advance.  If the advance is not approved, then the repayment will occur by the organizations over an 18 month period beginning in October 2025. It is understood that such advances will not be made going forward without prior HUD approval. The contact information for oversight of the plan is: Susan Shain Executive Vice President of Finance, Kane Financial Services Email: SShain@kanefs.com Phone: 561-223-4161
To Whom it May Concern, Orlando Rehabilitation Group, Inc. issued $8.0 million in grants during the fiscal year ending March 31, 2026. These grants were made to unaffiliated not-for-profit healthcare organizations. Orlando Rehabilitation Group, Inc., was unaware that these grants were not permitted ...
To Whom it May Concern, Orlando Rehabilitation Group, Inc. issued $8.0 million in grants during the fiscal year ending March 31, 2026. These grants were made to unaffiliated not-for-profit healthcare organizations. Orlando Rehabilitation Group, Inc., was unaware that these grants were not permitted to be made according to the structure of their HUD Mortgage. Kane Financial Services was also unaware. The plan to correct it includes the following action steps:  Seeking approval from HUD for the $8.0M in grants.  If the grant is not approved, then the Orlando Rehabilitation Group, Inc., will attempt to facilitate a re-payment plan over an extended period of time with the recipients of the grants. It is understood that such grants will not be made going forward without prior HUD approval. The contact information for oversight of the plan is: Susan Shain Executive Vice President of Finance, Kane Financial Services Email: SShain@kanefs.com Phone: 561-223-4161
Management has reviewed the audit finding and acknowledges the allegation related to improper administration of the applicant wait list. The former project manager is no longer with the Project, and management responsibilities have been reassigned. Management plans to review wait list procedures, st...
Management has reviewed the audit finding and acknowledges the allegation related to improper administration of the applicant wait list. The former project manager is no longer with the Project, and management responsibilities have been reassigned. Management plans to review wait list procedures, strengthen oversight and documentation requirements, and implement additional controls to ensure applicants are processed in accordance with established policies and applicable program requirements.
Management agrees with the finding and will put processes and controls in place to verify timely deposits in the future. The required deposit of $4,477 was made in July 2025 to the residual receipts account. The corrective response has already been put into place for this fiscal year.
Management agrees with the finding and will put processes and controls in place to verify timely deposits in the future. The required deposit of $4,477 was made in July 2025 to the residual receipts account. The corrective response has already been put into place for this fiscal year.
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