Corrective Action Plans

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Audit period: January 1, 2025 – December 31, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. Findings are numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Fi...
Audit period: January 1, 2025 – December 31, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. Findings are numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2025-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Recommendation: Our auditor’s recommended that O’Brien Road Senior Apartments 2 remit the overage of $14,632 to HUD’s Accounting Center or submit HUD 9250 for HUD approved application if directed. Views of management and planned corrective action: Management concurs and will submit form HUD 9250. Action Taken: Management is in the process of submitting form HUD 9250. Anticipated Completion Date: May 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821
Finding 2025-001: U.S. Department of Housing and Urban Development - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 See Findings – Financial Statement Audit Finding 2025-002: U.S. Department of Housing and Urban D...
Finding 2025-001: U.S. Department of Housing and Urban Development - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 See Findings – Financial Statement Audit Finding 2025-002: U.S. Department of Housing and Urban Development - Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Our auditor’s recommended that Villa Scalabrini strengthen its overall internal controls surrounding HUD program compliance, including improvements to supervisory oversight, tenant file documentation practices, and monitoring procedures to ensure that required certifications, inspections, and voucher submissions are completed accurately, timely, and in accordance with HUD regulations. Action Taken: Villa Scalabrini has hired a new apartment manager and regional property manager with significant HUD program experience. The new regional property manager is now providing enhanced oversight, including regular review of tenant files, recertification documentation, and HUD voucher submissions to ensure that all required activities are completed timely, accurately, and in accordance with HUD regulations. Management will continue to monitor compliance and strengthen internal processes to prevent recurrence of these issues. Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821. Anticipated Completion Date: March 2026
CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 HANAC, Inc. and Affiliates (HANAC) respectfully submits the following corrective action plan for the year ended June 30, 2025. CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2025 The finding from the June 30, 2025...
CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 HANAC, Inc. and Affiliates (HANAC) respectfully submits the following corrective action plan for the year ended June 30, 2025. CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2025 The finding from the June 30, 2025 consolidated and combined schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None reported. FINDINGS – FEDERAL AWARD PROGRAMS AUDITS Material Weakness FINDING 2025-001 Eligibility U.S. Department of Housing and Urban Development 14.157 Supportive Housing for the Elderly Section 202 Loan Condition: During our testing, we noted that the income verification of tenant eligibility through Enterprise Income Verification (“EIV”) system was not performed timely. Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: Management agrees with the recommendation and has begun to implement the following: • A checklist form will be completed for every certification and signed off once file is approved. • An AR form will be created for the move in, transfer and move out process which is to be attached with proof of payment. Once completed it is to be sent to senior staff for review. • The file setup format and recertification updates will be monitored on a monthly basis. • EIVs are being run according to the frequency provisions related to the type of reports we are annually required to complete as per HUD. • Annual inspections are being scheduled as per Annual Recertifications are being processed. • Bi-weekly meetings will be in place to discuss the results collected with a tracking log on the progress of the project. • Trainings will be scheduled to keep on top of HUD updates/compliance procedures; Yardi software trainings; and in-house trainings covering compliance with the files and Yardi 50059 module. Expected completion date: 07/31/2026 If any cognizant or oversight agency has questions regarding this plan, please call Lola Maroulis, Chief Financial Officer at 212-840-8005, extension 111. Sincerely yours, Lola Maroulis, Chief Financial Officer
Management agent will be responsible for signing off and completion of PRAC renewal. As part of the PRAC renewal process checklist, verification of returned residual receipts will be added. Consistent review of Marion Corner Financials balance sheet will further ensure compliance with HUD requiremen...
Management agent will be responsible for signing off and completion of PRAC renewal. As part of the PRAC renewal process checklist, verification of returned residual receipts will be added. Consistent review of Marion Corner Financials balance sheet will further ensure compliance with HUD requirements.
Management agent will be responsible for signing off and completion of PRAC renewal. As part of the PRAC renewal process checklist, verification of returned residual receipts will be added. Consistent review of Findley Place Financials balance sheet will further ensure compliance with HUD requiremen...
Management agent will be responsible for signing off and completion of PRAC renewal. As part of the PRAC renewal process checklist, verification of returned residual receipts will be added. Consistent review of Findley Place Financials balance sheet will further ensure compliance with HUD requirements.
Management agent will be responsible for signing off and completion of PRAC renewal. As part of the PRAC renewal process checklist, verification of returned residual receipts will be added. Consistent review of Charles Place Financials balance sheet will further ensure compliance with HUD requiremen...
Management agent will be responsible for signing off and completion of PRAC renewal. As part of the PRAC renewal process checklist, verification of returned residual receipts will be added. Consistent review of Charles Place Financials balance sheet will further ensure compliance with HUD requirements.
All errors in the SEFA, including incorrect pass-through grants and outdated grant numbers, have been corrected. A review process is now in place before the audit, with an additional accuracy check. The Senior Accountant will prepare the SEFA, and the Finance Director will review it for completeness...
All errors in the SEFA, including incorrect pass-through grants and outdated grant numbers, have been corrected. A review process is now in place before the audit, with an additional accuracy check. The Senior Accountant will prepare the SEFA, and the Finance Director will review it for completeness and accuracy. We will confirm grant details with the granting agencies to verify federal status and use a checklist to ensure proper classification. Going forward, federal and state grants will be recorded accurately, grants will be properly classified in the general ledger, and annual training on SEFA preparation and Uniform Guidance compliance will be provided.
Condition: The City had insufficient controls in place related to reviews of Section 8 employee timesheets. Planned Corrective Action: The City acknowledges this finding and has updated our procedures to include the City Administrators’ review and approval, as evidenced by his signature, on all Sect...
Condition: The City had insufficient controls in place related to reviews of Section 8 employee timesheets. Planned Corrective Action: The City acknowledges this finding and has updated our procedures to include the City Administrators’ review and approval, as evidenced by his signature, on all Section 8 employee timesheets. The City believes this finding will be corrected by June 30, 2026. Contact person responsible for corrective action: Austen Michaels Anticipated Completion Date: June 30, 2026
The City acknowledges the findings and notes that the delays were the result of internal technical issues that affected timely access to the reporting system during the first two quarters. These issues have since been resolved, and the City has met all subsequent reporting deadlines. Effective May 2...
The City acknowledges the findings and notes that the delays were the result of internal technical issues that affected timely access to the reporting system during the first two quarters. These issues have since been resolved, and the City has met all subsequent reporting deadlines. Effective May 2025, the City corrected the internal technical issues that affected access to IDIS and now verifies system accessibility prior to each reporting deadline. The City will continue to perform ongoing monitoring to ensure the reporting process remains timely and compliant going forward. Date of Implementation: May 2025 Responsible Official or Department: Community Development
Department of Housing and Urban Development Auditee identification number: 127-EE017 Name of audit firm: Squires Maddux & Company, PLLC Period covered by the audit: Year Ended June 30, 2025 Prepared by: S3800-160: Contact Person First Name: Susan S3800-170: Contact Person Middle Initial: S3800-180: ...
Department of Housing and Urban Development Auditee identification number: 127-EE017 Name of audit firm: Squires Maddux & Company, PLLC Period covered by the audit: Year Ended June 30, 2025 Prepared by: S3800-160: Contact Person First Name: Susan S3800-170: Contact Person Middle Initial: S3800-180: Contact Person Last Name: Meyers Contact Email Address: smeyers@panpacificproperties.com The finding from the June 30, 2025 schedule of findings and question 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 AWARD PROGRAMS AUDIT FINDING NO. 2025-001 Statement of Condition: Previous management only made nine (9) of the twelve (12) monthly required reserve deposits, leaving the account underfunded by $4,053 at June 30, 2022; for the year ended June 30, 2023, only $2,702 of the required $16,212 in deposits were made, leaving the account behind schedule by another $13,510, for a total deficiency of $17,563; for the year ended June 30, 2024, only $5,404 of the required $16,212 in deposits were made, leaving the account behind schedule by another $10,808, for a total cumulative deficiency of $28,371. Auditor Recommendation: Management has developed a plan with HUD to pay all past due amounts with vendors and eventually fund the reserve account. Management should continue to work with HUD to resolve the reserve funding deficit and apply for rent increases to fund those deficits. S3800-130: Response Indicator: Agree. S3800-140: Completion Date: March 12 2026 S3800-150: Action Taken or to be Taken: As a result of liquidity problems reported last year in Finding 2024-001, property management will be unable to make the required reserve deposits and pay all vendors without a rent increase from HUD. Management has developed a plan with the HUD Project Manager to pay all vendors for amounts owed and fund the reserve account. Part of that plan includes a suspense of required reserve deposits to allow liquidity to pay past due amounts with vendors. A rent increase will also be necessary.
2. Finding 2025-002: a. Comments on the findings and Recommendation: At the time of the Audit, we agree with the findings. b. Action (s) Taken or planned on the finding: Work orders had fallen behind due to staff changes, and unit turns. Regional Asset Manager has advised the staff that this cannot ...
2. Finding 2025-002: a. Comments on the findings and Recommendation: At the time of the Audit, we agree with the findings. b. Action (s) Taken or planned on the finding: Work orders had fallen behind due to staff changes, and unit turns. Regional Asset Manager has advised the staff that this cannot continue, and all work orders must be completed within less than (30) days from date of receipt. Since completion of Audit, maintenance has been working to get all work orders completed and caught up and to make sure they will continue to be completed in a timely manner. Regional Asset Manager will also check to make sure this is being accomplished at each quarterly site visit.
1. Finding 2025-001: a. Comments on the findings and Recommendation: At the time of the audit, we agree with the findings. b. Action (s)Taken or planned on the finding: The preventative maintenance and painting schedules were started to be maintained by management as of May 2025. Regional Asset Mana...
1. Finding 2025-001: a. Comments on the findings and Recommendation: At the time of the audit, we agree with the findings. b. Action (s)Taken or planned on the finding: The preventative maintenance and painting schedules were started to be maintained by management as of May 2025. Regional Asset Manager has advised staff of the importance of these tasks and schedules to be maintained and carried out on a routine basis. Moving forward they will be maintained properly and kept current throughout the year. Regional Asset Manager will continue to check these schedules at each quarterly site visit.
Views of Responsible Officials and Planned Corrective Action Management agrees with the finding and is committed to strengthening our internal controls. We will review and enhance our invoice coding and approval procedures to ensure expenses are properly allocated to the correct property and to prev...
Views of Responsible Officials and Planned Corrective Action Management agrees with the finding and is committed to strengthening our internal controls. We will review and enhance our invoice coding and approval procedures to ensure expenses are properly allocated to the correct property and to prevent similar issues from occurring in the future. We believe the improvements underway will further support accurate financial reporting and continued compliance with HUD requirements.
Budget Based Rent increase has been submitted to HUD and is in queue for approval. The request includes funding for the reimbursement of the Replacement Reserve. We anticipate that this will be approved.
Budget Based Rent increase has been submitted to HUD and is in queue for approval. The request includes funding for the reimbursement of the Replacement Reserve. We anticipate that this will be approved.
AL 14.871, 14.879, 14. EHV Housing Voucher Cluster Finding: HQS inspections as required by N.4 of the 2025 OMB Compliance Supplement were not performed biennially. Auditor Recommendation: The County should hire and retain adequate staffing to ensure HQS inspections for all tenants are performed bien...
AL 14.871, 14.879, 14. EHV Housing Voucher Cluster Finding: HQS inspections as required by N.4 of the 2025 OMB Compliance Supplement were not performed biennially. Auditor Recommendation: The County should hire and retain adequate staffing to ensure HQS inspections for all tenants are performed biennially. Corrective Actions Taken or Planned: The County agrees and concurs. During FY26, the County hired additional staff to conduct inspections, with a current total of 3.5 FTE. Point of Contact for corrective actions: Sarah Keane, Deputy CFO sarah_keane@washingtoncountyor.gov
Department of Housing and Urban Development Myers Senior Residence, Inc. HUD Project No. 031-EE074 respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: January 1, 2025 – December 31, 2025 The finding from the schedule of findings and questione...
Department of Housing and Urban Development Myers Senior Residence, Inc. HUD Project No. 031-EE074 respectfully submits the following corrective action plan for the year ended December 31, 2025. Audit period: January 1, 2025 – December 31, 2025 The finding from the schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS Department of Housing and Urban Development 2025-001 Section 202 Capital Advances, Section 8/202 Project Rental Assistance Payments, Section 202 – Demonstration Pre-Development Planning Grant – Assistance Listing No. 14.157 Recommendation: The Organization should review its budgeting process to ensure compliance with HUD funding requirements for the reserve for replacement account. Additionally, they should implement regular monitoring to prevent future underfunding. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management agrees with the finding and will take steps to adjust the budget and ensure the Reserve for Replacement account is adequately funded moving forward. Name(s) of the contact person(s) responsible for corrective action: John Westervelt, President Planned completion date for corrective action plan: 03/31/2026
Management has implemented a new software program which automates utility allowance calculations reducing the risk of error.
Management has implemented a new software program which automates utility allowance calculations reducing the risk of error.
Finding Number: 2025-001 Condition: The Corporation included duplicate invoices on withdrawals totaling $11,429 that were made from the replacement reserve. This resulted in the replacement reserve being underfunded by $11,429. Planned Corrective Action: Management acknowledges noncompliance in the ...
Finding Number: 2025-001 Condition: The Corporation included duplicate invoices on withdrawals totaling $11,429 that were made from the replacement reserve. This resulted in the replacement reserve being underfunded by $11,429. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management will deposit the underfunded amount of $11,429 to the replacement reserve account during the fiscal year ended June 30, 2026. Contact person responsible for corrective action: Laura Maisevich, Regional Operations Manager Anticipated Completion Date: 2/25/2026
Condition: Discrepancies were noted in the examination of the Section 8 Housing Choice Voucher tenant files due to intermittent errors in tenant income calculations, misapplication of Payment Standards and Utility Allowances, and misalignment across the HAP Contract, the Request for Tenancy Approval...
Condition: Discrepancies were noted in the examination of the Section 8 Housing Choice Voucher tenant files due to intermittent errors in tenant income calculations, misapplication of Payment Standards and Utility Allowances, and misalignment across the HAP Contract, the Request for Tenancy Approval, and the Lease Agreements. Steps to Resolve: Management agrees with this finding and the Auditor's recommendation. The following steps will be taken to correct the deficiencies: Enhanced Internal Controls: We will expand our internal control procedures with respect to compliance with the federal eligibility and annual reexamination requirements set out in 24 CFR section 982.516. To this end, tenant file processing checklists will be developed and integrated into the file calculations and record keeping. In addition, quarterly internal audits of tenant file samples will be conducted in order to identify any discrepancies and ensure program compliance. Targeted staff training will take place as needed. Management will implement the expanded procedures necessary to clear this finding by June 30, 2026. Timeframe: All revised internal control procedures will be fully implemented by June 30, 2026. Responsible parties: Stella Collins, Section 8 HCV Supervisor Alan Degner, Executive Director
Federal program title: Community Development Block Grant – ALN 14.228 Condition: The County has procedures in place used for monitoring loan compliance. This involves sending an email to each HOME beneficiary asking for documents proving they are still a resident (utility bills, insurance documents, ...
Federal program title: Community Development Block Grant – ALN 14.228 Condition: The County has procedures in place used for monitoring loan compliance. This involves sending an email to each HOME beneficiary asking for documents proving they are still a resident (utility bills, insurance documents, etc.) and mailing a physical Certificate of Occupancy for the resident to sign. However, there were two residents which have failed to return any of these documents or a response as of February 27, 2026 The initial inquiry occurred on January 29, 2025 and January 28, 2025 for both residents. Due to an empty employment position at the time of monitoring, the County has failed to perform a physical inspection despite being a procedure in the case of a non-response scenario with a resident. Recommendation: CLA recommends the County hires the staff necessary to ensure that all monitoring procedures are performed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: The letters mailed to loan recipients indicates that the County may do a physical inspection, and while hiring an employee to work the administration/monitoring of the CDBG loan portfolio would be ideal, there are not sufficient county funds to do so. County Administration, who is currently responsible for monitoring previous CDBG loans, will send follow-up letters to any individual who does not submit the required documents by the deadline and then work with the State to determine further allowable actions. Name(s) of the contact person(s) responsible for corrective action: Suzie Hawkins Senior Financial Analyst – County Administrative Office Planned completion date for corrective action plan: As time allows
Finding Number: 2025-001 Planned Corrective Action: Being a small PHA, only 21 of our files were tested. One of those files had an error in it making the error rate 4.76%. The discrepancy was corrected with Tenant after being communicated to Occupancy Specialist. After contacting the software provid...
Finding Number: 2025-001 Planned Corrective Action: Being a small PHA, only 21 of our files were tested. One of those files had an error in it making the error rate 4.76%. The discrepancy was corrected with Tenant after being communicated to Occupancy Specialist. After contacting the software provider and with their direct assistance a new Form 50058 was generated reflecting the accurate income information. The correction has been completed in the system to ensure compliance and accuracy of reporting. Anticipated Completion Date: February 20, 2026 Responsible Contact Person: Angie Finley, Executive Director
Management’s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Dana Petersen, Sr. Director of Housing, ShelterCare b. Amanda Smith, Property Development Manager, ShelterCare 2. The corrective action planned: a. Pinehurst Management...
Management’s Response and Planned Corrective Actions: 1. The name of the contact person(s) responsible for the corrective action a. Dana Petersen, Sr. Director of Housing, ShelterCare b. Amanda Smith, Property Development Manager, ShelterCare 2. The corrective action planned: a. Pinehurst Management was overseeing property through 4/30/23. ShelterCare was assigned as new managing agent 5/1/2023. ShelterCare now has a dedicated Assistant Property Manager overseeing the property. In 2025, had some difficulty with confirming our ownership of the property through HUD’s online systems, but we were able to complete that step which was required to enable submissions of tenant recertification data. b. Management prioritized recertifications by oldest first. A majority of these were caught up in fiscal year 2025, and we have the staff to complete future recertifications timely moving forward. c. Management is performing a monthly review of TRACS to ensure recertifications are being completed in a timely manner. 3. The anticipated completion date: a. Recertifications are expected to be completed by December 31, 2025.
Management agrees with the finding and will implement procedures to ensure that the deposit is submitted timely in the future. Management submitted the residual receipts deposit in the required amount on the completion date listed below, and thus the finding is considered cleared.
Management agrees with the finding and will implement procedures to ensure that the deposit is submitted timely in the future. Management submitted the residual receipts deposit in the required amount on the completion date listed below, and thus the finding is considered cleared.
Management agrees with the findings and will implement procedures to ensure that the reserve deposits are submitted timely and completely in the future. Management submitted the residual receipts and replacement reserve deposits in the required amount on the completion date listed below, and thus th...
Management agrees with the findings and will implement procedures to ensure that the reserve deposits are submitted timely and completely in the future. Management submitted the residual receipts and replacement reserve deposits in the required amount on the completion date listed below, and thus the finding is considered cleared.
Findings 2025-005- HOTMA I agree with the finding and corrective action has been taken by the Executive Director. Implementations HOTMA that were to begin July 1, 2025 were implemented. The Agency stopped enrolling families in the EID as of December 31, 2023. Transitioned to the new FORM HUD – 9886 ...
Findings 2025-005- HOTMA I agree with the finding and corrective action has been taken by the Executive Director. Implementations HOTMA that were to begin July 1, 2025 were implemented. The Agency stopped enrolling families in the EID as of December 31, 2023. Transitioned to the new FORM HUD – 9886 as of February 1, 2025. Applied HOTMA/102/104 income exclusions listed in 24 CFR5.609 (b) including new requirements for student financial assistance. Am working with Lisa Viles Services and they have helped the Beatrice Housing Agency update their administrative plan. It wasn’t approved by the Board until September 23rd, 2026. It is the Executive Director’s responsibility to implement and ensure timely adoption of policies.
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