CORRECTIVE ACTION PLAN Volunteer Residences-Two, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Purkey, Carter, Compton, Swann, & Carter, PLLC P.O. Box 727 Morristown, Tennessee 37815 Audit period: October 1, 2021 - September 30, 2022 The find...
CORRECTIVE ACTION PLAN Volunteer Residences-Two, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Purkey, Carter, Compton, Swann, & Carter, PLLC P.O. Box 727 Morristown, Tennessee 37815 Audit period: October 1, 2021 - September 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS ? FINANCIAL STATEMENT AUDIT None FINDINGS ? FEDERAL AWARD PROGRAMS AUDITS Finding No. 2022 ? 001: Ineffective oversight and operation of internal controls over compliance by management The Project managers at two out of the three complexes did not follow all HUD requirements when performing the tenant recertification process. The tenant files tested for internal controls over compliance contained multiple deficiencies, including missing manager signatures and dates on HUD Form 50059 and HUD Forms 9887/A; missing tenant signatures and dates on HUD Form 50059, citizenship declaration, and HUD Forms 9887/A; missing spouse signatures and dates on HUD Form 50059, HUD Forms 9887/A, and lease; and incorrect calculation of tenant assets. Criteria: According to the HUD Handbook 4350.3: 1. The HUD-50059 certifications must be signed and dated by the manager, tenant, and spouse (if applicable). 2. The lease must be signed and dated by the head-of-household, spouse, co-head (if applicable), and any adult family members and the manager. 3. The HUD-9887 and HUD-9887A must be signed by the tenant, manager, and spouse (if applicable). 4. Owners must verify all income, assets, expenses, deductions, family characteristics, and circumstances that affect family eligibility or level of assistance. For savings accounts, use the current balance. For checking accounts, use the average balance for the last six months. 5. Citizens must sign declaration certifying U.S. Citizenship. Cause of Condition: The management agent did not have proper systems in place to ensure that all documents are completed per HUD requirements pursuant to HUD Handbook 4350.3. Recommendation: Auditor recommends management agent review HUD Handbook 4350.3 and put proper internal controls in place to ensure manager of the Project is trained on the handbook and is complying with all applicable requirements pursuant to HUD Handbook 4350.3. Action Taken: Management agent will provide additional training on HUD requirements to managers during their annual manager?s training and implement procedures to ensure managers are complying with requirements pursuant to HUD Handbook 4350.3.