Corrective Action Plans

Finding 384544 (2023-004)

Significant Deficiency 2023

Housing Authority of the City of Waterbury

CT

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Historically, the Housing Authority obligated funds as they became available on a monthly basis, based on the five-year plan approved by HUD. The Housing Authority was not aware that drawdowns of Capital funds for operating, and construction costs have to be obligated when the expense is incurred, o...

Historically, the Housing Authority obligated funds as they became available on a monthly basis, based on the five-year plan approved by HUD. The Housing Authority was not aware that drawdowns of Capital funds for operating, and construction costs have to be obligated when the expense is incurred, or a contract entered into. This was corrected as of February 2024; however, CFP 2023 had already been fully obligated. The Housing Authority will implement this new procedure with the issuance of the 2024 CFP grant. The Housing Authority has put a process in place to make sure the operating funds are obligated in LOCCs only after a contract is executed and expenses have been incurred as part of our monthly procedures. The Comptroller, Jennifer Yager, will oversee this under the guidance of the CFO Consultant and the Capital Project Manager. This will be implemented with the issuance of CFP 24. Jennifer can be reached at 203-596-2640.

View Audit 297648

Finding 384542 (2023-003)

Significant Deficiency 2023

Housing Authority of the City of Waterbury

CT

HUD Housing Programs Subrecipient Monitoring Reporting

This finding was identified during the HUD QAD review in 2022. The Comptroller, Jennifer Yager, and the Director of Leased Housing Programs, Dana Serra, implemented a quarterly review of the electronic submission of form HUD-52681-B and the general ledger. The Housing Authority has completed this re...

This finding was identified during the HUD QAD review in 2022. The Comptroller, Jennifer Yager, and the Director of Leased Housing Programs, Dana Serra, implemented a quarterly review of the electronic submission of form HUD-52681-B and the general ledger. The Housing Authority has completed this review for the first two quarters of FY2024. Both Dana and Jennifer can be reached at 203-596-2640.

View Audit 297648

Finding 384540 (2023-001)

Material Weakness 2023

Lafayette Housing Authority

NC

Special Tests & Provisions Cash Management HUD Housing Programs

Noncompliance with Special Tests and Provisions (Public Housing Capital Fund CFDA 14.872) Housing Authority staff has attended training regarding the proper reporting of CFP obligations and expenditures. The Authority’s staff will continue to attend trainings to ensure that the Authority is ...

Noncompliance with Special Tests and Provisions (Public Housing Capital Fund CFDA 14.872) Housing Authority staff has attended training regarding the proper reporting of CFP obligations and expenditures. The Authority’s staff will continue to attend trainings to ensure that the Authority is in compliance with all CFP reporting requirements. Date of completion: March 18, 2024

View Audit 297646

Finding 384530 (2023-003)

Significant Deficiency 2023

Prairie Inn Corporation

ND

Cash Management HUD Housing Programs Significant Deficiency

Finding 2023-003 - Special Provisions and Testing - Residual Receipts Account Federal Agency Name: Department of Housing and Urban Development Program Name: Supportive Housing for Persons with Disabilities Federal Assistance Listing/CFDA #14.181 Finding Summary: The Corporation did not deposit proj...

Finding 2023-003 - Special Provisions and Testing - Residual Receipts Account Federal Agency Name: Department of Housing and Urban Development Program Name: Supportive Housing for Persons with Disabilities Federal Assistance Listing/CFDA #14.181 Finding Summary: The Corporation did not deposit project funds in a federally insured account within 60 days of the fiscal year end. The Corporation did not have the deposit amount determined timely enough to have the project funds deposited within 60 days of the fiscal year end. Corrective Action Plan: We will implement controls to ensure the required amount of project funds are deposited within 60 days following the end of the fiscal year. Responsible Individuals: Josh Plecity, Finance Director Anticipated Completion Date: 6/30/2024

View Audit 297639

Finding 384528 (2023-001)

Significant Deficiency 2023

Mar Vista Eldorado, INC

IN

Questioned Costs Subrecipient Monitoring Cash Management

Name of auditee: Mar Vista Eldorado, Inc. HUD auditee identification number: 122-EH528-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2023 CAP prepared by Name: Dwight Hargett Position: President/CEO – Management Agent Telephone number: 812-...

Name of auditee: Mar Vista Eldorado, Inc. HUD auditee identification number: 122-EH528-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2023 CAP prepared by Name: Dwight Hargett Position: President/CEO – Management Agent Telephone number: 812-987-8344 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of Condition 2023-001 (Assistance Listing Number 14.157): The required residual receipts deposit in the amount of $15,869 per the June 30, 2022 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited into the residual receipts account within 90 days after the fiscal year end. Recommendation: Management should make a deposit of $15,869 to the residual receipts account for the underfunded amount. Additionally, management should make deposits, as required by the Regulatory Agreement, on an annual basis. Actions taken or planned on the finding: Management made a deposit of $15,869 on August 24, 2023 to fully fund the residual receipts account for the year ended June 30, 2023.

View Audit 297626 Questioned Costs: $1

Finding 384504 (2023-003)

Significant Deficiency 2023

Pembroke Housing Authority

NC

HUD Housing Programs Subrecipient Monitoring Reporting

2023-003 – REPORTING – PERFORMANCE REPORTING Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development CFDA #: 14.871 – Housing Choice Voucher Program AUDITEE’S RESPONSE AND CORRECTIVE ACTION TAKEN The Authority will ensure that adequate supporting documentation is retaine...

2023-003 – REPORTING – PERFORMANCE REPORTING Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development CFDA #: 14.871 – Housing Choice Voucher Program AUDITEE’S RESPONSE AND CORRECTIVE ACTION TAKEN The Authority will ensure that adequate supporting documentation is retained on a go forward basis. The contact person for this finding is John McKeown, Executive Director, and can be reached at 781-293-3088. Anticipated completion date of corrective action is March 2024.

View Audit 297612

Finding 384503 (2023-002)

Significant Deficiency 2023

Pembroke Housing Authority

NC

HUD Housing Programs Significant Deficiency

2023-002 – ACTIVITIES ALLOWED OR UNALLOWED AUDITEE’S RESPONSE AND CORRECTIVE ACTION TAKEN Management reviewed the authorized signatories on all accounts, updating them and retired the manual stamp prior to the printing of this response. Additionally, the Authority has (5) new authorized signers on t...

2023-002 – ACTIVITIES ALLOWED OR UNALLOWED AUDITEE’S RESPONSE AND CORRECTIVE ACTION TAKEN Management reviewed the authorized signatories on all accounts, updating them and retired the manual stamp prior to the printing of this response. Additionally, the Authority has (5) new authorized signers on the account(s). This will ensure that all disbursements have two signatures before processing the payment. The contact person for this finding is John McKeown, Executive Director, and can be reached at 781-293-3088. Anticipated completion date of corrective action is March 2024.

View Audit 297612

Finding 384450 (2023-001)

Significant Deficiency 2023

Roanoke Rapids Housing Authority

NC

Eligibility HUD Housing Programs Reporting

Corrective Action Plan For the year Ended June 30, 2023 Section II - Financial Statement Findings None reported. Section III – Federal Award Findings and Questioned Costs Significant Deficiency Finding 2023-001 Internal Control Over Compliance-Public and Indian Housing Name of Contact Person: Wil...

Corrective Action Plan For the year Ended June 30, 2023 Section II - Financial Statement Findings None reported. Section III – Federal Award Findings and Questioned Costs Significant Deficiency Finding 2023-001 Internal Control Over Compliance-Public and Indian Housing Name of Contact Person: William Bobbitt, Executive Director Corrective Action: We will review our intake and recertification procedures. We will also review our tenant file monitoring procedures. Proposed Completion Date: Management will implement the above procedure immediately.

View Audit 297586

Finding 384400 (2023-002)

Significant Deficiency 2023

Parc Developmental Homes, Inc., Project No 072-11104

IL

Internal Control / Segregation of Duties HUD Housing Programs Significant Deficiency

2023-002 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects – CFDA No. 14.155 Recommendation: Management should fully fund the reserve for replacements and also ensure the Corporation makes the required payment to the reserve for replacements on a monthly bas...

2023-002 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects – CFDA No. 14.155 Recommendation: Management should fully fund the reserve for replacements and also ensure the Corporation makes the required payment to the reserve for replacements on a monthly basis. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management will monitor to ensure the Corporation makes the required payments to the reserve on a monthly basis. Name(s) of the contact person(s) responsible for corrective action: Debbie Congdon Planned completion date for corrective action plan: In process

View Audit 297532

Finding 384398 (2023-002)

Significant Deficiency 2023

Parc Place, Inc., Project No. 072-Hd112

IL

Internal Control / Segregation of Duties HUD Housing Programs Significant Deficiency

2023-002 Section 811 – New Construction – Capital Advance Program – Supportive Housing for Persons with Disabilities – CFDA No. 14.181 Recommendation: To establish proper internal control over security deposit refunds, the Corporation should design and implement the necessary procedures to ensure th...

2023-002 Section 811 – New Construction – Capital Advance Program – Supportive Housing for Persons with Disabilities – CFDA No. 14.181 Recommendation: To establish proper internal control over security deposit refunds, the Corporation should design and implement the necessary procedures to ensure the move-out notifications are provided to the accounting office in a timely manner and ensure the tenant's security deposit is processed and refunded within 30 days of the move-out date. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management will monitor future move-outs to ensure the security deposits are processed and refunded within 30 days of the move-out date. Name(s) of the contact person(s) responsible for corrective action: Debbie Congdon Planned completion date for corrective action plan: In process

View Audit 297529

Finding 384395 (2023-001)

Significant Deficiency 2023

Vna Apartments, Inc.

WI

HUD Housing Programs Internal Control / Segregation of Duties

Financial Reporting – The Organization has evaluated the cost/benefit of outsourcing the task of preparing the financial statements to an external accountant. It would be cost prohibitive to hire additional staff to outsource the task to an outside accountant. However, management of the Organization...

Financial Reporting – The Organization has evaluated the cost/benefit of outsourcing the task of preparing the financial statements to an external accountant. It would be cost prohibitive to hire additional staff to outsource the task to an outside accountant. However, management of the Organization has obtained the necessary skills, knowledge, and experience to accept responsibility for preparation of the Organization’s financial statements. Responsible Official - Vicki McAuliffe, CFO Anticipated Completion Date: The finding will not completely resolve itself given the cost/benefit the Oganization continues to make.

View Audit 297523

Finding 384369 (2023-001)

Significant Deficiency 2023

The New Reidsville Housing Authority

NC

HUD Housing Programs Eligibility Significant Deficiency

Finding 2023-001 – Housing Choice Voucher Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Housing Choice Voucher Program – ALN 14.871 The New Reidsville Housing Authority suffered a tremendous loss with the passing of the Housing Choice Voucher (HCV) and Public Housing Special...

Finding 2023-001 – Housing Choice Voucher Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Housing Choice Voucher Program – ALN 14.871 The New Reidsville Housing Authority suffered a tremendous loss with the passing of the Housing Choice Voucher (HCV) and Public Housing Specialists within weeks of one another and immediately before the start of the fiscal year. As a small housing authority, the deaths of two of the five office employees who had a combined 33 years of Authority experience left a significant void in knowledge and experience. Although the two employees were cross trained on each other’s jobs, no remaining employees were fully trained or capable of assuming those positions or responsibilities. In the immediate months after the passing of the employees, temporary and consultant labor was utilized until the Authority filled the vacant positions. Unfortunately, employee turnover among the new hires created further voids in HCV personnel during and after the fiscal year. Although a comprehensive review of all tenant and participant files to ensure completeness and compliance had begun prior to the audit, the sudden declining health and subsequent passing of the Executive Director hindered efforts even further. All new and existing housing personnel have received and continue to receive housing-related training and cross training on both the Public and Housing Choice Voucher programs. Comprehensive file review, written documentation of all tasks, and an office-wide evaluation of processes will continue as the employees become accustomed to their new positions. Corrective Action Plan: We concur with this finding. We are emphasizing the importance of accurate and complete tenant file information with our staff and within their new positions. We are confident these errors and oversights will not occur in the future. An extensive tenant file review was underway but was not completed at the time of the audit. All staff are being trained in their positions, and future cross-training and peer review processes are currently being put into practice to execute an added layer of review for all tenant files. Person Responsible: Samantha Shumaker, Interim Director Anticipated Completion Date: June 30, 2024

View Audit 297483

Finding 384368 (2023-002)

Significant Deficiency 2023

The New Reidsville Housing Authority

NC

Questioned Costs HUD Housing Programs Eligibility

Finding 2023-002 – Low Income Public Housing Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Public and Indian Housing – ALN 14.850 The New Reidsville Housing Authority suffered a tremendous loss with the passing of the Housing Choice Voucher and Public Housing Specialists wi...

Finding 2023-002 – Low Income Public Housing Tenant Files – Eligibility – Noncompliance & Significant Deficiency – Public and Indian Housing – ALN 14.850 The New Reidsville Housing Authority suffered a tremendous loss with the passing of the Housing Choice Voucher and Public Housing Specialists within weeks of one another and immediately before the start of the fiscal year. As a small housing authority, the deaths of two of the five office employees who had a combined 33 years of Authority experience left a significant void in knowledge and experience. Although the two employees were cross trained on each other’s jobs, no remaining employees were fully trained or capable of assuming those positions or responsibilities. In the months after the passing of the PH Specialist, temporary labor was utilized until such time as the position was filled on a permanent basis. Although a comprehensive review of all tenant and participant files to ensure completeness and compliance had begun prior to the audit, the sudden declining health and subsequent passing of the Executive Director hindered efforts even further. All new and existing housing personnel have received and continue to receive housing-related software-specific training and cross training on both the Public and Housing Choice Voucher programs. Comprehensive file review, written documentation of all tasks, and an office-wide evaluation of processes will continue as the employees become accustomed to their new positions. Corrective Action Plan: We concur with this finding. We are emphasizing the importance of accurate tenant file information, data entry, and calculations with our staff in their new positions. We are confident these errors and oversights will not occur in the future. An extensive tenant file review was underway but was not completed at the time of the audit. A thorough tenant file audit to detect and correct any misstatements will begin as well. All staff are being trained in their positions, and future cross-training and peer review processes are currently being put into practice to execute an added layer of review for all tenant files. Person Responsible: Samantha Shumaker, Interim Director Anticipated Completion Date: June 30, 2024

View Audit 297483 Questioned Costs: $1

Finding 384366 (2023-001)

Significant Deficiency 2023

The Rodney Scheel House Foundation, Ltd.

WI

HUD Housing Programs Cash Management

Finding 2023-001 – Replacement and Residual Reserve Submissions Corrective Action Plan The Rodney Scheel House Foundation, Ltd. will review their policies and procedures surrounding replacement reserve and residual receipts reserve cash remittances to the reserve bank accounts within the required HU...

Finding 2023-001 – Replacement and Residual Reserve Submissions Corrective Action Plan The Rodney Scheel House Foundation, Ltd. will review their policies and procedures surrounding replacement reserve and residual receipts reserve cash remittances to the reserve bank accounts within the required HUD timeframes. The Foundation will discuss requirements with the property management company and establish the properly timeline to ensure the deposits are made within the required timeframes. Person(s) Responsible: Kendra Eppler, Nicole Solheim, Curt Peerenboom Timing for Implementation: Immediate

View Audit 297478

Finding 384299 (2023-004)

Material Weakness 2023

Virginia Housing Development Authority

VA

Questioned Costs HUD Housing Programs Material Weakness

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV Recommendation: We recommend the Authority review their process over HQS failed inspections to ensure they are following up timely on correction or properly abating HAP for the unit until correction. Explanation of disagr...

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV Recommendation: We recommend the Authority review their process over HQS failed inspections to ensure they are following up timely on correction or properly abating HAP for the unit until correction. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: As noted above, the Authority has contracted the services of a third-party vendor and hired a Senior Quality Control Inspector to assist with the completion of inspections. As part of the Quality Control Plan the Authority tracks failed inspections. In addition to monitoring failed inspections, The Authority has required trainings or HCVP Department staff and partner agency staff, including HQS standards and HUD’s National Standards for the Physical Inspection of Real Estate (NSPIRE). Name(s) of the contact person(s) responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: June 30, 2024

View Audit 297428 Questioned Costs: $1

Finding 384296 (2023-003)

Significant Deficiency 2023

Virginia Housing Development Authority

VA

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV Recommendation: We recommend the Authority review their processes over annual and quality-control inspections to ensure they are completed timely and in compliance with HUD’s requirements. Explanation of disagreement with...

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV Recommendation: We recommend the Authority review their processes over annual and quality-control inspections to ensure they are completed timely and in compliance with HUD’s requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority has contracted the services of a third-party vendor to assist with completing overdue inspections. The Authority has also hired a Senior Quality Control Inspector to assist with the completion of overdue inspections. The Senior Quality Control Inspector will develop a Quality Control Plan by [date]. The Authority is currently making software upgrades to align with HUD’s National Standards for the Physical Inspection of Real Estate (NSPIRE). In addition, the Authority is assessing technology needs of inspectors and considering possible technological improvements. Currently, The Authority PCOs have begun to monitor late inspections monthly. PCOs work with the LHAs to develop a plan to address late inspections and include a due date. Name(s) of the contact person(s) responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: June 30, 2024.

View Audit 297428

Finding 384293 (2023-002)

Material Weakness 2023

Virginia Housing Development Authority

VA

Questioned Costs HUD Housing Programs Material Weakness

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV Recommendation: We recommend the Authority review their process over reasonable rent determination to ensure that it is done timely, and that the approved rent is properly carried forward to the HUD-50058 and HAP Contract/...

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV Recommendation: We recommend the Authority review their process over reasonable rent determination to ensure that it is done timely, and that the approved rent is properly carried forward to the HUD-50058 and HAP Contract/HAP Contract Amendment. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority has developed a checklist system for each step in the process for determining and documenting rent reasonableness. The checklist includes each step of the process, along with due dates, and responsible entities. As part of the development and implementation of the quality control process for the HAP process, noted above, the Authority will also include a process for ensuring approved rent reasonableness match contract rents on all supporting documentation. The Authority will implement monthly reviews of HUD-50058 forms, HAP contracts and rent reasonableness documentation by the Housing Choice Voucher Program Compliance Manager. The Authority PCOs and/or HCVP’s accounting staff will work closely together, coordinate and follow the procedures for correcting any issues identified during the reviews. The Authority will also develop and implement a monitoring plan to ensure Local Housing Agencies (LHAs) are correctly following all the Authority established policies and procedures and adhering to Federal Regulations. The monitoring plan will outline how The Authority will conducts a risk analysis to target monitoring resources to the highest risk LHAs. Name(s) of the contact person(s) responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: June 30, 2024

View Audit 297428 Questioned Costs: $1

Finding 384290 (2023-001)

Significant Deficiency 2023

Virginia Housing Development Authority

VA

Questioned Costs HUD Housing Programs Eligibility

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV Recommendation: We recommend that the Authority review their internal controls over the eligibility requirements to ensure all documentation is maintained at the time of recertification. We recommend the Authority review t...

Housing Choice Voucher Cluster – Assistance Listing No. 14.871/14.879/14.EHV Recommendation: We recommend that the Authority review their internal controls over the eligibility requirements to ensure all documentation is maintained at the time of recertification. We recommend the Authority review their internal controls over the HAP process to ensure the correct amounts are paid each month. We recommend the Authority review their process for uploading data to PIC to ensure each recertification gets submitted. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority has begun the assessment, development and implementation of several internal controls to address recertification documentation, HAP processes, and PIC data submission to ensure compliance with Federal regulations. The Authority will develop and implement a quality control process on or before June 30, 2024, to ensure all documentation is maintained, signed and dated by all required parties at the time of certification. Currently, the Authority has developed a checklist system for each step of the recertification process. The checklist includes each step of the recertification process, along with due dates, and responsible entities. While not a Federal Requirement, the Authority did establish the discretionary policy to require housing specialists sign and date the Housing Information Forms. This policy was implemented after this audit finding and would not have been a requirement of the one file reviewed by the audit team. However, this step is included in the checklist process. The Authority is actively working to modify the electronic documentation and record retention system and process. Planned implementation of new electronic documentation and record retention processes is contingent on system updates managed by third party venders, however new written internal procedures are under development. The Authority will develop and implement a quality control process for the HAP process on or before June 30, 2024. This will include procedures for Program Compliance Officers (PCOs) and HCVP’s Accounting Team to work closely and coordinate to ensure each responsible person fully understands their roles and responsibilities. The Authority will implement monthly reviews of HAP payments, by the Housing Choice Voucher Program Compliance Manager. The Authority PCOs and/or accounting staff will follow the procedures for correcting any issues identified during the reviews. Over the past year, the Authority has created a System and Reporting Team that is now responsible for timely PIC submissions and addressing discrepancies and/or errors in the PIC and/or EIV system. By having a dedicated team, the Authority now exceeds the HUD requirement of submitting PIC data within 60 days of the effective date of any action. The Authority submits PIC monthly, performs monthly reviews of PIC data, and ensures staff addresses all fatal errors. In addition to these processes, the System and Reporting Team receives one on one training to address specific and challenging errors and discrepancies. Name(s) of the contact person(s) responsible for corrective action: Yilla Smith, Director, Housing Opportunity Programs and Initiatives Planned completion date for corrective action plan: June 30, 2024

View Audit 297428 Questioned Costs: $1

Finding 384282 (2023-001)

Material Weakness 2023

Wesley Tower, Inc.

CA

Cash Management HUD Housing Programs

FINDING NUMBER 2023-001 - Reporting views of responsible officials: The Company will monitor cash balances or monitor the bank ratings. Concur or do not concur with the finding: Concur with the finding Agree or disagree with the auditor recommendations: Agree Completion date: September 30, 2023 Acti...

FINDING NUMBER 2023-001 - Reporting views of responsible officials: The Company will monitor cash balances or monitor the bank ratings. Concur or do not concur with the finding: Concur with the finding Agree or disagree with the auditor recommendations: Agree Completion date: September 30, 2023 Actions take or planned on the finding: The Company will monitor the cash balances. Contact person: James Sweeney

View Audit 297421

Finding 384229 (2023-001)

Significant Deficiency 2023

Atmore Senior Housing, Inc.

AL

HUD Housing Programs Procurement, Suspension & Debarment Significant Deficiency

Cognizant or Oversight Agency for Audit: Department of Housing and Urban Development Atmore Senior Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Smith, Dukes & Buckalew, L.L.P. P.O....

Cognizant or Oversight Agency for Audit: Department of Housing and Urban Development Atmore Senior Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Smith, Dukes & Buckalew, L.L.P. P.O. Box 160427 Mobile, Alabama 36616 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. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS-MAJOR FEDERAL AWARDS PROGRAM AUDIT Finding: 2023-001 Name of Contact Person: Cindy Fulford, Senior Accounting Manager Corrective Action: The Project has made the additional deposits to the reserve for replacement account to properly fund the account. Management will thoroughly review all deposits to ensure that the required monthly deposits have been made to the replacement reserve account in the amount required by HUD. Completion Date: August 16, 2023

View Audit 297344

Finding 384215 (2023-003)

Significant Deficiency 2023

Housing Authority of the City of Monroe

LA

HUD Housing Programs Eligibility Significant Deficiency

Finding 2023-003 Public Housing Tenant Files - Eligibility - Rent Calculations Federal Program: Public Housing Program -ALN 14.850, Grant Year 2022 & 2023 Condition & cause: We reviewed seventy-five (75) Public Housing Tenant Files and noted seven (7) files not in compliance, or 9.3 %. We noted the ...

Finding 2023-003 Public Housing Tenant Files - Eligibility - Rent Calculations Federal Program: Public Housing Program -ALN 14.850, Grant Year 2022 & 2023 Condition & cause: We reviewed seventy-five (75) Public Housing Tenant Files and noted seven (7) files not in compliance, or 9.3 %. We noted the following discrepancies: • Two (2) files with no verification of income; • Two (2) files that relied on tenant declaration without documenting the reason for not obtaining third-party verification; and • Three (3) miscalculations of annual income. The income calculation and verification deficiencies were the result of employee errors and failure by the Agency to properly review and correct the errors. We were able to extrapolate the total potential misstatement and found it to be immaterial to the financial statements. However, due to the percentage of files not in compliance, we feel the Agency has a significant deficiency in this area. Corrective action planned: Monroe Housing Authority will continue to develop more effective processes for measuring, monitoring, and reducing errors in subsidy payments due to rent calculation and tenant underreporting of income. Implementations and strategies to include: • Resolution of income and rent issues identified in the report and communication to Tenants where applicable. • Development and implementation of an ongoing quality control review process of income at initial certification and re-examination to mitigate wage/income calculation errors to PHA and tenants by: o Hiring (1) FTE to perform quality control review of verification of income (upfront and/or a third party), and Tenant files upon new lease and re-examinations. o Developing a Tenant File Review checklist to document the result of file reviews. • Partner with the National Association of Housing and Redevelopment Officials (NAHRO) and other agencies, where applicable, to train staff on Public Housing Occupancy, Eligibility, Income and Rent training to accurately calculate Tenant Rent and avoid common errors in occupancy and eligibility functions in addition to understanding updates to the HUD-50058. Person responsible for corrective action: Mr. William Smart, Executive Director, Housing Authority of the City of Monroe Anticipated Completion Date: June 30, 2024

View Audit 297297

Finding 384192 (2023-001)

None 2023

Housing Authority of the City of Piedmont

AL

HUD Housing Programs

The Authority’s Executive Director, Kelley Ballew, has assumed the responsibility of maintaining sufficient collateral and will monitor account balances regularly.

View Audit 297287

Finding 384094 (2023-001)

Significant Deficiency 2023

Coda, Inc.

OR

Allowable Costs / Cost Principles HUD Housing Programs Reporting § 200.514

Summary of finding: CODA Inc. did not have an internal control to review and approve the report prepared prior to submission through the Provider Relief Fund Portal. This led to the report reporting the incorrect eligible expenses for Period 4. Planned corrective action: CODA Inc. Additional le...

Summary of finding: CODA Inc. did not have an internal control to review and approve the report prepared prior to submission through the Provider Relief Fund Portal. This led to the report reporting the incorrect eligible expenses for Period 4. Planned corrective action: CODA Inc. Additional levels of review will be implemented. The report will be prepared by accountant #1. The information in the report will be reviewed, approved, and uploaded by accountant #2. Director of Finance will perform a final review of uploaded information and will perform the final submission. Additional levels of review should ensure accuracy of information reported going forward. Contact person: Jenny Bickler, Director of Finance Completion date for action: The process is in place effective January 2024.

View Audit 297229

Finding 384079 (2023-001)

Significant Deficiency 2023

Municipality of Naguabo-Los Hucares I

PR

HUD Housing Programs Internal Control / Segregation of Duties

The inspections of Los Húcares I, could not be completed annually, as required, due to staffing limitations. Work orders were not completed because many of the repairs are extraordinary, and personnel take more time to complete them. The maintenance staff is not sufficient for all necessary repair...

The inspections of Los Húcares I, could not be completed annually, as required, due to staffing limitations. Work orders were not completed because many of the repairs are extraordinary, and personnel take more time to complete them. The maintenance staff is not sufficient for all necessary repairs, and the project requires additional funds to address all needs. We prioritized emergency repairs in both occupied and vacant units. This situation has been communicated to the owner; however, we have not received a response regarding the process to obtain additional funds to cover these needs. Therefore, we request the termination of our management contract effective August 14, 2023.

View Audit 297192

Finding 384054 (2023-001)

Significant Deficiency 2023

Berkeley Housing Authority

CA

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Moving to Work Demonstration Program to ensure that established internal control policies are being followed on a timely basis. James Wi...

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Moving to Work Demonstration Program to ensure that established internal control policies are being followed on a timely basis. James Williams, Executive Director, will be responsible to implement this corrective action by June 30, 2024.

View Audit 297137 Questioned Costs: $1

Corrective Action Plans

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