County audit finds nursing home records incomplete; Freeport Nursing renovation continues

County staff told the finance committee Sept. 11 that auditors could not issue a clean (unmodified) opinion on the Freeport nursing home’s financial statements without additional information, and that the unresolved matters could create a material weakness for the county’s overall audit.

A county administrator said the outstanding information centers on the nursing center’s data and that auditors are working with facility staff and their representative, Scott Hockstead, to submit needed materials. The administrator said, “We continue to reach out … to obtain and receive [the] patients” and other records; staff indicated most audit items are complete except for certain nursing-home documentation.

Committee members were told a qualified or non-clean opinion on the nursing-home financials could affect state and federal funding streams, including some highway grants that rely on audited compliance. Staff gave an approximate timeline: auditors may have the outstanding items by the end of the week, and historically such reviews in prior years have completed between August and September.

Separately, Freeport Nursing LLC reported construction began Sept. 6. County staff said the contractor is replacing dining room windows and some resident-room windows, renovating nurses’ stations and performing interior repairs. Staff reported the facility migrated to an electronic referral system and had processed 18 referrals in the previous nine days, approaching a weekly goal they set. A county staffer said residents and staff rated an internal satisfaction survey roughly 4.83 out of 5.

The committee discussed potential budgetary consequences tied to the nursing center’s financial position and outstanding liabilities. Staff noted an outstanding debt related to the nursing center — and that the county expects approximately $500,000 next year to address some obligations — but said the ultimate impact depends on the audit outcome and the resolution of a pending lawsuit the county faces related to the facility.

Committee members directed staff to continue working with auditors and to return updates when the outstanding documents are submitted. The committee did not take separate formal action on the nursing-home audit at the meeting beyond asking staff to follow up.