Corrective Action Plans

Finding 390562 (2023-004)

Significant Deficiency 2023

City of Lynwood

CA

Internal Control / Segregation of Duties Subrecipient Monitoring HUD Housing Programs

2023-004 Reporting – Internal Control and Compliance Over Reporting City’s Response City concurs with this recommendation. Corrective Action Plan: Gabriel Linares, Director of Community Development, will enhance the department’s policy/desk procedure to ensure timely filing of the CAPER and Sect...

2023-004 Reporting – Internal Control and Compliance Over Reporting City’s Response City concurs with this recommendation. Corrective Action Plan: Gabriel Linares, Director of Community Development, will enhance the department’s policy/desk procedure to ensure timely filing of the CAPER and Section 15011 reports starting Quarter Four, FY2023-24.

View Audit 301327

Finding 390552 (2023-005)

Significant Deficiency 2023

Wilberforce University

OH

Student Financial Aid Matching / Level of Effort / Earmarking Eligibility

Views of Responsible Officials and Planned Corrective Actions: Management agrees with the auditors and has initiated the necessary corrective action plan to mitigate the deficiency from occurring again. The plan is to implement new procedures to ensure the reporting to the NSLDS is done on a timely ...

Views of Responsible Officials and Planned Corrective Actions: Management agrees with the auditors and has initiated the necessary corrective action plan to mitigate the deficiency from occurring again. The plan is to implement new procedures to ensure the reporting to the NSLDS is done on a timely basis. Implementation date: Immediately. Persons Responsible: Vice President of Business & Finance, the Registrars Office and the Director of Student Financial Aid.

View Audit 301315

Finding 390550 (2023-001)

Significant Deficiency 2023

Suffolk Redevelopment and Housing Authority

VA

HUD Housing Programs Eligibility Significant Deficiency

Finding No. 2023-001 Housing Choice Voucher: Tenant Eligibility – Significant Deficiency Contact Person: Ronald Jackson, Interim Executive Director/CEO CORRECTIVE ACTION: New Admission EIV compliance • SRHA has procured professional services for Quality Control and Consulting. The Nelrod Comp...

Finding No. 2023-001 Housing Choice Voucher: Tenant Eligibility – Significant Deficiency Contact Person: Ronald Jackson, Interim Executive Director/CEO CORRECTIVE ACTION: New Admission EIV compliance • SRHA has procured professional services for Quality Control and Consulting. The Nelrod Company was selected. The agency intends to work with this firm to setup a Quality Control program and establish stronger internal controls. • SRHA will add a Compliance/QC position to monitor all aspects of the agency’s operations to ensure compliance. • SRHA has engaged with the Nelrod Company to review and establish a quality control system for the Project Based Voucher program to include vouchers currently controlled by the separate entity Whitemarsh Pointe Eagle Landing. The Quality Control position in its Administration department will monitor and perform program compliance. TARGET DATE: April 15, 2024

View Audit 301308

Finding 390544 (2023-002)

Significant Deficiency 2023

Wallingford-Swarthmore School District

PA

HUD Housing Programs Material Weakness Reporting

Management’s Response: Management will implement safeguards to ensure responsible business office employees are held accountable for following procedures to ensure timely and complete monthly and annual financial reporting.

View Audit 301299

Finding 390524 (2023-001)

None 2023

Mission Housing Authority

TX

Questioned Costs HUD Housing Programs

Corrective Action Plan - Past due tenant accounts receivable. Contact person - Executive Director. Corrective action planned - The PHA is working to obtain workout agreements on all past due balances. Anticipated completion date - Within the next fiscal year.

View Audit 301280 Questioned Costs: $1

Finding 390434 (2023-004)

Material Weakness 2023

High Street Homes Inc.

MD

HUD Housing Programs

Contact person: Katherine Dannenfelser, Director of Finance Recommendation: We recommend that management ensure the HUD contract renewal application is completed accurately and submitted timely in order to receive HUD approval at the start of the fiscal year. This is extremely important to ensure t...

Contact person: Katherine Dannenfelser, Director of Finance Recommendation: We recommend that management ensure the HUD contract renewal application is completed accurately and submitted timely in order to receive HUD approval at the start of the fiscal year. This is extremely important to ensure the timely submission of the audited financial statements to REAC. Corrective Action: Upper Bay Counseling and Support Services, Inc. will have Senior Management and Financial staff working together via scheduled internal meetings to ensure the HUD approval at the start of the fiscal year is obtained. The contract renewal application and required follow up will be on the agendas of the internal HUD meetings. Proposed Completion Date: Management is implementing the above recommendation. UPDATE – as of March 20, 2024 this process is in place now as we plan to submit this information within the next few days. Thus this is considered implemented as we are working with various staff to ensure a timely and accurate submission in next few days.

View Audit 301234

Finding 390433 (2023-003)

Material Weakness 2023

High Street Homes Inc.

MD

HUD Housing Programs

Contact person: Katherine Dannenfelser, Director of Finance Recommendation: The Project should accurately maintain the monthly rental schedule and reconcile the HUD voucher activity and tenant payments to the general ledger and bank statements. The rental activity should be reconciled monthly and t...

Contact person: Katherine Dannenfelser, Director of Finance Recommendation: The Project should accurately maintain the monthly rental schedule and reconcile the HUD voucher activity and tenant payments to the general ledger and bank statements. The rental activity should be reconciled monthly and the Director of Finance should review the rental schedule monthly to ensure the reconciliation is accurate and all activity is properly accounted for during the year. Corrective Action: Upper Bay Counseling and Support Services, Inc. will implement monthly HUD financial meetings providing the oversight and review needed. Financial staff will submit a report to Senior Management of HUD financial matters on a regular basis. Proposed Completion Date: Management is implementing the above recommendation. UPDATE – March 20, 2024 A financial reporting package is in the process of being developed. There are regular monthly sessions between the Clinical and Financial staff to discuss financial matters. Thus, this is considered implemented.

View Audit 301234

Finding 390432 (2023-002)

Material Weakness 2023

High Street Homes Inc.

MD

HUD Housing Programs Reporting

Contact person: Katherine Dannenfelser, Director of Finance Recommendation: Replacement reserve account should be reconciled monthly and reviewed to ensure all required deposit activity is made and there are no unapproved withdrawals from the account. Corrective Action: Upper Bay Counseling and S...

Contact person: Katherine Dannenfelser, Director of Finance Recommendation: Replacement reserve account should be reconciled monthly and reviewed to ensure all required deposit activity is made and there are no unapproved withdrawals from the account. Corrective Action: Upper Bay Counseling and Support Services, Inc. will implement monthly reporting of Replacement Reserve Account and other HUD information as part of an effort to improve internal financial reporting overall. Proposed Completion Date: Management is implementing the above recommendation. UPDATE-March 20, 2024 – This reporting requirement will be included in financial reporting package being developed. Information is being communicated in monthly meetings and emails as we have increased communication between Clinical and Financial staff. Anticipate supplemental schedules being added to basic financial package on or before June 30, 2023. Moving monthly amount for Reserves during March 2024 and will move on the first few business days of every month going forward.

View Audit 301234

Finding 390431 (2023-007)

Material Weakness 2023

Housing Authority of the City of Salina

KS

HUD Housing Programs

To adjust as soon as possible and ensure it is not an issue in the future.

View Audit 301229

Finding 390409 (2023-001)

Significant Deficiency 2023

Housing Authority of the City of Jacksonville

AR

HUD Housing Programs 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)). During our testing of 40 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.Auditor’s Recommendation: The Authority should perform housing quality control re-inspections according to HUD guidelines. Anticipated Completion Date: June 30, 2024

View Audit 301213

Finding 390401 (2023-002)

Significant Deficiency 2023

Livingstone College

NC

Student Financial Aid Matching / Level of Effort / Earmarking Allowable Costs / Cost Principles

Finding 2023-002 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Deficiency): We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs a) One (1) out of six (6) stu...

Finding 2023-002 – U.S. Department of Education (USDE), Title IV Student Financial Aid Programs (Deficiency): We observed the following conditions in connection with our testing of the various U.S. Department of Education, Title IV, Student Financial Assistance Programs a) One (1) out of six (6) students tested for R2T4 did not have Title IV funds returned to the Federal government within the required 45 days. Title IV HEA 34 CFR 668.22. b) The College was not reconciling between Financial Aid and Business Office on the monthly basis per SFA Handbook Ch. 5 CFR668.161-668.176. Auditor’s Recommendation – We recommend that the College ensure adequate documentation is obtained and kept on file as evidence that all expenditures meet allowable cost and other requirements under the grant program. Corrective Action – Management agrees with this finding. The College will place additional emphasis on the R2T4 of funds. Management is reviewing the timing of presentation of situations to Financial Aid that require returning funds to the Department. Additional focus will be placed on procedures to timely report withdraws to Financial Aid to support returned funds in the required 45 days. In addition, the College prepares monthly reconciliations between Financial Aid and the Business Office, but often delayed in completion. Going forward, the reconciliation will be noted on the monthly closing list and requires both the Assistant Vice President of Financial Aid and Controller to sign and date the reconciliation to demonstrate compliance with the monthly requirement.

View Audit 301203

Finding 390384 (2023-001)

Significant Deficiency 2023

Housing Authority of the County of Lonoke

AR

HUD Housing Programs 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)). During our testing of 40 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.Auditor’s Recommendation: The Authority should perform housing quality control re-inspections according to HUD guidelines. Anticipated Completion Date: June 30, 2024

View Audit 301198

Finding 390305 (2023-002)

Significant Deficiency 2023

Memphis Housing Authority

TN

HUD Housing Programs Significant Deficiency Special Tests & Provisions

March 29, 2024 U.S. Department of Housing and Urban Development The Memphis Housing Authority respectfully submits the following corrective action plan for the year ended June 30, 2023. Berman Hopkins Wright & LaHam, CPAs and Associates, LLP 8035 Spyglass Hill Road Melbourne, FL 32940 Audit peri...

March 29, 2024 U.S. Department of Housing and Urban Development The Memphis Housing Authority respectfully submits the following corrective action plan for the year ended June 30, 2023. Berman Hopkins Wright & LaHam, CPAs and Associates, LLP 8035 Spyglass Hill Road Melbourne, FL 32940 Audit period: July 1, 2022 - 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 – FEDERAL AWARDS 2023-002 Special Tests and Provisions - Waiting List Public and Indian Housing Program - AL No. 14.850 Significant deficiency in internal control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of 40 applicants that were selected from the waiting list for testing, 14 lacked documentation to show their current status and whether they were given the opportunity to be housed. In addition, there were difficulties obtaining any historical waiting lists for the Public Housing properties. Auditor’s Recommendations: The Authority should implement archiving procedures for its historical waiting lists on a routine basis. In addition, the Authority should document for proper auditing purposes, those given the opportunity to be housed from the waiting list and their current status. The Authority should provide proper training for all staff at the properties to ensure procedures and policies are being followed consistently across all of the Authority’s Public Housing properties. Action Taken: • MHA will ensure we have a saved copy of all public housing site-based waiting lists. LaTonia Young, Director of Asset Management, will save copies of the waiting list for all Public Housing sites on a monthly basis effective March 28, 2024. Tomecia Brown, Director of Compliance and Training will ensure that all site staff are trained on how to pull from the waiting list during the monthly site staff meeting effective April 23, 2024.

View Audit 301166

Finding 390304 (2023-001)

Significant Deficiency 2023

Memphis Housing Authority

TN

HUD Housing Programs Eligibility Significant Deficiency

2023-001 Eligibility Public and Indian Housing Program - AL No. 14.850 Significant deficiency in internal control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of an approximate population of 2,083 tenants, 44 tenant files were tested and the following def...

2023-001 Eligibility Public and Indian Housing Program - AL No. 14.850 Significant deficiency in internal control Other matter required to be reported in accordance with Uniform Guidance Condition: Out of an approximate population of 2,083 tenants, 44 tenant files were tested and the following deficiencies were noted: • 1 file was missing the support packet for the fiscal year 2023 recertification including but not limited to income support, third party verification, and flat rent sheet, • 3 files had late recertifications, • 2 files were missing support of inspection, • 1 file was missing tenant wage support, and • 1 file was missing a valid 9886 form. Auditor Recommendations: The Authority should consider reevaluating their established procedures and controls in place to ensure full compliance in regards to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Action Taken: • 1 file was missing the support packet for the fiscal year 2023 recertification LaTonia Young, Director of Asset Management, lyoung@memphisha.org, 901-544-1129, is working with the new Community Manager to make the corrections for the missing information no later than April 30, 2024. Going forward Tomecia Brown, Director of Compliance and Training, tbrown1@memhisha.org, 901-544-6402, will continue to conduct file reviews to ensure that the required documentation is in the file. •3 files had late recertifications. We will ensure that all recertifications are completed within 30 – 120 days of the effective date. Tomecia Brown, Director of Compliance and Training, will complete a recertification due review on a monthly basis effective April 1, 2024. • 2 file was missing support of inspection. LaTonia Young, Director of Asset Management, will ensure that all units are inspected on an annual basis. In our monthly site staff meeting, Asset Management will inform staff to ensure that all inspections are in the file. • 1 file was missing tenant wage support. We will have the new Community Manager verify wages and make corrections by April 5, 2024. MHA will be sending the owner a non-compliance letter no later than April 30, 2024. Tomecia Brown, Director of Compliance and Training, will continue to complete file reviews on a monthly basis and train staff on the Public Housing process. • 1 file was missing a valid 9886 form. Tomecia Brown, Director of Compliance and Training, will continue to conduct file reviews to ensure that the HUD 9886 form is in the file for all Public Housing sites effective April 23, 2024.

View Audit 301166

Finding 390193 (2023-002)

None 2023

University of Rochester

NY

Allowable Costs / Cost Principles HUD Housing Programs Reporting

Finding 2023-002: (L) Reporting of Unreimbursed Expenses Attributable to Coronavirus and Lost Revenues within the Health Resources Services Administration (HRSA) Provider Relief Fund Portal Program: COVID-19 - Provider Relief Fund (PRF) and American Rescue Plan (ARP) Distribution Assistance Listing ...

Finding 2023-002: (L) Reporting of Unreimbursed Expenses Attributable to Coronavirus and Lost Revenues within the Health Resources Services Administration (HRSA) Provider Relief Fund Portal Program: COVID-19 - Provider Relief Fund (PRF) and American Rescue Plan (ARP) Distribution Assistance Listing Number: 93.498 Agency: Department of Health and Human Services (HHS) Award Year: 1/1/2023-3/31/2023 Award Number: Not available Management’s Response to Finding: Management acknowledges the Period 4 HRSA Reporting portal submission errors noted. The personnel and supply costs identified at St. James Hospital and Memorial Hospital of William F and Gertrude F Jones Inc. were all allowable and reported in Period 4, but were over- or under-stated in a particular quarter. Management acknowledges that St. James Hospital understated its lost revenue in Reporting Period 4. Management’s Corrective Action Plan: The University is unable to amend the Reporting Period 4 submissions. HRSA has only provided guidance to providers with respect to how to account for unallowable expenses identified in prior reporting periods. The portal submission expense items identified were all allowable expenses, but under- or over- reported in a particular quarter of the Period 4 Reporting. The lost revenue calculation for St. James Hospital was an error in reporting. Since there is no ability to amend the Period 4 reporting for either of these entities, the University will ensure that it documents these corrections in case of future inquiries from the HRSA. As noted above, the URMC Office of the Chief Financial Officer, in support with the Office of University Audit, the Controller’s Office, and the University of Rochester Medical Center (URMC) Office of Integrity and Compliance, conducted enterprise-wide reviews of the HRSA Reporting portal submissions of all University affiliates in FY23 prior to submission to the HRSA. The University will continue to conduct enhanced reviews with respect to its future required portal submissions. Contact person: Adam Anolik, URMC Senior Vice President and CFO, Adam_Anolik@URMC.Rochester.edu

View Audit 301098

Finding 390121 (2023-003)

Significant Deficiency 2023

Integrated Living, Inc.

KS

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

March 26, 2024 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 Audit period: Year ended June 30, 2023 The findings ...

March 26, 2024 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 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. Section I of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS-FINANCIAL STATEMENT AUDIT 2023‐001 Internal Controls over Financial Statement Presentation (Material Weakness) Recommendation: The Board of Directors and management should review the impact of the current year adjustments on the financial reporting process. Once this review is complete, the Organization should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure conformity with U.S. GAAP. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over financial reporting to ensure conformity with U.S. GAAP. John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2024. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2023‐002 Review and Approval of Project Expenditures (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should obtain proper approval of all project expenditures and that evidence of that approval is documented and maintained.. Action Taken (Unaudited): Management is in the process of updating its control procedures to ensure proper approval of all project expenditures. John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2024. 2023‐003 Written Procedures of Internal Control over Compliance (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should develop written policies for the internal control over compliance of federal awards. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over compliance of federal awards John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2024. If HUD has questions regarding this plan, please call Patrick Gardner at 785-242-5035. Sincerely yours, Patrick Gardner CEO, COF Training Services, Inc. (Management Agent of Integrated Living, Inc.)

View Audit 301005

Finding 390120 (2023-002)

Significant Deficiency 2023

Integrated Living, Inc.

KS

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

March 26, 2024 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 Audit period: Year ended June 30, 2023 The findings ...

March 26, 2024 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 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. Section I of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS-FINANCIAL STATEMENT AUDIT 2023‐001 Internal Controls over Financial Statement Presentation (Material Weakness) Recommendation: The Board of Directors and management should review the impact of the current year adjustments on the financial reporting process. Once this review is complete, the Organization should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure conformity with U.S. GAAP. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over financial reporting to ensure conformity with U.S. GAAP. John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2024. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2023‐002 Review and Approval of Project Expenditures (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should obtain proper approval of all project expenditures and that evidence of that approval is documented and maintained.. Action Taken (Unaudited): Management is in the process of updating its control procedures to ensure proper approval of all project expenditures. John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2024. 2023‐003 Written Procedures of Internal Control over Compliance (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should develop written policies for the internal control over compliance of federal awards. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over compliance of federal awards John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2024. If HUD has questions regarding this plan, please call Patrick Gardner at 785-242-5035. Sincerely yours, Patrick Gardner CEO, COF Training Services, Inc. (Management Agent of Integrated Living, Inc.)

View Audit 301005

Finding 389946 (2023-002)

Significant Deficiency 2023

Housing Authority of the City of Miami Beach

FL

HUD Housing Programs Subrecipient Monitoring Significant Deficiency

Recommendation: The Authority should 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 taken in response to finding: The HACMB currently ha...

Recommendation: The Authority should 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 taken in response to finding: The HACMB currently has a Quality Control Coordinator who is designated to review samples of tenant files to ensure compliance. The HACMB has reviewed its Quality Control process for areas of improvement; (1) The Quality Control Coordinator will increase the number of file samples that are undergoing the Quality Control process. (2) The Quality Control Coordinator will hold bimonthly reviews with the specialists to ensure the same standard processes are being followed and to focus on retaining the supporting document in the files. The Section 8 staff will be notified of the appropriate action to take regarding any finding in the files. Name(s) of the contact person(s) responsible for corrective action: Suzie Millien Director of Section 8-HCV Planned completion date for corrective action plan: 3/31/2024.

View Audit 300848

Finding 389943 (2023-001)

Significant Deficiency 2023

Housing Authority of the City of Miami Beach

FL

Questioned Costs HUD Housing Programs Subrecipient Monitoring

Recommendation: The Authority should designate an individual to review tenant files to ensure that the income reported on the HUD-50058 is supported with proper calculations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response t...

Recommendation: The Authority should designate an individual to review tenant files to ensure that the income reported on the HUD-50058 is supported with proper calculations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The HACMB currently has a Quality Control Coordinator who is designated to review samples of tenant files to ensure compliance. The HACMB has reviewed its Quality Control process for areas of improvement; (1) The Quality Control Coordinator will increase the number of file samples that are undergoing the Quality Control process. (2) The Quality Control Coordinator will hold bimonthly reviews with the specialists to ensure the same standard processes are being followed and to focus on each targeted area that needs assistance the most. The Section 8 staff will be notified of the appropriate action to take regarding any finding in the files. Name(s) of the contact person(s) responsible for corrective action: Suzie Millien, Director of Section 8-HCV. Planned completion date for corrective action plan: 3/31/2024.

View Audit 300848 Questioned Costs: $1

Finding 389919 (2023-005)

Material Weakness 2023

El Paso Las Puertas Abiertas, Inc.

TX

Special Tests & Provisions HUD Housing Programs

In accordance with the Project's regulatory agreement with HUD, management shall establish and maintain a replacement reserve account to aid in funding extraordinary maintenance and repair and replacement of capital items. HUD regulation mandates that permission be obtained prior to any withdrawals ...

In accordance with the Project's regulatory agreement with HUD, management shall establish and maintain a replacement reserve account to aid in funding extraordinary maintenance and repair and replacement of capital items. HUD regulation mandates that permission be obtained prior to any withdrawals from the replacement reserve. Management's View: Management acknowledges that permission must be obtained from HUD before doing any withdrawal from the reserve. Date of withdrawal will be after permission granted from HUD. Proposed Corrective Action: Corrective Action will take place as soon as a withdrawal is needed for Las Puertas Abiertas.

View Audit 300827

Finding 389918 (2023-004)

Material Weakness 2023

El Paso Las Puertas Abiertas, Inc.

TX

Special Tests & Provisions HUD Housing Programs

In accordance with the Project's regulatory agreement with HUD, management shall establish and maintain a replacement reserve account to aid in funding extraordinary maintenance and repair and replacement of capital items The replacement reserve funds must be deposited in a federally secured deposit...

In accordance with the Project's regulatory agreement with HUD, management shall establish and maintain a replacement reserve account to aid in funding extraordinary maintenance and repair and replacement of capital items The replacement reserve funds must be deposited in a federally secured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund. All disbursements from the reserve must be approved by HUD. Management's View: Proposed Corrective Action: Management will ensure to speak to CEO and change reserve account into an account that when transferred is made, it will be into an account that is actually an interest-bearing account. Anticipated Correction Date: Correction to be done 1st week of April 2004.

View Audit 300827

Finding 389917 (2023-003)

Material Weakness 2023

El Paso Las Puertas Abiertas, Inc.

TX

HUD Housing Programs Special Tests & Provisions Cash Management

Special Tests and Provisions: In accordance with the Project's regulatory agreement with HUD, management shall establish a residual receipts account and make deposits into the account in accordance with HUD requirements (within 90 days after the close of the fiscal year). Disbursements from such fun...

Special Tests and Provisions: In accordance with the Project's regulatory agreement with HUD, management shall establish a residual receipts account and make deposits into the account in accordance with HUD requirements (within 90 days after the close of the fiscal year). Disbursements from such fund may be made only after written consent is received from HUD, Management's View: Management acknowledges finding and simultaneously underscores this was an internal facing situation. Proposed Corrective Action: Management will ensure that all proper approvals from HUD are obtained before making a withdrawals from residual receipts account. Anticipated Correction Date: Correction has been implemented.

View Audit 300827

Finding 389916 (2023-002)

Material Weakness 2023

El Paso Las Puertas Abiertas, Inc.

TX

HUD Housing Programs Reporting

Reporting: In accordance with the Department of Housing and Urban Development Chapter 3 Audit Guidance, the regulatory agreement related to the Project requires that the Project submit an annual operating budget 30 days before the beginning of each fiscal year Management's View: Management acknowled...

Reporting: In accordance with the Department of Housing and Urban Development Chapter 3 Audit Guidance, the regulatory agreement related to the Project requires that the Project submit an annual operating budget 30 days before the beginning of each fiscal year Management's View: Management acknowledges finding was an internal facing situation . Management also finding responsibility of correctly and efficiently submitting financial statements to HUD by required deadline. Proposed Corrective Action: Management will be proactive in establishing policies to further enhance financial closing processes to ensure reporting requirements are met. Anticipated Correction Date: Correction has been implemented

View Audit 300827

Finding 389914 (2023-001)

None 2023

Stansbury Homes, INC

MD

Cash Management HUD Housing Programs Reporting

We agree with this finding and have taken steps to prevent this from occurring in the future. Our policy has been to make surplus cash deposits after the final audit has been issued. A residual receipts account has been established and the required fiscal year 2022 surplus cash deposit of $17,660 ha...

We agree with this finding and have taken steps to prevent this from occurring in the future. Our policy has been to make surplus cash deposits after the final audit has been issued. A residual receipts account has been established and the required fiscal year 2022 surplus cash deposit of $17,660 has been made to the account on October 21, 2022.

View Audit 300807

Finding 389906 (2023-001)

None 2023

Lyngblomsten Apartments, Inc.

MN

HUD Housing Programs Internal Control / Segregation of Duties

2023-001 Mortgage Insurance Under Section 207, Pursuant to Section 223(f) – Assistance Listing No. 14.157 Recommendation: Management should immediately make the proper deposit into the replacement reserve fund and should consistently follow their internal control procedures over replacement reserve ...

2023-001 Mortgage Insurance Under Section 207, Pursuant to Section 223(f) – Assistance Listing No. 14.157 Recommendation: Management should immediately make the proper deposit into the replacement reserve fund and should consistently follow their internal control procedures over replacement reserve deposits to ensure deposit are made paid timely and for the correct amount. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We deposited the $70.25 that was underfunded in 2023 into the replacement reserve account on March 4, 2024. Name(s) of the contact person(s) responsible for corrective action: Todd Fliflet, CFO

View Audit 300798

Corrective Action Plans

Filters