Finding Text
Title and CFDA Number of Federal Program (S3800-011) - U.S. Department of Housing and Urban Development, HUD-insured mortgage – CFDA No. 14.129
Type of Finding (S3800-015) - FA = Federal Award Finding
Identification of Repeat Finding (S3800-019) - No
Criteria or Special Requirement (S3800-020) - The Community was required to obtain written approval from HUD prior to surrendering 13 licensed beds to the State of Ohio that were collateral for the HUD-insured mortgage.
Condition (S3800-030) - The Community did not obtain HUD’s approval prior to requesting and obtaining approval from the Ohio Department of Health (ODH) to reduce the licensed beds from 87 to 74 for the nursing facility during April 2023.
Auditor Noncompliance Code (S3800-035) - Z
Questioned Costs (S3800-040) - None
Context (S3800-050) - Compliance testing.
Effect (S3800-060) - The collateral of the mortgaged property was changed prior to HUD’s approval and HUD has identified this as a Tier 2 flag.
Cause (S3800-070) - The Community requested a bed reduction from ODH for the nursing facility to reduce monthly expenses for unoccupied licensed beds.
Recommendation (S3800-080) - The Community should adhere to the Regulatory Agreement and obtain HUD’s approval prior to taking any actions listed in the Regulatory Agreement.
Auditor’s Summary of the Auditee’s Comments on the Finding and Recommendation (S3800-090) - The Organization’s management agrees with the finding and is working with HUD to obtain the necessary approval.
Response Indicator (S3800-130) - Agree
Completion Date (S3800-140) - Open - not completed
Management’s Response (S3800-150) - Management is in the process of working with HUD to obtain the necessary approval.