Finding 6887 (2023-001)

- Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2023-12-29

Audit: 8865

Organization: Caring Heart Rehabilitation and Nursing Center, INC (PA)

Auditor: Hirsch Dinter & CO CPAS

AI Summary

Issue: The Project missed HUD's deadline for annual financial filings.
Requirements: Financial reports must be submitted within 90 days after the fiscal year ends, as per HUD agreements.
Follow-up: Implement new policies to ensure timely filings and monitor compliance for the upcoming year.

Finding Text

Condition: The Project did not comply with HUD’s annual filing requirement prior to the deadline. Criteria: Projects are required to ensure that financial status reports are presented in accordance with the terms of the applicable agreement between the Project and HUD. Context: Audited financial statements are due to HUD and REAC no later than 90 days after the fiscal year end. Cause: Due to a change in audit firms engaged to conduct the annual audit, the annual filing was not completed timely. Effect: Untimely financial reporting. Identification as a Repeat Finding: Yes, see prior audit finding 2022-001. Recommendation: The Project should implement policies and procedures to ensure that annual financial reports are filed prior to deadlines. Amount of Questioned Cost: None Reporting Views of Responsible Officials: Management agrees with the finding and has implemented policies and procedures to ensure that this does not recur. Please refer to management’s corrective action plan. The Project plans to comply for the year ending June 30, 2024.

Corrective Action Plan

Action Taken: The Project contracts its accounting and financial reporting processes to an outside Independent Contractor that provides specialty services of this nature to skilled nursing facilities nationwide. The Independent Contractor rearranged their staffing structure for the Project and assigned specific staff to provide the Project services and respond to financial questions that arise during the year. The implementation of these processes will ensure that annual financial reports are filed timely. As of date, the Projects financial reporting has made significant progress in meeting deadlines, and the Project anticipates the June 30, 2024 filing to meet the deadline. The Project has designated Mr. Mark Stern to monitor the plan of corrective action for this finding. Anticipated Completion Date: 09/30/2024

Other Findings in this Audit

6888 2023-002

-
583329 2023-001

- Repeat
583330 2023-002

-

Programs in Audit

ALN	Program Name	Expenditures
14.129	Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities	$22.08M
93.498	Provider Relief Fund	$457,747