Corrective Action Plans

Finding 512470 (2023-005)

Material Weakness 2023

OK

Procurement, Suspension & Debarment HUD Housing Programs Material Weakness § 200.508 § 200.510

The Board of Directors hired Gorman Management Company (GMC) on March 1, 2024, to operate the property, Ardmore Village. GMC has extensive experience in the on-site and financial management of properties like Ardmore Village. Specifically, GMC has procedures in place to maintain compliance with the ...

The Board of Directors hired Gorman Management Company (GMC) on March 1, 2024, to operate the property, Ardmore Village. GMC has extensive experience in the on-site and financial management of properties like Ardmore Village. Specifically, GMC has procedures in place to maintain compliance with the regulations applicable to the Section 8/202 program and the FHA Section 223f program. GMC is well versed with CFR §200.512 (single audit data collection form), HUD Handbooks 4350.3, 4370.2 and 4381.5. GMC manages over 40 properties that have similar reporting and auditing requirements. All of the issues related to these findings will cure through GM C's policies and procedures.

View Audit 330246

Finding 512469 (2023-004)

Material Weakness 2023

Ardmore Village Housing Corporation

OK

HUD Housing Programs Procurement, Suspension & Debarment Material Weakness § 200.512

The Board of Directors hired Gorman Management Company (GMC) on March 1, 2024, to operate the property, Ardmore Village. GMC has extensive experience in the on-site and financial management of properties like Ardmore Village. Specifically, GMC has procedures in place to maintain compliance with the ...

The Board of Directors hired Gorman Management Company (GMC) on March 1, 2024, to operate the property, Ardmore Village. GMC has extensive experience in the on-site and financial management of properties like Ardmore Village. Specifically, GMC has procedures in place to maintain compliance with the regulations applicable to the Section 8/202 program and the FHA Section 223f program. GMC is well versed with CFR §200.512 (single audit data collection form), HUD Handbooks 4350.3, 4370.2 and 4381.5. GMC manages over 40 properties that have similar reporting and auditing requirements. All of the issues related to these findings will cure through GM C's policies and procedures.

View Audit 330246

Finding 512468 (2023-003)

Material Weakness 2023

Ardmore Village Housing Corporation

OK

HUD Housing Programs Procurement, Suspension & Debarment Material Weakness § 200.514

The Board of Directors hired Gorman Management Company (GMC) on March 1, 2024, to operate the property, Ardmore Village. GMC has extensive experience in the on-site and financial management of properties like Ardmore Village. Specifically, GMC has procedures in place to maintain compliance with the ...

The Board of Directors hired Gorman Management Company (GMC) on March 1, 2024, to operate the property, Ardmore Village. GMC has extensive experience in the on-site and financial management of properties like Ardmore Village. Specifically, GMC has procedures in place to maintain compliance with the regulations applicable to the Section 8/202 program and the FHA Section 223f program. GMC is well versed with CFR §200.512 (single audit data collection form), HUD Handbooks 4350.3, 4370.2 and 4381.5. GMC manages over 40 properties that have similar reporting and auditing requirements. All of the issues related to these findings will cure through GM C's policies and procedures.

View Audit 330246

Finding 512385 (2023-004)

Material Weakness 2023

Benet Place South

MN

Questioned Costs HUD Housing Programs Material Weakness

HUD Capital Advance Recommendation: Management should implement a process to ensure the required monthly deposit into the Replacement Reserve is in accordance with form HUD-9250. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response...

HUD Capital Advance Recommendation: Management should implement a process to ensure the required monthly deposit into the Replacement Reserve is in accordance with form HUD-9250. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Project made a deposit to correct the deficiency in the replacement reserve as follows: $11,321 on 1/1/24; $40,740 on 1/16/24; $10,000 on 2/11/24. Management was aware of the requirements but due to the delays in getting the budget approved and fully executed contract renewals received from HUD not happening until 9/22/2023 and the HAP payment for gross rent changes not being received until 11/6/2023, the Project was not able to make the requirement replacement reserve deposits until, $11,321 on 1/1/24; $40,740 on 1/16/24; $10,000 on 2/11/24. Now that monthly HAP is received and cash is available to make the replacement reserve payments, no further issues are anticipated. Names of the contact persons responsible for corrective action: Chuck Armstrong Planned completion date for corrective action plan: December 31, 2024

View Audit 330118 Questioned Costs: $1

Finding 512302 (2023-001)

Significant Deficiency 2023

Murphy Senior Living, INC

MO

HUD Housing Programs Reporting Internal Control / Segregation of Duties

S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Concur S3800-130 Response Indicator: Agree S3800-140 Completion Date: May 11, 2023 S3800-150 Response: For the year ended December 31, 2022, the Project filed the REAC report with HUD on May 11, 2023. S3800-16...

S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Concur S3800-130 Response Indicator: Agree S3800-140 Completion Date: May 11, 2023 S3800-150 Response: For the year ended December 31, 2022, the Project filed the REAC report with HUD on May 11, 2023. S3800-160 Contact Person - First Name: Dawn S3800-180 Contact Person - Last Name: Kleinschrodt

View Audit 330074

Finding 512236 (2023-004)

Significant Deficiency 2023

City of Clarksville

TX

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs

City of Clarksville, TX accounting department and Mayor will develop a process in which the audit will be completed in a timely manner to submit it to the FAC by hiring an auditor earlier in the year and submitting it to the Clearing house within 30 days of the audit report or nine months after the ...

City of Clarksville, TX accounting department and Mayor will develop a process in which the audit will be completed in a timely manner to submit it to the FAC by hiring an auditor earlier in the year and submitting it to the Clearing house within 30 days of the audit report or nine months after the Organization’s year end

View Audit 330016

Finding 512112 (2023-001)

None 2023

Nbc-Usa, Housing, Inc., Thirteen

OH

HUD Housing Programs Reporting

NBC-USA, Housing, Inc., Thirteen DBA New Salem Manor HUD Project No. 043-11295 Corrective Action Plan Finding 2023-001 S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations The Corporation concurs and is working to obtain the UEI in order to complete and submit th...

NBC-USA, Housing, Inc., Thirteen DBA New Salem Manor HUD Project No. 043-11295 Corrective Action Plan Finding 2023-001 S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations The Corporation concurs and is working to obtain the UEI in order to complete and submit the 2022 data collection form. S3800-130 Response Indicator Agree S3800-140 Completion Date N/A S3800-150 Response N/A S3800-160 Contact Person First Name Jill S3800-180 Contact Person Last Name Kolb

View Audit 329853

Finding 512110 (2023-001)

None 2023

Nbc-Usa, Housing Association I, Inc.

OH

HUD Housing Programs Reporting

NBC-USA, Housing Association I, Inc. DBA Riddlehaven Apartments HUD Project No. 042-11267 Corrective Action Plan Finding 2023-001 S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations The Corporation concurs and is working to obtain the UEI in order to complete an...

NBC-USA, Housing Association I, Inc. DBA Riddlehaven Apartments HUD Project No. 042-11267 Corrective Action Plan Finding 2023-001 S3800-090 Auditor's Summary of the Auditee's Comments on the Findings and Recommendations The Corporation concurs and is working to obtain the UEI in order to complete and submit the 2022 data collection form. S3800-130 Response Indicator Agree S3800-140 Completion Date N/A S3800-150 Response N/A S3800-160 Contact Person First Name Jill S3800-180 Contact Person Last Name Kolb

View Audit 329846

Finding 509787 (2023-004)

Material Weakness 2023

Boys & Girls Clubs of Central Georgia, Inc.

GA

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Recommendation: The Organization should establish procedures to ensure that timesheets for all employees charging time to Federal grant programs are reviewed and approved and to ensure that all non-payroll expenditures charged to Federal grant programs are reviewed and approved. Views of Responsibl...

Recommendation: The Organization should establish procedures to ensure that timesheets for all employees charging time to Federal grant programs are reviewed and approved and to ensure that all non-payroll expenditures charged to Federal grant programs are reviewed and approved. Views of Responsible Officials: Management of BGCCG acknowledges the finding and concurs with the recommendation. Response of Responsible Officials: To continuously improve BGCCG’s Accounting and Financial Reporting, workflow, and internal controls, BGCCG has begun the process to transition the back-office accounting providers from part-time status to full-time status to sufficiently accommodate the needs of the Organization. BGCCG will employ a full-time Chief Finance & Administrative Officer (CFAO), preferably with CPA/CGMA certification, and strong analytical and financial modeling and forecasting skills as well as deep knowledge of GAAP for nonprofits. This pivotal role will provide strategic direction to ensure the financial health of the Organization while driving innovative financial solutions. The CFAO will oversee all financial and accounting operations of the Organization, including the creation and execution of sound financial policies, procedures and internal controls, budgeting, accounting, cash and debt management, audits, investments, tax compliance, and weekly Accounting and Finance reporting to the CEO and Board Finance Chair. The CFAO will report directly to the CEO. This position will be employed on or before December 31, 2024. BGCCG will also employ a full-time Finance Manager (FM) with commensurate experience that demonstrates exemplary strategic and financial acumen. The FM will be responsible for intermediate-level finance and accounting functions such as general ledger/account maintenance, timely account reconciliation, accounts payable, accounts receivables, data processing, payroll processing, and reporting to the CFAO. The FM will report directly to the CFAO. This position will be employed on or before December 31, 2024. Upon the hiring and on-boarding of the CFAO and FM, BGCCG will immediately begin the process of updating its Financial Management & Accounting Control Policies & Procedures to further strengthen BGCCG’s internal controls. Corrective Action Plan: Upon the hiring and on-boarding of the new full-time CFAO and FM, management of BGCCG will work closely with the CFAO and FM to immediately implement a process to ensure that timesheets for all employees charging time to any Federal grant programs are reviewed and approved by the employee’s immediate supervisor, FM and CFAO, and/or CEO. BGCCG management will also work closely with the CFAO and FM to immediately implement a process to ensure that all non-payroll expenditures charged to Federal grant programs are reviewed and pre-approved by the FM and CFAO, and/or CEO. Acknowledged, Phillip Bryant President & CEO

View Audit 329517

Finding 509786 (2023-003)

Material Weakness 2023

Boys & Girls Clubs of Central Georgia, Inc.

GA

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Recommendation: The Organization should establish procedures to ensure that timesheets for all employees charging time to Federal grant programs are reviewed and approved. Views of Responsible Officials: Management of BGCCG acknowledges the finding and concurs with the recommendation. Response of R...

Recommendation: The Organization should establish procedures to ensure that timesheets for all employees charging time to Federal grant programs are reviewed and approved. Views of Responsible Officials: Management of BGCCG acknowledges the finding and concurs with the recommendation. Response of Responsible Officials: To continuously improve BGCCG’s Accounting and Financial Reporting, workflow, and internal controls, BGCCG has begun the process to transition the back-office accounting providers from part-time status to full-time status to sufficiently accommodate the needs of the Organization. BGCCG will employ a full-time Chief Finance & Administrative Officer (CFAO), preferably with CPA/CGMA certification, and strong analytical and financial modeling and forecasting skills as well as deep knowledge of GAAP for nonprofits. This pivotal role will provide strategic direction to ensure the financial health of the Organization while driving innovative financial solutions. The CFAO will oversee all financial and accounting operations of the Organization, including the creation and execution of sound financial policies, procedures and internal controls, budgeting, accounting, cash and debt management, audits, investments, tax compliance, and weekly Accounting and Finance reporting to the CEO and Board Finance Chair. The CFAO will report directly to the CEO. This position will be employed on or before December 31, 2024. BGCCG will also employ a full-time Finance Manager (FM) with commensurate experience that demonstrates exemplary strategic and financial acumen. The FM will be responsible for intermediate-level finance and accounting functions such as general ledger/account maintenance, timely account reconciliation, accounts payable, accounts receivables, data processing, payroll processing, and reporting to the CFAO. The FM will report directly to the CFAO. This position will be employed on or before December 31, 2024. Upon the hiring and on-boarding of the CFAO and FM, BGCCG will immediately begin the process of updating its Financial Management & Accounting Control Policies & Procedures to further strengthen BGCCG’s internal controls. Corrective Action Plan: Upon the hiring and on-boarding of the new full-time CFAO and FM, management of BGCCG will work closely with the CFAO and FM to immediately implement a process to ensure that timesheets for all employees charging time to any Federal grant programs are reviewed and approved by the employee’s immediate supervisor, FM and CFAO. Acknowledged, Phillip Bryant President & CEO

View Audit 329517

Finding 509763 (2023-001)

None 2023

Genesis II Apartments, Inc. 054-Ee081-Wah

SC

HUD Housing Programs Reporting

GENESIS II APARTMENTS, INC. Mullins, South Carolina CORRECTIVE ACTION PLAN October 18, 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 October 18, 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, 2023. Bernard Robinson & Company, L.L.P. Post Office Box 19608 Greensboro, North Carolina 27419-9608 Audit period: Year ended June 30, 2023 The findings from the Schedule of Findings and Questioned Costs for the year ended June 30, 2023 are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2023-001: 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 2023-001 described in the accompanying schedule of findings and questioned costs. The new management company will ensure the annual financial statements are submitted once the audits are back on track with the scheduled due dates. Finding 2023-002: 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 audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward. Action Taken: We agree with Finding 2023-002 described in the accompanying schedule of findings and questioned costs. The new management company will ensure the data collection forms are submitted electronically to the FAC each fiscal year. If HUD has questions regarding this plan, please call (803) 808-3966. Sincerely yours, Reese Quick, President Southern Development Management Company, Inc.

View Audit 329443

Finding 508525 (2023-012)

Material Weakness 2023

City of Baltimore, Maryland

MD

Subrecipient Monitoring Cash Management HUD Housing Programs § 200.303

U.S. Department of Housing and Urban Development AL No. 14.241 Housing Opportunities for Persons with AIDS Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing Quality Standards Repeat Finding: Yes Auditee’s Corrective Action Plan: MOHS has experienced leadership and...

U.S. Department of Housing and Urban Development AL No. 14.241 Housing Opportunities for Persons with AIDS Material Weakness in Internal Controls and Noncompliance over Special Tests – Housing Quality Standards Repeat Finding: Yes Auditee’s Corrective Action Plan: MOHS has experienced leadership and staffing changes that have impacted its ability to maintain systematic processes necessary for service delivery and administration. One area impacted by MOHS’ transition was our inspection services. During the review period, the contracted supplier had no access to the Housing Pro system, the database used to manage inspections for MOHS’ subsidized units. MOHS has a recordkeeping process for inspections in its policies and procedures for the rental assistance program. Inspection checklists are maintained in the participant records by calendar year. Housing staff identify whether or not the inspection has been completed on the recertification checklist and sign the checklist to confirm the documentation is present in the file. MOHS has resumed its recordkeeping practices to ensure staff maintain inspection checklists in the client files for the annual recertification year. Housing staff are expected to verify during the recertification that Housing Quality Standard (HQS) inspections have been conducted for the assisted unit. MOHS completed the upgrade to the new version of the Housing Pro system in March 2024. The inspections team now has access to the housing database via the web. MOHS is working with the inspections team to ensure inspection updates are entered into the inspection module timely. MOHS has a process in place to review inspection details monthly to ensure 1) inspections for each household has been conducted and 2) all inspection detail is updated in the Housing Pro system by the inspections team each week. Contact Person: HAP Program Manager – D’Andra Pollard Completion Date: June 2024

View Audit 329082

Finding 508522 (2023-009)

Material Weakness 2023

City of Baltimore, Maryland

MD

Subrecipient Monitoring Cash Management Eligibility § 200.303

U.S. Department of Housing and Urban Development (HUD) AL No. 14.241 Housing Opportunities for Persons with AIDS Material Weakness in Internal Controls and Noncompliance over Eligibility Repeat Finding: Yes Auditee’s Corrective Action Plan: Condition #1 Response MOHS acknowledges the finding that 14...

U.S. Department of Housing and Urban Development (HUD) AL No. 14.241 Housing Opportunities for Persons with AIDS Material Weakness in Internal Controls and Noncompliance over Eligibility Repeat Finding: Yes Auditee’s Corrective Action Plan: Condition #1 Response MOHS acknowledges the finding that 14 out of 40 files did not have management review. Corrective Action: The Program Manager will conduct quality control reviews for 30% of files that have been recertified each month. The quality control review will verify all eligibility components under the program were met. Condition #2 Response MOHS acknowledges the finding that 25 out of 40 selections did not have the supporting thirdparty documentation of income. MOHS followed the HOPWA guidance outlined in the Self- Certification of Income and Credible Information on HIV Status waivers released by HUD for September 2021 and March 2023. The waiver permits HOPWA grantees and project sponsors to rely upon a family member’s self-certification of income and credible information on their HIV status. The HUD-CPD notices are referenced in Exhibits A-B of this response. The program accepted the self-certification of income until the waivers from HUD ended for COVID-19 on March 31, 2023. Corrective Action: MOHS has resumed following the process of requesting third party verification of income, assets, and medical expenses to ensure proper calculation of tenant rent. Client records are being updated with the appropriate verification of income documentation from the third-party source. Condition #3 Response MOHS acknowledges the finding 6 out of 40 selections did not have documentation of the rent reasonableness. Corrective Action: MOHS uses GoSection8, an online rent comparable website to conduct rent reasonableness. Rent reasonableness is conducted at the initial move-in and with each rent increase request. Documentation of the comparison is maintained in the client record. Contact Person: Lakeysha Williams – 410-396-4887 or Lakeysha.williams@baltimorecity.gov Completion Date: July 2024

View Audit 329082

Finding 508294 (2023-002)

None 2023

St. Clare Apartments Housing Development Fund Company, Inc. 014-Ee140

NY

HUD Housing Programs Reporting

Name of auditee: St. Clare Apartments Housing Development Fund Company, Inc. TIN: 16-1524084 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: January 1, 2023 - December 31, 2023 CAP prepared by: Kyle Lyskawa klyskawa@christopher-community.org Finding 2023-002 The Company will work...

Name of auditee: St. Clare Apartments Housing Development Fund Company, Inc. TIN: 16-1524084 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: January 1, 2023 - December 31, 2023 CAP prepared by: Kyle Lyskawa klyskawa@christopher-community.org Finding 2023-002 The Company will work to engage its auditors to perform the December 31, 2024 audit in March of 2025 and complete the audited submission within 90 days after the end of the fiscal year. The current year audited submission will be complete and filed upon completion of this audit.

View Audit 328842

Finding 508293 (2023-001)

None 2023

St. Clare Apartments Housing Development Fund Company, Inc. 014-Ee140

NY

HUD Housing Programs

Name of auditee: St. Clare Apartments Housing Development Fund Company, Inc. TIN: 16-1524084 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: January 1, 2023 - December 31, 2023 CAP prepared by: Kyle Lyskawa klyskawa@christopher-community.org Finding 2023-001 Management understand...

Name of auditee: St. Clare Apartments Housing Development Fund Company, Inc. TIN: 16-1524084 Name of audit firm: EFPR Group, CPAs, PLLC Period covered by audit: January 1, 2023 - December 31, 2023 CAP prepared by: Kyle Lyskawa klyskawa@christopher-community.org Finding 2023-001 Management understands HUD’s reserve for replacements required deposit requirements and will deposit the $8,400 by December 31, 2024.

View Audit 328842

Finding 508235 (2023-001)

Significant Deficiency 2023

Hudson River Housing, Inc.

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

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