Finding 2024-002: Compliance finding
Information on universe: Total population was 44 units.
Sample Size: 5 files were selected for testing.
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run due to the license expiring and the person with the license no longer working at the organization.
Criteria: HUD Requires EIV forms to be run, monthly, quarterly and annually.
Effect: Required documents were not in the files.
Context: Auditor reviewed tenant files noting the form was not present in the tenant files.
Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Finding 2024-003: Compliance finding
Information on universe/sample size: Management Occupancy Review (MOR)
Condition: HUD performed an MOR in September of 2023 for which a response is required within 30 days. The response was not completed timely and the MOR is still open.
Criteria: A response is due within 30 days of the MOR.
Effect: Findings by HUD have not been resolved.
Context: Auditor noted the MOR is still open.
Cause: Significant turnover at the management agent.
Recommendation: Once the management agent is fully staffed, they must make all efforts to reply to the MOR findings within the required 30 days.
Finding 2024-002: Compliance finding
Information on universe: Total population was 44 units.
Sample Size: 5 files were selected for testing.
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run due to the license expiring and the person with the license no longer working at the organization.
Criteria: HUD Requires EIV forms to be run, monthly, quarterly and annually.
Effect: Required documents were not in the files.
Context: Auditor reviewed tenant files noting the form was not present in the tenant files.
Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Finding 2024-003: Compliance finding
Information on universe/sample size: Management Occupancy Review (MOR)
Condition: HUD performed an MOR in September of 2023 for which a response is required within 30 days. The response was not completed timely and the MOR is still open.
Criteria: A response is due within 30 days of the MOR.
Effect: Findings by HUD have not been resolved.
Context: Auditor noted the MOR is still open.
Cause: Significant turnover at the management agent.
Recommendation: Once the management agent is fully staffed, they must make all efforts to reply to the MOR findings within the required 30 days.
Finding 2024-004: Significant Deficiency
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project changes the certifier on forms, when applicable, in a timely manner.
Finding 2024-004: Significant Deficiency
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project changes the certifier on forms, when applicable, in a timely manner.
Finding 2024-005: Material Weakness
Information on universe/sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner; existing tenants need to be recertified annually and management fee needs to be adjusted for vacancies.
Effect: There were significant vacancies, some tenant’s subsidies had expired, and the management fee was overstated.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.
Finding 2024-005: Material Weakness
Information on universe/sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner; existing tenants need to be recertified annually and management fee needs to be adjusted for vacancies.
Effect: There were significant vacancies, some tenant’s subsidies had expired, and the management fee was overstated.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.
Finding 2024-002: Compliance finding
Information on universe: Total population was 44 units.
Sample Size: 5 files were selected for testing.
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run due to the license expiring and the person with the license no longer working at the organization.
Criteria: HUD Requires EIV forms to be run, monthly, quarterly and annually.
Effect: Required documents were not in the files.
Context: Auditor reviewed tenant files noting the form was not present in the tenant files.
Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Finding 2024-003: Compliance finding
Information on universe/sample size: Management Occupancy Review (MOR)
Condition: HUD performed an MOR in September of 2023 for which a response is required within 30 days. The response was not completed timely and the MOR is still open.
Criteria: A response is due within 30 days of the MOR.
Effect: Findings by HUD have not been resolved.
Context: Auditor noted the MOR is still open.
Cause: Significant turnover at the management agent.
Recommendation: Once the management agent is fully staffed, they must make all efforts to reply to the MOR findings within the required 30 days.
Finding 2024-002: Compliance finding
Information on universe: Total population was 44 units.
Sample Size: 5 files were selected for testing.
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run due to the license expiring and the person with the license no longer working at the organization.
Criteria: HUD Requires EIV forms to be run, monthly, quarterly and annually.
Effect: Required documents were not in the files.
Context: Auditor reviewed tenant files noting the form was not present in the tenant files.
Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Finding 2024-003: Compliance finding
Information on universe/sample size: Management Occupancy Review (MOR)
Condition: HUD performed an MOR in September of 2023 for which a response is required within 30 days. The response was not completed timely and the MOR is still open.
Criteria: A response is due within 30 days of the MOR.
Effect: Findings by HUD have not been resolved.
Context: Auditor noted the MOR is still open.
Cause: Significant turnover at the management agent.
Recommendation: Once the management agent is fully staffed, they must make all efforts to reply to the MOR findings within the required 30 days.
Finding 2024-004: Significant Deficiency
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project changes the certifier on forms, when applicable, in a timely manner.
Finding 2024-004: Significant Deficiency
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project changes the certifier on forms, when applicable, in a timely manner.
Finding 2024-005: Material Weakness
Information on universe/sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner; existing tenants need to be recertified annually and management fee needs to be adjusted for vacancies.
Effect: There were significant vacancies, some tenant’s subsidies had expired, and the management fee was overstated.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.
Finding 2024-005: Material Weakness
Information on universe/sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner; existing tenants need to be recertified annually and management fee needs to be adjusted for vacancies.
Effect: There were significant vacancies, some tenant’s subsidies had expired, and the management fee was overstated.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.