Audit 37690

Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: HUD requires that controls are implemented to ensure tenant eligibility with HUD requirements. Condition: Management did not complete reviews of tenant file applications and recertifications during a portion of the year to ensure compliance with HUD eligibility requirements. Cause: Staff turnover and shortages resulted in the review procedure not being completed. Effect: The lack of effective review procedures could have resulted in the Project having tenants that did not meet the eligibility requirements. All tenants tested during the audit were eligible to participate in the program. Questioned Costs: The amount of questioned costs cannot be determined. Context: We tested 3 of 13 tenant files noting that none of the applications or recertifications completed during the year were reviewed. Recommendation: We recommend management implement timely review of all tenant files after they have been prepared to ensure all participants in the program meet the eligibility requirements. Management's Response: The compliance oversight of the HUD project was maintained by the same individual from their acquisition during 2016 through her retirement in 2022. Due to staffing shortages after the employee's retirement, there was a portion of the year when no review of tenant applications and recertifications was done prior to completion. Management has filled that position and subsequently reviewed applications and recertifications prior to submission.

Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: HUD requires that processes and controls are implemented to ensure compliance with with HUD requirements over special tests and provisions. Condition: Management did not prepare reconciliations for a portion of the year of residual receipts and reserve for replacement accounts to ensure compliance with program requirements. Cause: Management has indicated that due to staff turnover reconciliations were not performed timely. Effect: The lack of timely reconciliations could result in inaccurate financial reporting and failed compliance with HUD requirements related to the residual receipts and reserve for replacement accounts. Questioned Costs: The amount of questioned costs cannot be determined. Context: We tested 3 of 12 months for both the reserve for replacement and the residual receipts accounts, noting 2 of the 3 months for both accounts did not have reconciliations completed timely. Recommendation: We recommend management implement timely preparation and review of all cash accounts to ensure proper amounts are deposited into the restricted accounts each year. Management's Response: The compliance oversight of the Project was maintained by the same individual from the Project's acquisition during 2016 through her retirement in 2022. Due to staffing shortages after the employee's retirement, there was a portion of the year when no review of account reconciliations of the reserve accounts were being completed and reviewed. Management has filled that position and subsequently brought the account reconciliations up-to-date.

Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: HUD requires that controls are implemented to ensure tenant eligibility with HUD requirements. Condition: Management did not complete reviews of tenant file applications and recertifications during a portion of the year to ensure compliance with HUD eligibility requirements. Cause: Staff turnover and shortages resulted in the review procedure not being completed. Effect: The lack of effective review procedures could have resulted in the Project having tenants that did not meet the eligibility requirements. All tenants tested during the audit were eligible to participate in the program. Questioned Costs: The amount of questioned costs cannot be determined. Context: We tested 3 of 13 tenant files noting that none of the applications or recertifications completed during the year were reviewed. Recommendation: We recommend management implement timely review of all tenant files after they have been prepared to ensure all participants in the program meet the eligibility requirements. Management's Response: The compliance oversight of the HUD project was maintained by the same individual from their acquisition during 2016 through her retirement in 2022. Due to staffing shortages after the employee's retirement, there was a portion of the year when no review of tenant applications and recertifications was done prior to completion. Management has filled that position and subsequently reviewed applications and recertifications prior to submission.

Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: HUD requires that processes and controls are implemented to ensure compliance with with HUD requirements over special tests and provisions. Condition: Management did not prepare reconciliations for a portion of the year of residual receipts and reserve for replacement accounts to ensure compliance with program requirements. Cause: Management has indicated that due to staff turnover reconciliations were not performed timely. Effect: The lack of timely reconciliations could result in inaccurate financial reporting and failed compliance with HUD requirements related to the residual receipts and reserve for replacement accounts. Questioned Costs: The amount of questioned costs cannot be determined. Context: We tested 3 of 12 months for both the reserve for replacement and the residual receipts accounts, noting 2 of the 3 months for both accounts did not have reconciliations completed timely. Recommendation: We recommend management implement timely preparation and review of all cash accounts to ensure proper amounts are deposited into the restricted accounts each year. Management's Response: The compliance oversight of the Project was maintained by the same individual from the Project's acquisition during 2016 through her retirement in 2022. Due to staffing shortages after the employee's retirement, there was a portion of the year when no review of account reconciliations of the reserve accounts were being completed and reviewed. Management has filled that position and subsequently brought the account reconciliations up-to-date.

Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: HUD requires that controls are implemented to ensure tenant eligibility with HUD requirements. Condition: Management did not complete reviews of tenant file applications and recertifications during a portion of the year to ensure compliance with HUD eligibility requirements. Cause: Staff turnover and shortages resulted in the review procedure not being completed. Effect: The lack of effective review procedures could have resulted in the Project having tenants that did not meet the eligibility requirements. All tenants tested during the audit were eligible to participate in the program. Questioned Costs: The amount of questioned costs cannot be determined. Context: We tested 3 of 13 tenant files noting that none of the applications or recertifications completed during the year were reviewed. Recommendation: We recommend management implement timely review of all tenant files after they have been prepared to ensure all participants in the program meet the eligibility requirements. Management's Response: The compliance oversight of the HUD project was maintained by the same individual from their acquisition during 2016 through her retirement in 2022. Due to staffing shortages after the employee's retirement, there was a portion of the year when no review of tenant applications and recertifications was done prior to completion. Management has filled that position and subsequently reviewed applications and recertifications prior to submission.

Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: HUD requires that processes and controls are implemented to ensure compliance with with HUD requirements over special tests and provisions. Condition: Management did not prepare reconciliations for a portion of the year of residual receipts and reserve for replacement accounts to ensure compliance with program requirements. Cause: Management has indicated that due to staff turnover reconciliations were not performed timely. Effect: The lack of timely reconciliations could result in inaccurate financial reporting and failed compliance with HUD requirements related to the residual receipts and reserve for replacement accounts. Questioned Costs: The amount of questioned costs cannot be determined. Context: We tested 3 of 12 months for both the reserve for replacement and the residual receipts accounts, noting 2 of the 3 months for both accounts did not have reconciliations completed timely. Recommendation: We recommend management implement timely preparation and review of all cash accounts to ensure proper amounts are deposited into the restricted accounts each year. Management's Response: The compliance oversight of the Project was maintained by the same individual from the Project's acquisition during 2016 through her retirement in 2022. Due to staffing shortages after the employee's retirement, there was a portion of the year when no review of account reconciliations of the reserve accounts were being completed and reviewed. Management has filled that position and subsequently brought the account reconciliations up-to-date.

Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: HUD requires that controls are implemented to ensure tenant eligibility with HUD requirements. Condition: Management did not complete reviews of tenant file applications and recertifications during a portion of the year to ensure compliance with HUD eligibility requirements. Cause: Staff turnover and shortages resulted in the review procedure not being completed. Effect: The lack of effective review procedures could have resulted in the Project having tenants that did not meet the eligibility requirements. All tenants tested during the audit were eligible to participate in the program. Questioned Costs: The amount of questioned costs cannot be determined. Context: We tested 3 of 13 tenant files noting that none of the applications or recertifications completed during the year were reviewed. Recommendation: We recommend management implement timely review of all tenant files after they have been prepared to ensure all participants in the program meet the eligibility requirements. Management's Response: The compliance oversight of the HUD project was maintained by the same individual from their acquisition during 2016 through her retirement in 2022. Due to staffing shortages after the employee's retirement, there was a portion of the year when no review of tenant applications and recertifications was done prior to completion. Management has filled that position and subsequently reviewed applications and recertifications prior to submission.

Agency: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: HUD requires that processes and controls are implemented to ensure compliance with with HUD requirements over special tests and provisions. Condition: Management did not prepare reconciliations for a portion of the year of residual receipts and reserve for replacement accounts to ensure compliance with program requirements. Cause: Management has indicated that due to staff turnover reconciliations were not performed timely. Effect: The lack of timely reconciliations could result in inaccurate financial reporting and failed compliance with HUD requirements related to the residual receipts and reserve for replacement accounts. Questioned Costs: The amount of questioned costs cannot be determined. Context: We tested 3 of 12 months for both the reserve for replacement and the residual receipts accounts, noting 2 of the 3 months for both accounts did not have reconciliations completed timely. Recommendation: We recommend management implement timely preparation and review of all cash accounts to ensure proper amounts are deposited into the restricted accounts each year. Management's Response: The compliance oversight of the Project was maintained by the same individual from the Project's acquisition during 2016 through her retirement in 2022. Due to staffing shortages after the employee's retirement, there was a portion of the year when no review of account reconciliations of the reserve accounts were being completed and reviewed. Management has filled that position and subsequently brought the account reconciliations up-to-date.