Corrective Action Plans

Finding 508235 (2023-001)

Significant Deficiency 2023

NY

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Finding 2023 001 - Reasonable Rental Rates Auditee's Response and Planned Corrective Action Hudson River Housing's action moving forward is that the Director of Resident Services, Vinny Darrow, will ensure that each tenant file under this program contain a signed rent reasonableness determination w...

Finding 2023 001 - Reasonable Rental Rates Auditee's Response and Planned Corrective Action Hudson River Housing's action moving forward is that the Director of Resident Services, Vinny Darrow, will ensure that each tenant file under this program contain a signed rent reasonableness determination worksheet ensuring that the rent being charged does not exceed the annual HUD published Fair Market Rent for that unit. In the event that the rent does exceed FMR, the determination will document how the rent was arrived at and that it has been determined reasonable as per HUD guidelines in comparison to other rents in the area. Planned Implementation Date of Corrective Action: November 6, 2024 Person Responsible for Corrective Action: Christa Hines, CEO

View Audit 328706

Finding 507907 (2023-001)

Significant Deficiency 2023

Centennial Board of Cooperative Educational Services

CO

Procurement, Suspension & Debarment HUD Housing Programs

7. Management Response: Centennial BOCES will review the expected activities to ensure that they are appropriately listed on the budget submitted to CDE for approval and properly coded throughout the year.

View Audit 328448

Finding 505456 (2023-002)

Significant Deficiency 2023

Eau Claire County Housing Authority

WI

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

2023-003 Tenant File Errors Corrective Action Plan (CAP): Recommendation: We recommend, the Authority develop a process to verify that rent calculations are correctly performed and all required income verifications are maintained in tenant files. Explanation of disagreement with audit finding: There...

2023-003 Tenant File Errors Corrective Action Plan (CAP): Recommendation: We recommend, the Authority develop a process to verify that rent calculations are correctly performed and all required income verifications are maintained in tenant files. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Authority will train the individuals doing the calculations to ensure calculations are correctly performed and all required income verifications are maintained in tenant files. Name of the contact person responsible for corrective action: Georgia Crownhart Planned completion date for corrective action plan: December 31, 2024

View Audit 328153

Finding 505454 (2023-001)

Significant Deficiency 2023

Eau Claire County Housing Authority

WI

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

2023-001 Rent Reasonableness Calculations Corrective Action Plan (CAP): Recommendation: We recommend, the Authority develop a process to ensure that rent reasonableness calculations are completed and maintained in the files. Explanation of disagreement with audit finding: There is no disagreement wi...

2023-001 Rent Reasonableness Calculations Corrective Action Plan (CAP): Recommendation: We recommend, the Authority develop a process to ensure that rent reasonableness calculations are completed and maintained in the files. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Authority will train individuals doing the calculations to ensure calculations are done and maintained in the files and implement processes to verify rent reasonableness calculations are done. Name of the contact person responsible for corrective action: Georgia Crownhart Planned completion date for corrective action plan: December 31, 2024

View Audit 328153

Finding 505125 (2023-009)

Material Weakness 2023

City of Long Beach

CA

Questioned Costs HUD Housing Programs Eligibility § 200.303

Program: Section 8 Housing Choice Vouchers Finding: 2023-009 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: To address delays in reexamination processes, in fiscal yea...

Program: Section 8 Housing Choice Vouchers Finding: 2023-009 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: To address delays in reexamination processes, in fiscal year 2024, HACLB has contracted with an agency to assist in processing overdue reexaminations, and HACLB has submitted recruiting requisitions to its Human Resources department to hire additional housing specialists to improve upon its management of the high volume of HCV program participants, documentation and processes, and to meet various requirement deadlines. Regarding the testing of HUD-50058 forms, the HUD-50058 form is generated after information is inputted into HUD’s system. Error warnings are produced from the system if information is missing. Accuracy is based on the information inputted. HACLB will provide additional training to staff inputting the information, and reviews will continue to be done by the supervisor. To further improve upon the process, HACLB implemented new housing software in August 2024, which enhances reporting and tracking of payments, of HUD-50058 forms and of contract amendments. Housing Assistance Coordinators will use these reports to identify and address discrepancies. Regarding the City’s control with the HAP register’s required signatures, HACLB’s internal procedures do not require all six Housing Coordinators to approve the check run/HAP register, as KPMG assumed. There are only three assigned Housing Assistance Coordinators that have designated staff who are allowed to make adjustments and review the check-run adjustment register to confirm the work of their respective teams. If one of the approvers is absent, another approver may review and approve the adjustments that can be completed via email. No further change or action is necessary for this process. Furthermore, supervisors will continue to review completed files and train staff on errors identified in the review process. Expected Completion Date: 9/30/2024

View Audit 327788 Questioned Costs: $1

Finding 505123 (2023-008)

Material Weakness 2023

City of Long Beach

CA

HUD Housing Programs Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles § 200.303

Program: Section 8 Housing Choice Vouchers Finding: 2023-008 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: To ensure that required repairs are completed within the 30-...

Program: Section 8 Housing Choice Vouchers Finding: 2023-008 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: To ensure that required repairs are completed within the 30-day time period, in fiscal year 2024, HACLB has implemented a process to ensure reinspection dates occur before the expiration of the 30-day remediation period. By January 31, 2025, HACLB will also establish clear criteria and standards for the Inspections Housing Assistance Coordinator who is responsible for timely abatement entries, ensuring compliance with operational and regulatory requirements. The Inspections Housing Assistance Coordinator will receive additional training on abatement procedures to enhance their skills and understanding by May 2025, or earlier, depending upon the availability of training opportunities. Furthermore, by January 1, 2025, the Housing Assistance Coordinator will conduct weekly reviews of deficiencies that exceed the 30-day remediation period to ensure timely action for abatement or proration. Regarding the City’s control with the HAP register’s required signatures, HACLB’s internal procedures do not require all six Housing Coordinators to approve the check run/HAP register, as KPMG assumed. There are only three assigned Housing Assistance Coordinators that have designated staff who are allowed to make adjustments and review the check-run adjustment register to confirm the work of their respective teams. If one of the approvers is absent, another approver may review and approve the adjustments that can be completed via email. No further change or action is necessary for this process. Expected Completion Date: 1/1/2025

View Audit 327788

Finding 505121 (2023-007)

None 2023

City of Long Beach

CA

HUD Housing Programs Special Tests & Provisions

Program: Section 8 Housing Choice Vouchers Finding: 2023-007 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: The gap in completing the required number of quality control...

Program: Section 8 Housing Choice Vouchers Finding: 2023-007 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: The gap in completing the required number of quality control inspections was primarily due to lack of resources and training. In addressing the requirement for 5% of initial inspections having a quality control inspection completed, HACLB will establish clear criteria and standards for the Inspections Housing Assistance Coordinator, who is responsible for quality control inspections to ensure compliance with operational and regulatory requirements. Furthermore, the Inspections Housing Assistance Coordinator will receive additional training on quality control procedures to enhance their skills and understanding of the review process. Clear criteria and standards for the Inspections Housing Assistance Coordinator, who is responsible for quality control inspections to ensure compliance with operational and regulatory requirements will be established by January 31, 2025 The Inspections Housing Assistance Coordinator will receive additional training on quality control procedures to enhance their skills and understanding of the review process by May 2025, or earlier depending on the availability of training opportunities. Expected Completion Date: 6/30/2025

View Audit 327788

Finding 505119 (2023-006)

Material Weakness 2023

City of Long Beach

CA

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs § 200.303

Program: Section 8 Housing Choice Vouchers Finding: 2023-006 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: The Housing Authority and the City of Long Beach already has...

Program: Section 8 Housing Choice Vouchers Finding: 2023-006 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: The Housing Authority and the City of Long Beach already has a multi-step review and approval process in place for the processing and posting of journal entries and their support documentation. Moreover, for upcoming fiscal years 2024 and after, the City has changed its indirect costs allocation methodology, in that the City will be directly charging HACLB’s funds its share of overhead costs thereby eliminating the Health and Human Services Department indirect cost allocation plan and related indirect cost charges. However, HACLB will still review the accuracy of the charged overhead costs. Effective fiscal year 2024, September, 30, 2024, HACLB will review the affected general ledger accounts at fiscal year-end, with the new allocation methodology and will verify the charged overhead costs. Expected Completion Date: 9/30/2024

View Audit 327788 Questioned Costs: $1

Finding 505117 (2023-005)

Material Weakness 2023

City of Long Beach

CA

HUD Housing Programs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking § 200.303

Program: Section 8 Housing Choice Vouchers Finding: 2023-005 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: To address delays in recertification processes, in fiscal ye...

Program: Section 8 Housing Choice Vouchers Finding: 2023-005 Contact Person: Jennifer Saatjian Accounting Services Officer Health & Human Services Department Phone: (562) 570-4022 Email: Jennifer.Saatjian@longbeach.gov Planned Actions: To address delays in recertification processes, in fiscal year 2024, HACLB has contracted with an agency to assist in processing the overdue recertifications, and HACLB has submitted recruiting requisitions to its Human Resources department to hire additional housing specialists to improve upon its management of the high volume of HCV program participants, documentation and processes, and comply with various deadlines. Regarding the Intake forms, HUD does not require an Intake/Eligibility sheet be completed. However, HACLB has typically included an Intake/Eligibility sheet to help ensure quality control. Recently, this was not consistently done, due to staffing shortages. To maintain this internal control in the process, staff will be reminded to ensure that an approved Intake/Eligibility sheet is included in the participant’s file. Effective November 29, 2024, a reminder will be sent to staff to ensure that an approved Intake/Eligibility sheet is included in the participant’s file. Expected Completion Date: 12/31/2024

View Audit 327788

Finding 505112 (2023-004)

Material Weakness 2023

City of Long Beach

CA

Matching / Level of Effort / Earmarking Subrecipient Monitoring HUD Housing Programs § 200.303

Program: HOME Investment Partnerships Program (HOME) Finding: 2023-004 Contact Person: April Apodaca Administrative & Financial Services Bureau Manager Community Development Department Phone: (562) 570-6611 Email: April.Apodaca@longbeach.gov Planned Actions: This issue is related to Finding 2023...

Program: HOME Investment Partnerships Program (HOME) Finding: 2023-004 Contact Person: April Apodaca Administrative & Financial Services Bureau Manager Community Development Department Phone: (562) 570-6611 Email: April.Apodaca@longbeach.gov Planned Actions: This issue is related to Finding 2023-003, and should be considered in the context of that response. Housing Quality Inspection times were impacted in 2023 due to staff shortages and the need to address a significant backlog that occurred as a result of the COVID-19 pandemic. Despite these challenges, the City remained committed to ensuring the health and safety of affordable housing by maintaining an overall inspection rate of 19.65% in Fiscal Year 2023. Furthermore, the Community Development Department is taking comprehensive measures to address the needed maintenance completion timeframe following the required inspection, and the goal is to ensure repairs are completed within thirty days. Expected Completion Date: 12/31/2024

View Audit 327788

Finding 505057 (2023-003)

Material Weakness 2023

Housing Authority of Brevard County

FL

HUD Housing Programs Material Weakness Special Tests & Provisions

2023-003 Special Tests and Provisions – Selection from the Waiting List Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2022-004 from March 31, 2022 ...

2023-003 Special Tests and Provisions – Selection from the Waiting List Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2022-004 from March 31, 2022 Condition: 14 out of 137 new admissions were selected for testing, but testing was suspended after testing 8 files due to the number of errors. Exceptions were noted as follows: • 1 tenant file had the following errors: o The tenant signed the request for tenancy approval form after the voucher expiration date. o The Authority did not follow their administrative plan when selecting applicants for admission. As a result, the tenant was not admitted properly into the Section 8 program. • 1 tenant file error where the tenant and landlord signed the request for tenancy approval form after the voucher expiration date. • 5 tenant file errors where the Authority did not follow their administrative plan when selecting applicants for admission. As a result, the tenants were not admitted properly into the Section 8 program. • 1 tenant file error where the tenant was selected from the tenant-based mainstream waiting list. A separate waiting list was maintained for tenant based mainstream vouchers in the same county or municipality covered by the regular Section 8 waiting list (the mainstream waiting list has currently been exhausted). The Authority's administrative plan does not allow a separate waiting list for the mainstream vouchers. In addition, the separate tenant based mainstream voucher waiting list was ranked randomly by the Authority's system through a lottery ranking technique. This is not in compliance with the Authority's administrative plan, which states that the waiting list should be organized by preference point and then by date and time of application (first come first serve basis). Recommendation: The Authority should correct the deficiencies and ensure staff is aware of acceptable procedures as outlined in the Authority’s Administrative plan. In addition, the Authority should review staffing levels, skill sets and case load. Furthermore, the Authority should utilize an ongoing quality control review process to ensure proper procedures are being followed. Action Taken: We concur with the recommendation. Due to the COVID-19 pandemic and related staff absences and turnover, we were unable to provide an ongoing quality control review process and provide ongoing staff training and timely management reviews. We are focused on implementing such procedures and will review staffing levels, skill sets, and case load for each employee.

View Audit 327740

Finding 505056 (2023-002)

Significant Deficiency 2023

Housing Authority of Brevard County

FL

HUD Housing Programs Eligibility Material Weakness

2023-002 Eligibility – Tenant Files Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Significant Deficiency in Internal Control and Other Matter to be Reported Under the Uniform Guidance This is a repeat finding of 2022-003, reported as a Materi...

2023-002 Eligibility – Tenant Files Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Significant Deficiency in Internal Control and Other Matter to be Reported Under the Uniform Guidance This is a repeat finding of 2022-003, reported as a Material Weakness from March 31, 2022 (initially occurred as Finding 2021-003, Significant Deficiency) Condition: Out of a total tenant population of approximately 1,775 tenants, 25 files were selected for testing. Exceptions were noted as follows: • 1 tenant file error for one missing 214 affidavit form for a member of the household. However, based on the birth certificate, the member of the household is a U.S. citizen. • 1 tenant file had the following errors: o General assistance income was included in income when it should have been excluded. Correcting this error would increase the HAP rent from $958 to $1,027. o One missing 214 affidavit form for a member of the household. However, based on the birth certificate, the member of the household is a U.S. citizen. • 1 tenant file had the following errors: o Two members of the household did not check the checkbox on the 214-affidavit form indicating their immigration status. However, based on the birth certificates, the two household members are U.S. citizens. o The tenant’s medical expense was misreported on the 50058. However, the error had no effect on the HAP rent. • 1 tenant file had the following errors and correcting the errors would decrease the HAP rent from $846 to $724: o Miscalculation of social security income reported on the 50058. o Miscalculation of medical expense reported on the 50058. o Miscalculation of the tenant’s annual unreimbursed childcare costs reported on the 50058. • 1 tenant file error where a member of the household over the age of 18 did not sign the 9886. • 1 tenant file had the following errors and correcting the errors would have no effect on the HAP rent: o Food assistance was included as income when it should have been excluded. o The tenant’s utility allowance was misreported on the 50058. • 1 tenant file error where the tenant’s utility allowance was misreported and correcting the error would decrease the HAP rent from $1,198 to $1,183. • 1 tenant fille error where the tenant did not sign the lease agreement. Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Action Taken: We concur with the recommendation. Due to the COVID-19 pandemic and related staff absences and turnover, we were unable to provide an ongoing quality control review processes and provide ongoing staff training and timely management reviews. We are focused on implementing such procedures and will review staffing levels, skill sets, and case load for each employee.

View Audit 327740

Finding 505054 (2023-004)

Material Weakness 2023

Housing Authority of Brevard County

FL

Special Tests & Provisions HUD Housing Programs Material Weakness

2023-004 Special Tests and Provisions – UEL Formula (Form 52722) and Formula Income Public and Indian Housing Program – CFDA 14.850 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2022-005 from March 31, 2022 Condition: Unable to test HUD Form 52722, 527...

2023-004 Special Tests and Provisions – UEL Formula (Form 52722) and Formula Income Public and Indian Housing Program – CFDA 14.850 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2022-005 from March 31, 2022 Condition: Unable to test HUD Form 52722, 52723, and the utility ledger for accuracy and completion. Recommendation: The Authority should retain the utility ledger for each fiscal year under audit. Action Taken: We concur with the recommendation. Due to the ongoing COVID-19 pandemic and related staff absences and turnover, we were not able to retain the utility ledger. We will retain the utility ledger for each fiscal year under audit.

View Audit 327740

Finding 505053 (2023-001)

Material Weakness 2023

Housing Authority of Brevard County

FL

HUD Housing Programs Material Weakness Reporting

2023-001 Reporting – Inaccurate and Late FDS Submission and Late OMB Data Collection Form Submission Public and Indian Housing Program – CFDA Number 14.850 Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Material Weakness in Internal Control an...

2023-001 Reporting – Inaccurate and Late FDS Submission and Late OMB Data Collection Form Submission Public and Indian Housing Program – CFDA Number 14.850 Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2022-002 from March 31, 2022 (initially occurred as Finding 2020-002 from March 31, 2020) Condition: The Authority’s original unaudited FDS filing reported the PIH FSS activity under CFDA #14.870 Resident Opportunity and Supportive Services when it should have been reported under CFDA #14.896 PIH Family Self-Sufficiency Program. In addition, the $761,718 of CFP subsidy was reported under CFDA #14.850 Public and Indian Housing when it should have been reported under CFDA #14.872 Public Housing Capital Fund. Furthermore, the unaudited FDS filings were not submitted within the timeframes specified by HUD. The Authority submitted the unaudited FDS filing on July 30, 2024 (the due date was May 30, 2023). The Authority was also required to submit the OMB Data Collection form to the Federal Audit Clearinghouse (“FAC”) by December 31, 2023 at completion of the single audit, but was not filed timely as the audit was completed on November 8, 2024. Recommendation: The Authority should make every effort to file its REAC submissions accurately and timely and submit the OMB Data Collection form timely. Action Taken: We concur with the recommendation. Due to the COVID-19 pandemic and related staff absences and turnover, we were not able to accurately close the books before the HUD specified unaudited FDS filing deadline and unable to timely file the OMB Data Collection Form. We are very focused on ensuring there is adequate staffing and sufficient processes in place in order to be able to close the books prior to submitting a materially accurate unaudited FDS submission for the following fiscal year as well as timely file the OMB Data Collection Form.

View Audit 327740

Finding 504880 (2023-005)

Significant Deficiency 2023

Rangeley Lakes Heritage Trust

ME

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency § 200.302

RLHT will add procedures to the current financial policies document that contain oversight over the receipt and use of federal award funds.

View Audit 327661

Finding 504816 (2023-001)

Significant Deficiency 2023

Housing Authority of the City of Yakima

WA

Questioned Costs HUD Housing Programs Subrecipient Monitoring

Inadequate procedures were the underlying cause. The Authority will establish a quarterly quality review procedure to randomly slect tenant files to ensure program participants are qualified and HUD program regulations are followed. Additionally, HCV Specialist training and further HCV Rent calculat...

Inadequate procedures were the underlying cause. The Authority will establish a quarterly quality review procedure to randomly slect tenant files to ensure program participants are qualified and HUD program regulations are followed. Additionally, HCV Specialist training and further HCV Rent calculation training will be offered to tenured employees when available.

View Audit 327509 Questioned Costs: $1

Finding 504786 (2023-001)

Material Weakness 2023

Town of East Hampton

NY

HUD Housing Programs Cash Management Reporting

Material Weakness ? Internal Control over Compliance & Compliance Testing The Organization will reach out to HUD again to seek assistance to resolve the REAC system technical issues in order to move forward.

View Audit 327426

Finding 504392 (2023-003)

Significant Deficiency 2023

Township of Bloomfield

NJ

Questioned Costs HUD Housing Programs Eligibility

none

View Audit 326953 Questioned Costs: $1

Finding 504257 (2023-001)

Material Weakness 2023

Deerbrook, Inc.

MO

Allowable Costs / Cost Principles Special Tests & Provisions Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2023 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to pr...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2023 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended June 30, 2023. Finding 2023-001 Responsible Party Name: Myra Cerna Position: Project Accountant Telephone Number: (816) 608-1799 x 259 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for Persons with Disabilities (Sec 811) Compliance Requirements A/B - Activities Allowed or Unallowed and Allowable Costs/Cost Principles, C – Cash Management, E – Eligibility, and N – Special Tests and Provisions Finding Type Financial Statement and Federal Awards Auditee’s Comment on Finding We agree with the auditor’s finding. Corrective Action Management reported that the failure(s) involved records related to the period managed by the predecessor management company. We will request and keep all required documentation from HUD and establish processes and procedures to ensure compliance with the Regulatory Agreement or Capital Advance Use Agreement. Anticipated Completion Date June 30, 2024

View Audit 326753

Finding 504217 (2023-003)

None 2023

Koinonia, Inc. 053-11202

NC

HUD Housing Programs Procurement, Suspension & Debarment

Koinonia, Inc. Lenoir, North Carolina CORRECTIVE ACTION PLAN August 27, 2024 U.S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 ...

Koinonia, Inc. Lenoir, North Carolina CORRECTIVE ACTION PLAN August 27, 2024 U.S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 Koinonia, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2023. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended December 31, 2023 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDING - Financial Statement Audit and Federal Award Program Audit Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects (Section 223(f)/207) Recommendation: We recommend that the Project funds are only used for expenses of the Project. Additionally, we recommend the related entity reimburse the operating cash of the Project $15,985 for the payroll fees paid. Action Taken: Management acknowledges the Project funds were used for expenses of another entity. Management will ensure the related entity reimburses the operating cash of the Project $15,985 for the payroll fees paid and ensure that the Project funds are only used for expenses of the Project. Finding 2023-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Action Taken: We agree with Finding 2023-002 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will review the accounting ial procedures, system of internal controls and policies. FINDING - Federal Award Program Audit Finding 2023-003: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Recommendation: We recommend that management review its policies and procedures in place to ensure that the residual receipts deposit is made per regulatory guidelines. Action Taken: We agree with Finding 2023-003 described in the accompanying schedule of findings and questioned costs. Management will deposit $4,285 into the Project's residual receipts account. Management will review its policies and procedures in place to ensure that the residual receipts deposit is made per regulatory guidelines. If HUD has questions regarding this corrective action plan, please call 828-758-2617. Sincerely yours, Chassidy Triplett Project Administrator Koinonia, Inc.

View Audit 326713

Finding 504216 (2023-002)

Significant Deficiency 2023

Koinonia, Inc. 053-11202

NC

HUD Housing Programs Procurement, Suspension & Debarment Reporting § 200.302 § 200.303

Koinonia, Inc. Lenoir, North Carolina CORRECTIVE ACTION PLAN August 27, 2024 U.S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 ...

Koinonia, Inc. Lenoir, North Carolina CORRECTIVE ACTION PLAN August 27, 2024 U.S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 Koinonia, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2023. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended December 31, 2023 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDING - Financial Statement Audit and Federal Award Program Audit Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects (Section 223(f)/207) Recommendation: We recommend that the Project funds are only used for expenses of the Project. Additionally, we recommend the related entity reimburse the operating cash of the Project $15,985 for the payroll fees paid. Action Taken: Management acknowledges the Project funds were used for expenses of another entity. Management will ensure the related entity reimburses the operating cash of the Project $15,985 for the payroll fees paid and ensure that the Project funds are only used for expenses of the Project. Finding 2023-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Action Taken: We agree with Finding 2023-002 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will review the accounting ial procedures, system of internal controls and policies. FINDING - Federal Award Program Audit Finding 2023-003: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Recommendation: We recommend that management review its policies and procedures in place to ensure that the residual receipts deposit is made per regulatory guidelines. Action Taken: We agree with Finding 2023-003 described in the accompanying schedule of findings and questioned costs. Management will deposit $4,285 into the Project's residual receipts account. Management will review its policies and procedures in place to ensure that the residual receipts deposit is made per regulatory guidelines. If HUD has questions regarding this corrective action plan, please call 828-758-2617. Sincerely yours, Chassidy Triplett Project Administrator Koinonia, Inc.

View Audit 326713

Finding 504215 (2023-001)

Significant Deficiency 2023

Koinonia, Inc. 053-11202

NC

Questioned Costs HUD Housing Programs Procurement, Suspension & Debarment

Koinonia, Inc. Lenoir, North Carolina CORRECTIVE ACTION PLAN August 27, 2024 U.S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 ...

Koinonia, Inc. Lenoir, North Carolina CORRECTIVE ACTION PLAN August 27, 2024 U.S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 Koinonia, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2023. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended December 31, 2023 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDING - Financial Statement Audit and Federal Award Program Audit Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects (Section 223(f)/207) Recommendation: We recommend that the Project funds are only used for expenses of the Project. Additionally, we recommend the related entity reimburse the operating cash of the Project $15,985 for the payroll fees paid. Action Taken: Management acknowledges the Project funds were used for expenses of another entity. Management will ensure the related entity reimburses the operating cash of the Project $15,985 for the payroll fees paid and ensure that the Project funds are only used for expenses of the Project. Finding 2023-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Recommendation: We recommend management review/enhance its accounting and internal control procedures to ensure that all key accounts are reconciled and reviewed with supporting evidence of such review. Action Taken: We agree with Finding 2023-002 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will review the accounting ial procedures, system of internal controls and policies. FINDING - Federal Award Program Audit Finding 2023-003: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Recommendation: We recommend that management review its policies and procedures in place to ensure that the residual receipts deposit is made per regulatory guidelines. Action Taken: We agree with Finding 2023-003 described in the accompanying schedule of findings and questioned costs. Management will deposit $4,285 into the Project's residual receipts account. Management will review its policies and procedures in place to ensure that the residual receipts deposit is made per regulatory guidelines. If HUD has questions regarding this corrective action plan, please call 828-758-2617. Sincerely yours, Chassidy Triplett Project Administrator Koinonia, Inc.

View Audit 326713 Questioned Costs: $1

Finding 504205 (2023-001)

Material Weakness 2023

Northwest Youth Services

WA

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

Corrective Action Plan: • Housing service leadership staff will ensure that each unit lease served through NWYS will have on file documentation of reasonable rental rates and residential use at the time of lease signing or renewal, to ensure compliance with all grant requirements. Responsible Divi...

Corrective Action Plan: • Housing service leadership staff will ensure that each unit lease served through NWYS will have on file documentation of reasonable rental rates and residential use at the time of lease signing or renewal, to ensure compliance with all grant requirements. Responsible Division/Office and Individual: • NWYS Housing leadership staff – Luis Reyna, Andy Johnson, Rebecca Pendergraft, Addison Ausley • Finance leadership staff – Stephanie Wagner, Dianne Ersser Estimated Completion Date: 9/30/2024

View Audit 326689 Questioned Costs: $1

Finding 504023 (2023-001)

None 2023

Mt. Zion Housing Authority of Hammond, INC 073 11344 Dba Pleasant View

IN

Questioned Costs HUD Housing Programs Cash Management

Corrective Action Plan Prepared by: Name: Kathleen Taylor Position: Accounting Manager Telephone Number: (317) 921-1950 Finding No. 2023-01 A. Comments on the Finding and Each Recommendation: We agree with the finding that the required residual receipts deposit was not made timely. B. Action Taken o...

Corrective Action Plan Prepared by: Name: Kathleen Taylor Position: Accounting Manager Telephone Number: (317) 921-1950 Finding No. 2023-01 A. Comments on the Finding and Each Recommendation: We agree with the finding that the required residual receipts deposit was not made timely. B. Action Taken or Planned on the Finding: Management made the required residual receipt deposit on February 20, 2024.

View Audit 326405 Questioned Costs: $1

Finding 504012 (2023-001)

Material Weakness 2023

Penn Manor Apartments (div. of Southeast Kansas Lutherans, Inc.)

KS

Cash Management HUD Housing Programs Reporting

The action taken was to immediately cease the payments, and wait until there are residual funds available to repay the loan or HUD approval is granted.

View Audit 326375

Corrective Action Plans

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