Finding 952086 (2023-003)

S3800-010 Finding Reference Number – 2023-003 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 – In progress 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 Section 9(g) of the regulatory agreement, all rents and other receipts of the project shall be deposited in the name of the project in a financial institution, whose deposits are insured by an agency of the Federal Government. S3800-030 Statement of Condition – As of and during the year ended September 30, 2023, Cheney Care Community maintained cash balances with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) limits. S3800-032 Cause – Cheney Care Community did not monitor the bank ratings on a quarterly basis for the financial institutions where cash was in excess of FDIC limits. S3800-033 Effect or Potential Effect – The project is susceptible to losses related to uninsured balances. S3800-035 Auditor Non-Compliance Code – S (Internal Controls) 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 have been implemented. S3800-050 Context – During our audit, we noted Cheney Care Community did not perform the alternative procedures on the financial institutions defined in the HUD Handbook 4370.2. S3800-080 Recommendation – We recommend management of Cheney Care Community review their internal controls over cash and implement a policy to monitor the bank ratings quarterly for the financial institutions the project holds funds at. S3800-090 Auditor’s Summary of Auditee Comments on the Findings and Recommendations – Cheney Care Community will review and update their policies and procedures to ensure the bank ratings for the financial institutions are monitored on a quarterly basis and the documentation is maintained. S3800-130 Response Indicator – Agree S3800-140 Completion Date – December 31, 2023 S3800-150 Response – Cheney Care Community will review and update their policies and procedures to ensure the bank ratings for the financial institutions are monitored on a quarterly basis and the documentation is maintained.