Finding 1205646 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-04-01

AI Summary

  • Core Issue: St. Camillus has a $463,081 outstanding receivable from Integrity Home Care Services, which violates HUD regulations on fund disbursement.
  • Impacted Requirements: The HUD agreement restricts fund payments without prior approval, and funds were improperly provided to an affiliate.
  • Recommended Follow-Up: Facility management should reach out to the HUD representative if there are significant changes to the repayment plan.

Finding Text

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.

Corrective Action Plan

CORRECTIVE ACTION PLAN St. Camillus Residential Health Care Facility respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 N. Franklin Street, Suite 100 Syracuse, New York 13204 Audit Period: January 1, 2025 – December 31, 2025 The finding from the 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Finding 2025-001 - Section 232 HUD Insured Mortgage, 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. Recommendation: The Facility management should contact HUD representative if the previously communicated repayment plan changed significantly. Action Taken: Integrity Home Care Services, Inc is in the process of being sold to Constant Care 247, LLC. All proceeds from the sale will go towards the repayment of the receivable balance. On December 8, 2025, the Public Health and Health Planning Council approved the change of ownership, certificate of need. The effective date of the change in ownership is expected to be final on or about March 31, 2026. If you have any questions regarding this plan, please contact Michael Zingaro at 315-703-0646 or via email at Michael.Zingaro@St-Camillus.org Sincerely, Michael Zingaro Vice President of Finance St. Camillus RHCF

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.129 MORTGAGE INSURANCE_NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES $3.27M