A state audit has exposed significant deficiencies in the financial transparency and adherence to contract requirements by the company managing the Northern Nevada State Veterans Home.
The findings, presented during a meeting of the state’s Executive Branch Audit Committee, have raised concerns, particularly in light of the veterans home facing numerous health violations. The audit revealed that Avalon, the management company overseeing the veterans home, had not been forthcoming about its finances, violating specific contract stipulations.
Financial reports submitted to state officials lacked detailed information, preventing independent verification of the home’s financial status by the Nevada Department of Veterans Services (NDVS). Furthermore, the management company failed to provide excess cash to NDVS until August, four years into the contract, violating contractual obligations.
Avalon, which has managed the veterans home’s finances since 2019, expressed surprise at the state’s lack of access to financial details and pledged cooperation with state requests.
The Northern Nevada State Veterans Home has faced heightened scrutiny since its opening in 2019, with numerous health violations. In April 2022, the Centers for Medicare and Medicaid Services (CMS) issued 37 health citations to the home, significantly exceeding national and state averages.
The home received a subpar two out of five-star rating from CMS due to deficiencies in quality of life, infection control, and pharmacy service, a far cry from the five-star rating envisioned in the contract with Avalon.
The audit recommends changes to the agreement between the state and Avalon, including procedures for independent verification of financial situations, linking contract fees to specific services, and revising the calculation of reserved funds. Also recommended are increased oversight and presentation of financial statements on a fiscal year basis.
Avalon officials expressed willingness to provide more financial details and a desire to extend the contract when it expires next year. Despite the audit’s revelations, Department of Veterans Affairs officials cannot provide details on how to terminate the contract with contract Avalon.
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