Corrective Action Plans

Finding 571589 (2024-006)

Significant Deficiency 2024

Housing Authority of the City of Seattle

WA

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

Moving to Work Demonstration Program – Assistance Listing No. 14.881 Recommendation: We recommend that the Authority review the controls in place to ensure that all required recertification documents are completed, signed, and in the tenant's file. Explanation of disagreement with audit finding: T...

Moving to Work Demonstration Program – Assistance Listing No. 14.881 Recommendation: We recommend that the Authority review the controls in place to ensure that all required recertification documents are completed, signed, and in the tenant's file. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: SHA has adopted the updated HUD-9886-A in addition to its own Release of Information. The updated release form does not expire and provides more indefinite Release of Information coverage. An additional data field has been created to track households that opt out of their release.. Name(s) of the contact person(s) responsible for corrective action: Alice Kimbowa Planned completion date for corrective action plan: Preventive actions to identify households that opt out of the adopted indefinite Release of Information will be ongoing as part of the regular compliance and quality management process.

View Audit 362508

Finding 571567 (2024-004)

Significant Deficiency 2024

Housing Authority of the City of Seattle

WA

Questioned Costs HUD Housing Programs Subrecipient Monitoring

Housing Choice Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority review the controls in place to ensure that no tenants are overlooked, even when the original case manager is no longer an employee of the Authority. Explanation of disagreemen...

Housing Choice Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority review the controls in place to ensure that no tenants are overlooked, even when the original case manager is no longer an employee of the Authority. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HCV has developed new software process workflows that automatically incorporate completion of certification checklists. Work backlogs created by staff turnover are being addressed. The Management Team has a created a plan of action with a timeline to clear all backlogs by the end of 2026. The team meets on a weekly basis to discuss progress. Additional oversight of termination processes will be provided by Compliance Team review of payment holds and $0 HAP reports.. Name(s) of the contact person(s) responsible for corrective action: Alice Kimbowa Planned completion date for corrective action plan: Continuous. Preventive actions will be ongoing as part of the regular compliance and quality management process. The Management Team has been required to clear all work backlogs by the end of FY2025.

View Audit 362508 Questioned Costs: $1

Finding 571538 (2024-002)

Material Weakness 2024

Tca Health, Inc.

IL

Eligibility Material Weakness Internal Control / Segregation of Duties

Recommendation: Management should continue to provide training and education to front desk staff related to the process for collecting family size and income information, along with inputting it into the electronic medical records. We also recommend enhancing any current internal audits of patient v...

Recommendation: Management should continue to provide training and education to front desk staff related to the process for collecting family size and income information, along with inputting it into the electronic medical records. We also recommend enhancing any current internal audits of patient visits to determine all required patient information has been obtained in accordance with TCA’s policies. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: TCA Health has addressed the Special Provisions weakness by coaching and training front desk staff members. Specifically, staff were trained in the approved sliding fee scale policy and its requirements. Worked with third-party billing company, and Athena to roll back the EMR update which contributed to ineffective application of the sliding fee in November 2023. TCA hired a full-time Patient Services Manager in 2024 to support ongoing staff training, quality assurance monitoring, and implementation of the updated EMR and registration workflows. Staff have become proficient in the collection of data from patients, properly storing and recording it in the EMR, and the calculation of the slide according to the Federal Poverty Guidelines. Lastly, the team will be updated on the latest EMR module that experienced an upgrade and taught how to effectively apply the slide. Additionally, TCA began to undergo internal audits of records ensuring that proper documentation is maintained and a patient service manager, utilizing testing template provided by the organization’s auditor. Name(s) of the contact person(s) responsible for corrective action: Samantha Oliver Mitchell, Chief Operating Officer Planned completion date for corrective action plan: June 2025

View Audit 362500

Finding 571515 (2024-002)

Significant Deficiency 2024

Housing & Redevelopment Authority of Douglas County

MN

HUD Housing Programs Eligibility Significant Deficiency

Contact Person Emajean Hanson-Ford, Executive Director Corrective Action Plan The Authority has conducted appropriate training for all staff to ensure compliance moving forward. Planned Completion Date for CAP December 31, 2025

View Audit 362477

Finding 571494 (2024-003)

Material Weakness 2024

Metro Atlanta Recovery Residences, Inc.

GA

Questioned Costs Eligibility

The Organization will implement additional procedures to ensure that documentation to support the eligibility of all program participants. These procedures will be implemented by the end of fiscal year ending June 30, 2025.

View Audit 362446 Questioned Costs: $1

Finding 571467 (2024-002)

None 2024

Healthfirst Bluegrass INC

KY

Special Tests & Provisions Eligibility Matching / Level of Effort / Earmarking

Views of responsible officials and planned corrective actions – Management has begun staff training and will meet with the billing team regarding the sliding fee policy and process, including scanning of application into the patient's file. Management will ensure HFBG continues to apply and audit t...

Views of responsible officials and planned corrective actions – Management has begun staff training and will meet with the billing team regarding the sliding fee policy and process, including scanning of application into the patient's file. Management will ensure HFBG continues to apply and audit the application of sliding fee discounts on the patient accounts consistent with policy.

View Audit 362384

Finding 571396 (2024-002)

None 2024

Adams County, Colorado

CO

Questioned Costs Eligibility Cash Management

Condition: During our testing of 40 Foster Care IV-E benefit transactions, we noted one sample out of forty total samples where the individual receiving payment under Foster Care IV-E was not eligible as the individual did not meet the eligibility requirement of living with a parent or specified rel...

Condition: During our testing of 40 Foster Care IV-E benefit transactions, we noted one sample out of forty total samples where the individual receiving payment under Foster Care IV-E was not eligible as the individual did not meet the eligibility requirement of living with a parent or specified relative during the required timeframe. Recommendation: We recommend the County collaborate with the Colorado Department of Human Services to ensure that reimbursements under Foster Care IV-E only occur for individuals that are eligible under the Foster Care IV-E Program. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the finding: The Adams County Human Services (ADHS) finance staff will implement a monthly review comparing the IV-E status report in the ADHS Mango application to the monthly Discoverer payments report from the State of Colorado system. This monthly process should show IV-E payments made for clients who were flagged non-IV eligible. If errors are found, ADHS will send a list of the clients and payments in question to the state for their review and correction. ADHS finance staff will also verify that we have correctly entered the client eligibility determination in the state system. Name of the contact person responsible for corrective action: Maurice Stenberg Planned completion date for corrective action plan: December 31, 2025

View Audit 362347 Questioned Costs: $1

Finding 571349 (2024-001)

Significant Deficiency 2024

Powell Boulevard Apartments, Inc.

OR

HUD Housing Programs Eligibility

Powell Boulevard Apartments, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2024 Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: January 1 – December 31, 2024 The fi...

Powell Boulevard Apartments, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2024 Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: January 1 – December 31, 2024 The findings from the December 31, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Federal Award Findings and Questioned Costs Item 2024-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Program Federal Assistance Listing: Number 14.181 Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that recertifications are performed timely and signed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: Management reviewed the AR in question and confirmed that all documentation, including EIV, was performed and obtained in January 2024. The 50059 was not signed until 3/13/24 for a 3/1/24 effective date because the tenant was unavailable due to sickness. Property staff were reminded it is REACH policy to receive all documentation and signatures by the effective date to be considered complete. Completion Date: May 23, 2025. If the Department of the Housing and Urban Development has questions regarding this plan, please contact Margaret Salazar at (503) 231-0682 or by email at msalazar@reachcdc.org Sincerely, Margaret Salazar Chief Executive Officer May 23, 2025

View Audit 362296

Finding 571127 (2024-001)

Material Weakness 2024

Housing Authority of the County of Butler

PA

Questioned Costs HUD Housing Programs Special Tests & Provisions

United States Department of Housing and Urban Development The Housing Authority of the County of Butler respectfully submits the following corrective action plan for the year ended December 31, 2024. Finding 2024-001 - Special Tests and Provisions Statement of Condition: During the testing of new...

United States Department of Housing and Urban Development The Housing Authority of the County of Butler respectfully submits the following corrective action plan for the year ended December 31, 2024. Finding 2024-001 - Special Tests and Provisions Statement of Condition: During the testing of new participants for compliance with HUD's waiting list selection requirements, two waiting lists were not available for review. These lists assist in documenting that the participant was selected from the waiting list in accordance with established policies and procedures. Action taken: The Authority has already taken steps to address the issue by adjusting their policy so that waiting lists are now scanned and saved electronically, which ensures their availability for review at a later time, if necessary.

View Audit 362013 Questioned Costs: $1

Finding 571009 (2024-001)

Material Weakness 2024

Home Forward

OR

Eligibility Material Weakness Significant Deficiency

Moving to Work Demonstration Program – Assistance Listing No. 14.881 Recommendation: We recommend that Home Forward reviews the controls in place to ensure that recertifications are performed timely and the income is supported. Explanation of disagreement with audit finding: There is no disagreement...

Moving to Work Demonstration Program – Assistance Listing No. 14.881 Recommendation: We recommend that Home Forward reviews the controls in place to ensure that recertifications are performed timely and the income is supported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Prior to COVID, we had software controls in place that did not allow staff to override the next re-exam dates. We removed those restrictions during COVID. Since this audit finding we have now put those controls back in place. We also have training scheduled to discuss income calculations and to reiterate processes related to review schedules. The training will focus on correct income calculation procedures and documentation and will highlight maintaining effect dates for reviews when they are not completed on time due to resident failure to provide documentation. Name(s) of the contact person(s) responsible for corrective action: Elise Anderson (software controls) and Suzanne Couttouw (income/ exam date training) Planned completion date for corrective action plan: • Software controls back in place 6/1/2025 • Income Calculation training 7/16/2025

View Audit 361950

Finding 570874 (2024-003)

Significant Deficiency 2024

Rice County, Minnesota

MN

Internal Control / Segregation of Duties Eligibility Significant Deficiency

2024-003 Temporary Assistance for Needy Families Program (TANF) (Assistance Listing #93.558) Award #2401MNTANF, Passed through Minnesota Department of Human Services: Grant Period Year Ended December, 31, 2024: Eligibility Requirement Recommendation: It is recommended the County implement procedure...

2024-003 Temporary Assistance for Needy Families Program (TANF) (Assistance Listing #93.558) Award #2401MNTANF, Passed through Minnesota Department of Human Services: Grant Period Year Ended December, 31, 2024: Eligibility Requirement Recommendation: It is recommended the County implement procedures to ensure all required documentation is maintained in the file and that there are procedures in place to review files for errors and omissions in eligibility documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The County will review their process for data input and recording and remind staff to verify all eligibility requirements are documented for verbal interviews. Name of contact person responsible for corrective action plan: Rick Gieseke, Deputy Administrator Community Services and Deb Purfeerst, Public Health Director. Planned completion date for corrective action plan: December 31, 2025

View Audit 361810

Finding 570843 (2024-001)

None 2024

Catholic Charities of the Roman Catholic Diocese of Syracuse, Ny and S

NY

Procurement, Suspension & Debarment Eligibility

Corrective Action Condition Identified: The Organization did not verify whether vendors were suspended or debarred during the year. Cause: The Organization did not have formal procedures in place to ensure vendors were checked against the SAM.gov exclusions list. Corrective Action Taken: The O...

Corrective Action Condition Identified: The Organization did not verify whether vendors were suspended or debarred during the year. Cause: The Organization did not have formal procedures in place to ensure vendors were checked against the SAM.gov exclusions list. Corrective Action Taken: The Organization put a procedure in place that will check vendors against the exclusion list. Anticipated Completion Date: Procedure was put in place in May 2025 Views of Responsible Officials: Management concurs with the finding and has implemented procedures to document vendor eligibility verification via SAM.gov.

View Audit 361767

Finding 570671 (2024-002)

Significant Deficiency 2024

City and County of Broomfield

CO

Eligibility

U.S. Department of Health and Human Services Passed-through the Colorado Department of Human Services FFAL #93.778 Medicaid Cluster Eligibility Significant Deficiency in Internal Control Noncompliance Criteria: The Federal requirement related to processing of an application requires the State to pro...

U.S. Department of Health and Human Services Passed-through the Colorado Department of Human Services FFAL #93.778 Medicaid Cluster Eligibility Significant Deficiency in Internal Control Noncompliance Criteria: The Federal requirement related to processing of an application requires the State to provide notice of its decision concerning eligibility and provide timely and adequate notice of the basis for denial or termination of assistance (42 USC 1320c-7(d)). According to the Colorado Department of Health Care Policy and Financing (HCPF), processing standards 8.100.3.D, the City and County is required to process an initial application for any program not requiring a disability determination no later than 45 days following receipt of application. Condition: We tested eligibility determination and controls over this process for sixty case files. We noted the following in our testing: Four instances of non-compliance in which the City and County did not complete the eligibility determination and approve/deny the case within 45 days and no notice of action was sent to the client within the required timeframe. Cause: Due to the City and County’s ineffective monitoring, eligibility determinations were not completed in a timely manner and within the 45-day deadline. Effect: Failure to process applications timely could result in participants that are delayed approval of Medicaid services. Questioned Costs: None to report. Context/Sampling: A nonstatistical sample of 60 participants were selected for eligibility testing. Repeat Finding from Prior Years: Yes. Recommendation: We recommend the County utilize available COGNOS reports to determine which cases are nearing the exceeding processing guidelines. Views of Responsible Officials: Agree

View Audit 361687

Finding 570638 (2024-006)

Material Weakness 2024

The Mirror, Inc.

KS

Eligibility

Plan: • Ensure all applications are saved in files on the computer and paper copies if needed for backup. • Work for Success manager and VP will work with DCF to determine clear eligibility qualifications. It will be determined whether or not 18-24 year olds involved in the juvenile or foster care ...

Plan: • Ensure all applications are saved in files on the computer and paper copies if needed for backup. • Work for Success manager and VP will work with DCF to determine clear eligibility qualifications. It will be determined whether or not 18-24 year olds involved in the juvenile or foster care system are eligible. • Proper documentation showing that a participant does qualify will be obtained and kept in the file with the application. • Staff will ensure the participant and staff working with participant completing the application sign off on the application. Management will then review and sign off on the application and note appropriate funding stream. • If a change appears to be made on an application the staff member shall note the change on the appropriate application and initial the change. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Melissa Goodman, VP of Reentry Services will oversee the manager of the Work for Success program and ensure that these internal controls are taking place.

View Audit 361664

Finding 570637 (2024-005)

Material Weakness 2024

The Mirror, Inc.

KS

Eligibility Internal Control / Segregation of Duties

Plan: • Implement a policy to ensure appropriate review process and documentation for each application is obtained. • Implement internal control that management signs off on all applications, verifying that appropriate documentation is present and noting what funding the applicant qualifies for. ...

Plan: • Implement a policy to ensure appropriate review process and documentation for each application is obtained. • Implement internal control that management signs off on all applications, verifying that appropriate documentation is present and noting what funding the applicant qualifies for. Implementation Date: Beginning of Fiscal Year 26- July 1, 2025 Responsible Party: Melissa Goodman, VP of Reentry Services will oversee the manager of the Work for Success program and ensure that these internal controls are taking place.

View Audit 361664

Finding 570555 (2024-002)

None 2024

Barrier Free Living Holding, Inc.

NY

Eligibility

Management will continue to accumulate proper supporting documentation to support the organization’s compliance with the eligibility compliance requirement and to provide such documentation, when legally possible. Responsible parties: Cynthia Amodeo, Chief Executive Officer Myra Ricard, Program Dire...

Management will continue to accumulate proper supporting documentation to support the organization’s compliance with the eligibility compliance requirement and to provide such documentation, when legally possible. Responsible parties: Cynthia Amodeo, Chief Executive Officer Myra Ricard, Program Director Anticipated Completion Date: Not Applicable as this is not correctable at this time due to New York State Executive Order 19-ADM-05; 19-OCFS-ADM-03.

View Audit 361575

Finding 570501 (2024-002)

Material Weakness 2024

West Central Nebraska Joint Housing Authority

NE

Internal Control / Segregation of Duties Special Tests & Provisions Eligibility

Finding 2024-002: We agree with the finding. The Authority is relatively small with limited administrative staff. Further, the Board of Commissioners is a volunteer oversight board and not a managing board and does not have the time or expertise to provide the necessary services to correct the inte...

Finding 2024-002: We agree with the finding. The Authority is relatively small with limited administrative staff. Further, the Board of Commissioners is a volunteer oversight board and not a managing board and does not have the time or expertise to provide the necessary services to correct the internal control deficiencies noted. The Board had reviewed the issue and determined that there are no additional procedures which can be reasonably done to eliminate the deficiencies and accepts them.

View Audit 361476

Finding 570058 (2024-020)

Significant Deficiency 2024

West Central Mental Health Center, Inc.

CO

Allowable Costs / Cost Principles Cash Management Eligibility § 200.334

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will work with management to strengthen its document retention policies and processes and implement internal controls to ensure that all required grant reports are consistently ...

Solvista Health management agrees with the auditor’s finding. In conjunction with the shared services agreement, the Group will work with management to strengthen its document retention policies and processes and implement internal controls to ensure that all required grant reports are consistently reviewed, approved, submitted, retained and retrievable for the required retention period. This includes quarterly reports, expense reimbursement packets submitted to the grantors, project expenditure reports, or other grant-related records necessary to demonstrate compliance with federal reporting and record retention standards under the federal programs.

View Audit 361368

Finding 570035 (2024-003)

Material Weakness 2024

Passage Home

NC

Eligibility Material Weakness Internal Control / Segregation of Duties

Supportive Services for Veteran Families Assistance Listing No. 64.033 Recommendation: We recommend that the Corporation establish and enforce a standardized process for completing and reviewing intake forms, provide training to staff on the importance of maintaining proper documentation and the pr...

Supportive Services for Veteran Families Assistance Listing No. 64.033 Recommendation: We recommend that the Corporation establish and enforce a standardized process for completing and reviewing intake forms, provide training to staff on the importance of maintaining proper documentation and the procedures for completing and reviewing eligibility determinations, and implement periodic internal audits to ensure compliance with documentation requirements and to identify any areas needing improvement. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In fiscal year 2025, Passage Home implemented new programmatic policies and procedures ensuring that a Program Manager or the Program Director reviews and approves (by signature) all new client enrollments prior to case manager assignment. The Program Director will conduct related training for all program staff and will administer quarterly client record audits (peer or supervisor review) to verify ongoing compliance. Name of the contact person responsible for corrective action: Karen Harshman Planned completion date for corrective action plan: 03/26/2025

View Audit 361326

Finding 569977 (2024-003)

Material Weakness 2024

Dillard University

LA

Questioned Costs Student Financial Aid Subrecipient Monitoring

This finding resulted from a loan disbursement exceeding regulatory limits for one student. The issue was corrected before the audit report was finalized. The University will strengthen its review process prior to disbursement by ensuring additional loan eligibility is validated and documented. The ...

This finding resulted from a loan disbursement exceeding regulatory limits for one student. The issue was corrected before the audit report was finalized. The University will strengthen its review process prior to disbursement by ensuring additional loan eligibility is validated and documented. The Financial Aid Office will receive targeted training on aggregate loan monitoring. Corrective actions will be fully implemented by January 31, 2026.

View Audit 361246 Questioned Costs: $1

Finding 569897 (2024-005)

Material Weakness 2024

Kings Mountain Housing Authority

NC

Cash Management HUD Housing Programs Procurement, Suspension & Debarment

Name of Contact Person: Veronica Williams, Interim Executive DirectorCorrective Action:KHMA’s Board has approved new written policies and procedures and are in place now.Appropriate staff have begun taking proper safeguards for Capital Fund Program management to ensure proper accountability. This in...

Name of Contact Person: Veronica Williams, Interim Executive DirectorCorrective Action:KHMA’s Board has approved new written policies and procedures and are in place now.Appropriate staff have begun taking proper safeguards for Capital Fund Program management to ensure proper accountability. This includes the oversight of processing payments of CFP expenditures, which includes the following procedures for: 1) payment of invoices; 2) requisition of funds; 3) monitoring; and 4) reporting of CFP funds.payment of InvoicesAll CFP invoices will be reviewed and clearly marked as approved and documented to show that the source of funds for payment are CFP grant funds by the Executive Director prior to payment. The Executive Director will specify the general ledger code, including the BLI account to be used for payment processing on the invoice before providing the invoice to the accounts payable clerk.Under no circumstances will a payment be made if KMHA has not drawdown and received the respective CFP funds.With the exception of funds associated with BLI 1406 “Operations”, PHAs have three (3) business days to issue and mail the check once the CFP funds are received.The Executive Director/accounts payable clerk will specify the BLI account and CFP grant year on the check voucher prior to sending the check voucher to the fee accountant for financial statement processing.Requisition of FundsFor each drawdown, the Executive Director will print the associated eLOCCS Voucher Payment form from the eLOCCS system.The Executive Director will document the check number(s) and vendor(s) associated with each CFP draw (i.e., the eLOCCS Voucher Payment form). In addition, each individual draw shall be numbered for reference purposes.A copy of each draw shall be submitted to the fee accountant to ensure proper reporting of the grant drawdown.With the exception of funds associated with BLI 1406 “Operations”, in no case shall a draw be made without the proper approved invoices.MonitoringThe fee accountant's monthly financial statements will include a CFP report for each grant which will be reviewed by the Executive Director for proper coding and accuracy.Folder has been created to track all required information in the management of a CFP grant to include correspondence to and from HUD, expenses, grant reimbursements, budgets, closeout documentation and EPIC management.Proposed Completion Date: Immediately

View Audit 361147

Finding 569828 (2024-003)

Material Weakness 2024

Jacksonville Housing Authority

FL

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

The Jacksonville Housing Authority’s (JHA) Housing Choice Voucher (HCV) program is the largest rental assistance program in the City of Jacksonville. Through the Annual Contributions Contract (ACC), the program receives over $90M from the United States Department of Housing and Urban Development (HU...

The Jacksonville Housing Authority’s (JHA) Housing Choice Voucher (HCV) program is the largest rental assistance program in the City of Jacksonville. Through the Annual Contributions Contract (ACC), the program receives over $90M from the United States Department of Housing and Urban Development (HUD) and assist over 7,700 families each year. The ACC requires JHA to comply with federal regulations and HUD guidelines, as amended from time to time. Audit Findings Berman Hopkins Wright & LaHam, CPAs and Associates, LLP conducted the recent FY2024 JHA Audit (Period: October 1, 2023 – September 30, 2024) and identified continued material weakness findings within the JHA Housing Choice Voucher (HCV) program including but not limited to: Material Weaknesses in Internal Controls, Material Weaknesses in Non-Compliance and Material Weaknesses in the Housing Quality Standards (HQS) Inspection process. Berman Hopkins Wright & LaHam, CPAs and Associates, LLP previously conducted JHA’s FY2023 audit (Period: October 1, 2022 – September 30, 2023) and FY2022 audit (Period: October 1, 2021 – September 30, 2022) which disclosed consecutive historical material weaknesses in JHAs internal controls and noncompliance of the Housing Choice Voucher (HCV) program. Under new CEO leadership at JHA, a request to the JHA Board of Commissioners is in place for a vote on Friday, June 27, 2025, to authorize the following action of Nan McKay & Associates to Administer, Manage and Operate the JHA Housing Choice Voucher Program for an effective date of Monday July 7, 2025. Pending Resolution: AUTHORIZE THE AWARD OF THE MIAMI-DADE HOUSING & COMMUNITY DEVELOPMENT PIGGYBACK CONTRACT IN THE NOT-TO-EXCEED AMOUNT OF 72% OF THE ADMINISTRATIVE FEES CONCURRENT WITH THE EXISTING CONTRACT TERMS TO NAM MCKAY AND ASSOCIATES, FOR HOUSING CHOICE VOUCHER MANAGEMENT AND OPERATIONS. As evidenced by the increase in overall HCV audit findings, loss of federal revenues, inability to correctly serve existing and future HCV program participants, noncompliance on both a local and federal level for section 8 program funding for the administration and operations of the HCV program, immediate action is requested to authorize Nan McKay & Associates to administer and operate JHA’s HCV program immediately. Combined with a plethora of likely compliance issues and deteriorated financial condition, these concerns pose a significant threat to both the immediate and long-term success of Jacksonville’s HCV program. Responsible: Nan McKay & Associates POINT OF CONTACT: Steven Rosario, Sr. Director EMAIL: srosario@nanmckay.com JHA POC: Roslyn Phillips, Interim COO EMAIL: RPHILLIPS@JAXHA.ORG

View Audit 361093

Finding 569825 (2024-001)

Material Weakness 2024

Jacksonville Housing Authority

FL

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

The Jacksonville Housing Authority’s (JHA) Housing Choice Voucher (HCV) program is the largest rental assistance program in the City of Jacksonville. Through the Annual Contributions Development (HUD) and assist over 7,700 families each year. The ACC requires JHA to comply with federal regulations a...

The Jacksonville Housing Authority’s (JHA) Housing Choice Voucher (HCV) program is the largest rental assistance program in the City of Jacksonville. Through the Annual Contributions Development (HUD) and assist over 7,700 families each year. The ACC requires JHA to comply with federal regulations and HUD guidelines, as amended from time to time. Audit Findings Berman Hopkins Wright & LaHam, CPAs and Associates, LLP conducted the recent FY2024 JHA Audit (Period: October 1, 2023 – September 30, 2024) and identified continued material weakness findings within the JHA Housing Choice Voucher (HCV) program including but not limited to: Material Weaknesses in Internal Controls, Material Weaknesses in Non-Compliance and Material Weaknesses in the Housing Quality Standards (HQS) Inspection process. Berman Hopkins Wright & LaHam, CPAs and Associates, LLP previously conducted JHA’s FY2023 audit (Period: October 1, 2022 – September 30, 2023) and FY2022 audit (Period: October 1, 2021 – September 30, 2022) which disclosed consecutive historical material weaknesses in JHAs internal controls and noncompliance of the Housing Choice Voucher (HCV) program. Under new CEO leadership at JHA, a request to the JHA Board of Commissioners is in place for a vote on Friday, June 27, 2025, to authorize the following action of Nan McKay & Associates to Administer, Manage and Operate the JHA Housing Choice Voucher Program for an effective date of Monday July 7, 2025. Pending Resolution: AUTHORIZE THE AWARD OF THE MIAMI-DADE HOUSING & COMMUNITY DEVELOPMENT PIGGYBACK CONTRACT IN THE NOT-TO-EXCEED AMOUNT OF 72% OF THE ADMINISTRATIVE FEES CONCURRENT WITH THE EXISTING CONTRACT TERMS TO NAM MCKAY AND ASSOCIATES, FOR HOUSING CHOICE VOUCHER MANAGEMENT AND OPERATIONS. As evidenced by the increase in overall HCV audit findings, loss of federal revenues, inability to correctly serve existing and future HCV program participants, noncompliance on both a local and federal level for section 8 program funding for the administration and operations of the HCV program, immediate action is requested to authorize Nan McKay & Associates to administer and operate JHA’s HCV program. Combined with a plethora of likely compliance issues and deteriorated financial condition, these concerns pose a significant threat to both the immediate and long-term success of Jacksonville’s HCV program.

View Audit 361093

Finding 569824 (2024-002)

Material Weakness 2024

Jacksonville Housing Authority

FL

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

Berman Hopkins Wright & LaHam, CPAs and Associates, LLP recently identified in the FY2024 JHA Audit (Period: October 1, 2023 – September 30, 2024) material weakness findings and noncompliance findings for the JHA Public Housing Program. Please note that the JHA’s Public Housing Program was not teste...

Berman Hopkins Wright & LaHam, CPAs and Associates, LLP recently identified in the FY2024 JHA Audit (Period: October 1, 2023 – September 30, 2024) material weakness findings and noncompliance findings for the JHA Public Housing Program. Please note that the JHA’s Public Housing Program was not tested by the auditors in previous years. Note: JHA will have a finding in FY2025 due to existing months of the public housing program operations that have already commenced for the periods: October 1, 2024 – June 27, 2025. The audit period will end for FY2025 September 30, 2025. JHA will quickly evaluate each PH employee, train, hire skilled employees and streamline organizational inefficiencies, while implementing new internal process controls to address the findings identified in the FY2024 audit report for the Public Housing program. An evaluation of the current employee role structure and staff qualifications will commence July 2025. The entire public housing department will be assessed to ensure that JHA is efficient, productive, utilizes the technology system of record Yardi V7 to adhere to compliance, and works in a collaborative matter to better serve all existing a potential future client of the agency. The Public Housing organizational re-org will be implemented no later than September 1, 2025. Responsible: Jacksonville Housing Authority JHA POC: William Mitchell (a.k.a.Daniel/Danny), Deputy Chief EMAIL: dmitchell@jaxha.org JHA POC: Roslyn Phillips, Interim COO EMAIL: RPHILLIPS@JAXHA.ORG

View Audit 361093

Finding 569819 (2024-003)

Material Weakness 2024

Navajo Housing Authority

AZ

Eligibility Material Weakness Internal Control / Segregation of Duties

Management Response: We will regularly review the recertification process to determine areas of weakness. We have created a standard re-certification plan, check list, and a monitor log and will routinely review the Authority’s Policy to ensure proper required eligibility documentations are provided...

Management Response: We will regularly review the recertification process to determine areas of weakness. We have created a standard re-certification plan, check list, and a monitor log and will routinely review the Authority’s Policy to ensure proper required eligibility documentations are provided and placed in the client file. We will review clients’ files monthly with the results of these reviews being forwarded to the Housing Management Division Director and, if deficiencies are found, they will be corrected immediately. Deficiencies will also be tracked to determine if additional staff training is needed. The Housing Directors are charged with the responsibility of ensuring proper documentation of Public Rental and Homeownership folders at the time of move in, during the Annual Inspection and Annual/Interim Recertification process. Anticipated Completion Date: September 30, 2025 Responsible Party:  Housing Management Division - Division Director  Housing Management Office - Housing Directors  Housing Management Office - Housing Specialists  Housing Management Office - Housing Technicians  Housing Management Office - Administrative Assistants/Specialists

View Audit 361089

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