Corrective Action Plans

Finding 498376 (2023-002)

Significant Deficiency 2023

NJ

Questioned Costs HUD Housing Programs Eligibility

Finding 2023-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program, Federal Catalog Numbers: 14.871 Noncompliance - E - Eligibility Non Compliance Material to the Financial Statements: No Significant Deficiency in Inte...

Finding 2023-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program, Federal Catalog Numbers: 14.871 Noncompliance - E - Eligibility Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: Of a sample size of forty-three (43) tenant files, the following information was unavailable for examination at the time of audit: (3) Verification of Income (2) Verification of Assets HUD Form 50058 Our sample size is statistically valid. Known Questioned Costs: 7,162 Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Voucher Program is in non-compliance with the eligibility type of compliance requirements of the program. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. View of Responsible Officials and Corrective Actions: 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. Philisa Smith, HCV Director, is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring by December 31, 2024.

View Audit 321110 Questioned Costs: $1

Finding 498320 (2023-003)

Material Weakness 2023

Independent Living Place, Inc.

TX

Questioned Costs HUD Housing Programs Material Weakness

CORRECTIVE ACTION PLAN Name and Number of the Project: INDEPENDENT LIVING PLACE, INC. No. 115-EH115 Audit Firm: M Group, LLP Audit Period: The year ended September 30, 2023 Compliance Review COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors ...

CORRECTIVE ACTION PLAN Name and Number of the Project: INDEPENDENT LIVING PLACE, INC. No. 115-EH115 Audit Firm: M Group, LLP Audit Period: The year ended September 30, 2023 Compliance Review COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN FINDING #2023-003: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 CORRECTIVE ACTION TO BE COMPLETED: The Organization intends to apply for reinstatement of tax-exempt status. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Mr. Stewart Grounds, Chief Financial Officer of Arnold-Grounds Apartment Management & Affordable Housing Specialists, LLC.

View Audit 321062 Questioned Costs: $1

Finding 498319 (2023-002)

Material Weakness 2023

Independent Living Place, Inc.

TX

Questioned Costs HUD Housing Programs Material Weakness

CORRECTIVE ACTION PLAN Name and Number of the Project: INDEPENDENT LIVING PLACE, INC. No. 115-EH115 Audit Firm: M Group, LLP Audit Period: The year ended September 30, 2023 Compliance Review COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors ...

CORRECTIVE ACTION PLAN Name and Number of the Project: INDEPENDENT LIVING PLACE, INC. No. 115-EH115 Audit Firm: M Group, LLP Audit Period: The year ended September 30, 2023 Compliance Review COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN FINDING #2023-002: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 CORRECTIVE ACTION TO BE COMPLETED: The Corporation completed and submitted the financials for audit for the year ended September 30, 2023. The financial data was submitted into the FASSUB system. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Mr. Stewart Grounds, Chief Financial Officer of Arnold-Grounds Apartment Management & Affordable Housing Specialists, LLC.

View Audit 321062 Questioned Costs: $1

Finding 498318 (2023-001)

Significant Deficiency 2023

Independent Living Place, Inc.

TX

Questioned Costs HUD Housing Programs Significant Deficiency

CORRECTIVE ACTION PLAN Name and Number of the Project: INDEPENDENT LIVING PLACE, INC. No. 115-EH115 Audit Firm: M Group, LLP Audit Period: The year ended September 30, 2023 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our audit...

CORRECTIVE ACTION PLAN Name and Number of the Project: INDEPENDENT LIVING PLACE, INC. No. 115-EH115 Audit Firm: M Group, LLP Audit Period: The year ended September 30, 2023 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN FINDING 1: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 CORRECTIVE ACTION COMPLETED: On August 7, 2024, the Project deposited $2,450 into the replacement reserve account. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Mr. Stewart Grounds, Chief Financial Officer of Arnold-Grounds Apartment Management & Affordable Housing Specialists, LLC.

View Audit 321062 Questioned Costs: $1

Finding 498262 (2023-001)

Significant Deficiency 2023

Sunflower Diversified Services, Inc.

KS

HUD Housing Programs Procurement, Suspension & Debarment Reporting

14.155 – Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Condition During testing, we identified that certain tenants had an improper amount of rent calculated and applied to their rental agreement or paid an incorrect amount. Recommendation Procedures sho...

14.155 – Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Condition During testing, we identified that certain tenants had an improper amount of rent calculated and applied to their rental agreement or paid an incorrect amount. Recommendation Procedures should be reviewed to ensure that all tenants pay an accurate amount for their rental agreements. Comments on the Finding The Organization is aware of the oversight and will strive to improve the process in the future. Action Taken As of the date of this notice, processes have been implemented for the Fiscal Manager or Executive Director to complete a review of all rent calculations prior to sending them to the third party HUD contractor for inclusion on form HUD-50059. Additionally, all applicable staff have been trained on the timelines associated with implementing rent increases.

View Audit 321023

Finding 498251 (2023-003)

Significant Deficiency 2023

Greater Bethlehem

LA

HUD Housing Programs Reporting

We will ensure that going forward, processes are in place to allow for the timely submission of the financial reporting requirements. Further, we request that this finding be removed as the late filing occurred in 2024 and should be given in 2024 pursuant to AU-C 935.

View Audit 321015

Finding 498240 (2023-003)

Significant Deficiency 2023

Joshua Manor

LA

HUD Housing Programs Reporting

We will ensure that going forward, processes are in place to allow for the timely submission of the financial reporting requirements. Further, we request that this finding be removed as the late filing occurred in 2024 and should be given in 2024 pursuant to AU-C 935.

View Audit 320977

Finding 498204 (2023-002)

Significant Deficiency 2023

Mt. Sinai Manor

LA

HUD Housing Programs Reporting

We will ensure that going forward, processes are in place to allow for the timely submission of the financial reporting requirements. Further, we request that this finding be removed as the late filing occurred in 2024 and should be given in 2024 pursuant to AU-C 935.

View Audit 320969

Finding 498203 (2023-001)

Significant Deficiency 2023

Mt. Sinai Manor

LA

HUD Housing Programs

Checks for the monthly reserve for replacement deposits for 12 months were generated in the entire year of 2023. However, in October of 2023, management was notified by the banking institution where the Reserve for Replacement account is held that fraudulent activities had taken place with the reser...

Checks for the monthly reserve for replacement deposits for 12 months were generated in the entire year of 2023. However, in October of 2023, management was notified by the banking institution where the Reserve for Replacement account is held that fraudulent activities had taken place with the reserve for replacement accounts. The banking institution closed all accounts and restricted all routine depository activity while they worked through the fraudulent activity. Because of this, the banking institution established new accounts in January 2024 at which time the held payments were deposited into the new account.

View Audit 320969

Finding 498202 (2023-005)

Significant Deficiency 2023

Rev. Dr. Clay Evans Manor

LA

HUD Housing Programs Reporting

We will ensure that going forward, processes are in place to allow for the timely submission of the financial reporting requirements. Further, we request that this finding be removed as the late filing occurred in 2024 and should be given in 2024 pursuant to AU-C 935.

View Audit 320968

Finding 498201 (2023-004)

Significant Deficiency 2023

Rev. Dr. Clay Evans Manor

LA

HUD Housing Programs Matching / Level of Effort / Earmarking

Due to the fraudulent activity with the reserve for replacement bank account in October of 2023, we were unable to return the borrowed funds to the reserve account until the new account was open and accessible.

View Audit 320968

Finding 498200 (2023-003)

Significant Deficiency 2023

Rev. Dr. Clay Evans Manor

LA

HUD Housing Programs

Checks for the monthly reserve for replacement deposits for 12 months were generated in the entire year of 2023. We do admit that the deposit was deposited late. However, in October of 2023, management was notified by the banking institution where the Reserve for Replacement account is held that fra...

Checks for the monthly reserve for replacement deposits for 12 months were generated in the entire year of 2023. We do admit that the deposit was deposited late. However, in October of 2023, management was notified by the banking institution where the Reserve for Replacement account is held that fraudulent activities had taken place with the reserve for replacement accounts. The banking institution closed all accounts and restricted all routine depository activity while they worked through the fraudulent activity. Because of this, the banking institution established new accounts in January 2024 at which time the held payments were deposited into the new account.

View Audit 320968

Finding 498194 (2023-006)

None 2023

Over the Rainbow Ass'n & Subsidiaries

IL

HUD Housing Programs

For the Waukegan Supportive Housing Facility - FINDING 2023-006: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 - TENANT FILE MISSING DISABILITY AND/OR HANDICAPPED VERIFICATION - Recommendation: The Project manager should attempt to obtain proper verification of disability/handicapped status on this ...

For the Waukegan Supportive Housing Facility - FINDING 2023-006: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 - TENANT FILE MISSING DISABILITY AND/OR HANDICAPPED VERIFICATION - Recommendation: The Project manager should attempt to obtain proper verification of disability/handicapped status on this tenant. If verification cannot be obtained, the Project should reimburse HUD for all rent subsidy on this tenant. Action Taken: The Project agrees with the finding. The project managers were reminded to obtain documentation to verify disability/handicapped status.

View Audit 320943

Finding 498193 (2023-005)

None 2023

Over the Rainbow Ass'n & Subsidiaries

IL

Questioned Costs HUD Housing Programs Matching / Level of Effort / Earmarking

For the Rockford Supportive Housing Facility - FINDING 2023-005: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 - HUD SUBSIDY LOAN FROM REPLACEMENT REERVES NOT REPAID - Recommendation: The Project should repay the HUD subsidy loan as soon as funds are available. Action Taken: The Project agrees with ...

For the Rockford Supportive Housing Facility - FINDING 2023-005: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 - HUD SUBSIDY LOAN FROM REPLACEMENT REERVES NOT REPAID - Recommendation: The Project should repay the HUD subsidy loan as soon as funds are available. Action Taken: The Project agrees with the finding. A $15,000 transfer will be made once funds are available. Management will be reminded to carefully review HUD correspondence to make sure HUD subsidy loan terms are being followed.

View Audit 320943 Questioned Costs: $1

Finding 498191 (2023-004)

None 2023

Over the Rainbow Ass'n & Subsidiaries

IL

Questioned Costs HUD Housing Programs

For the Hill Housing Facility - FINDING 2023-004: SECTION 8, ASSISTANCE LISTING NUMBER 14.195 - OVERPAYMENT OF MANAGEMENT FEES - Recommendation: The management company should repay the $653 to the Project. Action Taken: The Project agrees with the finding. The management company will repay the manag...

For the Hill Housing Facility - FINDING 2023-004: SECTION 8, ASSISTANCE LISTING NUMBER 14.195 - OVERPAYMENT OF MANAGEMENT FEES - Recommendation: The management company should repay the $653 to the Project. Action Taken: The Project agrees with the finding. The management company will repay the management fee overpayment as soon as possible.

View Audit 320943 Questioned Costs: $1

Finding 498190 (2023-003)

None 2023

Over the Rainbow Ass'n & Subsidiaries

IL

HUD Housing Programs

For the Hill Housing Facility - FINDING 2023-003: SECTION 8, ASSISTANCE LISTING NUMBER 14.195 - TENANT FILE MISSING DISABILITY AND/OR HANDICAPPED VERIFICATION - Recommendation: The Project manager should attempt to obtain proper verification of disability/handicapped status on this tenant. If verifi...

For the Hill Housing Facility - FINDING 2023-003: SECTION 8, ASSISTANCE LISTING NUMBER 14.195 - TENANT FILE MISSING DISABILITY AND/OR HANDICAPPED VERIFICATION - Recommendation: The Project manager should attempt to obtain proper verification of disability/handicapped status on this tenant. If verification cannot be obtained, the Project should reimburse HUD for all rent subsidy on this tenant. Action Taken: The Project agrees with the finding. The project managers were reminded to obtain documentation to verify disability/handicapped status.

View Audit 320943

Finding 498189 (2023-002)

None 2023

Over the Rainbow Ass'n & Subsidiaries

IL

Questioned Costs HUD Housing Programs Matching / Level of Effort / Earmarking

For the Hill Housing Facility - FINDING 2023-002: SECTION 8, ASSISTANCE LISTING NUMBER 14.195 - SPONSOR LOAN PAYMENT WITHOUT HUD APPROVAL - Recommendation: The Sponsor should work with HUD to determine if the $130,019 needs to be paid back to the Project. Action Taken: The Sponsor will work with HUD...

For the Hill Housing Facility - FINDING 2023-002: SECTION 8, ASSISTANCE LISTING NUMBER 14.195 - SPONSOR LOAN PAYMENT WITHOUT HUD APPROVAL - Recommendation: The Sponsor should work with HUD to determine if the $130,019 needs to be paid back to the Project. Action Taken: The Sponsor will work with HUD to determine if the $130,019 needs to be paid back to the Project.

View Audit 320943 Questioned Costs: $1

Finding 498188 (2023-001)

None 2023

Over the Rainbow Ass'n & Subsidiaries

IL

Questioned Costs HUD Housing Programs Cash Management

For the Hill Housing Facility - FINDING 2023-001: SECTION 8, ASSISTANCE LISTING NUMBER 14.195 - SURPLUS CASH NOT DEPOSITED INTO RESIDUAL RECEIPTS ACCOUNT - Recommendation: The Project should deposit surplus cash as of December 31, 2021 into a residual receipts account as soon as possible. Action Tak...

For the Hill Housing Facility - FINDING 2023-001: SECTION 8, ASSISTANCE LISTING NUMBER 14.195 - SURPLUS CASH NOT DEPOSITED INTO RESIDUAL RECEIPTS ACCOUNT - Recommendation: The Project should deposit surplus cash as of December 31, 2021 into a residual receipts account as soon as possible. Action Taken: The Project agrees with the finding. Management will deposit $14,079 in a residual receipts account as soon as possible.

View Audit 320943 Questioned Costs: $1

Finding 498186 (2023-003)

Material Weakness 2023

Mobile County Housing Authority

AL

HUD Housing Programs Subrecipient Monitoring Internal Control / Segregation of Duties

2023-003 ALN 14.871 – Housing Voucher Cluster – Waiting List Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Tyronnda Bethune, Executive Director Projected ...

2023-003 ALN 14.871 – Housing Voucher Cluster – Waiting List Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Tyronnda Bethune, Executive Director Projected Completion Date: December 31, 2024

View Audit 320939

Finding 498185 (2023-001)

Material Weakness 2023

Mobile County Housing Authority

AL

HUD Housing Programs Subrecipient Monitoring Eligibility

2023-001 ALN 14.871 – Housing Voucher Cluster – Eligibility Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Tyronnda Bethune, Executive Director Projected C...

2023-001 ALN 14.871 – Housing Voucher Cluster – Eligibility Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Ms. Tyronnda Bethune, Executive Director Projected Completion Date: December 31, 2024

View Audit 320939

Finding 498128 (2023-004)

Significant Deficiency 2023

Save the Michael's of the World

NY

HUD Housing Programs

(a) Comments with the Finding and Recommendation – The Organization agrees with the finding as well as the recommendation. Please see below for action taken. (b) Corrective Action Taken – Beginning in 2024, the Organization has switched their time tracking system to use QuickBooks Time, a solution...

(a) Comments with the Finding and Recommendation – The Organization agrees with the finding as well as the recommendation. Please see below for action taken. (b) Corrective Action Taken – Beginning in 2024, the Organization has switched their time tracking system to use QuickBooks Time, a solution directly integrated into their accounting software. This integration will assist with accurate and automated transfer of information from time entry into payroll systems. Supervisors will still be required to review and validate all time entered to the system. Additionally, procedures will be put in place to ensure the total hours worked are agreed to corresponding payroll reports for each pay period.

View Audit 320810

Finding 498127 (2023-003)

Significant Deficiency 2023

Little Earth of United Tribes Housing Corporation

MN

HUD Housing Programs Subrecipient Monitoring Eligibility

Management will implement a system to monitor and review tenant file gross rent changes occurring during the year.

View Audit 320806

Finding 498126 (2023-002)

Significant Deficiency 2023

Little Earth of United Tribes Housing Corporation

MN