Audit 38987

Criteria - Eligibility In accordance with HUD program guidelines under which Victory Crest operates, the annual tenant recertification Form 50059 is required to be signed by the tenant prior to the required annual recertification date. Condition In connection with lease file testing, we noted three out of six tenant files did not have annual tenant recertification Form 50059 completed timely. Cause Personnel responsible for tenant recertifications failed to obtain signatures on three of six Form 50059s selected for testing prior to the required annual recertification date. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Identification as a Repeat Finding Victory Crest has received the same finding for the two previous years which were documented in findings 2020-001 and 2021-001, respectively. Recommendation Victory Crest should ensure that all Form 50059s are signed by the tenant prior to the required annual recertification date. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution Status: In-process Views of Responsible Officials In 2022 management hired additional oversight staff at the corporate level and changed the procedure for reviewing and approving annual certifications. The new Directors of Operations (along with the Compliance Specialists) are responsible for reviewing the certification process to ensure that certifications are completed timely. In addition, any property that has late certifications consistently are required to submit an Action Plan to the Regional Manager and update weekly on the progress to address the outstanding certifications. Management?s regional team and director of operations are focused on timely completion of certifications and review reports daily to make sure this is on task.

Criteria - Eligibility In accordance with HUD program guidelines under which Victory Crest operates, the annual tenant recertification Form 50059 is required to be signed by the tenant prior to the required annual recertification date. Condition In connection with lease file testing, we noted three out of six tenant files did not have annual tenant recertification Form 50059 completed timely. Cause Personnel responsible for tenant recertifications failed to obtain signatures on three of six Form 50059s selected for testing prior to the required annual recertification date. Effect or Potential Effect Noncompliance with HUD guidelines could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD. Identification as a Repeat Finding Victory Crest has received the same finding for the two previous years which were documented in findings 2020-001 and 2021-001, respectively. Recommendation Victory Crest should ensure that all Form 50059s are signed by the tenant prior to the required annual recertification date. Auditor Noncompliance Code: R - Section 8 program administration Finding Resolution Status: In-process Views of Responsible Officials In 2022 management hired additional oversight staff at the corporate level and changed the procedure for reviewing and approving annual certifications. The new Directors of Operations (along with the Compliance Specialists) are responsible for reviewing the certification process to ensure that certifications are completed timely. In addition, any property that has late certifications consistently are required to submit an Action Plan to the Regional Manager and update weekly on the progress to address the outstanding certifications. Management?s regional team and director of operations are focused on timely completion of certifications and review reports daily to make sure this is on task.