Finding 33143 (2022-002)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-12-21
Audit: 29145
Organization: Rannie Webster Foundation (NH)
Auditor: Wipfli LLP

AI Summary

  • Core Issue: Rannie Webster Foundation's debt service coverage ratio is below the required 1.0, marking a repeat finding from last year.
  • Impacted Requirements: The Foundation's regulatory agreement with HUD mandates maintaining a debt service coverage ratio of at least 1.0.
  • Recommended Follow-Up: Management should explore cost-cutting strategies to improve financial performance and meet the required ratio.

Finding Text

Criteria: Rannie Webster Foundation's Regulatory Agreement with HUD requires the Foundation to maintain a debt service coverage ratio of 1.0. This is a repeat finding and was reported as finding 2021-002 in the prior year. Condition: Rannie Webster Foundation's debt service coverage ratio was calculated as below 1.0. Questioned Costs: None Cause: Rannie Webster Foundation experienced higher costs as a result of overall economic conditions and a higher costly dependency on contracted nursing services in the wake of healthcare hiring challenges. Effects or Potential Effects: Rannie Webster Foundation has been impacted by the COVID pandemic and the overall hiring crisis for healthcare workers. Auditor's Recommendation: Management should evaluate and consider cost-cutting measures or strategies to improve the financial results. View of responsible officials: Rannie Webster Foundation continues to feel the impact of the COVID pandemic but continues to seek cost-cutting measures to maintain the debt service coverage ratio.

Corrective Action Plan

Auditor's Recommendation: Management should evaluate and consider cost-cutting measures or strategies to improve the financial results. Corrective Action Plan: Rannie Webster Foundation is unable to hire staff due to the staffing crisis in the healthcare industry. This inability to hire staff has increased the usage of costly contracted nursing services. Rannie Webster Foundation has attempted to alleviate the financial strain with costing cutting measures and increases in the rates charged to residents. This staffing crisis coupled with the existing strain on the census as a result of the pandemic has left the Foundation in a position to seek affiliation to alleviate the financial condition and provide additional working capital. The Foundation's board of trustees has approved an affiliation agreement with another large nonprofit with added revenue sources and hiring capabilities.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 33142 2022-001
    Significant Deficiency Repeat
  • 33144 2022-003
    Significant Deficiency
  • 609584 2022-001
    Significant Deficiency Repeat
  • 609585 2022-002
    Significant Deficiency Repeat
  • 609586 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $16.26M
93.498 Provider Relief Fund $150,314