Corrective Action Plans

Finding 509724 (2024-004)

Material Weakness 2024

FL

Questioned Costs HUD Housing Programs Reporting

SECTION II AND SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AND FINANCIAL STATEMENTS AUDITS (CONTINUED) FINDING No. 2024-004: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155 Recommendation: The Projec...

SECTION II AND SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AND FINANCIAL STATEMENTS AUDITS (CONTINUED) FINDING No. 2024-004: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155 Recommendation: The Project should implement procedures to monitor the expiration of HUD required documents to ensure timely preparation and approval. Action Taken: Management is in the process of obtaining a new management agent certification. If the Oversight Agency for Audit has questions regarding the plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips Irene Phillips CFO

View Audit 329376 Questioned Costs: $1

Finding 509723 (2024-003)

Material Weakness 2024

Jacksonville Towers, INC

FL

Questioned Costs HUD Housing Programs Reporting

SECTION II AND SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AND FINANCIAL STATEMENTS AUDITS FINDING No. 2024-003: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155 Recommendation: The Project should co...

SECTION II AND SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AND FINANCIAL STATEMENTS AUDITS FINDING No. 2024-003: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155 Recommendation: The Project should comply with HUD regulations for executing the required rent change as of its effective date when approved. Action Taken: New manager has been trained to implement gross rent changes immediately and new procedures have been implemented to ensure timely changes.

View Audit 329376 Questioned Costs: $1

Finding 509722 (2024-002)

None 2024

Jacksonville Towers, INC

FL

HUD Housing Programs Reporting

FINDING No. 2024-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155 Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Action T...

FINDING No. 2024-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155 Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Action Taken: Escrows were underfunded due primarily to a high increase in insurance rates. The Project will fund the shortfall. Escrow balances will be reviewed on a regular basis to ensure adequate funding.

View Audit 329376

Finding 509721 (2024-001)

None 2024

Jacksonville Towers, INC

FL

HUD Housing Programs Eligibility Reporting

Oversight Agency for Audit, Jacksonville Towers, Inc., respectfully submits the following corrective action plan for the year ended March 31, 2024. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audi...

Oversight Agency for Audit, Jacksonville Towers, Inc., respectfully submits the following corrective action plan for the year ended March 31, 2024. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audit period: April 1, 2023 through March 31, 2024 The findings from the March 31, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2024-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155 Recommendation: The Project should implement procedures to ensure that tenant eligibility is verified, tenant files are properly maintained, and tenant signatures are obtained in a timely manner. Action Taken: Staff training has been provided with additional HUD training inclusive of EIV reporting and included in monthly report procedures.

View Audit 329376

Finding 509666 (2024-001)

None 2024

Community Link, Programs of Travelers Aid Society of Central Carolinas

NC

Matching / Level of Effort / Earmarking HUD Housing Programs

Continuum of Care – Assistance Listing No. 14.267 Recommendation: The Organization has not met its matching requirement for the NC0045 grant or the NC0221 grant. The Organization has determined that these awards have become too costly to administer and is now in discussions with HUD regarding the o...

Continuum of Care – Assistance Listing No. 14.267 Recommendation: The Organization has not met its matching requirement for the NC0045 grant or the NC0221 grant. The Organization has determined that these awards have become too costly to administer and is now in discussions with HUD regarding the objective of transferring these award programs to another entity. We recommend that the Organization continue these discussions with HUD in order to end its responsibilities for award programs that it has determined it is unable to comply with. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will continue working with HUD to transfer these award programs to another entity that has more capacity of complying with all requirements. As of July 2024, grant NC0045 was transferred to Brick Capital. The Organization is continuing to work with HUD to transfer the NC0221 grant. Name(s) of the contact person(s) responsible for corrective action: Tameka Gunn, President and Chief Executive Officer Planned completion date for corrective action plan: March 2025

View Audit 329305

Finding 509646 (2024-001)

None 2024

Genesis II Apartments, Inc. 054-Ee081-Wah

SC

HUD Housing Programs Reporting

GENESIS II APARTMENTS, INC. Mullins, South Carolina CORRECTIVE ACTION PLAN November 6, 2024 U. S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 Genesis II Apartments,...

GENESIS II APARTMENTS, INC. Mullins, South Carolina CORRECTIVE ACTION PLAN November 6, 2024 U. S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 Genesis II Apartments, Inc., HUD Project No. 054-EE081-WAH, respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Robinson & Company, L.L.P. Post Office Box 19608 Greensboro, North Carolina 27419-9608 Audit period: Year ended June 30, 2024 The findings from the Schedule of Findings and Questioned Costs for the year ended June 30, 2024 are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2024-001: U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), Assistance Listing #14.157 Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due date. Action Taken: We agree with Finding 2024-001 described in the accompanying schedule of findings and questioned costs. The management company will ensure the annual financial statements are submitted once the audits are back on track with the scheduled due dates. If HUD has questions regarding this plan, please call (803) 808-3966. Sincerely yours, Reese Quick, President Southern Development Management Company, Inc.

View Audit 329247

Finding 509371 (2024-001)

Significant Deficiency 2024

Jubilee Senior Homes, Inc.

CA

Procurement, Suspension & Debarment Subrecipient Monitoring Eligibility

JUBILEE SENIOR HOMES, INC. 2220 OXFORD STREET BERKELEY, CALIFORNIA 94704 (510) 841-4410 CORRECTIVE ACTION PLAN October 30, 2024 Cognizant or Oversight Agency for Audit: Department of Housing and Urban Development Jubilee Senior Homes, Inc. respectfully submits the following corrective action pla...

JUBILEE SENIOR HOMES, INC. 2220 OXFORD STREET BERKELEY, CALIFORNIA 94704 (510) 841-4410 CORRECTIVE ACTION PLAN October 30, 2024 Cognizant or Oversight Agency for Audit: Department of Housing and Urban Development Jubilee Senior Homes, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Lindquist von Husen & Joyce LLP 301 Howard Street, Suite 850 San Francisco, CA 94105 Audit period: July 1, 2023, to June 30, 2024 The findings from the June 30, 2024, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS-FINANCIAL STATEMENT AUDIT None noted. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2024-001 Compliance over Eligibility Requirements to Perform Annual Recertification - Assistance Listing No. 14.157. Program - Section 202 Supportive Housing for Elderly Persons Significant Deficiency Recommendation: Jubilee Senior Homes should develop an operating plan in order to ensure that recertifications are performed timely each year, despite of staff shortages. Action Taken: Senior management now recognizes that additional resources must be utilized during periods of progressive discipline with a frontline employee, to ensure the timely completion of recertifications. A new Manager was hired for Jubilee Senior Homes through an internal transfer and this individual is in the process of catching up on all needed paperwork as a top priority. The John Stewart Compliance Department will perform a 100% file audit upon completion of the outstanding certifications. Additionally, the assigned Regional Manager is performing monthly spot checks on files and reviewing a recertification status report for monitoring of progress and ongoing compliance. The property management company has implemented a roving support team that will assist managers who are struggling to meet their deadlines, ensuring compliance and helping to maintain performance standards moving forward. The roving support team was established in 2024, partly due to our commitment to ensure HUD deadlines are met. The property management company has also implemented monthly monitoring at their corporate office by the Property Management Document Information Specialist and HUD Secure Coordinator. This individual is monitoring monthly submissions to TRACs by all properties, and flagging underperformance on annual recertifications in addition to other HUD key performance metrics. The report of data from TRACs is circulated to Regional Managers, Directors, and senior leadership every month. If the Department of Housing and Urban Development has questions regarding this plan, please call Zelda Ryan, Corporate Controller, at (510) 841-4410 x304#. Sincerely, Eric Knecht, CFO Resources for Community Development

View Audit 329158

Finding 509369 (2024-001)

Significant Deficiency 2024

3250 Sacramento Housing, Inc.

CA

Procurement, Suspension & Debarment Subrecipient Monitoring Eligibility

3250 SACRAMENTO HOUSING, INC. 2220 OXFORD STREET BERKELEY, CALIFORNIA 94704 (510) 841-4410 CORRECTIVE ACTION PLAN October 30, 2024 Cognizant or Oversight Agency for Audit: Department of Housing and Urban Development 3250 Sacramento Housing, Inc. respectfully submits the following corrective acti...

3250 SACRAMENTO HOUSING, INC. 2220 OXFORD STREET BERKELEY, CALIFORNIA 94704 (510) 841-4410 CORRECTIVE ACTION PLAN October 30, 2024 Cognizant or Oversight Agency for Audit: Department of Housing and Urban Development 3250 Sacramento Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Lindquist von Husen & Joyce LLP 301 Howard Street, Suite 850 San Francisco, CA 94105 Audit period: July 1, 2023, to June 30, 2024 The findings from the June 30, 2024, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS-FINANCIAL STATEMENT AUDIT None noted. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2024-001 Compliance over Eligibility Requirements to Perform Annual Recertification - Assistance Listing No. 14.157. Program - Section 202 Supportive Housing for Elderly Persons Significant Deficiency Recommendation: 3250 Sacramento should develop an operating plan in order to ensure that recertifications are performed timely each year, despite of staff shortages. Action Taken: Senior management now recognizes that additional resources must be utilized during periods of progressive discipline with a frontline employee, to ensure the timely completion of recertifications. A new Manager was hired for 3250 Sacramento through an internal transfer and this individual is in the process of catching up on all needed paperwork as a top priority. The John Stewart Compliance Department will perform a 100% file audit upon completion of the outstanding certifications. Additionally, the assigned Regional Manager is performing monthly spot checks on files and reviewing a recertification status report for monitoring of progress and ongoing compliance. The property management company has implemented a roving support team that will assist managers who are struggling to meet their deadlines, ensuring compliance and helping to maintain performance standards moving forward. The roving support team was established in 2024, partly due to our commitment to ensure HUD deadlines are met. The property management company has also implemented monthly monitoring at their corporate office by the Property Management Document Information Specialist and HUD Secure Coordinator. This individual is monitoring monthly submissions to TRACs by all properties, and flagging underperformance on annual recertifications in addition to other HUD key performance metrics. The report of data from TRACs is circulated to Regional Managers, Directors, and senior leadership every month. If the Department of Housing and Urban Development has questions regarding this plan, please call Zelda Ryan, Corporate Controller, at (510) 841-4410 x304#. Sincerely, Eric Knecht, CFO Resources for Community Development

View Audit 329156

Finding 509357 (2024-004)

Material Weakness 2024

Clinton Township Housing Commission

MI

Questioned Costs HUD Housing Programs Eligibility

Management’s Response- New Management has taken over responsibilities as of May 2024 and will review and implement stronger policies and procedures pertaining to tenant files

View Audit 329150 Questioned Costs: $1

Finding 508405 (2024-003)

Significant Deficiency 2024

Housing and Redevelopment Authority of Detroit Lakes

MN

HUD Housing Programs Eligibility Significant Deficiency

Contact Person Nichole Bristlin, Executive Director. Corrective Action Plan Management plans on adding a signed lease step to the quality control worksheet to ensure signed leases are included in all files. Planned Completion Date for CAP June 30, 2025

View Audit 329032

Finding 508380 (2024-003)

Significant Deficiency 2024

Housing Authority of the City of Independence

MO

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Independence Housing Authority (IHA) received an audit finding for failing to properly document the reinspection of a failed HQS inspection. During the previous year, IHA had 3 contractors inspecting for HCV and not using the internal software which led to multiple issues including missing documenta...

Independence Housing Authority (IHA) received an audit finding for failing to properly document the reinspection of a failed HQS inspection. During the previous year, IHA had 3 contractors inspecting for HCV and not using the internal software which led to multiple issues including missing documentation. IHA hired a full time, HQS/NSPIRE certified inspector in August 2023 to ensure HQS inspections are completed in a timely manner and within regulation. IHA has also purchased the BOB.AI software which monitors and schedules upcoming initial, reinspection’s, annual and special inspection requests. Inspection letters are generated in this program as well as results/finding items. Inspections spreadsheets have been created for tracking purposes by the HCV Director. The inspector reviews his weekly schedule with the HCV Director for accuracy.

View Audit 328993

Finding 508379 (2024-002)

Significant Deficiency 2024

Housing Authority of the City of Independence

MO

HUD Housing Programs Cash Management Internal Control / Segregation of Duties

Independence Housing Authority (IHA) also received an audit finding for failing to calculate the utility allowances correctly. This was caused by previous management instructing staff to provide an appliance credit to all tenants at move-in. All staff members have been retrained in the proper proced...

Independence Housing Authority (IHA) also received an audit finding for failing to calculate the utility allowances correctly. This was caused by previous management instructing staff to provide an appliance credit to all tenants at move-in. All staff members have been retrained in the proper procedures for calculations and allowances. All HCV program specialists have received rent calculations certifications and have been instructed to correct any prior errors immediately. The Compliance Officer is also doing random tenant file audits on a monthly basis. This should make finding

View Audit 328993

Finding 508378 (2024-001)

Significant Deficiency 2024

Housing Authority of the City of Independence

MO

HUD Housing Programs Subrecipient Monitoring

Independence Housing Authority (IHA) received an audit finding for failing to clear Interprogram Due To/Due From Activities from the financials at fiscal year-end. In order to remedy the situation, IHA has revised its internal monthly checklist to ensure that interfund transfers are cleared on a mon...

Independence Housing Authority (IHA) received an audit finding for failing to clear Interprogram Due To/Due From Activities from the financials at fiscal year-end. In order to remedy the situation, IHA has revised its internal monthly checklist to ensure that interfund transfers are cleared on a monthly basis to prevent the accumulation of interfund receivables and payables. IHA will also strengthen its cash management practices by reviewing and reconciling inter-program balances on a monthly basis. This process will include a detailed review to ensure that program-level cash components are accurate, and resources are being used exclusively for their intended purposes.

View Audit 328993

Finding 508373 (2024-001)

None 2024

Housing Authority of the City of Lumberton

NC

Questioned Costs HUD Housing Programs

The Authority continues to strengthen its procedures surrounding tenant rent calculations at initial and recertification reviews in the Low-Income Housing Program. A second review, conducted by a Public Housing Manager, will be required for all such calculations. All Public Housing staff will be req...

The Authority continues to strengthen its procedures surrounding tenant rent calculations at initial and recertification reviews in the Low-Income Housing Program. A second review, conducted by a Public Housing Manager, will be required for all such calculations. All Public Housing staff will be required to maintain a Rent Calculation Certification on a bi-annual basis. For the file in question, a correction was made with an effective date of May 1, 2024.

View Audit 328981 Questioned Costs: $1

Finding 508343 (2024-001)

Significant Deficiency 2024

Aransas Pass Housing Authority

TX

Questioned Costs HUD Housing Programs Significant Deficiency

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. C...

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. Christina Beard, Executive Director, will be responsible to implement this corrective action by March 31, 2025.

View Audit 328914 Questioned Costs: $1

Finding 508330 (2024-004)

Significant Deficiency 2024

Northeast (webutuck) Central School District

NY

Allowable Costs / Cost Principles HUD Housing Programs

Condition: The District did not comply with the required standards of Support of Salaries and Wages, because employees who time was charged to federal grants during fiscal year PAR, were completed for May and June before the time had occurred. Criteria: The distribution of the salaries and wages o...

Condition: The District did not comply with the required standards of Support of Salaries and Wages, because employees who time was charged to federal grants during fiscal year PAR, were completed for May and June before the time had occurred. Criteria: The distribution of the salaries and wages of employees are to be supported by either time certification or personnel activity reports or equivalent documentation which meets the standards in Subsection 8.h (5) of the OMB Circular A-87 Part 225 Appendix B. The certification for employees who work on one cost objective must be prepared at least semi-annually. Personnel activity reports (PAR) for employees who work on multiple activities or cost objectives must be prepared at least monthly and meet certain prescribed standards, such as accounting for the employee’s total compensation, and reflecting an after-the-fact distribution of the actual activity of each employee. The costs of such compensation are allowable to the extent that they satisfy that specific requirement of this and other appendices under 2 CFR Part 225, and that the total compensation for the individual employees: (3) is determined and supported as provided in Subsection h. (8. Compensation for Personal Services. A. (3)). Questioned Costs: There are no questioned costs. Effect: It is more likely that the extent of effort charged to the various cost objectives may not be representative of the related time devoted to the respective cost objectives. Cause: District did not have a system in place to ensure the District complied with the required standards of Support of Salaries and Wages for an employee who needed to complete monthly or semi-annual certifications and that the time allocation on the grant is reported accurately. Corrective Action: A comprehensive tracking plan has been implemented to ensure the costs objectives associated with each employee for each period is tracked and PAR is returned for the corresponding period. Corrective Action Implemented by: The Corrective Action will be implemented by Robert Farrier, School Business Administrator in conjunction with Treasurer Kelly Kilmer. Corrective Action Implementation Date: This corrective action plan has already been implemented on 9/15/24.

View Audit 328890

Finding 507891 (2024-001)

Significant Deficiency 2024

Winnebago County Housing Authority

IL

HUD Housing Programs Eligibility Reporting

Finding 2024-001 - Moving To Work Demonstration Tenant Files - Eligibility - Internal Control over Tenant Files- Noncompliance and Significant Deficiency Moving To Work Demonstration – subsidy ALN14.881 Corrective Action Plan: Effective November 1, 2024, the Authority will implement a Compliance...

Finding 2024-001 - Moving To Work Demonstration Tenant Files - Eligibility - Internal Control over Tenant Files- Noncompliance and Significant Deficiency Moving To Work Demonstration – subsidy ALN14.881 Corrective Action Plan: Effective November 1, 2024, the Authority will implement a Compliance Coordinator position for the review of tenant files on a regular basis. The Compliance Coordinator will be under the immediate direction of the Finance Director, so as to be independent of the public housing and voucher programs. Person Responsible: Alan Zais, Executive Director Anticipated completion Date: March 31, 2025

View Audit 328424

Finding 505504 (2024-001)

None 2024

Kenwood Place I, Inc.

IN

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Findings - Financial Statement Audit: None Findings - Federal Award Programs Audit: U.S. Department of Housing and Urban Development Finding 2024-001: Section 223(f) Loan Program, CFDA 14.155 Recommendation: Make the required delinquent deposit to the replacement reserve account and ensure that al...

Findings - Financial Statement Audit: None Findings - Federal Award Programs Audit: U.S. Department of Housing and Urban Development Finding 2024-001: Section 223(f) Loan Program, CFDA 14.155 Recommendation: Make the required delinquent deposit to the replacement reserve account and ensure that all future deposits are made as required by the Regulatory Agreement. Action Taken: Management will fund delinquent deposit amount as soon as possible.

View Audit 328185

Finding 505363 (2024-001)

Significant Deficiency 2024

Housing Authority of the City of Muncie

IN

HUD Housing Programs

The Housing Choice Voucher Program Manager, Shannel R. Lampkins, will pull a bi-monthly list of failed inspections to ensure that there is a procedural follow up to both participants and landlords and that the authority will follow its own policy and HUD Regulation to enforce Housing Quality Standar...

The Housing Choice Voucher Program Manager, Shannel R. Lampkins, will pull a bi-monthly list of failed inspections to ensure that there is a procedural follow up to both participants and landlords and that the authority will follow its own policy and HUD Regulation to enforce Housing Quality Standard under program rules and regulations.

View Audit 328016

Finding 505330 (2024-002)

Material Weakness 2024

City of Concord

NC

Questioned Costs HUD Housing Programs Material Weakness

Management has created a new Inspection Coordinator position that is responsible for the HCV inspection process. This position will report monthly on the status of scheduled inspections. The Housing Manager will be responsible to ensure that HAP payments are abated for units that do not meet inspect...

Management has created a new Inspection Coordinator position that is responsible for the HCV inspection process. This position will report monthly on the status of scheduled inspections. The Housing Manager will be responsible to ensure that HAP payments are abated for units that do not meet inspection requirements.

View Audit 327974 Questioned Costs: $1

Finding 505329 (2024-004)

Significant Deficiency 2024

City of Concord

NC

HUD Housing Programs Special Tests & Provisions Significant Deficiency

The agreement will be revised and updated in accordance with regulations. A budget will be adopted by the duly elected resident council for the use of the resident participation funds.

View Audit 327974

Finding 505327 (2024-001)

Significant Deficiency 2024

City of Concord

NC

Special Tests & Provisions Cash Management HUD Housing Programs

City Staff incorrectly thought that all projects noted in the Action Plan submitted to HUD were covered under the Release of Funds (ROF). As the environmental review had not been fully completed at the time the project was submitted in the Action Plan, a separate ROF was needed. The necessary steps ...

City Staff incorrectly thought that all projects noted in the Action Plan submitted to HUD were covered under the Release of Funds (ROF). As the environmental review had not been fully completed at the time the project was submitted in the Action Plan, a separate ROF was needed. The necessary steps have been taken to correct the documentation and to prevent future occurrences.

View Audit 327974

Finding 505324 (2024-002)

Significant Deficiency 2024

Village of North Syracuse Housing Authority

NY

HUD Housing Programs Significant Deficiency Special Tests & Provisions

When the current director, Robert Weismore was appointed his first obligation was to inspect 51 units that had been neglected by former staff. As documentation in the files all previous inspections have been completed. The current staff, Sarah Schaefer, has become a certified inspector after complet...

When the current director, Robert Weismore was appointed his first obligation was to inspect 51 units that had been neglected by former staff. As documentation in the files all previous inspections have been completed. The current staff, Sarah Schaefer, has become a certified inspector after completing the necessary course and passing the exam. All inspections whether annual or bi-annually are all completed within the time frame directed by HUD. The director currently will complete the supervisory inspections based on the percentage of program participation directed by HUD regulations.

View Audit 327969

Finding 505304 (2024-001)

Material Weakness 2024

Residence Connection, Inc.

OH

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations. 1. Finding 2024-001 U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) – CFDA 14.181; Grant period – Year ended June 30, 2024 a. Comments on the Findi...

A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations. 1. Finding 2024-001 U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) – CFDA 14.181; Grant period – Year ended June 30, 2024 a. Comments on the Finding and Each Recommendation. Statement of Condition: The Project did not request tenant assistance payments for the month of April. Criteria: The Regulatory Agreement requires the Project to ensure controls exist to request the appropriate funds for each tenant on a monthly basis. Cause: The Project’s controls over monthly housing assistance payments were not working properly due to lack of management oversight due to turnover during the year. Effect of Condition: The Project is not in compliance with the HUD approved Regulatory Agreement. Recommendation: We recommend that the Project’s sponsor review the design and implementation of internal control procedures and identify areas to strengthen management oversight. b. Action(s) Taken or Planned on the Finding 1. The Project’s sponsor is aware of the requirements of the HUD Regulatory Agreement and is working with new staff to ensure they receive the proper training on HUD requirements. 2. In August 2024, the April 2024 HAP requests were submitted for payment.

View Audit 327914

Finding 505303 (2024-003)

Significant Deficiency 2024

Wood County Village, Inc.

OH

Questioned Costs HUD Housing Programs Significant Deficiency

2. Finding 2024-003 U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) – CFDA 14.181; Grant period – Year ended June 30, 2024 a. Comments on the Finding and Each Recommendation. Statement of Condition: The Project paid management fees of ...

2. Finding 2024-003 U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) – CFDA 14.181; Grant period – Year ended June 30, 2024 a. Comments on the Finding and Each Recommendation. Statement of Condition: The Project paid management fees of $104 in excess of the amount approved by HUD.Criteria: The HUD approved management agent certification (Form HUD - 9839-B) provides for payment of management fees equal to 9.13% of residential income collected. Cause: The Project’s sponsor inadvertently utilized incorrect residential income to calculate management fees. Effect of Condition: The Project is not in compliance with the HUD approved management agent certification and Section 811 Regulatory Agreement. Recommendation: We recommend that the Project’s sponsor verify, monthly, the residual income used to calculate management fees. b. Action(s) Taken or Planned on the Finding 1. The Project’s sponsor is aware of the requirements of the HUD Regulatory Agreement and is working with new staff to ensure they receive the proper training on HUD requirements.

View Audit 327913 Questioned Costs: $1

Corrective Action Plans

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