Finding reference number: #2022-002 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 337 CO99T851006 REDI IV 2017 1,563 CO99T881007 REDI V 2015 1,871 CO99T881008 REDI VI 2016 1,009 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,780 Repeat Finding: Yes Statement of condition #2022-002 (Assistance Listing No. 14.195): At March 31, 2022, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, the reserve for replacements accounts are underfunded by $4,780. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $4,780 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: December 20, 2022 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will make the required monthly deposits into separate reserve for replacement accounts.
Finding reference number: #2022-003 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 2,957 CO99T851006 REDI IV 2017 1,527 Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,484 Repeat Finding: Yes Statement of condition #2022-003 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid management fees to the Agent in excess of the fees earned resulting in prepaid management fees of $4,484 at March 31, 2022. Criteria: The HUD approved management certification provides for the payment of management fees subsequent to collections. Effect or potential effect: The Corporation is not in compliance with the various HUD approved management certifications and the Corporation's cash position at March 31, 2022 has been reduced by $4,484. Cause: The Corporation inadvertently paid fees in excess of amount earned. Recommendation: The Agent should repay the prepaid management fee balance. Completion date: December 21, 2022 Management response: Agreed. The Corporation concurs with the finding and agrees with the auditor's recommendation. The Agent repaid the prepaid management fees on December 21, 2022.
Finding reference number: #2022-004 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 81,460 CO99T851006 REDI IV 2017 2,777 CO99T881007 REDI V 2015 2,317 CO99T881008 REDI VI 2016 2,022 Auditor non-compliance code: A - Activities Allowed or Unallowed Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $88,576 Repeat Finding: Yes Statement of condition #2022-004 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid $88,576 to various related entities without HUD approval. Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts and the Corporation's cash position at March 31, 2022 has been reduced by $88,576. Cause: The Corporation did not obtain HUD approval prior to making payments to the related entities. Recommendation: The related entities should repay $88,576 to the Corporation. The Agent should consider obtaining written approval from HUD approval prior to making any future distributions or payments to related entities. Completion date: March 31, 2023 Management response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $88,576 to the Corporation.
Finding reference number: #2022-005 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T781014 REDI I 2017 CO99T841007 REDI III 2017 CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 CO99T881008 REDI VI 2016 Auditor non-compliance code: N ? Special Tests and Provisions Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2022-005: During the year ended March 31, 2022, the waitlist maintained was not in compliance with HUD guidelines. The waitlist was combined with other contracts. In addition, the waiting list was missing information which is required to be maintained in accordance with HUD Handbook 4350.3, including but not limited to, move-in dates and rejected applicants. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must select applicants in a systematic and chronological fashion from a waiting list. Effect: The Corporation is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Due to inadequate record keeping procedures, the Corporation may have removed eligible applicants from the waitlist without being offered a unit in the contract. Cause: The Corporation was not properly maintaining the waiting list in accordance with HUD Handbook 4350.3. Recommendation: The Corporation should revise their waitlist to be contract specific and ensure that all applicants are properly documented on the waiting list and are contacted and selected in chronological order. Completion Date: April 19, 2022 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will be separating the waiting list by contract and will follow all HUD regulations for waiting list requirements.
Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: Yes Statement of condition #2022-001 (Assistance Listing No. 14.195): At March 31, 2022, the Corporation's residual receipts accounts were not invested in interest bearing accounts. Criteria: The HAP Contracts require that surplus cash, as defined, be deposited into interest bearing residual receipts account or reserve for replacement account. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. Cause: The Corporation did not make deposits of surplus cash into interest bearing accounts for REDI IV and REDI V. Recommendation: The Agent should transfer the residual receipts accounts to interest bearing accounts. Completion date: June 27, 2022 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation transferred the residual receipts accounts to interest bearing accounts on June 27, 2022.
Finding reference number: #2022-002 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 337 CO99T851006 REDI IV 2017 1,563 CO99T881007 REDI V 2015 1,871 CO99T881008 REDI VI 2016 1,009 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,780 Repeat Finding: Yes Statement of condition #2022-002 (Assistance Listing No. 14.195): At March 31, 2022, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, the reserve for replacements accounts are underfunded by $4,780. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $4,780 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: December 20, 2022 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will make the required monthly deposits into separate reserve for replacement accounts.
Finding reference number: #2022-003 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 2,957 CO99T851006 REDI IV 2017 1,527 Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,484 Repeat Finding: Yes Statement of condition #2022-003 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid management fees to the Agent in excess of the fees earned resulting in prepaid management fees of $4,484 at March 31, 2022. Criteria: The HUD approved management certification provides for the payment of management fees subsequent to collections. Effect or potential effect: The Corporation is not in compliance with the various HUD approved management certifications and the Corporation's cash position at March 31, 2022 has been reduced by $4,484. Cause: The Corporation inadvertently paid fees in excess of amount earned. Recommendation: The Agent should repay the prepaid management fee balance. Completion date: December 21, 2022 Management response: Agreed. The Corporation concurs with the finding and agrees with the auditor's recommendation. The Agent repaid the prepaid management fees on December 21, 2022.
Finding reference number: #2022-004 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 81,460 CO99T851006 REDI IV 2017 2,777 CO99T881007 REDI V 2015 2,317 CO99T881008 REDI VI 2016 2,022 Auditor non-compliance code: A - Activities Allowed or Unallowed Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $88,576 Repeat Finding: Yes Statement of condition #2022-004 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid $88,576 to various related entities without HUD approval. Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts and the Corporation's cash position at March 31, 2022 has been reduced by $88,576. Cause: The Corporation did not obtain HUD approval prior to making payments to the related entities. Recommendation: The related entities should repay $88,576 to the Corporation. The Agent should consider obtaining written approval from HUD approval prior to making any future distributions or payments to related entities. Completion date: March 31, 2023 Management response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $88,576 to the Corporation.
Finding reference number: #2022-005 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T781014 REDI I 2017 CO99T841007 REDI III 2017 CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 CO99T881008 REDI VI 2016 Auditor non-compliance code: N ? Special Tests and Provisions Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2022-005: During the year ended March 31, 2022, the waitlist maintained was not in compliance with HUD guidelines. The waitlist was combined with other contracts. In addition, the waiting list was missing information which is required to be maintained in accordance with HUD Handbook 4350.3, including but not limited to, move-in dates and rejected applicants. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must select applicants in a systematic and chronological fashion from a waiting list. Effect: The Corporation is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Due to inadequate record keeping procedures, the Corporation may have removed eligible applicants from the waitlist without being offered a unit in the contract. Cause: The Corporation was not properly maintaining the waiting list in accordance with HUD Handbook 4350.3. Recommendation: The Corporation should revise their waitlist to be contract specific and ensure that all applicants are properly documented on the waiting list and are contacted and selected in chronological order. Completion Date: April 19, 2022 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will be separating the waiting list by contract and will follow all HUD regulations for waiting list requirements.
Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: Yes Statement of condition #2022-001 (Assistance Listing No. 14.195): At March 31, 2022, the Corporation's residual receipts accounts were not invested in interest bearing accounts. Criteria: The HAP Contracts require that surplus cash, as defined, be deposited into interest bearing residual receipts account or reserve for replacement account. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. Cause: The Corporation did not make deposits of surplus cash into interest bearing accounts for REDI IV and REDI V. Recommendation: The Agent should transfer the residual receipts accounts to interest bearing accounts. Completion date: June 27, 2022 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation transferred the residual receipts accounts to interest bearing accounts on June 27, 2022.
Finding reference number: #2022-002 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 337 CO99T851006 REDI IV 2017 1,563 CO99T881007 REDI V 2015 1,871 CO99T881008 REDI VI 2016 1,009 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,780 Repeat Finding: Yes Statement of condition #2022-002 (Assistance Listing No. 14.195): At March 31, 2022, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, the reserve for replacements accounts are underfunded by $4,780. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $4,780 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: December 20, 2022 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will make the required monthly deposits into separate reserve for replacement accounts.
Finding reference number: #2022-004 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 81,460 CO99T851006 REDI IV 2017 2,777 CO99T881007 REDI V 2015 2,317 CO99T881008 REDI VI 2016 2,022 Auditor non-compliance code: A - Activities Allowed or Unallowed Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $88,576 Repeat Finding: Yes Statement of condition #2022-004 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid $88,576 to various related entities without HUD approval. Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts and the Corporation's cash position at March 31, 2022 has been reduced by $88,576. Cause: The Corporation did not obtain HUD approval prior to making payments to the related entities. Recommendation: The related entities should repay $88,576 to the Corporation. The Agent should consider obtaining written approval from HUD approval prior to making any future distributions or payments to related entities. Completion date: March 31, 2023 Management response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $88,576 to the Corporation.
Finding reference number: #2022-005 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T781014 REDI I 2017 CO99T841007 REDI III 2017 CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 CO99T881008 REDI VI 2016 Auditor non-compliance code: N ? Special Tests and Provisions Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2022-005: During the year ended March 31, 2022, the waitlist maintained was not in compliance with HUD guidelines. The waitlist was combined with other contracts. In addition, the waiting list was missing information which is required to be maintained in accordance with HUD Handbook 4350.3, including but not limited to, move-in dates and rejected applicants. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must select applicants in a systematic and chronological fashion from a waiting list. Effect: The Corporation is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Due to inadequate record keeping procedures, the Corporation may have removed eligible applicants from the waitlist without being offered a unit in the contract. Cause: The Corporation was not properly maintaining the waiting list in accordance with HUD Handbook 4350.3. Recommendation: The Corporation should revise their waitlist to be contract specific and ensure that all applicants are properly documented on the waiting list and are contacted and selected in chronological order. Completion Date: April 19, 2022 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will be separating the waiting list by contract and will follow all HUD regulations for waiting list requirements.
Finding reference number: #2022-002 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 337 CO99T851006 REDI IV 2017 1,563 CO99T881007 REDI V 2015 1,871 CO99T881008 REDI VI 2016 1,009 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,780 Repeat Finding: Yes Statement of condition #2022-002 (Assistance Listing No. 14.195): At March 31, 2022, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, the reserve for replacements accounts are underfunded by $4,780. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $4,780 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: December 20, 2022 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will make the required monthly deposits into separate reserve for replacement accounts.
Finding reference number: #2022-004 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 81,460 CO99T851006 REDI IV 2017 2,777 CO99T881007 REDI V 2015 2,317 CO99T881008 REDI VI 2016 2,022 Auditor non-compliance code: A - Activities Allowed or Unallowed Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $88,576 Repeat Finding: Yes Statement of condition #2022-004 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid $88,576 to various related entities without HUD approval. Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts and the Corporation's cash position at March 31, 2022 has been reduced by $88,576. Cause: The Corporation did not obtain HUD approval prior to making payments to the related entities. Recommendation: The related entities should repay $88,576 to the Corporation. The Agent should consider obtaining written approval from HUD approval prior to making any future distributions or payments to related entities. Completion date: March 31, 2023 Management response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $88,576 to the Corporation.
Finding reference number: #2022-005 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T781014 REDI I 2017 CO99T841007 REDI III 2017 CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 CO99T881008 REDI VI 2016 Auditor non-compliance code: N ? Special Tests and Provisions Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2022-005: During the year ended March 31, 2022, the waitlist maintained was not in compliance with HUD guidelines. The waitlist was combined with other contracts. In addition, the waiting list was missing information which is required to be maintained in accordance with HUD Handbook 4350.3, including but not limited to, move-in dates and rejected applicants. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must select applicants in a systematic and chronological fashion from a waiting list. Effect: The Corporation is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Due to inadequate record keeping procedures, the Corporation may have removed eligible applicants from the waitlist without being offered a unit in the contract. Cause: The Corporation was not properly maintaining the waiting list in accordance with HUD Handbook 4350.3. Recommendation: The Corporation should revise their waitlist to be contract specific and ensure that all applicants are properly documented on the waiting list and are contacted and selected in chronological order. Completion Date: April 19, 2022 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will be separating the waiting list by contract and will follow all HUD regulations for waiting list requirements.
Finding reference number: #2022-006 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T881008 REDI VI 2016 15,026 Auditor non-compliance code: N - Special Tests and Provisions. Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $15,026 Repeat Finding: No Statement of condition #2022-006 (Assistance Listing No. 14.195): During the year ended March 31, 2022, $15,000 was withdrawn from the reserve for replacement account without HUD approval. Additionally, the Corporation was charged a $26 early withdrawal penalty in connection to the withdrawal which was withdrawn without HUD approval. Criteria: The regulations at 24 CFR Part 880.601 and 24 CFR Part 880.602 authorizes the Secretary of HUD to effectively monitor withdrawals from the reserve for replacements fund. Disbursements must be pre-approved by HUD prior to being withdrawn from the reserve for replacements fund. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, the reserve for replacements accounts are underfunded by $15,026. Cause: The Agent inadvertently withdrew from the reserve for replacements. Recommendation: The Agent should only withdraw funds from the reserve for replacements fund after receiving approval from HUD. The Agent should reimburse the reserve for replacements fund or not withdrawal future HUD approved withdrawals. Completion date: March 31, 2023 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will reimburse the reserve for replacements account or not withdrawal future HUD approved withdrawals.
Finding reference number: #2022-005 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T781014 REDI I 2017 CO99T841007 REDI III 2017 CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 CO99T881008 REDI VI 2016 Auditor non-compliance code: N ? Special Tests and Provisions Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2022-005: During the year ended March 31, 2022, the waitlist maintained was not in compliance with HUD guidelines. The waitlist was combined with other contracts. In addition, the waiting list was missing information which is required to be maintained in accordance with HUD Handbook 4350.3, including but not limited to, move-in dates and rejected applicants. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must select applicants in a systematic and chronological fashion from a waiting list. Effect: The Corporation is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Due to inadequate record keeping procedures, the Corporation may have removed eligible applicants from the waitlist without being offered a unit in the contract. Cause: The Corporation was not properly maintaining the waiting list in accordance with HUD Handbook 4350.3. Recommendation: The Corporation should revise their waitlist to be contract specific and ensure that all applicants are properly documented on the waiting list and are contacted and selected in chronological order. Completion Date: April 19, 2022 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will be separating the waiting list by contract and will follow all HUD regulations for waiting list requirements.
Finding reference number: #2022-002 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 337 CO99T851006 REDI IV 2017 1,563 CO99T881007 REDI V 2015 1,871 CO99T881008 REDI VI 2016 1,009 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,780 Repeat Finding: Yes Statement of condition #2022-002 (Assistance Listing No. 14.195): At March 31, 2022, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, the reserve for replacements accounts are underfunded by $4,780. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $4,780 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: December 20, 2022 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will make the required monthly deposits into separate reserve for replacement accounts.
Finding reference number: #2022-003 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 2,957 CO99T851006 REDI IV 2017 1,527 Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,484 Repeat Finding: Yes Statement of condition #2022-003 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid management fees to the Agent in excess of the fees earned resulting in prepaid management fees of $4,484 at March 31, 2022. Criteria: The HUD approved management certification provides for the payment of management fees subsequent to collections. Effect or potential effect: The Corporation is not in compliance with the various HUD approved management certifications and the Corporation's cash position at March 31, 2022 has been reduced by $4,484. Cause: The Corporation inadvertently paid fees in excess of amount earned. Recommendation: The Agent should repay the prepaid management fee balance. Completion date: December 21, 2022 Management response: Agreed. The Corporation concurs with the finding and agrees with the auditor's recommendation. The Agent repaid the prepaid management fees on December 21, 2022.
Finding reference number: #2022-004 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 81,460 CO99T851006 REDI IV 2017 2,777 CO99T881007 REDI V 2015 2,317 CO99T881008 REDI VI 2016 2,022 Auditor non-compliance code: A - Activities Allowed or Unallowed Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $88,576 Repeat Finding: Yes Statement of condition #2022-004 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid $88,576 to various related entities without HUD approval. Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts and the Corporation's cash position at March 31, 2022 has been reduced by $88,576. Cause: The Corporation did not obtain HUD approval prior to making payments to the related entities. Recommendation: The related entities should repay $88,576 to the Corporation. The Agent should consider obtaining written approval from HUD approval prior to making any future distributions or payments to related entities. Completion date: March 31, 2023 Management response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $88,576 to the Corporation.
Finding reference number: #2022-005 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T781014 REDI I 2017 CO99T841007 REDI III 2017 CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 CO99T881008 REDI VI 2016 Auditor non-compliance code: N ? Special Tests and Provisions Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2022-005: During the year ended March 31, 2022, the waitlist maintained was not in compliance with HUD guidelines. The waitlist was combined with other contracts. In addition, the waiting list was missing information which is required to be maintained in accordance with HUD Handbook 4350.3, including but not limited to, move-in dates and rejected applicants. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must select applicants in a systematic and chronological fashion from a waiting list. Effect: The Corporation is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Due to inadequate record keeping procedures, the Corporation may have removed eligible applicants from the waitlist without being offered a unit in the contract. Cause: The Corporation was not properly maintaining the waiting list in accordance with HUD Handbook 4350.3. Recommendation: The Corporation should revise their waitlist to be contract specific and ensure that all applicants are properly documented on the waiting list and are contacted and selected in chronological order. Completion Date: April 19, 2022 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will be separating the waiting list by contract and will follow all HUD regulations for waiting list requirements.
Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: Yes Statement of condition #2022-001 (Assistance Listing No. 14.195): At March 31, 2022, the Corporation's residual receipts accounts were not invested in interest bearing accounts. Criteria: The HAP Contracts require that surplus cash, as defined, be deposited into interest bearing residual receipts account or reserve for replacement account. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. Cause: The Corporation did not make deposits of surplus cash into interest bearing accounts for REDI IV and REDI V. Recommendation: The Agent should transfer the residual receipts accounts to interest bearing accounts. Completion date: June 27, 2022 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation transferred the residual receipts accounts to interest bearing accounts on June 27, 2022.
Finding reference number: #2022-002 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 337 CO99T851006 REDI IV 2017 1,563 CO99T881007 REDI V 2015 1,871 CO99T881008 REDI VI 2016 1,009 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,780 Repeat Finding: Yes Statement of condition #2022-002 (Assistance Listing No. 14.195): At March 31, 2022, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, the reserve for replacements accounts are underfunded by $4,780. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $4,780 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: December 20, 2022 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will make the required monthly deposits into separate reserve for replacement accounts.
Finding reference number: #2022-003 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 2,957 CO99T851006 REDI IV 2017 1,527 Auditor non-compliance code: P - Other Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,484 Repeat Finding: Yes Statement of condition #2022-003 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid management fees to the Agent in excess of the fees earned resulting in prepaid management fees of $4,484 at March 31, 2022. Criteria: The HUD approved management certification provides for the payment of management fees subsequent to collections. Effect or potential effect: The Corporation is not in compliance with the various HUD approved management certifications and the Corporation's cash position at March 31, 2022 has been reduced by $4,484. Cause: The Corporation inadvertently paid fees in excess of amount earned. Recommendation: The Agent should repay the prepaid management fee balance. Completion date: December 21, 2022 Management response: Agreed. The Corporation concurs with the finding and agrees with the auditor's recommendation. The Agent repaid the prepaid management fees on December 21, 2022.
Finding reference number: #2022-004 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 81,460 CO99T851006 REDI IV 2017 2,777 CO99T881007 REDI V 2015 2,317 CO99T881008 REDI VI 2016 2,022 Auditor non-compliance code: A - Activities Allowed or Unallowed Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $88,576 Repeat Finding: Yes Statement of condition #2022-004 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid $88,576 to various related entities without HUD approval. Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts and the Corporation's cash position at March 31, 2022 has been reduced by $88,576. Cause: The Corporation did not obtain HUD approval prior to making payments to the related entities. Recommendation: The related entities should repay $88,576 to the Corporation. The Agent should consider obtaining written approval from HUD approval prior to making any future distributions or payments to related entities. Completion date: March 31, 2023 Management response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $88,576 to the Corporation.
Finding reference number: #2022-005 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T781014 REDI I 2017 CO99T841007 REDI III 2017 CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 CO99T881008 REDI VI 2016 Auditor non-compliance code: N ? Special Tests and Provisions Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2022-005: During the year ended March 31, 2022, the waitlist maintained was not in compliance with HUD guidelines. The waitlist was combined with other contracts. In addition, the waiting list was missing information which is required to be maintained in accordance with HUD Handbook 4350.3, including but not limited to, move-in dates and rejected applicants. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must select applicants in a systematic and chronological fashion from a waiting list. Effect: The Corporation is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Due to inadequate record keeping procedures, the Corporation may have removed eligible applicants from the waitlist without being offered a unit in the contract. Cause: The Corporation was not properly maintaining the waiting list in accordance with HUD Handbook 4350.3. Recommendation: The Corporation should revise their waitlist to be contract specific and ensure that all applicants are properly documented on the waiting list and are contacted and selected in chronological order. Completion Date: April 19, 2022 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will be separating the waiting list by contract and will follow all HUD regulations for waiting list requirements.
Finding reference number: #2022-001 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: Yes Statement of condition #2022-001 (Assistance Listing No. 14.195): At March 31, 2022, the Corporation's residual receipts accounts were not invested in interest bearing accounts. Criteria: The HAP Contracts require that surplus cash, as defined, be deposited into interest bearing residual receipts account or reserve for replacement account. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. Cause: The Corporation did not make deposits of surplus cash into interest bearing accounts for REDI IV and REDI V. Recommendation: The Agent should transfer the residual receipts accounts to interest bearing accounts. Completion date: June 27, 2022 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation transferred the residual receipts accounts to interest bearing accounts on June 27, 2022.
Finding reference number: #2022-002 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 337 CO99T851006 REDI IV 2017 1,563 CO99T881007 REDI V 2015 1,871 CO99T881008 REDI VI 2016 1,009 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,780 Repeat Finding: Yes Statement of condition #2022-002 (Assistance Listing No. 14.195): At March 31, 2022, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, the reserve for replacements accounts are underfunded by $4,780. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $4,780 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: December 20, 2022 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will make the required monthly deposits into separate reserve for replacement accounts.
Finding reference number: #2022-004 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 81,460 CO99T851006 REDI IV 2017 2,777 CO99T881007 REDI V 2015 2,317 CO99T881008 REDI VI 2016 2,022 Auditor non-compliance code: A - Activities Allowed or Unallowed Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $88,576 Repeat Finding: Yes Statement of condition #2022-004 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid $88,576 to various related entities without HUD approval. Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts and the Corporation's cash position at March 31, 2022 has been reduced by $88,576. Cause: The Corporation did not obtain HUD approval prior to making payments to the related entities. Recommendation: The related entities should repay $88,576 to the Corporation. The Agent should consider obtaining written approval from HUD approval prior to making any future distributions or payments to related entities. Completion date: March 31, 2023 Management response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $88,576 to the Corporation.
Finding reference number: #2022-005 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T781014 REDI I 2017 CO99T841007 REDI III 2017 CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 CO99T881008 REDI VI 2016 Auditor non-compliance code: N ? Special Tests and Provisions Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2022-005: During the year ended March 31, 2022, the waitlist maintained was not in compliance with HUD guidelines. The waitlist was combined with other contracts. In addition, the waiting list was missing information which is required to be maintained in accordance with HUD Handbook 4350.3, including but not limited to, move-in dates and rejected applicants. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must select applicants in a systematic and chronological fashion from a waiting list. Effect: The Corporation is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Due to inadequate record keeping procedures, the Corporation may have removed eligible applicants from the waitlist without being offered a unit in the contract. Cause: The Corporation was not properly maintaining the waiting list in accordance with HUD Handbook 4350.3. Recommendation: The Corporation should revise their waitlist to be contract specific and ensure that all applicants are properly documented on the waiting list and are contacted and selected in chronological order. Completion Date: April 19, 2022 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will be separating the waiting list by contract and will follow all HUD regulations for waiting list requirements.
Finding reference number: #2022-002 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 337 CO99T851006 REDI IV 2017 1,563 CO99T881007 REDI V 2015 1,871 CO99T881008 REDI VI 2016 1,009 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $4,780 Repeat Finding: Yes Statement of condition #2022-002 (Assistance Listing No. 14.195): At March 31, 2022, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, the reserve for replacements accounts are underfunded by $4,780. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $4,780 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: December 20, 2022 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will make the required monthly deposits into separate reserve for replacement accounts.
Finding reference number: #2022-004 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T841007 REDI III 2017 81,460 CO99T851006 REDI IV 2017 2,777 CO99T881007 REDI V 2015 2,317 CO99T881008 REDI VI 2016 2,022 Auditor non-compliance code: A - Activities Allowed or Unallowed Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $88,576 Repeat Finding: Yes Statement of condition #2022-004 (Assistance Listing No. 14.195): For the year ended March 31, 2022, the Corporation paid $88,576 to various related entities without HUD approval. Criteria: The HAP Contracts do not permit the Corporation from making any distributions or payments to related entities from operating cash without the written approval of HUD. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts and the Corporation's cash position at March 31, 2022 has been reduced by $88,576. Cause: The Corporation did not obtain HUD approval prior to making payments to the related entities. Recommendation: The related entities should repay $88,576 to the Corporation. The Agent should consider obtaining written approval from HUD approval prior to making any future distributions or payments to related entities. Completion date: March 31, 2023 Management response: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $88,576 to the Corporation.
Finding reference number: #2022-005 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T781014 REDI I 2017 CO99T841007 REDI III 2017 CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 CO99T881008 REDI VI 2016 Auditor non-compliance code: N ? Special Tests and Provisions Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2022-005: During the year ended March 31, 2022, the waitlist maintained was not in compliance with HUD guidelines. The waitlist was combined with other contracts. In addition, the waiting list was missing information which is required to be maintained in accordance with HUD Handbook 4350.3, including but not limited to, move-in dates and rejected applicants. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must select applicants in a systematic and chronological fashion from a waiting list. Effect: The Corporation is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Due to inadequate record keeping procedures, the Corporation may have removed eligible applicants from the waitlist without being offered a unit in the contract. Cause: The Corporation was not properly maintaining the waiting list in accordance with HUD Handbook 4350.3. Recommendation: The Corporation should revise their waitlist to be contract specific and ensure that all applicants are properly documented on the waiting list and are contacted and selected in chronological order. Completion Date: April 19, 2022 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will be separating the waiting list by contract and will follow all HUD regulations for waiting list requirements.
Finding reference number: #2022-006 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T881008 REDI VI 2016 15,026 Auditor non-compliance code: N - Special Tests and Provisions. Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $15,026 Repeat Finding: No Statement of condition #2022-006 (Assistance Listing No. 14.195): During the year ended March 31, 2022, $15,000 was withdrawn from the reserve for replacement account without HUD approval. Additionally, the Corporation was charged a $26 early withdrawal penalty in connection to the withdrawal which was withdrawn without HUD approval. Criteria: The regulations at 24 CFR Part 880.601 and 24 CFR Part 880.602 authorizes the Secretary of HUD to effectively monitor withdrawals from the reserve for replacements fund. Disbursements must be pre-approved by HUD prior to being withdrawn from the reserve for replacements fund. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2022, the reserve for replacements accounts are underfunded by $15,026. Cause: The Agent inadvertently withdrew from the reserve for replacements. Recommendation: The Agent should only withdraw funds from the reserve for replacements fund after receiving approval from HUD. The Agent should reimburse the reserve for replacements fund or not withdrawal future HUD approved withdrawals. Completion date: March 31, 2023 Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will reimburse the reserve for replacements account or not withdrawal future HUD approved withdrawals.
Finding reference number: #2022-005 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award CO99T781014 REDI I 2017 CO99T841007 REDI III 2017 CO99T851006 REDI IV 2017 CO99T881007 REDI V 2015 CO99T881008 REDI VI 2016 Auditor non-compliance code: N ? Special Tests and Provisions Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: No Statement of Condition #2022-005: During the year ended March 31, 2022, the waitlist maintained was not in compliance with HUD guidelines. The waitlist was combined with other contracts. In addition, the waiting list was missing information which is required to be maintained in accordance with HUD Handbook 4350.3, including but not limited to, move-in dates and rejected applicants. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must select applicants in a systematic and chronological fashion from a waiting list. Effect: The Corporation is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Due to inadequate record keeping procedures, the Corporation may have removed eligible applicants from the waitlist without being offered a unit in the contract. Cause: The Corporation was not properly maintaining the waiting list in accordance with HUD Handbook 4350.3. Recommendation: The Corporation should revise their waitlist to be contract specific and ensure that all applicants are properly documented on the waiting list and are contacted and selected in chronological order. Completion Date: April 19, 2022 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will be separating the waiting list by contract and will follow all HUD regulations for waiting list requirements.