Corrective Action Plans

Finding 391561 (2023-005)

Significant Deficiency 2023

NY

HUD Housing Programs Internal Control / Segregation of Duties Eligibility § 200.303

Finding No. 2023-005 Department(s): New York City Human Resources Administration Program(s): Assistance Listing Numbers 14.241, Housing Opportunities for Persons with AIDS (HOPWA) Corrective Action(s): HASA will enhance its data management system to flag housing units where rent amounts are repor...

Finding No. 2023-005 Department(s): New York City Human Resources Administration Program(s): Assistance Listing Numbers 14.241, Housing Opportunities for Persons with AIDS (HOPWA) Corrective Action(s): HASA will enhance its data management system to flag housing units where rent amounts are reportedly above the prevailing Fair Market Rent (FMR) limits per bedroom size, and document follow up activities accordingly. Staff will continue to review support documentation during monitoring visits to ensure client rent calculations are current and accurately completed. HASA will continue facilitating monthly technical assistance meetings and convene training sessions with housing providers to address emerging issues and contract compliance findings from monitoring visits. Anticipated Completion Date: April 1, 2024 and ongoing Person(s) Responsible for Implementation: Xiomara Pamela Farquhar, Assistant Deputy Commissioner farquharx@hra.nyc.gov

View Audit 302042

Finding 391557 (2023-003)

None 2023

The City of New York

NY

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

Finding No. 2023-003 Department(s): New York City Department of Human Resources Administration Program(s): Assistance Listing Number 14.231, Emergency Solutions Grants Program Corrective Action(s): The oversight in 2022 (regarding obligation of the 2021 grant) occurred prior to the initiation of...

Finding No. 2023-003 Department(s): New York City Department of Human Resources Administration Program(s): Assistance Listing Number 14.231, Emergency Solutions Grants Program Corrective Action(s): The oversight in 2022 (regarding obligation of the 2021 grant) occurred prior to the initiation of the Corrective Action Plan implemented to strengthen the internal controls based on the FY 2022 Single Audit finding (regarding obligation of the 2020 grant). As indicated in our response to the FY 2022 finding, we will ensure in the future that we strengthen our internal controls to ensure that 100% of the total ESG grant amount is obligated within 180 days of the signed grant agreement. This will include an added layer of review by the Associate Commissioner of Homeless Policy and Innovation, who oversees the unit that obligates the funds in IDIS. Additionally, as communicated in the ICQ, Federal Homeless Policy and Reporting (“FHPR”) and Finance have detailed the following process: • FHPR will notify Finance when the new ESG funding is awarded and the total amount. • Finance will contact OMB to share that a new award was announced and to expect an updated FY budget construct. • FHPR will work with Programs to confirm funding allocations and will send an updated construct to Finance. • Finance will share updated construct with OMB. • FHPR will use updated construct to complete all funding obligations in IDIS. • FHPR will set progressive reminders following ESG award announcements to ensure the 180-day deadline is met. Going forward, these activities and action steps will be completed by a dedicated ESG staff person working within the FHPR team. This new position was created and posted, and a candidate was selected in late 2023; we expect to onboard the selected candidate shortly. Anticipated Completion Date: May 1, 2024 Person(s) Responsible for Implementation: Martha Kenton, Executive Director, Continuum of Care kentonm@dss.nyc.gov 929-221-6283 ESG Project Manager, candidate currently in the onboarding process

View Audit 302042

Finding 391467 (2023-003)

None 2023

City of Westminster, Maryland

MD

Questioned Costs HUD Housing Programs

The Director of Housing confirmed with a HUD representative that the "General Depository Agreement," HUD Form 51999 (GDA) with an expiration date of 08/31/2023 is the most recent HUD form. The city is currently working with the bank to obtain signatures/execute the form. The Director of Housing will...

The Director of Housing confirmed with a HUD representative that the "General Depository Agreement," HUD Form 51999 (GDA) with an expiration date of 08/31/2023 is the most recent HUD form. The city is currently working with the bank to obtain signatures/execute the form. The Director of Housing will notify the Finance Director when the current form expires and the Finance Director will ensure a new depository agreement is signed.

View Audit 301948 Questioned Costs: $1

Finding 391235 (2023-005)

Significant Deficiency 2023

City and County of Honolulu

HI

Reporting HUD Housing Programs

Finding No. 2023-005: Eligibility (Significant Deficiency - Internal Control Over Compliance) Federal Award: 17.258, 17.259, 17.278 - WIOA Cluster Audit Recommendation: We recommend the City be more diligent in following its policies and procedures for tracking, documenting and performing its ex...

Finding No. 2023-005: Eligibility (Significant Deficiency - Internal Control Over Compliance) Federal Award: 17.258, 17.259, 17.278 - WIOA Cluster Audit Recommendation: We recommend the City be more diligent in following its policies and procedures for tracking, documenting and performing its exit processes. Administration’s Comments: The City will adhere to established policies and procedures for effectively tracking, documenting and executing its exit processes. The "Exit & Follow Up Services Form" will undergo revision to incorporate the following statement and signature line: "This form has been reviewed and approved by the WIOA Manager." Anticipated Completion Date: March 31, 2024 Contact Person(s): Leinaala Nakamura, Department of Community Services, Program Administrator Lee Ann Williams-Naelo, Department of Community Services, Job Resource Specialist V

View Audit 301866

Finding 391231 (2023-003)

Significant Deficiency 2023

City and County of Honolulu

HI

HUD Housing Programs Period of Performance Program Income

Finding No. 2023-003: Period of Performance (Significant Deficiency - Internal Control Over Compliance) Federal Award: 14.218 - CDBG – Entitlement Grants Cluster Audit Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard spe...

Finding No. 2023-003: Period of Performance (Significant Deficiency - Internal Control Over Compliance) Federal Award: 14.218 - CDBG – Entitlement Grants Cluster Audit Recommendation: We recommend that the City establish procedures to ensure that it complies with the CDBG timeliness standard specified in 24 CFR Section 570.902. In addition, we recommend that the City ensures that it adheres to the workout plan it submitted to HUD. Administration’s Comment: The City will adhere to procedures to comply with the CDBG timeliness standard specified in 24 CFR 570.902. Anticipated Completion Date: May 2024 Contact Person(s): Holly Kawano, Department of Budget and Fiscal Services, Federal Grants Coordinator

View Audit 301866

Finding 391144 (2023-004)

Material Weakness 2023

Alexia Manor Housing Corporation

OH

Questioned Costs Cash Management HUD Housing Programs

Required deposit of surplus cash in the amount of $5,966 into the residual receipts accounts will be made by January 31, 2024. Furthermore, internal controls over residual receipts funding are being strengthened to prevent future non-compliance.

View Audit 301750 Questioned Costs: $1

Finding 391143 (2023-003)

Material Weakness 2023

Alexia Manor Housing Corporation

OH

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Unauthorized withdrawal from the replacement reserve was corrected during the fiscal year. However, internal controls over replacement reserve withdrawals are being strengthened to prevent future non-compliance.

View Audit 301750 Questioned Costs: $1

Finding 391141 (2023-001)

Material Weakness 2023

Alexia Manor Housing Corporation

OH

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

$103,000 to the Project during the fiscal year. Remaining $11,300 included in prepaid expenses will be refunded to the Project by January 31, 2024. Furthermore, internal controls over disbursement of project funds are being strengthened to prevent future non-compliance.

View Audit 301750 Questioned Costs: $1

Finding 391140 (2023-001)

Material Weakness 2023

Lourexis, Inc.

OH

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

(a) Comments on Findings and Recommendations Management concurs with the finding and auditors’ recommendation enhance internal controls to ensure Project funds are only used for Project activities and expenses necessary for the ongoing operation and maintenance of the Project. (b) Action(s) Taken or...

(a) Comments on Findings and Recommendations Management concurs with the finding and auditors’ recommendation enhance internal controls to ensure Project funds are only used for Project activities and expenses necessary for the ongoing operation and maintenance of the Project. (b) Action(s) Taken or Planned Management is aware of the requirements related to use of Project funds. Management refunded to the Project $190,000 on January 31, 2023 and $279,000 on December 20, 2023. Remaining $8,640 included in prepaid expenses will be refunded to the Project by January 31, 2024. Furthermore, internal controls over disbursement of project funds are being strengthened to prevent future non-compliance.

View Audit 301749 Questioned Costs: $1

Finding 391124 (2023-011)

Material Weakness 2023

State of Iowa

IA

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

The Department will work with the U.S. Department of Education to identify appropriate steps for resolution. In addition, Department leadership directed ESEA and federal grants management training for the Bureau of Federal Programs and all other relevant department staff, which will provided by the...

The Department will work with the U.S. Department of Education to identify appropriate steps for resolution. In addition, Department leadership directed ESEA and federal grants management training for the Bureau of Federal Programs and all other relevant department staff, which will provided by the Council for Chief State Schools Officer’s Federal Education Group beginning in April of 2024.

View Audit 301710 Questioned Costs: $1

Finding 390930 (2023-015)

Significant Deficiency 2023

State of Louisiana

LA

Special Tests & Provisions HUD Housing Programs Reporting

Dear Mr. Waguespack: The Department is in receipt of your single audit finding entitled "Untimely Submission of Summary of Samples and Test Results Form". I appreciate the opportunity to respond to the finding and also to have my response letter included as an attachment in the final report. The D...

Dear Mr. Waguespack: The Department is in receipt of your single audit finding entitled "Untimely Submission of Summary of Samples and Test Results Form". I appreciate the opportunity to respond to the finding and also to have my response letter included as an attachment in the final report. The Department concurs with the finding. While the Department has not identified any Quality Assurance issues with projects, the final documents were not submitted timely which could cause a delay in validating that the sampling and test results were completed in accordance with our requirements. Document submittal must be made by either the DOTD Project Engineers; District Lab Engineers; Construction, Engineering & Inspection (CEI) Consultants; or local entities, depending on contract. DOTD will investigate and pursue the following possible corrective actions as a plan to address the issues identified for each contract type. • The Local Public Agency (LPA) training will be developed as an online training that can be accessed remotely, in addition to the in person training currently offered. All entities and CEI Consultants will be required to provide proof of completion of this mandatory LPA training prior to CEI contract award. This will ensure all responsibilities for the contract holder are defined prior to project, including the requirement to submit all paperwork in a timely manner and potential ramifications. • DOTD will update the Louisiana Standard Specifications for Roads and Bridges book to document that the Department reserves the right to not pay for quantities installed if all required paperwork is not submitted by the contractor. • Project Engineers will be instructed to hold future payments for projects where appropriate paperwork was not received. • LPA contracts will be adjusted to include language that DOTD will be allowed to withhold retainage until all Final estimates and 2059 packages are submitted. • DOTD Construction will continue to pursue improvements to fully implement Headlight Materials and all accompanying modules to automate and oversee real time status updates of the QA/QC process. • DOTD Construction will review the Construction Contracts Administration Manual to determine appropriate internal timeline requirements for document submittals based on the legal requirements for all documents types. • All action plan items will be discussed at the District Administrator meetings and at all Shade Tree meetings with Consultants. • District Project Engineers who routinely appear on the project aging report disseminated by Construction will have performance goals and metrics added to their Performance Evaluation System (PES) and/or the soon to be rolled out SuccessFactors documentation. Mr. Michael Vosburg, Deputy Chief Engineer, will be responsible for pursuit of the Construction related initiatives above and implementation of those which are deemed feasible. Mr. M. Todd Donmyer, Assistant Secretary of Operations, will be responsible for pursuit of the Operations related initiatives above and implementation of those deemed feasible. Implementation dates will be ongoing as we review the related internal policies, processes and procedures to determine viability and will be tracked internally once established. Thank you for the opportunity to respond to this audit finding and to have this Management Response Letter included in the final audit report. Please feel free to contact me at (225) 379-1200 or Don Johnson, Undersecretary, at (225) 379-1270, should you have any questions.

View Audit 301612

Finding 390928 (2023-014)

Significant Deficiency 2023

State of Louisiana

LA

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

Dear Mr. Waguespack: The Department is in receipt of your single audit finding entitled "Inadequate Controls over and Noncompliance with Wage Rate Requirements". I appreciate the opportunity to respond to the finding and also to have my response letter included as an attachment in the final report....

Dear Mr. Waguespack: The Department is in receipt of your single audit finding entitled "Inadequate Controls over and Noncompliance with Wage Rate Requirements". I appreciate the opportunity to respond to the finding and also to have my response letter included as an attachment in the final report. The Department concurs with the finding. We plan to implement all corrective actions by April 30, 2024. Ms. Paula Roddy, Compliance Programs Director, will be responsible for ensuring implementation for all Compliance related matters. Mr. M. Todd Donmyer, Assistant Secretary of Operations, will be responsible for ensuring implementation for all Operations related matters. The following are our corrective action plans for each of the issues noted: • To address the exceptions identified with DOTD's compliance with the Copeland Act ensuring that contractor's estimates are only approved after all required payrolls for the service period are submitted, we offer the following control enhancements: o Compliance Programs will update the Labor Compliance Manual to add the Estimate Approval Process with specific instructions for the following Construction phases of a project: • Assembly Period 1st estimate • Zero Dollar estimate • Project estimate (payroll coverage needed to approve) • 30-day estimate • 30 plus day estimate • Closeout estimate o Responsible Compliance Programs employee and backup will be trained on Manual updates o Compliance Programs will discuss these requirements at any Project Engineer and District Administrator meetings section personnel attend, as well as at the annual shade tree meetings, when possible. • To address the exceptions identified with compliance with DOTD's policy for site interviews for Davis-Bacon eligible projects, we offer the following control enhancements: o The Office of Operations will develop a District by District process to schedule, coordinate, and follow-up with their respective Project Engineers to ensure site interviews are performed, signed, and scanned into the system of record. Additionally, part of this process will be to develop an internal audit process to ensure the controls implemented are working effectively. o Compliance Programs will work with the Enterprise Support Services to develop a report identifying all Davis-Bacon eligible projects. This list will be communicated on an ongoing basis to the responsible District personnel and will be used by the Labor Compliance Manager to perform spot audits for compliance. Any areas of deficiency should be addressed or exceptions documented accordingly. o Compliance Programs will discuss these requirements at any Project Engineer and District Administrator meetings section personnel attend, as well as at the annual shade tree meeting when possible. Thank you for the opportunity to respond to this audit finding and to have this Management Response Letter included in the final audit report. Please feel free to contact me at (225) 379-1200 or Don Johnson, Undersecretary, at (225) 379-1010, should you have any questions.

View Audit 301612

Finding 390901 (2023-004)

None 2023

State of Louisiana

LA

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) has reviewed the finding “Improper Employee Activity in Federal Program”. The Department concurs with the finding and continues to prioritize prevention and detection of improper activity associated with programs it administ...

Dear Mr. Waguespack: The Department of Children and Family Services (DCFS) has reviewed the finding “Improper Employee Activity in Federal Program”. The Department concurs with the finding and continues to prioritize prevention and detection of improper activity associated with programs it administers. The Fraud and Recovery Unit (FRU) investigated two employees for suspected payroll fraud. The FRU determined that one employee received wages from DCFS and a secondary employer for the same hours worked. DCFS is pursuing recoupment of wages paid for the duplicative hours and will seek recoupment of funds in the amount $875.00 from this employee. DCFS is conducting additional inquiries related to the other employee’s suspected activities to determine the actual loss to the agency and will proceed accordingly. Both employees are no longer employed with the Department. DCFS will continue to investigate improper employee activities and emphasize the consequences of illegal acts. If you have any questions, please contact Rhonda Brown, Fraud and Recovery Unit Director, at Rhonda.Brown.DCFS@LA.GOV.

View Audit 301612 Questioned Costs: $1

Finding 390900 (2023-002)

None 2023

Lutheran Housing Services, Inc. No.3 Dba Luther Oaks 042-11109-Wah-L8

OH

Procurement, Suspension & Debarment Subrecipient Monitoring HUD Housing Programs

Condition: The Organization did not comply with the regulatory agreement requirement to have a security deposit cash account that meets or exceeds the security deposit liability account. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measure...

Condition: The Organization did not comply with the regulatory agreement requirement to have a security deposit cash account that meets or exceeds the security deposit liability account. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management will deposit funds to the security deposit cash account in order to meet the regulatory agreement requirement. Contact person responsible for corrective action: Lorinda Schalk, Chief Financial Officer / Treasurer Anticipated Completion Date: March 31, 2024

View Audit 301609

Finding 390899 (2023-001)

None 2023

Lutheran Housing Services, Inc. No.3 Dba Luther Oaks 042-11109-Wah-L8

OH

HUD Housing Programs Internal Control / Segregation of Duties Procurement, Suspension & Debarment

Condition: The Organization failed to make, on a monthly basis, the required reserve for replacements deposits in the amounts specified in the subsequent amendments to required deposit amounts approved by HUD. Planned Corrective Action: Management detected the error and worked with the Organization'...

Condition: The Organization failed to make, on a monthly basis, the required reserve for replacements deposits in the amounts specified in the subsequent amendments to required deposit amounts approved by HUD. Planned Corrective Action: Management detected the error and worked with the Organization's lender to calculate and remit a corrective deposit in the current fiscal year to catch-up previously underfunded amounts. Management acknowledges noncompliance and has taken measures to improve internal controls over compliance. Contact person responsible for corrective action: Lorinda Schalk, Chief Financial Officer / Treasurer Anticipated Completion Date: March 31, 2024

View Audit 301609

Finding 390898 (2023-001)

None 2023

Lutheran Housing Svcs, Inc. No. 1 D/b/a Luther Pines 043-35588

OH

HUD Housing Programs Internal Control / Segregation of Duties

Condition: The Organization failed to make, on a monthly basis, the required reserve for replacements deposits in the amounts specified in the subsequent amendments to required deposit amounts approved by HUD. Planned Corrective Action: Management detected the error and worked with the Organization'...

Condition: The Organization failed to make, on a monthly basis, the required reserve for replacements deposits in the amounts specified in the subsequent amendments to required deposit amounts approved by HUD. Planned Corrective Action: Management detected the error and worked with the Organization's lender to calculate and remit a corrective deposit in the current fiscal year to catch-up previously underfunded amounts. Management acknowledges noncompliance and has taken measures to improve internal controls over compliance. Contact person responsible for corrective action: Lorinda Schalk, Chief Financial Officer / Treasurer Anticipated Completion Date: March 31, 2024

View Audit 301608

Finding 390867 (2023-001)

Significant Deficiency 2023

Saugatucket Spring INC

RI

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan United States Department of Housing and Urban Development Saugatucket Springs, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 0286...

Corrective Action Plan United States Department of Housing and Urban Development Saugatucket Springs, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Audit period covered: 7/1/2022-6/30/2023 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. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: Section 202 Project Rental Assistance—Assistance Listing # 14.157 Recommendation: The Partnership should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Action Taken: Management is in agreement with the auditors’ findings. Management has instructed all accounting personnel to review all matters related to tenant compliance. If the United States Department of Housing and Urban Development has questions regarding this plan, please call Frank Shea at (401) 296-3761.

View Audit 301572

Finding 390866 (2023-001)

Significant Deficiency 2023

Wildberry Apartments, INC

RI

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan United States Department of Housing and Urban Development Wildberry Apartments, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 028...

Corrective Action Plan United States Department of Housing and Urban Development Wildberry Apartments, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Audit period covered: 7/1/2022-6/30/2023 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. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-001: Section 202 Project Rental Assistance—Assistance Listing # 14.157 Recommendation: The Partnership should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Action Taken: Management is in agreement with the auditors’ findings. Management has instructed all accounting personnel to review all matters related to tenant compliance. If the United States Department of Housing and Urban Development has questions regarding this plan, please call Frank Shea at (401) 296-3761.

View Audit 301563

Finding 390771 (2023-003)

Significant Deficiency 2023

Housing and Redevelopment Authority of Wadena

MN

Subrecipient Monitoring HUD Housing Programs

FINDING: 2023-003- Housing Voucher Cluster, CFDA No. 14.871 and 14.879 - Inspections Recommendation: We recommend that management retain a list of properties that fail an inspection and subsequent documentation showing the dates of re-inspection and the results of subsequent inspections. Actions Pla...

FINDING: 2023-003- Housing Voucher Cluster, CFDA No. 14.871 and 14.879 - Inspections Recommendation: We recommend that management retain a list of properties that fail an inspection and subsequent documentation showing the dates of re-inspection and the results of subsequent inspections. Actions Planned/Taken in Response to Finding: Wadena HRA is beginning to place failed inspections in our MRI software as a reminder to follow-up on inspections and document the results of the follow up inspection in the software, and file. This new process will help ensure follow up inspections are documented. Contact Person Responsible for Corrective Action: Maria Marthaler, Executive Director Planned Completion Date : June 30, 2024

View Audit 301489

Finding 390729 (2023-003)

None 2023

Clay County Board of Education

WV

Allowable Costs / Cost Principles HUD Housing Programs Reporting

#2303-003 Reporting of Time and Effort US Department of Education Title I Grants to Local Educational Agencies AL#84.010 ...

#2303-003 Reporting of Time and Effort US Department of Education Title I Grants to Local Educational Agencies AL#84.010 Recommendation: We recommend that the Clay County Board of Education's Title I Department implement procedures to accurately document and maintain the "Time and Effort" Documentation of all employees funded with federal funding, as required. Action Taken: The Title I Department of the Clay County Board of Education will implement procedures to ensure that "Time and Effort" Documentation and records are adequately maintained, as required for all applicable employees. Jennifer R. Paxton, CPA/Treasurer, and the Title I Director are responsible for implementing these procedures immediately.

View Audit 301414

Finding 390716 (2023-006)

Significant Deficiency 2023

Housing Authority of the City of Hope

AR

Eligibility HUD Housing Programs

Condition and Criteria: The Authority’s purpose for existence is providing decent safe and affordable housing to low-income persons. The PHA should establish and maintain policies for the selection of tenants from the waiting list. As documented in the CMR, the PHA did not properly maintain its wa...

Condition and Criteria: The Authority’s purpose for existence is providing decent safe and affordable housing to low-income persons. The PHA should establish and maintain policies for the selection of tenants from the waiting list. As documented in the CMR, the PHA did not properly maintain its waiting list. In addition, the PHA is required to obtain an executed General Depository Agreement for all bank accounts. Tenants were selected and traced to the waiting list. However, as documented in the CMR, the waiting list did not include applicants that had been ineligible when they originally applied. We also were not provided with an executed General Depository Agreement. Due to the change in management, some bank accounts have not been able to update the authorized signers on the accounts. Auditor’s Recommendation: The Authority should update its waiting list requirements and ensure that applicants are selected in the proper order. The PHA should obtain the required General Depository Agreement and make sure that current management and board members have access to all bank accounts. Grantee Response: We will comply with the auditor’s recommendation. Anticipated Completion Date: June 30, 2024

View Audit 301395

Finding 390715 (2023-005)

Significant Deficiency 2023

Housing Authority of the City of Hope

AR

HUD Housing Programs Eligibility

Condition and Criteria: The Authority’s purpose for existence is providing decent, safe, and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of ren...

Condition and Criteria: The Authority’s purpose for existence is providing decent, safe, and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent assistance to be paid on the family’s behalf. HUD regulations prescribe the content of these family files. These requirements consist of the following: f. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility.g. For both family income examinations and reexaminations, obtain and document in the family file third party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent.h. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. i. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies.j. Re-examine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary.We selected twenty public housing tenant files for testing, but the Authority was not able to locate one of the requested files. It appears that the utility allowances had not been reviewed during the fiscal year as required by HUD standards. Auditor’s Recommendation: All files should be maintained and available for review. Utility allowances should be studied to determine if a change should be made. Grantee Response: We will comply with the auditor’s recommendation. We are currently making changes related to our response to the CMR. We have completed our utility allowance study and implemented the new allowance amounts. Anticipated Completion Date: June 30, 2024

View Audit 301395

Finding 390714 (2023-004)

Material Weakness 2023

Housing Authority of the City of Hope

AR

Questioned Costs Procurement, Suspension & Debarment HUD Housing Programs

Condition and Criteria: PHA and HUD procurement policies require the documentation of the bid process in varying degrees based on the size of the contract or purchase. The PHA is also required to include Davis Bacon requirements in the contracts and monitor its compliance by the contractors. The C...

Condition and Criteria: PHA and HUD procurement policies require the documentation of the bid process in varying degrees based on the size of the contract or purchase. The PHA is also required to include Davis Bacon requirements in the contracts and monitor its compliance by the contractors. The CMR cited disbursements without procurement files totaling $226,057.43. During the audit, we were not provided with copies of the procurement records for these contracts. It also appears that the Davis Bacon standards were not included in the contracts and, as a result, those standards were not monitored.Auditor’s Recommendation: Documentation of expenses and the related procurement should be maintained and accessible for review. In addition, contracts should include Davis Bacon requirements and those requirements should be monitored by the Authority. Grantee Response: We are scheduling training for our staff related to the procurement and contract requirements and will begin better documenting both the procurement and the monitoring. Anticipated Completion Date: June 30, 2024

View Audit 301395 Questioned Costs: $1

Finding 390712 (2023-002)

Significant Deficiency 2023

Housing Authority of the City of Hope

AR

HUD Housing Programs Eligibility

Condition and Criteria: The Authority’s purpose for existence is providing decent, safe, and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of ren...

Condition and Criteria: The Authority’s purpose for existence is providing decent, safe, and affordable housing to low-income persons. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent assistance to be paid on the family’s behalf. HUD regulations prescribe the content of these family files. These requirements consist of the following:a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. c. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies. e. Re-examine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary.Testing of ten HCV family files, it appeared the housing assistance payments were being computed correctly based on documentation in the file. However, and based on results from the CMR, it appears that incorrect payment standards and outdated utility allowance forms were being used in the computations. Auditor’s Recommendation: A thorough review of tenant files should be performed for the purpose of eliminating the deficiencies. Utility allowances should be studied and determined if a change should be made. Payment standards should be approved and consistently applied. Grantee Response: We will comply with the auditor’s recommendation. We are currently making changes related to our response to the CMR. We have completed our utility allowance study and implemented the new allowance amounts. Anticipated Completion Date: June 30, 2024

View Audit 301395

Finding 390711 (2023-001)

Significant Deficiency 2023

Housing Authority of the City of Hope

AR

HUD Housing Programs Eligibility Special Tests & Provisions

Condition and Criteria: The Authority’s purpose for existence is providing decent safe and affordable housing to low-income persons. As such, HUD requires the Authority to comply with special tests and provisions relating to its Housing Choice Voucher program. The Authority must inspect the unit le...

Condition and Criteria: The Authority’s purpose for existence is providing decent safe and affordable housing to low-income persons. As such, HUD requires the Authority to comply with special tests and provisions relating to its Housing Choice Voucher program. The Authority must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control re-inspections. The Authority must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). In addition, the PHA is required to obtain an executed General Depository Agreement for all bank accounts. During our testing of 10 HCV tenant files, we noted annual HQS inspections for all the tested units. However, the Authority did not perform the required quality control re-inspections. Tenants were selected and traced to the waiting list. However, as documented in the CMR, the waiting list did not include applicants that had been ineligible when they originally applied. We also were not provided with an executed General Depository Agreement. Due to the change in management, some bank accounts have not been able to update the authorized signers on the accounts. Auditor’s Recommendation: The Authority should perform housing quality control re-inspections according to HUD guidelines. The Authority should update its waiting list requirements and ensure that applicants are selected in the proper order. The PHA should obtain the required General Depository Agreement and make sure that current management and board members have access to all bank accounts. Grantee Response: We will comply with the auditor’s recommendation. Anticipated Completion Date: June 30, 2024

View Audit 301395

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