Bank Reconciliation Condition: The Operating bank account was not reconciled in a timely manner, for the month of October 31, 2022. Criteria: Bank reconciliations should be prepared at the end of each month, for each checking account and agreed to the general ledger. In addition, the cash balance maintained in general ledger, should be monitored, prior to the issuance of checks. Cause: Transfer of cash from the savings account, was not processed prior to October 31, 2022. Effect: The cash balance maintained in the general ledger for the operating account, was overdrawn by $1,546 as of October 31, 2022. Recommendation: I recommend that bank reconciliation should be reconciled to the general ledger on a monthly basis and cash balance maintained in general ledger, should be monitored, prior to the issuance of checks. Performing these procedures will reduce the risk of an overdrawn or overstated bank balance, during the fiscal year. Views of Responsible Officials and Planned Corrective Actions: Transfer made at beginning of the next month to cover.
Residual Receipts Condition: Surplus cash in the amount of $77,939 was not deposited into the residual receipts account within 60 days after the end of the fiscal year. Criteria: Surplus cash should be deposited into the residual receipts account within 60 days after the end of the fiscal year. Effect: The residual receipts account was not funded within the 60 days requirement. Context: Surplus cash computation was examined to determine whether surplus cash has been deposited into the residual receipts account within 60 days after the end of the fiscal year. The detail and results of the sample are as follows: Context: Population Size Number: 1 Dollar Amount: $77,939. Sample Number: 1 Dollar Amount: $77,939. Items Not in Compliance Number: 1 Dollar Amount: $77,939. Questioned Costs N/A. Cause: Oversight by management. Recommendation: I recommend that surplus cash be deposited into the residual receipts account, within 60 days after the end of the fiscal year. Views of Responsible Officials and Planned Corrective Actions: Payment in process.
Tenant Files Condition: Recertification: 1. In two (2) instances out of fifteen (15) tenant files tested, the EIV was not maintained in the tenant?s file; therefore, income could not be properly verified. 2. In fifteen (15) instances out of fifteen (15) tenant files tested, the inspection report was not signed by the tenant or management. There only a printed form maintained in the tenant?s file. Move-outs: 1. In one (1) instance out of three (3) tenant files tested, the security deposit was not refunded within the 30 day timeframe. Criteria: HUD 4350.3 REV-1, Change 4, Ch. 6: 6-29.A. Owners perform unit inspections on at least an annual basis to determine whether the appliances and equipment in the unit are functioning properly and to assess whether a component needs to be repaired or replaced. This is also an opportunity to determine any damage to the unit caused by the tenant's abuse or negligence and, if so, make the necessary repairs and bill the tenant for the cost of the repairs. HUD 4350.3 REV-1, Change 4, Ch. 9, 9-8 B. Owners must: 1. Develop policies and procedures for staff to follow for using the EIV Income reports and remaining Verification Reports HUD 4350.3, REV-1, Change 4, Ch. 9, 9-11: D.1.c. New Hires Report (1) Owners must use this report at least quarterly to determine if any of their tenants have started new employment whereby the tenant has not reported a change in income to the owner between recertification and/or the new employment was not reported at the time of recertification. HUD Handbook 4350.3, REV-1, Change 4, Ch 6 6-18 C. Within 30 days after the move-out date (or shorter time if required by state and/or local laws), the owner must either: 1. Refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease; or 2. 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 and local laws. Effect: The tenant files were not always in compliance with the guidelines established by the Department of Housing and Urban Development. Cause: Required documents were not always maintained in the tenant file, in addition to being properly authorized by the tenant and/or owner. Context: Tenant files tested consisted of move-ins, recertifications and move-outs. Population Size Number: 50 Tenants Files. Dollar Amount: $ 541,145. Sample Number: 25 Tenants Files. Dollar Amount: $ 270,562. Items Not in Compliance Number: 16 Tenant Files. Dollar Amount: $ 10,864. Questioned Costs There was no questioned costs. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Windham Housing Corporation should verify the tenant?s income via EIV, during the recertification process and perform inspections, during the recertification process in accordance with guidelines established by the Department of Housing and Urban Development. In addition, security deposits should be refunded with interest, within 30-day after the effective move-out date. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: Corrected going forward.
Allocation of Administration Expenses Condition: Administration expenses, relating to the Lead Maintenance Technician; Inspector and Director of Senior Housing were allocated to the Project, as frontline expenses, recorded to Office Salaries; Payroll Taxes; 401K Contributions and Group Insurance, during the 2022 fiscal year. Criteria: Front-line costs activities include the following: 1) taking applications; 2) screening, certifying and recertifying residents; 3) maintaining the project; and 4) accounting for project income and expenses. Effect: Administration expenses allocated from the Corporate office should be processed through the management fee, resulting in potential questioned cost of $15,254.30. Cause: Misinterpretation by management with regards to Front-line costs and expenses charged to the management fee. Context: Administration expense allocated to the Project, during the 2022 fiscal year. Population Size Number: 24 allocations of administration expenses Dollar Amount: $ 15,254.30. charged to the Project. Sample Number: 2 allocation periods. Dollar Amount: $ 1,476.97. Items Not in Compliance Number: 2 allocation periods. Dollar Amount: $ 1476.97. Questioned Costs There is potential questioned cost of $15,254.30. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Windham Housing Corporation, record Administration expense as part of the management fee for the Project. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: No longer make this payment.
Bank Reconciliation Condition: The Operating bank account was not reconciled in a timely manner, for the month of October 31, 2022. Criteria: Bank reconciliations should be prepared at the end of each month, for each checking account and agreed to the general ledger. In addition, the cash balance maintained in general ledger, should be monitored, prior to the issuance of checks. Cause: Transfer of cash from the savings account, was not processed prior to October 31, 2022. Effect: The cash balance maintained in the general ledger for the operating account, was overdrawn by $1,546 as of October 31, 2022. Recommendation: I recommend that bank reconciliation should be reconciled to the general ledger on a monthly basis and cash balance maintained in general ledger, should be monitored, prior to the issuance of checks. Performing these procedures will reduce the risk of an overdrawn or overstated bank balance, during the fiscal year. Views of Responsible Officials and Planned Corrective Actions: Transfer made at beginning of the next month to cover.
Residual Receipts Condition: Surplus cash in the amount of $77,939 was not deposited into the residual receipts account within 60 days after the end of the fiscal year. Criteria: Surplus cash should be deposited into the residual receipts account within 60 days after the end of the fiscal year. Effect: The residual receipts account was not funded within the 60 days requirement. Context: Surplus cash computation was examined to determine whether surplus cash has been deposited into the residual receipts account within 60 days after the end of the fiscal year. The detail and results of the sample are as follows: Context: Population Size Number: 1 Dollar Amount: $77,939. Sample Number: 1 Dollar Amount: $77,939. Items Not in Compliance Number: 1 Dollar Amount: $77,939. Questioned Costs N/A. Cause: Oversight by management. Recommendation: I recommend that surplus cash be deposited into the residual receipts account, within 60 days after the end of the fiscal year. Views of Responsible Officials and Planned Corrective Actions: Payment in process.
Tenant Files Condition: Recertification: 1. In two (2) instances out of fifteen (15) tenant files tested, the EIV was not maintained in the tenant?s file; therefore, income could not be properly verified. 2. In fifteen (15) instances out of fifteen (15) tenant files tested, the inspection report was not signed by the tenant or management. There only a printed form maintained in the tenant?s file. Move-outs: 1. In one (1) instance out of three (3) tenant files tested, the security deposit was not refunded within the 30 day timeframe. Criteria: HUD 4350.3 REV-1, Change 4, Ch. 6: 6-29.A. Owners perform unit inspections on at least an annual basis to determine whether the appliances and equipment in the unit are functioning properly and to assess whether a component needs to be repaired or replaced. This is also an opportunity to determine any damage to the unit caused by the tenant's abuse or negligence and, if so, make the necessary repairs and bill the tenant for the cost of the repairs. HUD 4350.3 REV-1, Change 4, Ch. 9, 9-8 B. Owners must: 1. Develop policies and procedures for staff to follow for using the EIV Income reports and remaining Verification Reports HUD 4350.3, REV-1, Change 4, Ch. 9, 9-11: D.1.c. New Hires Report (1) Owners must use this report at least quarterly to determine if any of their tenants have started new employment whereby the tenant has not reported a change in income to the owner between recertification and/or the new employment was not reported at the time of recertification. HUD Handbook 4350.3, REV-1, Change 4, Ch 6 6-18 C. Within 30 days after the move-out date (or shorter time if required by state and/or local laws), the owner must either: 1. Refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease; or 2. 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 and local laws. Effect: The tenant files were not always in compliance with the guidelines established by the Department of Housing and Urban Development. Cause: Required documents were not always maintained in the tenant file, in addition to being properly authorized by the tenant and/or owner. Context: Tenant files tested consisted of move-ins, recertifications and move-outs. Population Size Number: 50 Tenants Files. Dollar Amount: $ 541,145. Sample Number: 25 Tenants Files. Dollar Amount: $ 270,562. Items Not in Compliance Number: 16 Tenant Files. Dollar Amount: $ 10,864. Questioned Costs There was no questioned costs. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Windham Housing Corporation should verify the tenant?s income via EIV, during the recertification process and perform inspections, during the recertification process in accordance with guidelines established by the Department of Housing and Urban Development. In addition, security deposits should be refunded with interest, within 30-day after the effective move-out date. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: Corrected going forward.
Allocation of Administration Expenses Condition: Administration expenses, relating to the Lead Maintenance Technician; Inspector and Director of Senior Housing were allocated to the Project, as frontline expenses, recorded to Office Salaries; Payroll Taxes; 401K Contributions and Group Insurance, during the 2022 fiscal year. Criteria: Front-line costs activities include the following: 1) taking applications; 2) screening, certifying and recertifying residents; 3) maintaining the project; and 4) accounting for project income and expenses. Effect: Administration expenses allocated from the Corporate office should be processed through the management fee, resulting in potential questioned cost of $15,254.30. Cause: Misinterpretation by management with regards to Front-line costs and expenses charged to the management fee. Context: Administration expense allocated to the Project, during the 2022 fiscal year. Population Size Number: 24 allocations of administration expenses Dollar Amount: $ 15,254.30. charged to the Project. Sample Number: 2 allocation periods. Dollar Amount: $ 1,476.97. Items Not in Compliance Number: 2 allocation periods. Dollar Amount: $ 1476.97. Questioned Costs There is potential questioned cost of $15,254.30. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Windham Housing Corporation, record Administration expense as part of the management fee for the Project. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: No longer make this payment.
Bank Reconciliation Condition: The Operating bank account was not reconciled in a timely manner, for the month of October 31, 2022. Criteria: Bank reconciliations should be prepared at the end of each month, for each checking account and agreed to the general ledger. In addition, the cash balance maintained in general ledger, should be monitored, prior to the issuance of checks. Cause: Transfer of cash from the savings account, was not processed prior to October 31, 2022. Effect: The cash balance maintained in the general ledger for the operating account, was overdrawn by $1,546 as of October 31, 2022. Recommendation: I recommend that bank reconciliation should be reconciled to the general ledger on a monthly basis and cash balance maintained in general ledger, should be monitored, prior to the issuance of checks. Performing these procedures will reduce the risk of an overdrawn or overstated bank balance, during the fiscal year. Views of Responsible Officials and Planned Corrective Actions: Transfer made at beginning of the next month to cover.
Residual Receipts Condition: Surplus cash in the amount of $77,939 was not deposited into the residual receipts account within 60 days after the end of the fiscal year. Criteria: Surplus cash should be deposited into the residual receipts account within 60 days after the end of the fiscal year. Effect: The residual receipts account was not funded within the 60 days requirement. Context: Surplus cash computation was examined to determine whether surplus cash has been deposited into the residual receipts account within 60 days after the end of the fiscal year. The detail and results of the sample are as follows: Context: Population Size Number: 1 Dollar Amount: $77,939. Sample Number: 1 Dollar Amount: $77,939. Items Not in Compliance Number: 1 Dollar Amount: $77,939. Questioned Costs N/A. Cause: Oversight by management. Recommendation: I recommend that surplus cash be deposited into the residual receipts account, within 60 days after the end of the fiscal year. Views of Responsible Officials and Planned Corrective Actions: Payment in process.
Tenant Files Condition: Recertification: 1. In two (2) instances out of fifteen (15) tenant files tested, the EIV was not maintained in the tenant?s file; therefore, income could not be properly verified. 2. In fifteen (15) instances out of fifteen (15) tenant files tested, the inspection report was not signed by the tenant or management. There only a printed form maintained in the tenant?s file. Move-outs: 1. In one (1) instance out of three (3) tenant files tested, the security deposit was not refunded within the 30 day timeframe. Criteria: HUD 4350.3 REV-1, Change 4, Ch. 6: 6-29.A. Owners perform unit inspections on at least an annual basis to determine whether the appliances and equipment in the unit are functioning properly and to assess whether a component needs to be repaired or replaced. This is also an opportunity to determine any damage to the unit caused by the tenant's abuse or negligence and, if so, make the necessary repairs and bill the tenant for the cost of the repairs. HUD 4350.3 REV-1, Change 4, Ch. 9, 9-8 B. Owners must: 1. Develop policies and procedures for staff to follow for using the EIV Income reports and remaining Verification Reports HUD 4350.3, REV-1, Change 4, Ch. 9, 9-11: D.1.c. New Hires Report (1) Owners must use this report at least quarterly to determine if any of their tenants have started new employment whereby the tenant has not reported a change in income to the owner between recertification and/or the new employment was not reported at the time of recertification. HUD Handbook 4350.3, REV-1, Change 4, Ch 6 6-18 C. Within 30 days after the move-out date (or shorter time if required by state and/or local laws), the owner must either: 1. Refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease; or 2. 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 and local laws. Effect: The tenant files were not always in compliance with the guidelines established by the Department of Housing and Urban Development. Cause: Required documents were not always maintained in the tenant file, in addition to being properly authorized by the tenant and/or owner. Context: Tenant files tested consisted of move-ins, recertifications and move-outs. Population Size Number: 50 Tenants Files. Dollar Amount: $ 541,145. Sample Number: 25 Tenants Files. Dollar Amount: $ 270,562. Items Not in Compliance Number: 16 Tenant Files. Dollar Amount: $ 10,864. Questioned Costs There was no questioned costs. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Windham Housing Corporation should verify the tenant?s income via EIV, during the recertification process and perform inspections, during the recertification process in accordance with guidelines established by the Department of Housing and Urban Development. In addition, security deposits should be refunded with interest, within 30-day after the effective move-out date. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: Corrected going forward.
Allocation of Administration Expenses Condition: Administration expenses, relating to the Lead Maintenance Technician; Inspector and Director of Senior Housing were allocated to the Project, as frontline expenses, recorded to Office Salaries; Payroll Taxes; 401K Contributions and Group Insurance, during the 2022 fiscal year. Criteria: Front-line costs activities include the following: 1) taking applications; 2) screening, certifying and recertifying residents; 3) maintaining the project; and 4) accounting for project income and expenses. Effect: Administration expenses allocated from the Corporate office should be processed through the management fee, resulting in potential questioned cost of $15,254.30. Cause: Misinterpretation by management with regards to Front-line costs and expenses charged to the management fee. Context: Administration expense allocated to the Project, during the 2022 fiscal year. Population Size Number: 24 allocations of administration expenses Dollar Amount: $ 15,254.30. charged to the Project. Sample Number: 2 allocation periods. Dollar Amount: $ 1,476.97. Items Not in Compliance Number: 2 allocation periods. Dollar Amount: $ 1476.97. Questioned Costs There is potential questioned cost of $15,254.30. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Windham Housing Corporation, record Administration expense as part of the management fee for the Project. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: No longer make this payment.
Bank Reconciliation Condition: The Operating bank account was not reconciled in a timely manner, for the month of October 31, 2022. Criteria: Bank reconciliations should be prepared at the end of each month, for each checking account and agreed to the general ledger. In addition, the cash balance maintained in general ledger, should be monitored, prior to the issuance of checks. Cause: Transfer of cash from the savings account, was not processed prior to October 31, 2022. Effect: The cash balance maintained in the general ledger for the operating account, was overdrawn by $1,546 as of October 31, 2022. Recommendation: I recommend that bank reconciliation should be reconciled to the general ledger on a monthly basis and cash balance maintained in general ledger, should be monitored, prior to the issuance of checks. Performing these procedures will reduce the risk of an overdrawn or overstated bank balance, during the fiscal year. Views of Responsible Officials and Planned Corrective Actions: Transfer made at beginning of the next month to cover.
Residual Receipts Condition: Surplus cash in the amount of $77,939 was not deposited into the residual receipts account within 60 days after the end of the fiscal year. Criteria: Surplus cash should be deposited into the residual receipts account within 60 days after the end of the fiscal year. Effect: The residual receipts account was not funded within the 60 days requirement. Context: Surplus cash computation was examined to determine whether surplus cash has been deposited into the residual receipts account within 60 days after the end of the fiscal year. The detail and results of the sample are as follows: Context: Population Size Number: 1 Dollar Amount: $77,939. Sample Number: 1 Dollar Amount: $77,939. Items Not in Compliance Number: 1 Dollar Amount: $77,939. Questioned Costs N/A. Cause: Oversight by management. Recommendation: I recommend that surplus cash be deposited into the residual receipts account, within 60 days after the end of the fiscal year. Views of Responsible Officials and Planned Corrective Actions: Payment in process.
Tenant Files Condition: Recertification: 1. In two (2) instances out of fifteen (15) tenant files tested, the EIV was not maintained in the tenant?s file; therefore, income could not be properly verified. 2. In fifteen (15) instances out of fifteen (15) tenant files tested, the inspection report was not signed by the tenant or management. There only a printed form maintained in the tenant?s file. Move-outs: 1. In one (1) instance out of three (3) tenant files tested, the security deposit was not refunded within the 30 day timeframe. Criteria: HUD 4350.3 REV-1, Change 4, Ch. 6: 6-29.A. Owners perform unit inspections on at least an annual basis to determine whether the appliances and equipment in the unit are functioning properly and to assess whether a component needs to be repaired or replaced. This is also an opportunity to determine any damage to the unit caused by the tenant's abuse or negligence and, if so, make the necessary repairs and bill the tenant for the cost of the repairs. HUD 4350.3 REV-1, Change 4, Ch. 9, 9-8 B. Owners must: 1. Develop policies and procedures for staff to follow for using the EIV Income reports and remaining Verification Reports HUD 4350.3, REV-1, Change 4, Ch. 9, 9-11: D.1.c. New Hires Report (1) Owners must use this report at least quarterly to determine if any of their tenants have started new employment whereby the tenant has not reported a change in income to the owner between recertification and/or the new employment was not reported at the time of recertification. HUD Handbook 4350.3, REV-1, Change 4, Ch 6 6-18 C. Within 30 days after the move-out date (or shorter time if required by state and/or local laws), the owner must either: 1. Refund the full security deposit plus accrued interest to a tenant that does not owe any amounts under the lease; or 2. 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 and local laws. Effect: The tenant files were not always in compliance with the guidelines established by the Department of Housing and Urban Development. Cause: Required documents were not always maintained in the tenant file, in addition to being properly authorized by the tenant and/or owner. Context: Tenant files tested consisted of move-ins, recertifications and move-outs. Population Size Number: 50 Tenants Files. Dollar Amount: $ 541,145. Sample Number: 25 Tenants Files. Dollar Amount: $ 270,562. Items Not in Compliance Number: 16 Tenant Files. Dollar Amount: $ 10,864. Questioned Costs There was no questioned costs. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Windham Housing Corporation should verify the tenant?s income via EIV, during the recertification process and perform inspections, during the recertification process in accordance with guidelines established by the Department of Housing and Urban Development. In addition, security deposits should be refunded with interest, within 30-day after the effective move-out date. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: Corrected going forward.
Allocation of Administration Expenses Condition: Administration expenses, relating to the Lead Maintenance Technician; Inspector and Director of Senior Housing were allocated to the Project, as frontline expenses, recorded to Office Salaries; Payroll Taxes; 401K Contributions and Group Insurance, during the 2022 fiscal year. Criteria: Front-line costs activities include the following: 1) taking applications; 2) screening, certifying and recertifying residents; 3) maintaining the project; and 4) accounting for project income and expenses. Effect: Administration expenses allocated from the Corporate office should be processed through the management fee, resulting in potential questioned cost of $15,254.30. Cause: Misinterpretation by management with regards to Front-line costs and expenses charged to the management fee. Context: Administration expense allocated to the Project, during the 2022 fiscal year. Population Size Number: 24 allocations of administration expenses Dollar Amount: $ 15,254.30. charged to the Project. Sample Number: 2 allocation periods. Dollar Amount: $ 1,476.97. Items Not in Compliance Number: 2 allocation periods. Dollar Amount: $ 1476.97. Questioned Costs There is potential questioned cost of $15,254.30. Recommendation: In order to be in compliance with guidelines established by the Department of Housing and Urban Development, I recommend that Windham Housing Corporation, record Administration expense as part of the management fee for the Project. By performing these procedures, the risk of incurring questioned costs will be significantly reduced. Views of Responsible Officials and Planned Corrective Actions: No longer make this payment.