Corrective Action Plans

Finding 9986 (2023-001)

Significant Deficiency 2023

NH

Internal Control / Segregation of Duties Cash Management HUD Housing Programs

Action taken in response to finding: A clerical support position was recently hired at the end of November, 2023 who will be responsible for handling all receipts and processing of deposits via remote deposit, which was also recently implemented so deposits can be done daily. This will segregate th...

Action taken in response to finding: A clerical support position was recently hired at the end of November, 2023 who will be responsible for handling all receipts and processing of deposits via remote deposit, which was also recently implemented so deposits can be done daily. This will segregate the cash handling from the recording of receipts once he is fully trained on the system. Bank reconciliation reviews will be completed monthly.

View Audit 13626

Finding 9985 (2023-001)

None 2023

Mmm Roseland INC

TX

HUD Housing Programs Cash Management Reporting

Audit Finding 2023-001: Surplus cash should be funded to the residual receipts account within 60 days of year end. Management made a deposit on December 5, 2023 for $194,026 which was 5 days late and short due to the audit of the financial statements not being completed at the time. Response: In t...

Audit Finding 2023-001: Surplus cash should be funded to the residual receipts account within 60 days of year end. Management made a deposit on December 5, 2023 for $194,026 which was 5 days late and short due to the audit of the financial statements not being completed at the time. Response: In the future, management will calculate surplus cash prior to the audit. Additionally, management will make the additional required deposit as soon as possible.

View Audit 13623

Finding 9669 (2023-002)

Significant Deficiency 2023

Volunteers of America Colorado Branch

CO

Subrecipient Monitoring HUD Housing Programs Significant Deficiency

Finding Number: 2023-002 Condition: In a monitoring visit performed by U.S. Department of Housing and Urban Development (HUD), the grantor found that the supporting documentation submitted does not enable a third-party reviewer to make a clear determination that match requirements were met. Planned ...

Finding Number: 2023-002 Condition: In a monitoring visit performed by U.S. Department of Housing and Urban Development (HUD), the grantor found that the supporting documentation submitted does not enable a third-party reviewer to make a clear determination that match requirements were met. Planned Corrective Action: The Organization established a policy and procedure to calculate the match requirement, compare it with the required total, and proactively identify actions to address any shortages at the end of each month. The Organization also ensured that all matches were supported by documents in a format that third parties could verify. Contact person responsible for corrective action: Chiyoko Yokota, Chief Financial Officer & Angel Hurtado, VP of Programs Anticipated Completion Date: 1/31/2023

View Audit 13410

Finding 9667 (2023-001)

Significant Deficiency 2023

Volunteers of America Colorado Branch

CO

Subrecipient Monitoring Eligibility HUD Housing Programs

Finding Number: 2023-001 Condition: In a monitoring visit performed by HUD, the grantor found that rent reasonableness determination was not completed on five of the six files reviewed. In our testing we found that six of ten participants we tested did not have a rent reasonableness determination da...

Finding Number: 2023-001 Condition: In a monitoring visit performed by HUD, the grantor found that rent reasonableness determination was not completed on five of the six files reviewed. In our testing we found that six of ten participants we tested did not have a rent reasonableness determination dated prior to the grant funds being expended Planned Corrective Action: The Organization revised the program policy to compare the rent reasonableness of at least three similar units using the Rent Reasonableness Comparison worksheet before any lease-up and document the test with evidence that is reviewed and verified with a supervisor signature prior to execution of the lease. The Organization will repeat this process annually as long as the participant remains in the same unit. The Organization also hired an extra full-time program quality control staff to monitor the compliance with the procedures. Moreover, The Organization will have an internal audit by the finance department at the halfway point of the grant year. Contact person responsible for corrective action: Chiyoko Yokota, Chief Financial Officer & Angel Hurtado, VP of Programs Anticipated Completion Date: 1/31/2023

View Audit 13410

Finding 9658 (2023-002)

Material Weakness 2023

Williamston Housing Authority

NC

HUD Housing Programs Cash Management Material Weakness

Name of Contact Person: Michael Gaddy Executive Director Corrective Action: We have addressed all reported deficiencies noted in the 2023 physical inspection. Management will be more diligent in working with Ma...

Name of Contact Person: Michael Gaddy Executive Director Corrective Action: We have addressed all reported deficiencies noted in the 2023 physical inspection. Management will be more diligent in working with Maintenance to monitor the physical condition of all properties. Proposed Completion Date: Immediately

View Audit 13376

Finding 9657 (2023-001)

None 2023

Fellowship Commons Whalley, Inc.

CT

Cash Management HUD Housing Programs

Upon discovery of the FY23 underfunding, a corrective deposit was made subsequent to year end. The monthly amount for FY24 was also corrected to return the project to compliance with deposit requirements.

View Audit 13375

Finding 9653 (2023-001)

None 2023

Heights Towers Services Company

TX

HUD Housing Programs Eligibility Reporting

Audit Finding 2023-001: For three tenants selected for testing during the audit, incorrect amounts of tenant income and expenses were used in the computation of tenant rent and HUD assistance. Response: Management has prepared recertifications for the tenants found to have inaccurate calculations d...

Audit Finding 2023-001: For three tenants selected for testing during the audit, incorrect amounts of tenant income and expenses were used in the computation of tenant rent and HUD assistance. Response: Management has prepared recertifications for the tenants found to have inaccurate calculations during the audit. Additionally, management will conduct a review of the tenant and HUD assistance for all move-in tenants and prepare recertifications in case of errors. Training and experience will also improve the accuracy of the staff handling tenant certifications. Responsible Party:Linda G. Holder, Vice President/COO/Agent, Houston Housing Management Corporation, 2211 Norfolk, Suite 614,Houston, TX 77098

View Audit 13353

Finding 9651 (2023-002)

Material Weakness 2023

Pono Homes, Inc.

MD

Questioned Costs Cash Management HUD Housing Programs

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements. Action Taken: The Organization did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account...

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements. Action Taken: The Organization did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to pay back excess residual receipts.

View Audit 13330 Questioned Costs: $1

Finding 9650 (2023-001)

Material Weakness 2023

Pono Homes, Inc.

MD

Questioned Costs HUD Housing Programs Reporting

Recommendation: In conjunction with Pono Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Pono Homes, Inc. should pay the invoice amount on a monthly basis.Action Taken: The audi...

Recommendation: In conjunction with Pono Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Pono Homes, Inc. should pay the invoice amount on a monthly basis.Action Taken: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties agreed with the recommendation to avoid unauthorized distributions.

View Audit 13330 Questioned Costs: $1

Finding 9648 (2023-001)

Material Weakness 2023

The Shire, Inc.

MD

Questioned Costs HUD Housing Programs Reporting

Recommendation: In conjunction with The Shire, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, The Shire, Inc. should pay the invoice amount on a monthly basis. Action Taken: The audi...

Recommendation: In conjunction with The Shire, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, The Shire, Inc. should pay the invoice amount on a monthly basis. Action Taken: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties agreed with the recommendation to avoid unauthorized distributions.

View Audit 13329 Questioned Costs: $1

Finding 9636 (2023-003)

Significant Deficiency 2023

Detroit Housing Commission

MI

HUD Housing Programs Eligibility Subrecipient Monitoring

Finding Number: 2023-003 Condition: Participant files selected for testing did not include complete information to support the participant's income to determine the level of benefits provided. Planned Corrective Action: The Housing Choice Voucher Program will work towards and maintain program compli...

Finding Number: 2023-003 Condition: Participant files selected for testing did not include complete information to support the participant's income to determine the level of benefits provided. Planned Corrective Action: The Housing Choice Voucher Program will work towards and maintain program compliance to ensure we are meeting all regulatory requirements. We will do this through staff hiring and restructuring. Ongoing in- house as well as Industry training to stay current and skilled on all program rules and updates as it pertains to the HCV Program with monthly and weekly reporting and monitoring. DHC understands the challenges outlined above and we have implemented measures to improve, redefine, address, and resolve all items according to HUD best practices. We will continue our ongoing efforts and have measurable goals with set dates and timelines. That will show marked improvement over the next 6-12 months in the following areas.  Reduction of Annual recertifications.  Increased utilization.  Increased PBV potential/new RFP.  PIC error corrective actions.  Increased landlord outreach/landlord Fairs.  Customer Service improvement/Call Center Staffing.  Continued industry training for all HCV Housing Specialist.  HCV Department RFP contract proposal. Contact person responsible for corrective action: Felicia Burris, HCV Interim Director. Anticipated Completion Date: 06/30/2024

View Audit 13310

Finding 9635 (2023-002)

Material Weakness 2023

Detroit Housing Commission

MI

Questioned Costs HUD Housing Programs Subrecipient Monitoring

Finding Number: 2023-002 Condition: Participant files selected for testing did not include complete information to support participant eligibility Planned Corrective Action: Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Ren...

Finding Number: 2023-002 Condition: Participant files selected for testing did not include complete information to support participant eligibility Planned Corrective Action: Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupancy Supervisor. The Department Manager and Supervisor will continue to utilize all Yardi monitoring reports to ensure the Department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where Annual Recertification processes are concerned. Weekly; Department Manager will review the certification pipeline to ensure compliance and follow up with the Housing Specialist to ensure compliance and meeting set weekly and monthly goals and metrics. Contact person responsible for corrective action: Felicia Burris, HCV Program Manager Anticipated Completion Date: 6/30/2023

View Audit 13310 Questioned Costs: $1

Finding 9634 (2023-001)

Material Weakness 2023

Detroit Housing Commission

MI

HUD Housing Programs Subrecipient Monitoring Eligibility

Finding Number: 2023-001 Condition: DHC did not complete fiscal year 2023 recertification. Planned Corrective Action: Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupanc...

Finding Number: 2023-001 Condition: DHC did not complete fiscal year 2023 recertification. Planned Corrective Action: Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupancy Supervisor. The Department Manager and Supervisor will continue to utilize all Yardi monitoring reports to ensure the Department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where Annual Recertification processes are concerned. Weekly; Department Manager will review the certification pipeline to ensure compliance and follow up with the Housing Specialist to ensure compliance and meeting set weekly and monthly goals and metrics. Contact person responsible for corrective action: Felicia Burris, HCV Program Manager Anticipated Completion Date: 6/30/2023

View Audit 13310

Finding 9622 (2023-002)

None 2023

Mahalo Homes, Inc.

MD

Questioned Costs Cash Management HUD Housing Programs

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements. Additionally, the Organization should request approval for current overage. Action Taken: The Organization did not obtain approval to pay back...

Recommendation: Training of staff should be performed to bring staff up to date with the implementation of all residual receipts’ compliance requirements. Additionally, the Organization should request approval for current overage. Action Taken: The Organization did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to pay back excess residual receipts.

View Audit 13307 Questioned Costs: $1

Finding 9621 (2023-001)

Material Weakness 2023

Mahalo Homes, Inc.

MD

Questioned Costs HUD Housing Programs Reporting

Recommendation: In conjunction with Mahalo Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Mahalo Homes, Inc. should pay the invoice amount on a monthly basis. Action Taken: Th...

Recommendation: In conjunction with Mahalo Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Mahalo Homes, Inc. should pay the invoice amount on a monthly basis. Action Taken: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties agreed with the recommendation to avoid unauthorized distributions.

View Audit 13307 Questioned Costs: $1

Finding 9619 (2023-001)

Material Weakness 2023

Rivendell Homes, Inc.

MD

Questioned Costs HUD Housing Programs Reporting

Recommendation: In conjunction with Rivendell Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Rivendell Homes, Inc. should pay the invoice amount on a monthly basis. Action Tak...

Recommendation: In conjunction with Rivendell Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Rivendell Homes, Inc. should pay the invoice amount on a monthly basis. Action Taken: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties agreed with the recommendation to avoid unauthorized distributions.

View Audit 13306 Questioned Costs: $1

Finding 9617 (2023-002)

Material Weakness 2023

Kuleana Gardens, Inc.

MD

Questioned Costs Cash Management HUD Housing Programs

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all residual receipts compliance requirements. Additionally, the Organization should request approval for current overage. Actio...

Recommendation: Training of staff should be performed to bring the staff up to date with the implementation of all residual receipts compliance requirements. Additionally, the Organization should request approval for current overage. Action Taken: Kuleana Gardens, Inc. did not retain approval to pay back the excess residual receipts amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to move money out of the residual receipts account in order to pay the residual receipt note.

View Audit 13303 Questioned Costs: $1

Finding 9616 (2023-001)

Material Weakness 2023

Kuleana Gardens, Inc.

MD

Questioned Costs HUD Housing Programs Reporting

Recommendation: In conjunction with Kuleana Gardens, Inc.. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Kuleana Gardens, Inc.. should pay the invoice amount on a monthly basis. Action Tak...

Recommendation: In conjunction with Kuleana Gardens, Inc.. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Kuleana Gardens, Inc.. should pay the invoice amount on a monthly basis. Action Taken: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties agreed with the recommendation to avoid unauthorized distributions.

View Audit 13303 Questioned Costs: $1

Finding 9614 (2023-002)

None 2023

Lorien Homes, Inc.

MD

Questioned Costs Cash Management HUD Housing Programs

Recommendation: Training of staff should be performed to bring the staff up to date with all residual receipts compliance requirements . Action Taken: Lorien Homes, Inc. did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater th...

Recommendation: Training of staff should be performed to bring the staff up to date with all residual receipts compliance requirements . Action Taken: Lorien Homes, Inc. did not obtain approval to pay back the excess residual receipt amount. This led to the residual receipt account being greater than its compliance amount. The Organization will request approval to pay back excess residual receipts.

View Audit 13299 Questioned Costs: $1

Finding 9613 (2023-001)

Material Weakness 2023

Lorien Homes, Inc.

MD

Questioned Costs HUD Housing Programs Reporting

Recommendation: In conjunction with Lorien Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Lorien Homes, Inc. should pay the invoice amount on a monthly basis. Action Taken: Th...

Recommendation: In conjunction with Lorien Homes, Inc. and their local HUD field office, it was determined that the related party should invoice the Organization for project expenses on a monthly basis. In turn, Lorien Homes, Inc. should pay the invoice amount on a monthly basis. Action Taken: The auditors have worked with the auditee in conjunction with their local HUD field office to determine a course of action. All parties agreed with the recommendation to avoid unauthorized distributions.

View Audit 13299 Questioned Costs: $1

Finding 9588 (2023-001)

Material Weakness 2023

Pierce City School District R-Vi

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN August 11, 2023 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF AGRICULTURE Pierce City School District R-VI respectfully submits the following corrective action plan for the year ended June 30, 2023. Contact information for the individual responsible for the corrective action...

CORRECTIVE ACTION PLAN August 11, 2023 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF AGRICULTURE Pierce City School District R-VI respectfully submits the following corrective action plan for the year ended June 30, 2023. Contact information for the individual responsible for the corrective action: Dr. Kelli Alumbaugh, Superintendent Pierce City School District R-VI 300 N Myrtle Street Pierce City, MO 65723 (417) 476-2555 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2023 The findings from the June 30, 2023, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2023-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr. Kelli Alumbaugh, Superintendent Pierce City School District R-VI

View Audit 13282

Finding 9578 (2023-001)

Material Weakness 2023

Verona R-Vii School District

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN August 14, 2023 U.S. DEPARTMENT OF EDUCATION UNITED STATES DEPARTMENT OF AGRICULTURE Verona School District R-VII respectfully submits the following corrective action plan for the year ended June 30, 2023. Contact information for the individual responsible for the correctiv...

CORRECTIVE ACTION PLAN August 14, 2023 U.S. DEPARTMENT OF EDUCATION UNITED STATES DEPARTMENT OF AGRICULTURE Verona School District R-VII respectfully submits the following corrective action plan for the year ended June 30, 2023. Contact information for the individual responsible for the corrective action: Dr. Tony Simmons, Superintendent Verona School District R-VII 101 E Ella Street Verona, MO 65734 (417) 498-2274 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2023 The findings from the June 30, 2023, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2023-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr. Tony Simmons, Superintendent Verona School District R-VII

View Audit 13269

Finding 9572 (2023-003)

Material Weakness 2023

Northwest Oregon Housing Authority

OR

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

2023-003 Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: The Authority should review their HQS inspection policies to ensure that all inspections are performed timely, and that all necessary documentation is maintained for each inspection. Explanation of disagreement with aud...

2023-003 Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: The Authority should review their HQS inspection policies to ensure that all inspections are performed timely, and that all necessary documentation is maintained for each inspection. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Northwest Oregon Housing Authority has reviewed its inspection policies regarding timely inspections. All units are being scheduled in a biennial cycle. The units noted in this audit all had inspections completed in 2021 or 2022. The units inspected in 2021 have subsequently been inspected (and passed HQS) in 2023, and the units inspected in 2022 are or will be scheduled in 2024, thus resolving this finding. Name(s) of the contact person(s) responsible for corrective action: Sandra Soucie, HCV Manager, HCVManager@nwoha.org Planned completion date for corrective action plan: 1/31/2024 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Hsu-Feng Andy Shaw, Executive Director, at 503-861-0119.

View Audit 13226

Finding 9570 (2023-002)

Significant Deficiency 2023

Northwest Oregon Housing Authority

OR

HUD Housing Programs Eligibility Significant Deficiency

2023-002 Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: The Authority should review their policies to ensure all required documentation is maintained for all individuals who are on the waiting list. Explanation of disagreement with audit finding: There is no disagreement wi...

2023-002 Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: The Authority should review their policies to ensure all required documentation is maintained for all individuals who are on the waiting list. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: NOHA has reviewed its policies regarding documentation maintenance for all individuals on the waiting list. Quality control review of waiting list data entry was put in place after October 2020. The oldest application on the current HCV waiting list is dated 2019. NOHA anticipates this finding may continue until the waiting list application dates reach 10/2020. Name(s) of the contact person(s) responsible for corrective action: Sandra Soucie, HCV Manager, HCVManager@nwoha.org Planned completion date for corrective action plan: 1/31/2024

View Audit 13226

Finding 9568 (2023-001)

Significant Deficiency 2023

Northwest Oregon Housing Authority

OR

Questioned Costs HUD Housing Programs Eligibility

2023-001 Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: The Authority should review their processes for eligibility determination and documentation to ensure all information is properly documented and maintained in the files. Explanation of disagreement with audit finding: T...

2023-001 Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: The Authority should review their processes for eligibility determination and documentation to ensure all information is properly documented 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 Northwest Oregon Housing Authority has reviewed eligibility determination and documentation processes. Staff have received updated training regarding proper data entry of assets and application of COLA. NOHA continues to conduct on-going quality control file reviews to monitor file quality; year to date, approximately 6.5% of transactions have been reviewed. Name(s) of the contact person(s) responsible for corrective action: Sandra Soucie, HCV Manager, HCVManager@nwoha.org Planned completion date for corrective action plan: 1/31/2024

View Audit 13226 Questioned Costs: $1

Corrective Action Plans

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