Finding 525273 (2024-002)

S3800-010 Finding Reference Number – 2024-002 S3800-011 Title and CFDA Number of Federal Program – Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 S3800-015 Type of Finding – Federal Award Finding Other Matters S3800-016 Finding Resolution Status – Resolved S3800-017 Information on Universe Population Size – N/A S3800-018 Sample Size Information – N/A S3800-019 Identification of Repeat Finding and Finding Reference Number – N/A S3800-020 Criteria – Per the regulatory agreement Section 9(e), annual financial statements shall be submitted to HUD within 60 days of the end of the year. This requirement was extended to within 90 days of the end of the year by HUD S3800-030 Statement of Condition – Cheney Care Community did not meet the financial statement filing requirements for the year ended September 30, 2024. As a not-for-profit organization, Uniform Guidance allows the earlier of 9-months after fiscal year end or 30-days after the report is issued to submit. The audit was submitted within the Uniform Guidance requirements. S3800-032 Cause – Additional time was required to obtain certain information to complete the financial statement audit. S3800-033 Effect or Potential Effect – HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for noncompliance with the regulatory agreement. S3800-035 Auditor Non-Compliance Code – Z (Other) S3800-037 FHA/Contract Number – 171-22029 S3800-038 Questioned Costs – $0 S3800-040 Questioned Costs – $0 S3800-045 Reporting Views of Responsible Officials – Cheney Care Community is in agreement with the findings, and the recommendations will be implemented. S3800-080 Recommendation – We recommend management of Cheney Care Community implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations – On February 8, 2025, the audit was submitted to HUD through REAC. Cheney Care Community will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward. S3800-130 Response Indicator – Agree S3800-140 Completion Date – February 8, 2025 S3800-150 Response – On February 8, 2025, the audit was submitted to HUD through REAC. Cheney Care Community will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.