Finding 44820 (2022-001)

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Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-03-28

AI Summary

  • Core Issue: Traditions at Chillicothe failed to report a serious level K deficiency to HUD and the lender within the required 2 business days.
  • Impacted Requirements: Compliance with the borrower regulatory agreement mandates timely reporting of deficiencies to ensure resident safety.
  • Recommended Follow-Up: Management has notified HUD and the lender as of March 23, 2023, and has implemented a plan to prevent future occurrences.

Finding Text

Reference Number (S3800-010) 2022-001 Title and Federal Assistance Listing Number of Federal Program (S3800-011) Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities ? Federal Assistance Listing Number 14.129 Criteria (S3800-020) The affiliated lessee (Traditions at Chillicothe) received a level K deficiency during a complaint/infection control survey conducted by the Ohio Department of Health (ODH) completed on February 8, 2022. A level K deficiency is considered a pattern of immediate jeopardy to resident health or safety. The level K deficiency was not reported to HUD and the lender within the required 2 business days of receiving notice of the violation. Cause (S3800-0032) National Church Residences Chillicothe Land Holdings, Inc. is required to be in compliance with the borrower regulatory agreement that requires the level K deficiency to be reported to HUD and the lender within 2 business days of receiving the notice of the violation. Effect or Potential Effect (S3800-033) A level K deficiency was noted during a complaint/infection control survey conducted by ODH and was not reported to HUD and the lender within 2 business days of receiving the notice of the violation which is required by the borrower regulatory agreement. Recommendation (S3800-080) Management is required to notify HUD and the lender, which was completed on March 23, 2023. Auditor?s Summary of the Auditee?s Comments on Findings and Recommendations (S3800-090) Management of the affiliated lessee (Traditions at Chillicothe) agrees with the finding. The deficiency is an isolated incident and is not reoccurring. The affiliated lessee has implemented a sufficient plan of correction in order to mitigate the deficiency and all situations alike moving forward.

Corrective Action Plan

CORRECTIVE ACTION PLAN March 27, 2023 U.S. Department of Housing and Urban Development: National Church Residences Chillicothe Land Holdings, Inc. respectively submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: HW&Co. 460 Polaris Pkwy., Suite 300 Westerville, OH 43082-8213 Audit period: January 1, 2022 through December 31, 2022 The finding from the December 31, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS?FINANCIAL STATEMENT AUDIT No findings were noted. FINDINGS?FEDERAL AWARD PROGRAMS AUDIT U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Federal Assistance Listing Number 14.129 ? Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities 2022-001 ? Federal Assistance Listing Number 14.129 ? Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Recommendation: The affiliated lessee (Traditions at Chillicothe) received a level K deficiency during a complaint/infection control survey conducted by the Ohio Department of Health (ODH) completed on February 8, 2022. A level K deficiency is considered a pattern of immediate jeopardy to resident health or safety. The level K deficiency was not reported to HUD and the lender within the required 2 business days of receiving notice of the violation. Management is required to notify HUD and the lender, which was completed on March 23, 2023. Action Taken: Management is required to notify HUD and the lender, which was completed on March 23, 2023. Management of the affiliated lessee (Traditions at Chillicothe) agrees with the finding. The deficiency is an isolated incident and is not reoccurring. The affiliated lessee has implemented a sufficient plan of correction in order to mitigate the deficiency and all situations alike moving forward.

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 $15.12M