Benjamin Hershey Manor Convalescent Home

Name of auditee: Benjamin Hershey Memorial Convalescent Home HUD auditee identification number: 074-11175 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Jessica Ward Position: Chief Financial Officer Telephone number: 402-333-7373 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2025-001: Comments on the Finding and Each Recommendation: The Corporation did not provide HUD with a completed annual financial report by March 31, 2026, as required by HUD. Pursuant to the terms of the Regulatory Agreement, within ninety (90) days following the end of each fiscal year, the Corporation shall provide a complete annual financial report based upon an examination of the books and records of the Community prepared in accordance with the requirements of HUD and certified by a Certified Public Accountant or other person acceptable to the Commissioner. As a result, the Corporation was not in compliance with the Regulatory Agreement. The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Action(s) taken or planned on the finding: The audit report as of and for the year ended June 30, 2025 has been submitted to HUD. No further action is required.

Corrective Action Plan September 29, 2021 U.S. Department of Housing and Urban Development Hershey Manor Project respectfully submits the following corrective action plan for the year ended June 30, 2021 Name and address of independent public accounting firm: TDT CPAs and Advisors, P.C. 1700 42nd Street NE Cedar Rapids, Iowa 52402 Audit period: July 1, 2020 ? June 30, 2021 The findings from the June 30, 2021 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS FINANCIAL STATEMENT AUDIT NONE FINDINGS - FEDERAL AWARD PROGRAMS AUDIT Findings on Internal Control over Compliance: Finding 2021-01: Tenant files included no documentation for review. Condition: Project management does not have an adequate review process for the tenant file certifications due to limited staffing. Criteria: Completed tenant files should be reviewed by a person independent of the preparer and document their review in the tenant file. Effect: Potential exists for errors in calculation or compliance requirements within the tenant file. Recommendations: We recommend that tenant files be reviewed for accuracy by another employee who is aware of the documentation requirements required by HUD. Response: Management will have a staff person that is familiar with the HUD documentation requirements do quality control on a percentage of completed tenant files on a recurring basis. If the Department of Housing and Urban Development has questions regarding this plan, please call Melissa Rinnert at 563-264-1554. Sincerely, Hershey Manor Project

2020-002

Finding 2020-01: Tenant file contained no income verification report to determine if rental assistance calculation was correct. Condition: One tenant file tested did not have income verification report to support rental assistance calculation. Criteria: Third party verification of income received by the tenant is an effective method to determine that rental assistance calculation is correct and accurate. Effect: Potential exists for errors noted on the income verification report to be missed and calculated rental assistance to be inaccurate. Recommendations: We recommend that tenant files be reviewed for accuracy by another employee who is aware of the documentation requirements required by HUD. Response: At the time of move-in/initial certification, the property manager will create an electronic reminder to run the required EIV report. The report will be maintained in the client file.

Finding 2020-02: Tenant files included no documentation for review. Condition: Project management does not have an adequate review process for the tenant file certifications due to limited staffing. Criteria: Completed tenant files should be reviewed by a person independent of the preparer and document their review in the tenant file. Effect: Potential exists for errors in calculation or compliance requirements within the tenant file. Recommendations: We recommend that tenant files be reviewed for accuracy by another employee who is aware of the documentation requirements required by HUD. Response: Management will have a staff person that is familiar with the HUD documentation requirements do quality control on a percentage of completed tenant files on a recurring basis.

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