Finding 704 (2023-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2023-10-25

Audit: 1340

Organization: Arkansas Methodist Medical Center Retirement Community, Inc. (AR)

Auditor: Horne

AI Summary

Core Issue: A radio advertisement failed to include the required equal housing opportunity logo, slogan, or statement.
Impacted Requirements: This oversight violates HUD's regulations for marketing materials.
Recommended Follow-Up: Correct existing materials and ensure all future marketing includes the equal housing opportunity slogan.

Finding Text

Finding No. 2023-001, CFDA 14.129 Equal Housing Opportunity Requirements Criteria: HUD requires that the HUD-approved equal housing opportunity logo, slogan or statement be displayed on all marketing materials released to the public. Condition: The Company produced one radio marketing advertisement during the year ended June 30, 2023 which did not include the equal housing opportunity logo, slogan or statement as required. Cause: Oversight controls, when marketing materials were originally produced by the Company, were not operating properly to ensure compliance with HUD standards. Effect: Failure to include the equal housing opportunity logo, slogan or statement may be perceived as an indication of discriminatory housing practices. Question costs: None. Identification as a repeat finding: Not applicable. Auditor’s Recommendation: We recommend that all current marketing materials without the equal housing opportunity slogan be corrected, and any future materials produced include the equal housing opportunity slogan. Auditee’s Response: Refer to Management's Corrective Action Plan included within this reporting package.

Corrective Action Plan

Healthcare Account Executive U.S. Department of Housing and Urban Development 451 7th Street, S.W. Washington, DC 20410 Arkansas Methodist Medical Center Retirement Community, Inc. respectfully submits the following corrective action plan for Chateau on the Ridge, FHA Project No. 082-43058 (the "Chateau"), for the year ended June 30, 2023. The Correction Plan was necessitated by findings reported by the independent public accounting firm of: HORNE LLP 661 Sunnybrook Road Suite 100 Ridgeland, MS 39157 Audit Finding #2023-001 / CFDA 14.129 - Equal Housing Opportunity Requirements Auditors Recommendation: HORNE recommends that all current marketing materials without the equal housing opportunity advertising requirements be corrected and any future materials produced include the equal housing opportunity logo, slogan or statement. Action Taken: Current marketing materials without the equal housing opportunity slogan have been updated. Controls have been put in place to ensure the logo, slogan or statement is placed on future marketing materials. Should you need anything further or have any questions regarding management's plan of correction response, you may contact me at Chateau on the Ridge (870.215.6300) or by email at Deborah.Farrell@arkansasmethodist.org. Sincerely, Deborah Farrell, Executive Director Arkansas Methodist Medical Center Retirement Community, Inc.

Other Findings in this Audit

577146 2023-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.129	Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities	$8.62M