Finding 1208306 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-04-21
Audit: 399327
Organization: Benjamin Hershey Manor (IA)

AI Summary

  • Core Issue: The Corporation failed to submit the required annual financial report to HUD by the March 31, 2026 deadline.
  • Impacted Requirements: Compliance with the Regulatory Agreement and HUD's reporting timeline was not met due to administrative delays.
  • Recommended Follow-Up: Ensure timely issuance of annual financial statements in accordance with HUD's requirements; management has agreed and submitted the necessary documents.

Finding Text

Assistance Listing (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of Federal agency: U.S. Department of Housing and Development Pass-through entity: Not applicable Questioned costs: Not applicable Statement of condition 2025-001: The Corporation did not provide HUD with a completed annual financial report by March 31, 2026, as required by HUD. Criteria: Pursuant to the terms of the use agreement, within ninety (90) days following the end of each fiscal year, the Corporation shall provide a complete annual financial report based upon an examination of the books and records of the Community prepared in accordance with the requirements of HUD and certified by a Certified Public Accountant or other person acceptable to the Commissioner. Effect: The Corporation was not in compliance with the Regulatory Agreement. Cause: Due to administrative delays, the Corporation did not submit the audited financial statements to HUD by March 31, 2026. Recommendation: The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Management's response: Management concurs with the finding and agrees with the recommendation. The audit report as of and for the year ended June 30, 2025 has been submitted to HUD. No further action is required.

Corrective Action Plan

Name of auditee: Benjamin Hershey Memorial Convalescent Home HUD auditee identification number: 074-11175 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Jessica Ward Position: Chief Financial Officer Telephone number: 402-333-7373 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2025-001: Comments on the Finding and Each Recommendation: The Corporation did not provide HUD with a completed annual financial report by March 31, 2026, as required by HUD. Pursuant to the terms of the Regulatory Agreement, within ninety (90) days following the end of each fiscal year, the Corporation shall provide a complete annual financial report based upon an examination of the books and records of the Community prepared in accordance with the requirements of HUD and certified by a Certified Public Accountant or other person acceptable to the Commissioner. As a result, the Corporation was not in compliance with the Regulatory Agreement. The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Action(s) taken or planned on the finding: The audit report as of and for the year ended June 30, 2025 has been submitted to HUD. No further action is required.

Categories

HUD Housing Programs Procurement, Suspension & Debarment Subrecipient Monitoring

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $2.80M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $289,754