Audit 385931

FINDING No. 2025-001: Section 8 Project Based Rental Assistance (PBRA), ALN 14.195 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended June 30, 2025. Sample Size Information: All replacement reserve deposits for the year ended June 30, 2025. Identification of Repeat Finding and Finding Reference Number: Yes, 2024-001. Criteria: As required by HUD regulation, timely monthly deposits must be made to the Replacement Reserve account. Statement of Condition: The Project underfunded the account by $1,073 in the current year and did not correct the prior year deficiencies of $611, for 2023 and 2024. Cause: The Project did not fund the reserve account with the new amount at the beginning of the year or correct the prior year deficiency. Effect or Potential Effect: Deficiently funded reserve for replacements. Auditor Non-Compliance Code: N – Reserve for Replacements deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: Management should implement procedures to ensure the replacement reserve is properly funded on a monthly basis. Response Indicator: Agree. Completion Date: 06/30/2026 Response: New procedures have been implemented to review the deposits each month to ensure the amounts are proper.

FINDING No. 2025-002: Section 8 Project Based Rental Assistance (PBRA), ALN 14.195 Finding Resolution Status: Unresolved. Information on Universe Population Size: Five moved-in tenants. Sample Size Information: Two moved-in tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the maintenance of a waitlist and the selection of applicants in chronological order of application date or adequate documentation of the reasoning for an applicant being passed over for an applicant with a later application date. Statement of Condition: The Project’s waiting list did not reflect the actual tenant application dates for all applicants. Cause: The Project did not update the waiting list using the date stamped on the tenant applications. Effect or Potential Effect: Unable to determine the date for the receipt of applications for proper waiting list placement and subsequent selection to occupancy. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should rebuild the waiting list based on the date stamps on the original tenant applications and implement procedures to ensure that all future applications are recorded accurately and maintained in chronological order. Response Indicator: Agree. Completion Date: 06/30/2026 Response:Staff training has been provided to ensure that there are date stamps on the wait list tenants.

FINDING No. 2025-003: Section 8 Project Based Rental Assistance (PBRA), ALN 14.195 Finding Resolution Status: Resolved. Information on Universe Population Size: Six tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by HUD regulations, the owner must refund the full security deposit plus accrued interest and/or provide the tenant with an itemized list of any unpaid rent, damages to the unit, and an estimated cost for repair, along with a statement of the tenant’s rights under state laws within 15 days from move-out. Statement of Condition: The Project refunded the security deposit 28 days after the tenant moved out, which is beyond the 15 day state requirement. Cause: The Project did not follow the state requirement for refunding security deposits within 15 days from tenant move-out. Effect or Potential Effect: The tenant was given their security deposit refund late, causing the Project to be noncompliant with state requirements. Auditor Non-Compliance Code: M – Security Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations have been adopted. Recommendation: The Project should refund security deposits timely. Response Indicator: Agree. Completion Date: 05/08/2025 Response: Staff training has been provided and included in monthly reporting procedures.