Finding 21638 (2022-003)

2022-003 ? Timely Submission of Required Reporting Packages Federal Assistance Listing Number Name of Federal Program 14.129 Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Criteria The Home is required to file its Owner Certified Real Estate Assessment Center (REAC) financial statements by March 31, 2023, in accordance with U.S. Department of Housing and Urban Development (HUD) regulations. Condition The Home?s Certified REAC financial statement submission due March 31, 2023, was not filed timely. Questioned Costs None Context While performing the audit, we noted that the March 31, 2023 Owner?s Certification submission to REAC was not filed timely. Effect The failure to submit the Owner?s Certification on a timely basis caused the Home to be noncompliant with the reporting requirements of HUD. Recommendation We recommend that the Home ensure the filing of its HUD report is performed in accordance with HUD reporting requirements. Management's Response Management acknowledges that owner certified financial data is required to be submitted through HUD?s REAL ESTATE ASSESSMENT online system by March 31 of each year for the preceding calendar year. To ensure that this deadline is adhered to each year going forward the CFO or designee will create an aggressive closing schedule so that accurate financial information is available by February 15th of each year from which to create the owner certified submission.