Finding 1229732 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-14
Audit: 410926
Organization: Somerset Care, Inc. (PA)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: Audit and data collection forms were submitted late, violating 2 CFR § 200.512.
  • Impacted Requirements: Timely submission is crucial to avoid potential suspension of federal funding.
  • Recommended Follow-Up: Implement measures to keep financial records current and ensure audits are completed within nine months after year-end.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program: 14.129, Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Criteria or Specific Requirement - 2 CFR § 200.512, Report Submission, requires completion of an audit and submission of the data collection form and reporting package within the earlier of thirty calendar days after receipt of the auditors’ report, or nine months after the end of the audit period. Condition - The audit and data collection form are being submitted after the required due date. Cause – The Corporation experienced staff turnover at the facility which resulted in audit information not being provided timely and noncompliance with regulatory filing requirements. Effect – Noncompliance with the requirements of 2 CFR § 200.512. There is a potential for suspension or cessation of federal funding under the federal award. Questioned Cost - None Context – We reviewed the audit submission date in comparison to the required due date. Repeat Finding – This is not a repeat finding. Recommendation – The Corporation should take steps to ensure that its financial records are maintained on a current basis, reconciled timely, and audited within nine months after year end. Views of Responsible Officials and Planned Corrective Actions – See corrective action plan.

Corrective Action Plan

A master schedule has been crated to identify all critical due dates for regulatory requirements. An internal log is maintained to identify all due dates on critical reporting timelines and regulatory requirements.

Categories

Procurement, Suspension & Debarment HUD Housing Programs Reporting

Other Findings in this Audit

  • 1229731 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.129 MORTGAGE INSURANCE NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES $4.54M