Require Shawnee Christian Nursing Center to return 27 beds to operation or pay down the mortgage by $815,973
2018-BO-0001 | September 17, 2018
HUD’s Office of Residential Care Facilities Did Not Always Have and Use Financial Information to Adequately Assess and Monitor Nursing Homes
Housing
- Status2018-BO-0001-001-IOpenClosed$815,973Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
- Status2018-BO-0001-001-JOpenClosed
Define the troubled and potentially troubled classifications for nursing homes and develop specific measures to identify when and how nursing homes are classified.
- Status2018-BO-0001-001-KOpenClosed
Develop and implement policies and procedures to revisit the classifications at least annually.
- Status2018-BO-0001-002-AOpenClosed
Develop and implement computerized controls to flag blank data fields and illogical financial data.
- Status2018-BO-0001-002-BOpenClosed
Develop and implement procedures to require owners, operators, and lenders to submit accurate and complete financial data.
- Status2018-BO-0001-002-COpenClosed
Develop and implement internal controls to routinely compare financial data on mortgage payments to Multifamily Delinquency and Default Reporting System data on mortgage payments and follow up on any conflicting data.
- Status2018-BO-0001-002-DOpenClosed
Develop and implement procedures for referring operators who fail to provide required financial statements to the Departmental Enforcement Center.
- Status2018-BO-0001-002-EOpenClosed
Develop and implement metrics to evaluate each nursing home’s financial data for changes in utilization, payments, profitability, and solvency (debt service credit ratios).
2018-DE-1001 | September 06, 2018
Meeker Housing Authority, Meeker, CO, Improperly Used Project Operating Funds for Its 221(d)(3) Multifamily Housing Insurance Program
Housing
- Status2018-DE-1001-001-AOpenClosed
Put all project bank accounts in the name of the project.
- Status2018-DE-1001-001-BOpenClosed
Separate all owner bank accounts from the project’s bank accounts.
- Status2018-DE-1001-001-COpenClosed
Develop and implement controls over the distinction between project funds and owner funds. These controls should include policies related to when the owner is allowed to take project funds owed to the owner.
- Status2018-DE-1001-001-DOpenClosed
Take HUD-approved training related to operating and maintaining a multifamily project.
- Status2018-DE-1001-002-AOpenClosed$142,805Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Repay the project’s operating account from nonproject funds for the $142,805 spent on ineligible expenses.
- Status2018-DE-1001-002-BOpenClosed$12,355Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Provide support for the $12,355 in project funds spent to pay individuals who were not on the payroll and for services provided for project operations. For any portion of this amount that is not supported, the owner should repay the project operating account using nonproject funds.
- Status2018-DE-1001-002-COpenClosed
Obtain training on the eligible use of project funds.
- Status2018-DE-1001-002-DOpenClosed
Develop and implement detailed policies and procedures for procurement, travel, and the use of its credit cards. These controls should comply with HUD regulations regarding procurement and other disbursement documentation requirements.
- Status2018-DE-1001-003-AOpenClosed
Submit any outstanding audited financial statements.
- Status2018-DE-1001-003-BOpenClosed
Review the audited financial statements and determine the amount of outstanding mortgage payments due.
- Status2018-DE-1001-003-COpenClosed
Work with the local multifamily office to make any outstanding mortgage payments or devise a plan to bring the property current through the use of available funds.
- Status2018-DE-1001-003-DOpenClosed
Develop and implement policies and procedures to ensure that the certified public accountant submits audited financial statements by the required HUD deadline.