Finding Text
Identifying Number: 2024-001
Information on the Federal Program: CFDA #14.129, U.S. Department of Housing and Urban Development: Mortgage Insurance – Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities, HUD Project No. 072-22112.
Criteria or Specific Requirement: The regulatory agreement (form HUD 92466-E) specifies in Paragraph 21: “The Mortgagor shall not reduce or expand, allow to be reduced, cause the expansion or reduction of the bed capacity, or change any bed to a different category (e.g., skilled to unskilled, etc.) without the consent of HUD. Any change in the bed capacity (without the consent of HUD) will violate this Agreement.”
Condition: The Organization reduced the licensed bed size of the mortgaged property by 6 skilled nursing beds before obtaining an approval from HUD.
Cause: The Organization decreased the number of licensed beds before obtaining HUD approval.
Effect: Noncompliance with the HUD compliance requirements per the regulatory agreement.
Questioned Costs: Not applicable.
Context: The population was tested 100%, therefore was statistically valid. This instance is isolated to this one bed change.
Repeat Finding: This is a repeat finding (2023-001, 2022-001)
Recommendation: Procedures should be implemented and placed in service to ensure HUD approval is obtained before bed changes are made on the mortgaged property. The Organization should also obtain approval after-the-fact for the specific bed change noted above.
Views of Responsible Officials: Management agrees with finding 2024-001.