Turning Crisis into Confidence for a Home Healthcare Provider
The Situation
A home healthcare agency learned that their 2022 401(k) Form 5500 filing was under audit by the Department of Labor (DOL). Both the agency and their previous accountant had been contacted with clear steps to resolve the matter.
Their former CPA never responded. The result was a $130,000 penalty for insufficient filing and failure to comply.
When we reviewed the situation, the picture became more serious. The prior CPA was not in compliance with peer review standards and did not hold an active license. The agency had been relying on a firm that was not equipped to serve them, and they were the ones carrying the consequences. They had two weeks to respond.
What We Did Together
The agency engaged hfco to conduct a full re-audit of their December 31, 2022 financials. The timeline was not forgiving: 12 days to sign and issue an audit report that would satisfy the Department of Labor auditor.
We completed it in 12 days.
We provided all working papers to the DOL auditor to support a smooth review process, and we assisted the agency in drafting a reasonable cause letter to address the penalty. That letter made the case that the failure to file was attributable to the prior CPA’s conduct, not the agency’s.
Following the successful completion of the 2022 audit, the agency engaged us for their December 31, 2023 audit as well. That report was signed and issued within two weeks to meet the filing deadline.
The Outcome
The Department of Labor waived nearly all of the $130,000 penalty. Both audits were completed on time. The agency moved forward with a team they could trust and a compliance record they could stand behind.
This is what it looks like when professionals show up when it matters most, with the focus and dedication the situation demands.
We have been in business for 40 years, and I feel it is very important to recognize fantastic employees. Your professionalism and competence made a difficult situation much better, and you worked tirelessly to ensure we provided the necessary documentation. Your dedication will never be forgotten.
Owner
Home Healthcare Agency
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