EIN: 020331198
UEI: FJBFS94BTNM1
Data as of August 22, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on August 19, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by February 19, 2026 (185 days ago).
What is a management decision? →Surplus cash was not deposited into the residual receipts account within 90 days after the end of the August 31, 2024 fiscal year. Questioned Costs: None Context: The Foundation had calculated surplus cash of $423,902 for the fiscal year ended August 31, 2024. The Foundation utilizes a third-party servicer of their HUD loan, whom they utilize for HUD requests and approvals. During our audit, we noted that the Foundation did not deposit the surplus cash into the residual receipts account within 90 days after the fiscal year ended August 31, 2024. Cause: There was miscommunication with Lument, the HUD loan lender, and a misunderstanding of the regulatory agreement. Since the Foundation goes through Lument for HUD requests and approvals, management thought the communication they received from Lument was approved by HUD. As a result, management was under the impression that the residual receipts account was fully funded, and the deposit of surplus cash was not required. Effect: Failure to deposit surplus cash in a timely manner can lead to noncompliance with HUD regulations, which may result in penalties or other legal consequences. Recommendation: CLA recommends that management ensures the regulatory agreement is being followed by all parties involved, unless otherwise instructed by a HUD representative. Any communication regarding changes to the regulatory agreement should come directly from HUD. Views of responsible officials: Management is in agreement with the finding. They received miscommunication from Lument which resulted in a misunderstanding of the regulatory agreement. Management will follow the regulatory agreement moving forward and ensure any third-party administrators also follow the regulatory agreement, unless otherwise instructed by a HUD representative. The Foundation received approval from HUD on July 21, 2025 for a suspension of deposits to the residual receipts account as long as a balance of $640,857 is maintained.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program title: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Assistance Listing Number: 14.129 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per the regulatory agreement, within 90 days after the end of the fiscal period for which surplus cash is calculated, borrower shall deposit into the residual receipts account an amount equal to the excess, if any, of surplus cash as of the end of the fiscal period over the amount of any permitted distributions therefrom. Condition: Surplus cash was not deposited into the residual receipts account within 90 days after the end of the August 31, 2024 fiscal year. Questioned Costs: None Context: The Foundation had calculated surplus cash of $423,902 for the fiscal year ended August 31, 2024. The Foundation utilizes a third-party servicer of their HUD loan, whom they utilize for HUD requests and approvals. During our audit, we noted that the Foundation did not deposit the surplus cash into the residual receipts account within 90 days after the fiscal year ended August 31, 2024. Cause: There was miscommunication with Lument, the HUD loan lender, and a misunderstanding of the regulatory agreement. Since the Foundation goes through Lument for HUD requests and approvals, management thought the communication they received from Lument was approved by HUD. As a result, management was under the impression that the residual receipts account was fully funded, and the deposit of surplus cash was not required. Effect: Failure to deposit surplus cash in a timely manner can lead to noncompliance with HUD regulations, which may result in penalties or other legal consequences. Recommendation: CLA recommends that management ensures the regulatory agreement is being followed by all parties involved, unless otherwise instructed by a HUD representative. Any communication regarding changes to the regulatory agreement should come directly from HUD. Views of responsible officials: Management is in agreement with the finding. They received miscommunication from Lument which resulted in a misunderstanding of the regulatory agreement. Management will follow the regulatory agreement moving forward and ensure any third-party administrators also follow the regulatory agreement, unless otherwise instructed by a HUD representative. The Foundation received approval from HUD on July 21, 2025 for a suspension of deposits to the residual receipts account as long as a balance of $640,857 is maintained.
U.S. Department of Housing and Urban Development Rannie Webster Foundation respectfully submits the following corrective action plan for the period ended April 30, 2025. Audit period: September 1, 2024 – April 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings and Questioned Costs – Major Federal Programs U.S. Department of Housing and Urban Development 2025-001 Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities – Assistance Listing No. 14.129 – Significant Deficiency in Internal Control over Compliance Recommendation: CLA recommends that management ensures the regulatory agreement is being followed by all parties involved, unless otherwise instructed by a HUD representative. Any communication regarding changes to the regulatory agreement should come directly from HUD. Explanation of disagreement with audit finding: Management is in agreement with the finding. They received miscommunication from Lument. Since the Foundation goes through Lument for HUD requests and approvals, management thought the communication they received from Lument was approved by HUD. As a result, management was under the impression that the residual receipts account was fully funded, and the deposit of surplus cash was not required. Action taken in response to finding: On July 18, 2025, management submitted a formal request to HUD to suspend deposits to the residual receipts fund. On July 21, 2025, HUD approved a suspension of deposits to the reserve as long as a balance of $640,856.81 is maintained. Name of the contact person responsible for corrective action: Janet Langlois, CFO Planned completion date for corrective action plan: July 21, 2025.
During our audit of the Foundation for the period ending April 30, 2025, we noted that the Foundation did not maintain fidelity bond insurance coverage in accordance with the requirements outlined by HUD. Questioned Costs: None Context: Prior to affiliating with Silverstone Living, the Foundation had a separate endorsement included in their Property Coverage policy that included increased crime coverage to comply with HUD requirements. Cause: Due to the affiliation with Silverstone Living, the Foundation is now covered under Silverstone Living’s insurance policies. The increased crime coverage did not get added into the Silverstone Living policies to keep the Foundation in compliance. Effect: Failure to maintain adequate insurance coverage can lead to noncompliance with HUD regulations and increased financial risk in the event of employee crime or theft. Recommendation: We recommend that management ensure fidelity bond insurance coverage is reviewed annually and adjusted as necessary to meet HUD requirements. Views of responsible officials: The Foundation is actively working with its insurance provider to increase coverage to the required level. The revised policy is expected to be in place by July 31, 2025.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program title: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Assistance Listing Number: 14.129 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Per the HUD loan agreement and HUD handbook, HUD requires fidelity bond (crime/dishonesty) insurance coverage equal to at least two (2) months effective gross income. Condition: During our audit of the Foundation for the period ending April 30, 2025, we noted that the Foundation did not maintain fidelity bond insurance coverage in accordance with the requirements outlined by HUD. Questioned Costs: None Context: Prior to affiliating with Silverstone Living, the Foundation had a separate endorsement included in their Property Coverage policy that included increased crime coverage to comply with HUD requirements. Cause: Due to the affiliation with Silverstone Living, the Foundation is now covered under Silverstone Living’s insurance policies. The increased crime coverage did not get added into the Silverstone Living policies to keep the Foundation in compliance. Effect: Failure to maintain adequate insurance coverage can lead to noncompliance with HUD regulations and increased financial risk in the event of employee crime or theft. Recommendation: We recommend that management ensure fidelity bond insurance coverage is reviewed annually and adjusted as necessary to meet HUD requirements. Views of responsible officials: The Foundation is actively working with its insurance provider to increase coverage to the required level. The revised policy is expected to be in place by July 31, 2025.
2025-002 Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities – Assistance Listing No. 14.129 – Significant Deficiency in Internal Control over Compliance Recommendation: We recommend that management ensure fidelity bond insurance coverage is reviewed annually and adjusted as necessary to meet HUD requirements. Explanation of disagreement with audit finding: Management is in agreement with the finding. Prior to affiliating with Silverstone Living, the Foundation had a separate endorsement included in their Property Coverage policy that included increased crime coverage to comply with HUD requirements. After transferring coverage to Silverstone Living’s policies, the increased crime coverage did not get transferred over to keep the Foundation in compliance. Action taken in response to finding: The Foundation is actively working with its insurance provider to increase coverage to the required level. The revised policy is expected to be in place by July 31, 2025. Name of the contact person responsible for corrective action: Janet Langlois, CFO Planned completion date for corrective action plan: July 31, 2025. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Janet Langlois at 603-589-4111.
FAC accepted this audit on December 19, 2024 — management decision was due June 19, 2025.
The Organization did not have a formal policy for invoice approval prior to payment for part of the fiscal year. Questioned Costs: None Context: During our audit, we noted that the Organization did not consistently approve invoices prior to payment. 10 of 40 disbursements tested did not have proper invoice approvals. Cause: The entity has a small finance department. Effect: Failure to approve invoices prior to payment increases the risk of unauthorized, inaccurate, or fraudulent payments. This could lead to financial misstatements and non-compliance with applicable regulations. Recommendation: CLA recommends the organization develops and enforces a policy requiring the approval of all invoices before payment. Views of responsible officials: Management is in agreement with the finding and noted that this has been remediated during fiscal year 2024. Starting in April 2024, Webster began implementing Silverstone Living’s invoice approval policy. The authorized signers for invoices are the Executive Director, the CFO, and the department heads.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program title: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Assistance Listing Number: 14.129 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: All disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation. Condition: The Organization did not have a formal policy for invoice approval prior to payment for part of the fiscal year. Questioned Costs: None Context: During our audit, we noted that the Organization did not consistently approve invoices prior to payment. 10 of 40 disbursements tested did not have proper invoice approvals. Cause: The entity has a small finance department. Effect: Failure to approve invoices prior to payment increases the risk of unauthorized, inaccurate, or fraudulent payments. This could lead to financial misstatements and non-compliance with applicable regulations. Recommendation: CLA recommends the organization develops and enforces a policy requiring the approval of all invoices before payment. Views of responsible officials: Management is in agreement with the finding and noted that this has been remediated during fiscal year 2024. Starting in April 2024, Webster began implementing Silverstone Living’s invoice approval policy. The authorized signers for invoices are the Executive Director, the CFO, and the department heads.
Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities -Assistance Listing No. 14.129 - Significant Deficiency in Internal Control over Compliance Recommendation: CLA recommends the organization develops and enforces a policy requiring the approval of all invoices before payment. Explanation of disagreement with audit finding: Management is in agreement with the finding. Action taken in response to finding: Starting in April 2024, Webster began implementing Silverstone Living's invoice approval policy. The authorized signers for invoices are the Executive Director, the CFO, and the department heads. Name of the contact person responsible for corrective action: Janet Langlois, CFO Planned completion date for corrective action plan: April 30, 2024.
There was a lack of segregation of duties surrounding cash management for part of the fiscal year. Questioned Costs: None Context: During our audit, we noted that bank reconciliations were prepared promptly, however, there was a lack of segregation of duties surrounding review by an independent person. 1 of 3 bank reconciliations tested were not reviewed by someone other than the preparer. It was noted that Webster did not have a formal bank reconciliation review policy in place from September through November 2023. Cause: The entity has a small finance department. Effect: Failure to have bank reconciliations reviewed by an independent person increases the risk of errors, omissions, or fraudulent activities going undetected. This could lead to financial misstatements and non-compliance with applicable regulations. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2023-001. Recommendation: CLA recommends the organization develops and enforces a policy requiring the independent approval of all bank reconciliations on a monthly basis. Views of responsible officials: Management is in agreement with the finding and noted that this has been remediated during fiscal year 2024. Beginning in December 2023, Webster began implementing Silverstone Living’s policy regarding bank reconciliation preparation and approval. Bank reconciliations are prepared on a monthly basis by the Business Office Manager or the Assistant Controller and reviewed by the CFO.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program title: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Assistance Listing Number: 14.129 Type of Finding: Other Matters Criteria or specific requirement: Bank statements shall be reconciled promptly to the formal accounting records by persons other than those recording or handling cash or preparing and signing checks. Condition: There was a lack of segregation of duties surrounding cash management for part of the fiscal year. Questioned Costs: None Context: During our audit, we noted that bank reconciliations were prepared promptly, however, there was a lack of segregation of duties surrounding review by an independent person. 1 of 3 bank reconciliations tested were not reviewed by someone other than the preparer. It was noted that Webster did not have a formal bank reconciliation review policy in place from September through November 2023. Cause: The entity has a small finance department. Effect: Failure to have bank reconciliations reviewed by an independent person increases the risk of errors, omissions, or fraudulent activities going undetected. This could lead to financial misstatements and non-compliance with applicable regulations. Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2023-001. Recommendation: CLA recommends the organization develops and enforces a policy requiring the independent approval of all bank reconciliations on a monthly basis. Views of responsible officials: Management is in agreement with the finding and noted that this has been remediated during fiscal year 2024. Beginning in December 2023, Webster began implementing Silverstone Living’s policy regarding bank reconciliation preparation and approval. Bank reconciliations are prepared on a monthly basis by the Business Office Manager or the Assistant Controller and reviewed by the CFO.
Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities -Assistance Listing No. 14.129 - Other Matters Recommendation: CLA recommends the organization develops and enforces a policy requiring the independent approval of all bank reconciliations on a monthly basis. Explanation of disagreement with audit finding: Management is in agreement with the finding. Action taken in response to finding: Beginning in December 2023, Webster began implementing Silverstone Living's policy regarding bank reconciliation preparation and approval. Bank reconciliations are prepared on a monthly basis by the Business Office Manager or the Assistant Controller and reviewed by the CFO. Name of the contact person responsible for corrective action: Janet Langlois, CFO Planned completion date for corrective action plan: December 31, 2023.
2023-001
Rannie Webster Foundation did not complete the REAC submission within 90 days of the August 31, 2023 year-end. Questioned Costs: None Context: Rannie Webster Foundation did not complete the REAC submission within 90 days of the August 31, 2023 year end. Management did, however, request an extension from HUD. Cause: The late submission of the HUD REAC report is due to the affiliation with Silverstone Living, effective May 1, 2023. As a result of the affiliation, there was a transition of management, which caused reporting delays. Effect: Late submissions can result in non-compliance with HUD regulations, which may lead to further administrative actions or scrutiny. Recommendation: We recommend that the organization implement measures to ensure timely submission of HUD REAC reports. Views of responsible officials: Management is in agreement with the finding. The reason for the late fiscal year 2023 submission was due to the affiliation with Silverstone and management transition. Management communicated these circumstances with HUD and submitted a request for extension prior to the deadline. Management plans to submit the fiscal year 2024 REAC within the 90-day deadline.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program title: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Assistance Listing Number: 14.129 Type of Finding: Other Matters Criteria or specific requirement: According to HUD regulations, REAC reports must be submitted within 90 days of year-end. Condition: Rannie Webster Foundation did not complete the REAC submission within 90 days of the August 31, 2023 year-end. Questioned Costs: None Context: Rannie Webster Foundation did not complete the REAC submission within 90 days of the August 31, 2023 year end. Management did, however, request an extension from HUD. Cause: The late submission of the HUD REAC report is due to the affiliation with Silverstone Living, effective May 1, 2023. As a result of the affiliation, there was a transition of management, which caused reporting delays. Effect: Late submissions can result in non-compliance with HUD regulations, which may lead to further administrative actions or scrutiny. Recommendation: We recommend that the organization implement measures to ensure timely submission of HUD REAC reports. Views of responsible officials: Management is in agreement with the finding. The reason for the late fiscal year 2023 submission was due to the affiliation with Silverstone and management transition. Management communicated these circumstances with HUD and submitted a request for extension prior to the deadline. Management plans to submit the fiscal year 2024 REAC within the 90-day deadline.
Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities -Assistance Listing No. 14.129 - Other Matters Recommendation: We recommend that the organization implement measures to ensure timely submission of HUD REAC reports. Explanation of disagreement with audit finding: Management is in agreement with the finding. Action taken in response to finding: The reason for the late fiscal year 2023 submissionwas due to the affiliation with Silverstone and management transition. Managementcommunicated these circumstances with HUD and submitted a request for extension priorto the deadline. Management submitted the fiscal year 2024 REAC within the 90-day deadline. Name of the contact person responsible for corrective action: Janet Langlois, CFO Planned completion date for corrective action plan: November 30, 2024.
FAC accepted this audit on January 25, 2024 — management decision was due July 25, 2024.
There is a lack of segregation of duties surrounding cash management. Context: During our testing, we noted that bank reconciliations were prepared promptly, however, there is a lack of segregation of duties. The person preparing the bank reconciliations also has the ability to receive incoming cash, take deposits to the bank, and generate checks. Additionally, there is no review performed for bank reconciliations. Cause: The entity has a small finance department. Effect: Error(s) or fraud could occur and result in noncompliance. Recommendation: The person preparing the bank reconciliations should not have the ability to handle and record cash. When segregation of duties is not possible, compensating controls should be put into place. Review of bank reconciliations should also be completed on a monthly basis. Views of responsible officials: Management is in agreement with the finding.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program title: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Assistance Listing Number: 14.129 Type of Finding: Significant Deficiency in Internal Control over Financial Reporting Criteria or specific requirement: Bank statements shall be reconciled promptly to the formal accounting records by persons other than those recording or handling cash, or preparing and signing checks. Condition: There is a lack of segregation of duties surrounding cash management. Context: During our testing, we noted that bank reconciliations were prepared promptly, however, there is a lack of segregation of duties. The person preparing the bank reconciliations also has the ability to receive incoming cash, take deposits to the bank, and generate checks. Additionally, there is no review performed for bank reconciliations. Cause: The entity has a small finance department. Effect: Error(s) or fraud could occur and result in noncompliance. Recommendation: The person preparing the bank reconciliations should not have the ability to handle and record cash. When segregation of duties is not possible, compensating controls should be put into place. Review of bank reconciliations should also be completed on a monthly basis. Views of responsible officials: Management is in agreement with the finding.
Action taken in response to finding: A clerical support position was recently hired at the end of November, 2023 who will be responsible for handling all receipts and processing of deposits via remote deposit, which was also recently implemented so deposits can be done daily. This will segregate the cash handling from the recording of receipts once he is fully trained on the system. Bank reconciliation reviews will be completed monthly.
Rannie Webster Foundation’s debt service coverage ratio was calculated as below 1.0. Questioned costs: None Context: Rannie Webster Foundation’s debt service coverage ratio was calculated as below the requirement of 1.0. Cause: Rannie Webster Foundation experienced higher costs as a result of overall economic conditions and higher costs on contracted nursing services in the wake of healthcare hiring challenges. Effect: This may be considered a project operating deficiency by HUD. HUD may provide the Foundation with written notice that the Foundation must select and engage (at the Foundation’s expense), within ten business days of such notice, the services of a management consultant. HUD’s decision to require or not require the engagement of a consultant is within HUD’s sole discretion. Repeat finding: This is a repeat finding and was reported as finding 2022-02 in the prior year. Recommendation: Management should evaluate and consider cost-cutting measures or strategies to improve the financial results. Views of responsible officials: Management is in agreement with the finding.
Show full finding ▾Hide full finding ▴Federal agency: U.S. Department of Housing and Urban Development Federal program title: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Assistance Listing Number: 14.129 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Rannie Webster Foundation’s Regulatory Agreement with HUD requires the Foundation to maintain a debt service coverage ratio of 1.0. Condition: Rannie Webster Foundation’s debt service coverage ratio was calculated as below 1.0. Questioned costs: None Context: Rannie Webster Foundation’s debt service coverage ratio was calculated as below the requirement of 1.0. Cause: Rannie Webster Foundation experienced higher costs as a result of overall economic conditions and higher costs on contracted nursing services in the wake of healthcare hiring challenges. Effect: This may be considered a project operating deficiency by HUD. HUD may provide the Foundation with written notice that the Foundation must select and engage (at the Foundation’s expense), within ten business days of such notice, the services of a management consultant. HUD’s decision to require or not require the engagement of a consultant is within HUD’s sole discretion. Repeat finding: This is a repeat finding and was reported as finding 2022-02 in the prior year. Recommendation: Management should evaluate and consider cost-cutting measures or strategies to improve the financial results. Views of responsible officials: Management is in agreement with the finding.
Silverstone Living (SL) recognized several operational opportunities for the sustainability of the Foundation, which is the reason why the affiliation occurred. These opportunities were three-fold: increasing census to fill beds which have been unoccupied for some time, maximizing the reimbursement for services already being provided, and the control and reduction of expenses. In the short amount of time since the affiliation with SL, the average daily census has increased over the prior 3-year period by nearly 7% for Assisted Living services, and nearly 9% for skilled and nursing services. This equates to over $1,000,000 in additional annual revenues because of the census increase alone. SL believes that there is potential to further increase census as we continue to stabilize and onboard additional clinical staffing. SL recently brought on an individual skilled in coding maximization to ensure the Foundation receives the appropriate reimbursement for the services being provided which was previously lacking. On the expense side, SL renegotiated rates with staffing agencies for clinical positions as well as the contracted rehabilitation services to reduce the amounts being charged which has resulted in nearly $40,000 per month in savings from the earlier part of the calendar year. SL also brought the Foundation under its umbrella in the areas of employee benefits and facility insurance, negating any premium increases and a reduction of over $50,000 in Workers Compensation insurance premiums in the coming year. Through attrition, SL also worked to restructure and eliminate several non-clinical positions for operational efficiency and will continue to review staffing needs as turnover occurs. SL is continuing to transition administrative functions such as payroll and accounting onto its systems, further reducing outside contracted services and systems over the coming months. Through this multi-pronged approach, we are seeing dramatic improvements in the financial outlook of the Foundation. During the 3-month fiscal period beginning 2024 compared to the same period in 2023, there has been a $670,000 improvement in income from operations, which we believe will trend throughout the remainder of the new fiscal year, and into the future.
2022-002
FAC accepted this audit on December 21, 2022 — management decision was due June 21, 2023.
Rannie Webster Foundation?s internal control over financial reporting does not end at the general ledger but extends to the financial statements and notes. As part of our professional services for the year ending August 31, 2022, Wipfli LLP assisted in drafting the financial statements and notes. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Because Rannie Webster Foundation relies on Wipfli LLP to provide the necessary understanding of current accounting and disclosure principles in the preparation of the financial statements and notes, a significant deficiency exists in Rannie Webster Foundation?s internal controls. Cause: Rannie Webster Foundation relies on the audit firm to prepare the annual financial statements and related footnote disclosures. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Effects or Potential Effects: The completeness of the financial statement disclosures and the accuracy of the overall financial presentation is negatively impacted as external auditors do not have the same comprehensive understanding of Rannie Webster Foundation as its internal staff. Auditor?s Recommendation: Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of responsible officials: Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor?s services and review and approve the financial statements and notes.
Show full finding ▾Hide full finding ▴Criteria: Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with generally accepted accounting principles. This is a repeat finding and was reported as finding 2021-001 in the prior year. Condition: Rannie Webster Foundation?s internal control over financial reporting does not end at the general ledger but extends to the financial statements and notes. As part of our professional services for the year ending August 31, 2022, Wipfli LLP assisted in drafting the financial statements and notes. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Because Rannie Webster Foundation relies on Wipfli LLP to provide the necessary understanding of current accounting and disclosure principles in the preparation of the financial statements and notes, a significant deficiency exists in Rannie Webster Foundation?s internal controls. Cause: Rannie Webster Foundation relies on the audit firm to prepare the annual financial statements and related footnote disclosures. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Effects or Potential Effects: The completeness of the financial statement disclosures and the accuracy of the overall financial presentation is negatively impacted as external auditors do not have the same comprehensive understanding of Rannie Webster Foundation as its internal staff. Auditor?s Recommendation: Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of responsible officials: Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor?s services and review and approve the financial statements and notes.
Recommendation: Management and those charged with governance continue to evaluate whether to accept the degree of risk associated with not having staff with the capability to prepare complete financial statement notes. Corrective Action Plan: Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor?s services and review and approve the financial statements and notes.
2021-001
Rannie Webster Foundation's debt service coverage ratio was calculated as below 1.0. Questioned Costs: None Cause: Rannie Webster Foundation experienced higher costs as a result of overall economic conditions and a higher costly dependency on contracted nursing services in the wake of healthcare hiring challenges. Effects or Potential Effects: Rannie Webster Foundation has been impacted by the COVID pandemic and the overall hiring crisis for healthcare workers. Auditor's Recommendation: Management should evaluate and consider cost-cutting measures or strategies to improve the financial results. View of responsible officials: Rannie Webster Foundation continues to feel the impact of the COVID pandemic but continues to seek cost-cutting measures to maintain the debt service coverage ratio.
Show full finding ▾Hide full finding ▴Criteria: Rannie Webster Foundation's Regulatory Agreement with HUD requires the Foundation to maintain a debt service coverage ratio of 1.0. This is a repeat finding and was reported as finding 2021-002 in the prior year. Condition: Rannie Webster Foundation's debt service coverage ratio was calculated as below 1.0. Questioned Costs: None Cause: Rannie Webster Foundation experienced higher costs as a result of overall economic conditions and a higher costly dependency on contracted nursing services in the wake of healthcare hiring challenges. Effects or Potential Effects: Rannie Webster Foundation has been impacted by the COVID pandemic and the overall hiring crisis for healthcare workers. Auditor's Recommendation: Management should evaluate and consider cost-cutting measures or strategies to improve the financial results. View of responsible officials: Rannie Webster Foundation continues to feel the impact of the COVID pandemic but continues to seek cost-cutting measures to maintain the debt service coverage ratio.
Auditor's Recommendation: Management should evaluate and consider cost-cutting measures or strategies to improve the financial results. Corrective Action Plan: Rannie Webster Foundation is unable to hire staff due to the staffing crisis in the healthcare industry. This inability to hire staff has increased the usage of costly contracted nursing services. Rannie Webster Foundation has attempted to alleviate the financial strain with costing cutting measures and increases in the rates charged to residents. This staffing crisis coupled with the existing strain on the census as a result of the pandemic has left the Foundation in a position to seek affiliation to alleviate the financial condition and provide additional working capital. The Foundation's board of trustees has approved an affiliation agreement with another large nonprofit with added revenue sources and hiring capabilities.
2021-002
For three of the four financial reports submitted the supporting schedules did not agree to the financial information submitted. Questioned Costs: None Cause: The variance was caused by the timing of when the various reports were run and a lack of internal control over review and verification of the reports and supporting schedules. Effects or Potential Effects: Financial information reported was inaccurate or not properly supported by subledger schedules. Auditor's Recommendation: Management should run all financial reports as of the close of the quarter and review the subledgers to ensure agreement to the financial reports. View of responsible officials: The software changed some of the accounts that were grouped in the aging that needed to be manually updated in the report run by management. Management didn't see that the subledgers varied from the financial reports. Management will adjust their process going forward to ensure all reports are in agreement and complete.
Show full finding ▾Hide full finding ▴Criteria: Rannie Webster Foundation is required to submit quarterly financial reports to the lender. Condition: For three of the four financial reports submitted the supporting schedules did not agree to the financial information submitted. Questioned Costs: None Cause: The variance was caused by the timing of when the various reports were run and a lack of internal control over review and verification of the reports and supporting schedules. Effects or Potential Effects: Financial information reported was inaccurate or not properly supported by subledger schedules. Auditor's Recommendation: Management should run all financial reports as of the close of the quarter and review the subledgers to ensure agreement to the financial reports. View of responsible officials: The software changed some of the accounts that were grouped in the aging that needed to be manually updated in the report run by management. Management didn't see that the subledgers varied from the financial reports. Management will adjust their process going forward to ensure all reports are in agreement and complete.
Auditor's Recommendation: Management should run all financial reports as of the close of the quarter and review the subledgers to ensure agreement to the financial reports. Corrective Action Plan: The finding was a result of the software phasing-out a report and when the new report was used it was not caught that certain accounts were not reflected in this report. Management will run the reports and verify the subledgers agree to the financial reports prior to submission.
FAC accepted this audit on December 16, 2021 — management decision was due June 16, 2022.
Rannie Webster Foundation's internal control does not end at the general ledger but extends to the financial statements and notes. As part of our professional services for the year ending August 31, 2021, Wipfli LLP assisted in drafting the financial statements and notes. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Because Rannie Webster Foundation relies on Wipfli LLP to provide the necessary understanding of current accounting and disclosure principles in the preparation of the financial statements and notes, a significant deficiency exists in Rannie Webster Foundation's internal controls.? Cause: Rannie Webster Foundation relies on the audit firm to prepare the annual financial statements and related footnote disclosures. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Effects or Potential Effects: The completeness of the financial statement disclosures and the accuracy of the overall financial presentation is negatively impacted as external auditors do not have the same comprehensive understanding of Rannie Webster Foundation as its internal staff. Auditor's Recommendation: Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of responsible officials and planned corrective actions: Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor's services and review and approve the financial statements and notes.
Show full finding ▾Hide full finding ▴Criteria: Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with generally accepted accounting principles. This is a repeat finding and was reported as finding 2020-001 in the prior year. Condition: Rannie Webster Foundation's internal control does not end at the general ledger but extends to the financial statements and notes. As part of our professional services for the year ending August 31, 2021, Wipfli LLP assisted in drafting the financial statements and notes. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Because Rannie Webster Foundation relies on Wipfli LLP to provide the necessary understanding of current accounting and disclosure principles in the preparation of the financial statements and notes, a significant deficiency exists in Rannie Webster Foundation's internal controls.? Cause: Rannie Webster Foundation relies on the audit firm to prepare the annual financial statements and related footnote disclosures. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Effects or Potential Effects: The completeness of the financial statement disclosures and the accuracy of the overall financial presentation is negatively impacted as external auditors do not have the same comprehensive understanding of Rannie Webster Foundation as its internal staff. Auditor's Recommendation: Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of responsible officials and planned corrective actions: Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor's services and review and approve the financial statements and notes.
Department of Housing and Urban Development Rannie Webster Foundation submits the following corrective action plan for the fiscal year ending August 31, 2021. Name and address of independent public accounting firm: Wipfli LLP 43 Constitution Drive, Suite 100 Bedford, NH 03110 Audit Period: September 1, 2020 to August 31, 2021 The findings from the August 31, 2021 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings - Financial Statement Audit: Finding 2021-001 Recommendation: Management and those charged with governance continue to evaluate whether to accept the degree of risk associated with not having staff with the capability to prepare complete financial statement notes. Corrective Action Plan: Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor?s services and review and approve the financial statements and notes.
2020-001
Rannie Webster Foundation's debt service coverage ratio was calculated as below 1.0 Questioned Costs: None Cause: Rannie Webster Foundation experienced losses in revenues as a result of a lower census population during the year. Effects or Potential Effects: Rannie Webster Foundation's patient/resident census has been impacted by the COVID pandemic. Auditor's Recommendation: Management should evaluate and consider cost-cutting measures or additional marketing or promotions to bring the census levels to a more favorable position. View of responsible officials and planned corrective actions: Rannie Webster Foundation was impacted by the COVID pandemic but continues to advertise and seek cost-cutting measures to maintain the debt service coverage ratio. If the forgiveness of the Payroll Protection Program had been considered in the ratio, Rannie Webster Foundation would have been in compliance.
Show full finding ▾Hide full finding ▴Criteria: Rannie Webster Foundation's Regulatory Agreement with HUD requires the Foundation to maintain a debt service coverage ratio of 1.0. Condition: Rannie Webster Foundation's debt service coverage ratio was calculated as below 1.0 Questioned Costs: None Cause: Rannie Webster Foundation experienced losses in revenues as a result of a lower census population during the year. Effects or Potential Effects: Rannie Webster Foundation's patient/resident census has been impacted by the COVID pandemic. Auditor's Recommendation: Management should evaluate and consider cost-cutting measures or additional marketing or promotions to bring the census levels to a more favorable position. View of responsible officials and planned corrective actions: Rannie Webster Foundation was impacted by the COVID pandemic but continues to advertise and seek cost-cutting measures to maintain the debt service coverage ratio. If the forgiveness of the Payroll Protection Program had been considered in the ratio, Rannie Webster Foundation would have been in compliance.
Department of Housing and Urban Development Rannie Webster Foundation submits the following corrective action plan for the fiscal year ending August 31, 2021. Name and address of independent public accounting firm: Wipfli LLP 43 Constitution Drive, Suite 100 Bedford, NH 03110 Audit Period: September 1, 2020 to August 31, 2021 The findings from the August 31, 2021 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings - Compliance: Finding 2021-002 Auditor's Recommendation: Management should evaluate and consider cost-cutting measures or additional marketing or promotions to bring the census levels to a more favorable position. Corrective Action Plan: Rannie Webster Foundation has experienced decreases in the census as a result of the pandemic. Additionally, the ability to hire staff has been impacted by the pandemic increasing the usage of expensive contracted nursing services. Rannie Webster Foundation has attempted to supplement the loss in revenues through added grant funding from the State of New Hampshire, the Department of Health and Human Services and the Department of Homeland Security. These three sources have been integral to the success of Rannie Webster Foundation. Rannie Webster Foundation also received a Payroll Protection Program loan that contributed to the overall increase in net assets of $1,051,359. The Foundation has applied for the Department of Health and Human Services Phase 4 provider relief funding and will be applying for the Employee Retention Tax Credit. The Foundation will continue to seek strengthening the census and hiring staff. In the spring of 2021, the Foundation began working with LNA Health Careers that provides classes and on-site training which has assisted with recruiting new staff. This program will continue and will be a resource for strengthening the staffing. Additionally, wage increases in the spring of 2021 were implemented for nursing, dietary and housekeeping staff.
FAC accepted this audit on March 16, 2021 — management decision was due September 16, 2021.
Criteria ? Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with generally accepted accounting principles. This is a repeat finding and was reported as finding 2019-001 in the prior year. Condition ? Rannie Webster Foundation?s internal control over financial reporting does not end at the general ledger but extends to the financial statements and notes. As part of our professional services for the year ending August 31, 2020, Wipfli LLP assisted in drafting the financial statements and notes. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Because Rannie Webster Foundation relies on Wipfli LLP to provide the necessary understanding of current accounting and disclosure principles in the preparation of the financial statements and notes, a significant deficiency exists in Rannie Webster Foundation?s internal controls. Cause ? Rannie Webster Foundation relies on the audit firm to prepare the annual financial statements and related footnote disclosures. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Effects or Potential Effects ? The completeness of the financial statement disclosures and the accuracy of the overall financial presentation is negatively impacted as external auditors do not have the same comprehensive understanding of Rannie Webster Foundation as its internal staff. Auditor?s Recommendation - Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of responsible officials and planned corrective actions ? Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor?s services and review and approve the financial statements and notes.
Show full finding ▾Hide full finding ▴Criteria ? Management is responsible for establishing and maintaining internal controls and for the fair presentation of the financial statements including the related disclosures, in conformity with generally accepted accounting principles. This is a repeat finding and was reported as finding 2019-001 in the prior year. Condition ? Rannie Webster Foundation?s internal control over financial reporting does not end at the general ledger but extends to the financial statements and notes. As part of our professional services for the year ending August 31, 2020, Wipfli LLP assisted in drafting the financial statements and notes. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Because Rannie Webster Foundation relies on Wipfli LLP to provide the necessary understanding of current accounting and disclosure principles in the preparation of the financial statements and notes, a significant deficiency exists in Rannie Webster Foundation?s internal controls. Cause ? Rannie Webster Foundation relies on the audit firm to prepare the annual financial statements and related footnote disclosures. However, they have reviewed and approved the annual financial statements and the related footnote disclosures. Effects or Potential Effects ? The completeness of the financial statement disclosures and the accuracy of the overall financial presentation is negatively impacted as external auditors do not have the same comprehensive understanding of Rannie Webster Foundation as its internal staff. Auditor?s Recommendation - Management should continue to review and approve the annual financial statements and the related footnote disclosures. View of responsible officials and planned corrective actions ? Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor?s services and review and approve the financial statements and notes.
This item was discussed at length with the Board of Trustees and it was determined that at this time the Foundation will continue to rely on the auditor's to prepare the financial statements and footnotes but management and the Board of Trustees will review the financial statements in depth.
2019-001
FAC accepted this audit on February 5, 2020 — management decision was due August 5, 2020.
Rannie Webster Foundation?s internal control over financial reporting does not end at the general ledger but extends to the financial statements and notes. As part of our professional services for the period beginning May 22, 2018 and ending August 31, 2019, Wipfli LLP assisted in drafting the financial statements and notes. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Because Rannie Webster Foundation relies on Wipfli LLP to provide the necessary understanding of current accounting and disclosure principles in the preparation of the financial statements and notes, a significant deficiency exists in Rannie Webster Foundation?s internal controls. Criteria: Government Auditing Standards considers the inability to report financial data reliably in accordance with accounting principles generally accepted in the United States (GAAP) to be an internal control weakness. Effect: The completeness of the financial statement disclosures and the accuracy of the overall financial presentation may be negatively impacted as outside auditors do not have the same comprehensive understanding of Rannie Webster Foundation as its internal staff. Recommendation: We recommend that management and those charged with governance continue to evaluate whether to accept the degree of risk associated with this condition because of cost or other considerations. Corrective Action Plan: Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor?s services and review and approve the financial statements and notes.
Show full finding ▾Hide full finding ▴Finding Number: 2019-001: Federal Program: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living CFDA #: 14.129 Agency: U.S. Department of Housing and Urban Development, Office of Residential Care Facilities, Healthcare Mortgage Insurance Program Awarded 2018 Condition: Rannie Webster Foundation?s internal control over financial reporting does not end at the general ledger but extends to the financial statements and notes. As part of our professional services for the period beginning May 22, 2018 and ending August 31, 2019, Wipfli LLP assisted in drafting the financial statements and notes. It is the responsibility of management and those charged with governance to make the decision whether to accept the degree of risk associated with this condition because of cost or other considerations. Because Rannie Webster Foundation relies on Wipfli LLP to provide the necessary understanding of current accounting and disclosure principles in the preparation of the financial statements and notes, a significant deficiency exists in Rannie Webster Foundation?s internal controls. Criteria: Government Auditing Standards considers the inability to report financial data reliably in accordance with accounting principles generally accepted in the United States (GAAP) to be an internal control weakness. Effect: The completeness of the financial statement disclosures and the accuracy of the overall financial presentation may be negatively impacted as outside auditors do not have the same comprehensive understanding of Rannie Webster Foundation as its internal staff. Recommendation: We recommend that management and those charged with governance continue to evaluate whether to accept the degree of risk associated with this condition because of cost or other considerations. Corrective Action Plan: Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor?s services and review and approve the financial statements and notes.
Corrective Action Plan: Rannie Webster Foundation does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor?s services and review and approve the financial statements and notes.
Rannie Webster Foundation?s accounts receivable aging does not agree to the general ledger. Criteria: Quarterly reporting of financial statements and accounts receivable and accounts payable agings were filed with the loan servicer but the accounts receivable aging did not agree to the trial balance amounts in 2 of the quarterly filings. Additionally, the accounts receivable aging is utilized by management to make financial decisions and should be accurate in order to understand pending receipts or potential bad debts. Effect: The information provided to the loan servicer and used by the Foundation in decision making was inaccurate. Recommendation: We recommend that management reconcile the accounts receivable aging to the general ledger monthly as part of the month-end closing process. Corrective Action Plan: We have been working with Point Click Care, our medical and financial records software provider to fix this issue. The software was recording certain receivables to a different accounts receivable account in the general ledger. Additionally, we have created a template that will allow us to more readily reconcile the balances.
Show full finding ▾Hide full finding ▴Finding Number: 2019-002: Federal Program: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living CFDA #: 14.129 Agency: U.S. Department of Housing and Urban Development, Office of Residential Care Facilities, Healthcare Mortgage Insurance Program Awarded 2018 Condition: Rannie Webster Foundation?s accounts receivable aging does not agree to the general ledger. Criteria: Quarterly reporting of financial statements and accounts receivable and accounts payable agings were filed with the loan servicer but the accounts receivable aging did not agree to the trial balance amounts in 2 of the quarterly filings. Additionally, the accounts receivable aging is utilized by management to make financial decisions and should be accurate in order to understand pending receipts or potential bad debts. Effect: The information provided to the loan servicer and used by the Foundation in decision making was inaccurate. Recommendation: We recommend that management reconcile the accounts receivable aging to the general ledger monthly as part of the month-end closing process. Corrective Action Plan: We have been working with Point Click Care, our medical and financial records software provider to fix this issue. The software was recording certain receivables to a different accounts receivable account in the general ledger. Additionally, we have created a template that will allow us to more readily reconcile the balances.
Corrective Action Plan: We have been working with Point Click Care, our medical and financial records software provider to fix this issue. The software was recording certain receivables to a different accounts receivable account in the general ledger. Additionally, we have created a template that will allow us to more readily reconcile the balances.
In our testing of allowed activities, we noted the organization routinely charges a $4,000 community fee for all residents admitted to the assisted living community. Management did not have support for the fee when it was brought to their attention but was able to subsequently support the fee. Questioned Cost: None. Cause: The responsible official for application of Housing and Urban Development requirements was not aware of the requirement to not charge this type of fee. Effect: Disallowed fees could have been charged to residents in violation of the compliance requirements. Recommendation: The Foundation should monitor and support actual costs associated with the entrance fee to ensure it does not exceed actual cost. Views of Responsible Officials and Corrective Action Plan: This practice was in place prior to the Rannie Webster Foundation receiving HUD insured financing. We were not aware that the fee needed to be based upon actual cost. We were able to determine that actual costs exceeded the fees, and thus are allowable. We will continue to charge the fee, however we will monitor to make sure fees are not greater than actual costs.
Show full finding ▾Hide full finding ▴Finding Number: 2019-003: Federal Program: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living CFDA #: 14.129 Agency: U.S. Department of Housing and Urban Development, Office of Residential Care Facilities, Healthcare Mortgage Insurance Program Awarded 2018 Specific Requirement: Projects may not charge "Founder's Fees," "Life Care Fees," or other similar charges with "Buy-in" projects. Condition: In our testing of allowed activities, we noted the organization routinely charges a $4,000 community fee for all residents admitted to the assisted living community. Management did not have support for the fee when it was brought to their attention but was able to subsequently support the fee. Questioned Cost: None. Cause: The responsible official for application of Housing and Urban Development requirements was not aware of the requirement to not charge this type of fee. Effect: Disallowed fees could have been charged to residents in violation of the compliance requirements. Recommendation: The Foundation should monitor and support actual costs associated with the entrance fee to ensure it does not exceed actual cost. Views of Responsible Officials and Corrective Action Plan: This practice was in place prior to the Rannie Webster Foundation receiving HUD insured financing. We were not aware that the fee needed to be based upon actual cost. We were able to determine that actual costs exceeded the fees, and thus are allowable. We will continue to charge the fee, however we will monitor to make sure fees are not greater than actual costs.
Views of Responsible Officials and Corrective Action Plan: This practice was in place prior to the Rannie Webster Foundation receiving HUD insured financing. We were not aware that the fee needed to be based upon actual cost. We were able to determine that actual costs exceeded the fees, and thus are allowable. We will continue to charge the fee, however we will monitor to make sure fees are not greater than actual costs.
It was noted that the excess of the Surplus Cash over the amount of permitted distributions was not deposited within 90 days into the Residual Receipts account. Questioned Cost: None. Cause: The responsible official was not aware of the requirement until shortly before it was due. Effect: The Residual Receipts accounts was not timely funded. Recommendation: The Foundation should monitor and calculate the Surplus Cash and Residual Receipts requirement with ample time to make the deposit within 90 days if required. Views of Responsible Officials and Corrective Action Plan: This was the first payment required and developing a plan for the source of the funds and wiring the funds posed a challenge. The requirement is understood and was calculated and deposited timely into the Residual Receipts account for the semi-annual calculation.
Show full finding ▾Hide full finding ▴Finding Number: 2019-004: Federal Program: Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living CFDA #: 14.129 Agency: U.S. Department of Housing and Urban Development, Office of Residential Care Facilities, Healthcare Mortgage Insurance Program Awarded 2018 Specific Requirement: Borrower is required to deposit into the Residual Receipts account within 90 days after the end of the annual or semi-annual fiscal period for which Surplus Cash is calculated. Condition: It was noted that the excess of the Surplus Cash over the amount of permitted distributions was not deposited within 90 days into the Residual Receipts account. Questioned Cost: None. Cause: The responsible official was not aware of the requirement until shortly before it was due. Effect: The Residual Receipts accounts was not timely funded. Recommendation: The Foundation should monitor and calculate the Surplus Cash and Residual Receipts requirement with ample time to make the deposit within 90 days if required. Views of Responsible Officials and Corrective Action Plan: This was the first payment required and developing a plan for the source of the funds and wiring the funds posed a challenge. The requirement is understood and was calculated and deposited timely into the Residual Receipts account for the semi-annual calculation.
Views of Responsible Officials and Corrective Action Plan: This was the first payment required and developing a plan for the source of the funds and wiring the funds posed a challenge. The requirement is understood and was calculated and deposited timely into the Residual Receipts account for the semi-annual calculation.
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