Corrective Action Plans

Finding 393377 (2023-001)

Significant Deficiency 2023

Mi Residential Community, Inc. 023-11147

MA

HUD Housing Programs Eligibility Reporting

U.S. Department of Housing and Urban Development, passed through the Massachusetts Housing Finance Agency Section 8 Housing Assistance Payments Program – Assistance Listing No. 14.195 Significant Deficiencies 2023-001 Condition: 1) Housing assistance and tenant payments for 2 of the 40 tenant file...

U.S. Department of Housing and Urban Development, passed through the Massachusetts Housing Finance Agency Section 8 Housing Assistance Payments Program – Assistance Listing No. 14.195 Significant Deficiencies 2023-001 Condition: 1) Housing assistance and tenant payments for 2 of the 40 tenant files selected for testing were calculated incorrectly due to errors in the amounts used for income. 2) The asset values for 10 of the 40 tenant files and the interest income for 3 of the 40 tenant files selected for testing were not reported correctly on Form HUD-50059. This had no impact on the housing assistance and tenant payments. 3) There were no sufficient documentation for 2 of the 40 tenant files selected for testing to support the asset values reported on Form HUD-50059. 4) 1 of the 40 tenant files selected for testing was missing an Existing Tenant Search report. 5) The Existing Tenant Search report for 2 of the 40 tenant files selected for testing stated that the tenants may be receiving rental assistance at another housing agency, however there was no evidence to show that the Community had followed up with the tenant and/or the housing agency to avoid a double subsidy. Auditor's Recommendation: We recommend that an internal control procedure be implemented to ensure that all HUD-50059 forms are completed accurately and all required information is obtained and maintained within the tenant files. Action Taken: 1) Management will meet with tenants to properly investigate causation for the finding above. Management will correct the audited annual recertification with the expectation of correcting the income used to tabulate the tenants’ level of rental assistance. For the file where the tenant was overcharged, the tenant will be reimbursed for administrative error. For the file where the rental subsidy was being overcharged, HUD will be reimbursed for the subsidy accordingly. 2) Management will correct all audited annual recertifications with correct asset values and/or interest income. Management will also insert file clarification notes to all files that are edited to ensure transparency and notate that the corrected asset values and/or interest income will not affect the tenants’ level of rental assistance. Management will implement internal control procedures to ensure that all asset and interest income values are reported correctly in the future. 3) Management will meet with tenants to properly investigate causation for the finding above. Management will correct annual recertification reporting and properly document tenant files accordingly. Management will implement internal control procedures to ensure that staff is only accepting proper verifications per the HUD handbook in the future. 4) Management will ensure that the tenant has an Existing Tenant Search report in the file. Management has removed all tenant information that does not correspond to this tenant file. Management will implement internal control procedures to ensure that documents are not being misfiled. 5) Management will meet with tenants to properly investigate causation for the finding above. Management will determine if possible double subsidies exist. Management will follow up with respective PHA or owner if necessary to confirm if the tenant is being assisted at the other location. Management will properly document all contacts made or information obtained to determine if a household is receiving multiple subsidies or not. When the tenants’ multiple subsidies are discussed and resolved, management will ensure that all evidence is included within the tenant file.

View Audit 303633

Finding 393376 (2023-002)

Material Weakness 2023

Iron County Housing Commission

MI

Special Tests & Provisions HUD Housing Programs Internal Control / Segregation of Duties

Action Taken: Management has updated its utility allowance effective beginning in November 2023. Anticipated Completion Date of Action: November 2023

View Audit 303632

Finding 393375 (2023-001)

Material Weakness 2023

Iron County Housing Commission

MI

Special Tests & Provisions HUD Housing Programs Internal Control / Segregation of Duties

Action Taken: Management is still in the process of implementing policies and procedures to ensure all inspections are performed in a timely manner and all re-inspections are performed within the required timeframe. Anticipated Completion Date of Action: Ongoing

View Audit 303632

Finding 393364 (2023-010)

Significant Deficiency 2023

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs HUD Housing Programs Special Tests & Provisions

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the authority review the equity roll forward of programs to identify and correct errors in the correct reporting period. Explanation of disagreement with audit finding: There is no disagreement with the...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the authority review the equity roll forward of programs to identify and correct errors in the correct reporting period. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Processes are being updated to include a monthly reconciliation of program equity to be performed by Finance staff in cooperation with Program staff. Finance staff are undergoing substantial training to improve both programmatic understanding and financial systems knowledge. Name(s) of the contact person(s) responsible for corrective action: Ellen Eudy, Deputy Director, Financial Operations and John Morrison, Controller Planned completion date for corrective action plan: Training in progress with reconciliation process to be completed by June 30, 2024.

View Audit 303627 Questioned Costs: $1

Finding 393361 (2023-009)

Significant Deficiency 2023

South Carolina State Housing Finance and Development Authority

SC

HUD Housing Programs Internal Control / Segregation of Duties Reporting

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority implements controls in order to ensure reporting requirements are met in accordance with applicable grant agreements and regulations. Explanation of disagreement with audit finding: T...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority implements controls in order to ensure reporting requirements are met in accordance with applicable grant agreements and regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Action planned/taken in response to finding: The Director of HCVP Operations and the Director of HCVP Administration will each independently review their portions of the SEMAP certifications that apply to their business units and sign off. Once complete, all SEMAP certifications for the HCVP will be forwarded to the Director of Rental Assistance and Compliance for final review/validation. The Director of Rental Assistance and Compliance will be responsible for directly submitting validated SEMAP data to HUD. Name(s) of the contact person(s) responsible for corrective action: Lenzy Morris, HCVP Director of Operations, Yolanda Dennison, HCVP Director of Administration, and Lisa T. Wilkerson, Director of Rental Assistance and Compliance Planned completion date for corrective action plan: Effective with fiscal year 2024 SEMAP certification.

View Audit 303627

Finding 393358 (2023-008)

Significant Deficiency 2023

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Eligibility HUD Housing Programs

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that tenant files contain all required documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that tenant files contain all required documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Current processes in place require collection and review of documentation by individual HPC assigned to a particular file. Upon transfer to the associated administrative team member, a second review is to be conducted to verify all required documentation is present. Any omissions require the HPC to reach out and supply mission documentation before action can be processed. We also secured a contract with The Work Number solution to assist with third party income verifications. Name(s) of the contact person(s) responsible for corrective action: Entire HCVP team and management. Planned completion date for corrective action plan: Currently implemented and ongoing.

View Audit 303627 Questioned Costs: $1

Finding 393355 (2023-007)

Significant Deficiency 2023

South Carolina State Housing Finance and Development Authority

SC

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waive...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority sets up a separate interest-bearing account and executes a depository agreement with their financial institution and HUD; alternatively, we recommend that the Authority obtains a waiver from this requirement if local regulation prohibits the Authority from following 24 CFR section 982.156. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Housing Voucher Cluster funds are held by the Treasurer for the State of South Carolina. The depository agreements in place are between the depository institution and the state Treasurer. SC Housing submitted a waiver request to the local HUD field office on March 29, 2023. We followed up on the request most recently on January 24, 2024 and to date, no response has been received. In the meantime, SC Housing is continuing to work with the State Treasurer’s Office to identify a solution that would allow SC Housing to enter into a general depository agreement (GDA) that would provide third party rights to HUD. Modifications have been made to the state financial accounting sytems to track the funds in question separately, but we are trying to determine how, and even if, the funds can be housed in a separate bank account, while still adhering to state regulation. Name(s) of the contact person(s) responsible for corrective action: Ellen Eudy, Deputy Director, Financial Operations and Lisa Wilkerson, Director of Rental Assistance and Compliance Planned completion date for corrective action plan: Waiver request submitted to HUD local field office on March 29, 2023. Alternative solution is in discussion with State Treasurer’s Office .

View Audit 303627

Finding 393350 (2023-004)

Material Weakness 2023

South Carolina State Housing Finance and Development Authority

SC

HUD Housing Programs Special Tests & Provisions Material Weakness

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority designate an individual to review tenant files to determine if a rent reasonableness has been performed. Explanation of disagreement with audit finding: There is no disagreement with ...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend that the Authority designate an individual to review tenant files to determine if a rent reasonableness has been performed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: All initial lease-ups, other change of units, and rent increases are reviewed by the Director of HVCP Operations for confirm that rent reasonableness was performed prior to the effective date of the application action. Name(s) of the contact person(s) responsible for corrective action: Lenzy Morris, HCVP Director of Operations. Planned completion date for corrective action plan: Currently implemented and ongoing.

View Audit 303627

Finding 393347 (2023-003)

Material Weakness 2023

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Special Tests & Provisions HUD Housing Programs

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements ...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Monthly Failed Item Report Review: • Director of Operations is generating and reviewing a monthly failed HQS inspection report o Have units been re-inspected? o If not, why? o Prompt abatement action immediately, if necessary ▪ Management will issue written authorization to abate within the HUD required timeframe Reinspection letter o Staff required to monitor 24-hour correction time frame and move to abate subsidy for those that remain non-compliance without reasonable justification/documentation of repair ▪ Requests for extensions on 24-hour cures will not be granted o Deficiencies which provide a 30-day cure period are monitored and re-inspected within the allowed 30-day window, unless satisfactory proof of cure has been submitted prior to this time ▪ Reasonable written requests for extensions may be granted if it is determined that the owner has made a good faith effort to remedy identified issues but are unable to meet the 30-day time frame due to reasons beyond their control o Will be reviewed by senior management to determine abatements required Name(s) of the contact person(s) responsible for corrective action: Lenzy Morris, HCVP Director of Operations and Lisa T. Wilkerson, Director of Rental Assistance and Compliance Planned completion date for corrective action plan: Currently implemented and ongoing.

View Audit 303627 Questioned Costs: $1

Finding 393340 (2023-001)

Material Weakness 2023

Cable Telecommunications Association of New York, Inc.

NY

HUD Housing Programs

CTANY agrees with the recommendation that accounts receivable and related revenue should be monitored for accuracy. Due to management transition over the past two years, the CTANY board and administrative consultants are working to ensure that best practices are put in place going forward to ensure ...

CTANY agrees with the recommendation that accounts receivable and related revenue should be monitored for accuracy. Due to management transition over the past two years, the CTANY board and administrative consultants are working to ensure that best practices are put in place going forward to ensure accounts receivable and related revenue are constantly monitored. In lieu of an outside bookkeeper the Treasurer of CTANY has taken QuickBooks related courses and plans to take additional continuing education as an added measure to ensure proper managing of the books and accounting records per the recommendations of this audit report.

View Audit 303623

Finding 393338 (2023-001)

Significant Deficiency 2023

Winslow Gardens

RI

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

FEDERAL AWARD FINDINGS AND QUESTIONED COSTS: Finding 2023-001 The Organization does not have the required insurance coverage determined by HUD and exposes themselves to potential liability. Program Operating Assistance for Troubled Multifamily Housing Projects - 14.164 Description of Finding Tw...

FEDERAL AWARD FINDINGS AND QUESTIONED COSTS: Finding 2023-001 The Organization does not have the required insurance coverage determined by HUD and exposes themselves to potential liability. Program Operating Assistance for Troubled Multifamily Housing Projects - 14.164 Description of Finding Two months of gross potential receipts was in excess of the Fidelity Bond maintained by the Organization. Statement of Concurrence or Non-Concurrence Management concurs with this finding. Corrective Action Effective February 5, 2024, the Organization had increased their Fidelity Bond coverage for the 2024 fiscal year. Name of Contact Person Joseph Durand Projected Completion Date February 5, 2024

View Audit 303617

Finding 393337 (2023-002)

Significant Deficiency 2023

Southwest Kansas Area Agency on Aging, INC

KS

HUD Housing Programs Significant Deficiency

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-002: Section 8 Housing Choice Voucher Program CFDA 14.871 Condition: The Organization did not maintain documentation on file that a redetermination of reasonable rent was completed prior to the contract anniversary. We noted the rent was reasonable...

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-002: Section 8 Housing Choice Voucher Program CFDA 14.871 Condition: The Organization did not maintain documentation on file that a redetermination of reasonable rent was completed prior to the contract anniversary. We noted the rent was reasonable, however, there was no documentation of the Organization testing rent reasonableness in seven different tenant files. Criteria: The Organization must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the housing assistance payment contract). 24 CFR 982.507. Cause: The Organization failed to maintain documentation in the tenant file. Effect: There is potential of renewing rent to owner agreements in excess of Fair Market Rent. Recommendation: Management should document the redetermination of rent reasonableness in accordance with 24 CFR 982.507. Grantee Response: Management agrees with the finding and will properly document reasonable rent going forward.

View Audit 303607

Finding 393336 (2023-001)

Significant Deficiency 2023

Southwest Kansas Area Agency on Aging, INC

KS

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-001: Section 8 Housing Choice Voucher Program – CFDA 14.871 Grant Period: Year ended September 30, 2023 Condition: The Organization did not complete the Housing Quality Control Inspection Test to properly implement all the requirements of 2 CFR Sec...

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 2023-001: Section 8 Housing Choice Voucher Program – CFDA 14.871 Grant Period: Year ended September 30, 2023 Condition: The Organization did not complete the Housing Quality Control Inspection Test to properly implement all the requirements of 2 CFR Section 982.405 of Title 2 U.S. Code of Federal Regulations Part 982, Section 8 Tenant-Based Assistance: Housing Voucher Program. Criteria: In accordance with 2 CFR Section 982.405(b), PHA’s must conduct supervisory quality control HQS (Housing Quality Standards) inspections. Cause: The Organization’s did not complete their internal review of the HQS standards as required by Section 982.405(b). Effect: An important component of internal controls is the existence of operating policies and procedures and that they are clearly understood and communicated. Without verifying these procedures, there is a higher risk of noncompliance with program compliance requirements. Recommendation: Management should perform a supervisory quality control over the HQS inspections. The inspection should follow the guidelines set forth in 24 CFR 985.2. Grantee Response: Management agrees with the finding and will complete the Quality Control Inspection going forward.

View Audit 303607

Finding 393326 (2023-001)

Significant Deficiency 2023

Johnson City Housing Authority

TN

HUD Housing Programs Internal Control / Segregation of Duties

Finding 2023-001: Administration of the waiting list 24CFR 982.204 states "except for special admissions, participants must be selected from the PHA waiting r list. The PHA must select participants f om the waiting list in accordance with admission policies in the PHA administrative Plan. Management...

Finding 2023-001: Administration of the waiting list 24CFR 982.204 states "except for special admissions, participants must be selected from the PHA waiting r list. The PHA must select participants f om the waiting list in accordance with admission policies in the PHA administrative Plan. Management did not keep a stagnant copy of the waiting list. The list in the software is perpetual, removing tenants as they are housed. There is no way to test new move-ins were pulled in accordance with the PHA Administrative Plan. Corrective Action Plan: The Johnson City Housing Authority will keep a copy of the waiting list for each program as participants are pulled to lease or receive a voucher. Each list will contain notations concerning tenants that did not lease or attend a briefing. Anticipated Completion Date: Currently in progress and we have contacted our software vendor to see if they can help with a report for this.

View Audit 303601

Finding 393287 (2023-002)

Material Weakness 2023

B'nai B'rith Iii, Inc.

MA

Questioned Costs HUD Housing Programs

b. Finding 2023-2; Section 202 Capital Advance, CFDA 14.157 i. Comments on the Finding a. Management concurs with the finding that the Corporation should make monthly deposits to its replacement reserve in accordance with program documents with HUD. ii. Planned Corrective Action a. Management funde...

b. Finding 2023-2; Section 202 Capital Advance, CFDA 14.157 i. Comments on the Finding a. Management concurs with the finding that the Corporation should make monthly deposits to its replacement reserve in accordance with program documents with HUD. ii. Planned Corrective Action a. Management funded the $2,963 shortfall on February 16, 2024. In addition, management has communicated with the staff the importance of timely replacement reserve deposits and compliance with this requirement to ensure that all required deposits are made as established by HUD. In addition, management will implement a process to transfer the funds via an ACH process to ensure time funding of the reserve. iii. Anticipated Completion Date a. Corrective actions are in process.

View Audit 303580 Questioned Costs: $1

Finding 393286 (2023-001)

None 2023

B'nai B'rith Iii, Inc.

MA

HUD Housing Programs Subrecipient Monitoring Reporting

a. Finding 2023-1; Section 202 Capital Advance, CFDA 14.157 i. Comments on the Finding a. Management concurs with the finding that the Corporation should ensure the EIVs are run timely up to 120 days prior to the annual recertification date. ii. Planned Corrective Action a. Management has communicat...

a. Finding 2023-1; Section 202 Capital Advance, CFDA 14.157 i. Comments on the Finding a. Management concurs with the finding that the Corporation should ensure the EIVs are run timely up to 120 days prior to the annual recertification date. ii. Planned Corrective Action a. Management has communicated with the staff, the importance of timely EIV reporting. On a going forward basis, management will enhance its monitoring of compliance with this requirement to ensure EIVs are run within an appropriate time frame. iii. Anticipated Completion Date a. Corrective actions have been completed.

View Audit 303580

Finding 393284 (2023-001)

Significant Deficiency 2023

Millennium - Janesville I, Inc.

IL

HUD Housing Programs Eligibility

Statement of condition #2023-001: During the year ended September 30, 2023, 1 of 2 resident files selected for testing under the HUD Consolidated Audit Guide was unable to be located by the Agent. Recommendation: The current Management Agent should ensure that all resident files are maintained at ...

Statement of condition #2023-001: During the year ended September 30, 2023, 1 of 2 resident files selected for testing under the HUD Consolidated Audit Guide was unable to be located by the Agent. Recommendation: The current Management Agent should ensure that all resident files are maintained at the site for each resident of the Property, and the Management Agent should ensure that the resident files include all properly executed and documented resident eligibility forms. Action(s) taken or planned on the finding: Management intends to update all resident files as needed to include all resident eligibility forms to ensure the Property is in compliance during the year ended September 30, 2024.

View Audit 303576

Finding 393260 (2023-001)

None 2023

Saint Francis Apartments, Inc.

MS

Questioned Costs HUD Housing Programs

Management agrees with the finding. Since the project does not have the funds to repay the account, the management agent will loan the funds to the property.

View Audit 303535 Questioned Costs: $1

Finding 393257 (2023-002)

Significant Deficiency 2023

Leeway-Welton Housing Corporation

CT

Questioned Costs HUD Housing Programs Significant Deficiency

Unauthorized disbursements from the reserve fund were made. Recommendation: CLA recommends the Project return the withdrawn funds back to the reserve funds when the funds allow. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in resp...

Unauthorized disbursements from the reserve fund were made. Recommendation: CLA recommends the Project return the withdrawn funds back to the reserve funds when the funds allow. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management has received the delayed rental income payments and is working to return the funds. Name of the contact person responsible for corrective action: Matthew Fontaine, Controller DeMarco Management Corp. Planned completion date for corrective action plan: April 1, 2024

View Audit 303527 Questioned Costs: $1

Finding 393256 (2023-001)

Significant Deficiency 2023

Leeway-Welton Housing Corporation

CT

Questioned Costs HUD Housing Programs Significant Deficiency

Deposits required by HUD were not made during fiscal year 2023 to the reserve fund. Recommendation: CLA Recommends the Project make all fiscal year 2023 deposits as soon as funds allow. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned...

Deposits required by HUD were not made during fiscal year 2023 to the reserve fund. Recommendation: CLA Recommends the Project make all fiscal year 2023 deposits as soon as funds allow. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management has received the delayed rental income payments and is working to make the back deposits. Name of the contact person responsible for corrective action: Matthew Fontaine, Controller DeMarco Management Corp. Planned completion date for corrective action plan: April 1, 2024

View Audit 303527 Questioned Costs: $1

Finding 393194 (2023-004)

Significant Deficiency 2023

State of New Jersey

NJ

Reporting Matching / Level of Effort / Earmarking HUD Housing Programs § 200.303

The Department of Labor and Workforce Development (DLWD) continues to monitor all first payment and non-monetary time lapse figures in order to meet the established USDOL Acceptable Levels of Performance (ALP). As workloads return to normal levels after the increased activity from the COVID-19 pand...

The Department of Labor and Workforce Development (DLWD) continues to monitor all first payment and non-monetary time lapse figures in order to meet the established USDOL Acceptable Levels of Performance (ALP). As workloads return to normal levels after the increased activity from the COVID-19 pandemic related claims, greater emphasis will continue to be placed on meeting all ALPs. Specifically relating to first payments and the previously discussed issues with claimants verifying their identity before any payments can be made, the DLWD has made some internal changes to how returned verified IDs from our ID verification partner (ID.me) are handled. These modifications to the internal process used to clear verified IDs are expected to have a positive impact on overall time lapse numbers as verified claimants will not be delayed longer than they previously were under the old process. The month of April starts the new reporting year for these figures to USDOL and New Jersey expects to see significant increases to first payment and non-monetary time lapse figures by the third quarter of calendar year 2024. COMPLETION DATE/ CONTACT PERSON September 2023 Theresa Vallely (609) 984-1779 Theresa.Vallely@dol.nj.gov

View Audit 303516

Finding 393188 (2023-001)

Material Weakness 2023

State of New Jersey

NJ

Questioned Costs Eligibility Internal Control / Segregation of Duties § 200.303

The Department of Labor and Workforce Development (DLWD) has controls in place to only allow an FPUC payment to be made when an underlying Unemployment Insurance (UI) payment has also been processed. FPUC payments should not be issued to any claim without the underlying UI payment being made for th...

The Department of Labor and Workforce Development (DLWD) has controls in place to only allow an FPUC payment to be made when an underlying Unemployment Insurance (UI) payment has also been processed. FPUC payments should not be issued to any claim without the underlying UI payment being made for the same week. The FPUC payments issued and noted as exceptions during eligibility testing will be reviewed independently by DLWD to determine if the payments issued were to eligible recipients or not. For the PUA exceptions noted during Eligibility testing, overall the DLWD issued PUA payments to over 680,000 claimants during the COVID-19 pandemic. DLWD had controls in place to require a COVID related reason to make the claim PUA eligible and the weekly PUA certification required claimants to choose a COVID related reason for why they were out of work before they could get paid. The PUA payments in question will be reviewed independently by the DLWD to determine if the payments issued under PUA were appropriate or if they should have been paid instead under the regular UI program. DLWD corrective actions related to FPUC and PUA payments were fully implemented as of September 2023. COMPLETION DATE/ CONTACT PERSON September 2023 Theresa Vallely (609) 984-1779 Theresa.Vallely@dol.nj.gov

View Audit 303516 Questioned Costs: $1

Finding 393180 (2023-001)

Significant Deficiency 2023

Cedar Lake - Washburn, Inc.

KY

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Recommendation: The design of the current controls should be reviewed to ensure tenant files are accurate, complete, and orderly and include a checklist of required documentation and retention guidelines. Procedures should also be established to ensure that the Form 50059 is completed timely and pr...

Recommendation: The design of the current controls should be reviewed to ensure tenant files are accurate, complete, and orderly and include a checklist of required documentation and retention guidelines. Procedures should also be established to ensure that the Form 50059 is completed timely and properly executed. The documentation in the files should support the data used in preparing the Form 50059 and calculating the tenant’s share of the rent. Action Taken: Management has started the process of reviewing, revising, streamlining and educating all staff on the HUD guidelines related to tenant file documentation requirements and proper completion of the Form 50059, including the documentation required to support the rent calculations.

View Audit 303501

Finding 393179 (2023-002)

Significant Deficiency 2023

Cedar Lake - L'esprit, Inc.

KY

HUD Housing Programs Internal Control / Segregation of Duties

Recommendation: Procedures should be established to properly track requests, approvals and withdrawals form the reserve for replacements account. Action Taken: Management has started the process of reviewing, revising, streamlining and educating all staff on the HUD guidelines related to the reserv...

Recommendation: Procedures should be established to properly track requests, approvals and withdrawals form the reserve for replacements account. Action Taken: Management has started the process of reviewing, revising, streamlining and educating all staff on the HUD guidelines related to the reserve for replacements account.

View Audit 303500

Finding 393178 (2023-001)

Significant Deficiency 2023

Cedar Lake - L'esprit, Inc.

KY

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Recommendation: The design of the current controls should be reviewed to ensure tenant files are accurate, complete, and orderly and include a checklist of required documentation and retention guidelines. Procedures should also be established to ensure that the Form 50059 is completed timely and pr...

Recommendation: The design of the current controls should be reviewed to ensure tenant files are accurate, complete, and orderly and include a checklist of required documentation and retention guidelines. Procedures should also be established to ensure that the Form 50059 is completed timely and properly executed. The documentation in the files should support the data used in preparing the Form 50059 and calculating the tenant’s share of the rent. Action Taken: Management has started the process of reviewing, revising, streamlining and educating all staff on the HUD guidelines related to tenant file documentation requirements and proper completion of the Form 50059, including the documentation required to support the rent calculations.

View Audit 303500

Corrective Action Plans

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