Audit 319241

Finding reference number: 2023-001 Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Program, Assistance Listing. No. 14.195, IL06M000196, 2012 Auditor non-compliance code: N. Special Tests and Provisions Finding resolution status: In process Universe population size: 147 resident files Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $0 Statement of condition 2023-001: During the year ended December 31, 2023, Villagebrook Apartments did not recertify residents timely as required by HUD Handbook 4350.3. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Agent must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements. Effect: Villagebrook Apartments is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Current, future, and potentially prior funding under the HAP Contract could be impacted as a result of the recertifications not being completed timely. Cause: Villagebrook Apartments was understaffed during the years ended December 31, 2023 and 2022 and the employees responsible for completing recertifications were not doing so timely. Recommendation: The Agent should complete a review of all resident files and complete all recertifications that were not completed timely. The Agent should ensure that all residents are recertified timely in the future. Management's response: The Agent reported this concern and agrees with the finding and recommendation. The Agent is working to address the staffing issues at Villagebrook Apartments and to provide additional training to the employees regarding recertification requirements. As of December 31, 2023, the Agent has completed a 100% file review and believes that all outstanding recertifications have been completed.

Finding reference number: 2023-002 Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Program, Assistance Listing. No. 14.195, IL060061003, 2011 Auditor non-compliance code: N. Special Tests and Provisions Finding resolution status: Cleared Universe population size: 70 resident files Sample size information: 7 resident files. Statistically valid sample: Yes. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $0 Statement of condition 2023-002: During the year ended December 31, 2023, two resident files at Liberty Lake selected for testing under HUD Consolidated Audit Guide contained improper income or asset verification information in the completed resident certification. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Agent must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements. Effect: Liberty Lake is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Residents may receive an improper amount of rental assistance under the HAP Contract. Cause: The Agent did not utilize proper third-party verification documents when completing resident certifications. Recommendation: The Agent should submit corrected resident certifications and implement additional policies to ensure future resident certifications are completed accurately. Management's response: The Agent agrees with the finding and recommendation. The Agent has processed corrected resident certifications and is in the process of implementing additional training for employees responsible for resident certifications.

Finding reference number: 2023-001 Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Program, Assistance Listing. No. 14.195, IL06M000196, 2012 Auditor non-compliance code: N. Special Tests and Provisions Finding resolution status: In process Universe population size: 147 resident files Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $0 Statement of condition 2023-001: During the year ended December 31, 2023, Villagebrook Apartments did not recertify residents timely as required by HUD Handbook 4350.3. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Agent must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements. Effect: Villagebrook Apartments is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Current, future, and potentially prior funding under the HAP Contract could be impacted as a result of the recertifications not being completed timely. Cause: Villagebrook Apartments was understaffed during the years ended December 31, 2023 and 2022 and the employees responsible for completing recertifications were not doing so timely. Recommendation: The Agent should complete a review of all resident files and complete all recertifications that were not completed timely. The Agent should ensure that all residents are recertified timely in the future. Management's response: The Agent reported this concern and agrees with the finding and recommendation. The Agent is working to address the staffing issues at Villagebrook Apartments and to provide additional training to the employees regarding recertification requirements. As of December 31, 2023, the Agent has completed a 100% file review and believes that all outstanding recertifications have been completed.

Finding reference number: 2023-002 Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Program, Assistance Listing. No. 14.195, IL060061003, 2011 Auditor non-compliance code: N. Special Tests and Provisions Finding resolution status: Cleared Universe population size: 70 resident files Sample size information: 7 resident files. Statistically valid sample: Yes. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $0 Statement of condition 2023-002: During the year ended December 31, 2023, two resident files at Liberty Lake selected for testing under HUD Consolidated Audit Guide contained improper income or asset verification information in the completed resident certification. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Agent must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements. Effect: Liberty Lake is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Residents may receive an improper amount of rental assistance under the HAP Contract. Cause: The Agent did not utilize proper third-party verification documents when completing resident certifications. Recommendation: The Agent should submit corrected resident certifications and implement additional policies to ensure future resident certifications are completed accurately. Management's response: The Agent agrees with the finding and recommendation. The Agent has processed corrected resident certifications and is in the process of implementing additional training for employees responsible for resident certifications.