Section 232 Mortgage Insurance for Nursing Homes - Assistance Listing No. 14.157
Recommendation: The auditor recommends that management increase their coverage amount to come into compliance with HUD requirements, as well as develop policies and procedures to monitor required coverage minimums to ensure that actual coverage amount is kept at least at that level.
Explanation of disagreement with audit finding: There is no disagreement with the audit finding.
Action taken in response to finding: Fidelity Bond insurance coverage was immediately increased from $600,000 to $850,000 to be above the minimum required threshold of $812,581 when identified. The new process implemented will assess potential organizational revenue growth ahead of insurance renewal to maintain at least the minimum required coverage threshold.
Name(s) of the contact person(s) responsible for corrective action: David Lockwood, Controller
Planned completion date for corrective action plan: 3/31/25