FAC Explorer

Finding 394314 (2023-001)

- Repeat Finding
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-04-23
Audit: 304308
Organization: Genesee Valley Presbyterian Nursing Center D/b/a Kirkhaven (NY)
Auditor: Bonadio & CO LLP

AI Summary

  • Issue: Kirkhaven failed to make required monthly debt and escrow payments, breaching HUD regulatory agreements.
  • Impact: This non-compliance could lead to penalties or loss of funding from the Department of Housing and Urban Development.
  • Follow-up: Kirkhaven should explore options to address payment arrears and ensure future compliance with all financial obligations.

Finding Text

C. FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARDS PROGRAM Finding 2023-001 – Assistance Listing No. 14.129 – United States Department of Housing and Urban Development Criteria Under the terms of the related regulatory agreement Kirkhaven is required to make timely monthly debt payments and deposits in certain escrow accounts. Condition/Context As part of our compliance testing, we reviewed the debt and escrow schedules and noted that Kirkhaven did not make all required debt and escrow payments during the year. Cause Kirkhaven was experiencing significant cash constraints and was not able to make debt payments and escrow payments as they were due. Effect Kirkhaven is out of compliance with the HUD regulatory agreement. Recommendation We recommend that Kirkhaven evaluate the necessary options to become current on mortgage and escrow payments. Management Response Kirkhaven’s HUD mortgage was paid in full in February 2024.

Corrective Action Plan

Finding 2023-001 - Assistance Listing No. 14.129 - United States Department of Housing and Urban Development Criteria Under the terms of the related regulatory agreement Kirkhaven is required to make timely monthly debt payments and deposits in certain escrow accounts. Condition/Context As part of our compliance testing, we reviewed the debt and escrow schedules and noted that Kirkhaven did not make all required debt and escrow payments during the year. Cause Kirkhaven was experiencing significant cash constraints and was not able to make debt payments and escrow payments as they were due. Effect Kirkhaven is out of compliance with the HUD regulatory agreement. Recommendation We recommend that Kirkhaven evaluate the necessary options to become current on mortgage and escrow payments. Management Response and corrective action plan Kirkhaven’s HUD mortgage was paid in full in February 2024.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $2.91M