FAC Explorer

Finding 20427 (2022-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-09
Audit: 26432
Organization: Caring Heart Rehabilitation and Nursing Center, INC (PA)
Auditor: Mayer Hoffman McCann PC

AI Summary

  • Core Issue: The Project failed to submit financial status reports to HUD on time due to personnel turnover.
  • Impacted Requirements: Annual financial statements must be filed within 90 days after the fiscal year ends.
  • Recommended Follow-Up: Implement new policies to ensure timely filings and monitor staffing to prevent future delays.

Finding Text

Criteria or Specific Requirement -Projects are required to ensure that financial status reports are presented in accordance with the terms of the applicable agreement between the Project and HUD. Condition -As part of our audit procedures, we determined that the Project did not comply with HUD?s annual filing requirement prior to the deadline. Context -Audited financial statements are due to HUD and REAC no later than 90 days after the fiscal year end. Questioned Cost - None.Cause - Due to turnover in personnel, filings were not completed timely Effect - Untimely financial reporting. Recommendation - The Project should implement policies and procedures to ensure that annual financial reports are filed prior to deadlines. Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding and will implement policies and procedures to ensure that this problem does not recur. Please refer to the corrective action plan. As a result of COVID curtailments and a resulting national staffing shortage in the accounting profession, there were challenges to completing the 2022 and 2021 annual filing requirements prior to the deadline. Management has reviewed staffing and monthly and annual close project plans to verify that staffing and plans to issue and furnish annual financial statements timely are sufficient. The Project plans on being back in compliance for the year ending June 30, 2023, requirements.

Corrective Action Plan

Name of Auditee: Caring Heart Rehabilitation and Nursing Center, Inc. HUD Auditee Identification Number: Project No. 034-22108 Name of Audit Firm: Mayer Hoffman McCann P.C. Period Covered by the Audit: The Year Ended June 30, 2022Corrective Action Plan Prepared By Name: Ben Cohen Position: Accounting Supervisor Telephone Number: 845-422-0159Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations 1. Finding 2022-001 a. Comments on the Finding and Each Recommendation Management agrees with the finding and will implement policies and procedures to ensure that this problem does not recur. b. Actions Taken or Planned on the Finding As a result of COVID curtailments and a resulting national staffing shortage in the accounting profession there were challenges to completing the 2022 annual filing requirement prior to the deadline. Management has reviewed staffing and monthly and annual close project plans to verify that staffing and plans to issue and furnish annual financial statements timely are sufficient.

Categories

Reporting HUD Housing Programs

Other Findings in this Audit

  • 596869 2022-001
    Significant Deficiency 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 $22.86M
93.498 Provider Relief Fund $435,100