Finding 515799 (2024-003)

Federal agency: U.S. Department of Housing and Urban Development Federal program title: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Assistance Listing Number: 14.129 Type of Finding: Other Matters Criteria or specific requirement: According to HUD regulations, REAC reports must be submitted within 90 days of year-end. Condition: Rannie Webster Foundation did not complete the REAC submission within 90 days of the August 31, 2023 year-end. Questioned Costs: None Context: Rannie Webster Foundation did not complete the REAC submission within 90 days of the August 31, 2023 year end. Management did, however, request an extension from HUD. Cause: The late submission of the HUD REAC report is due to the affiliation with Silverstone Living, effective May 1, 2023. As a result of the affiliation, there was a transition of management, which caused reporting delays. Effect: Late submissions can result in non-compliance with HUD regulations, which may lead to further administrative actions or scrutiny. Recommendation: We recommend that the organization implement measures to ensure timely submission of HUD REAC reports. Views of responsible officials: Management is in agreement with the finding. The reason for the late fiscal year 2023 submission was due to the affiliation with Silverstone and management transition. Management communicated these circumstances with HUD and submitted a request for extension prior to the deadline. Management plans to submit the fiscal year 2024 REAC within the 90-day deadline.