Corrective Action Plans

Finding 1218416 (2025-006)

Material Weakness 2025

Evangeline Booth Residence, Inc., A Florida Corporation

FL

HUD Housing Programs Questioned Costs Special Tests & Provisions

6. Finding 2025-006 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to change its policies and procedures related to refunding of tenant security deposits to comply with the thirty-day timeline required by HUD regulat...

6. Finding 2025-006 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to change its policies and procedures related to refunding of tenant security deposits to comply with the thirty-day timeline required by HUD regulations. b. Action(s) Taken or Planned on the Finding Management agrees with the finding and is taking steps to address the issue that caused it. Management is still reviewing and updating the processes and procedures with site personnel to strengthen controls over the refunding of tenant security deposits.

View Audit 404683

Finding 1218414 (2025-004)

Material Weakness 2025

Evangeline Booth Residence, Inc., A Florida Corporation

FL

HUD Housing Programs Eligibility Reporting

4. Finding 2025-004 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to continue to follow up with HUD to complete activation of their EIV system access. Once access is established, management should implement procedur...

4. Finding 2025-004 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to continue to follow up with HUD to complete activation of their EIV system access. Once access is established, management should implement procedures to ensure all required EIV reports are generated, retained, and reviewed in accordance with HUD guidelines. b. Action(s) Taken or Planned on the Finding Management acknowledged the challenges experienced in obtaining EIV access from HUD and stated that follow-up efforts are ongoing. Once access is granted by HUD as already approved, management will generate and maintain all required EIV reports and strengthen controls to ensure compliance with HUD requirements.

View Audit 404683

Finding 1218413 (2025-003)

Material Weakness 2025

Evangeline Booth Residence, Inc., A Florida Corporation

FL

Questioned Costs Special Tests & Provisions HUD Housing Programs

3. Finding 2025-003 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to implement procedures to ensure all replacement reserve withdrawals are supported with a HUD-signed Form HUD-9250 prior to releasing funds, the rec...

3. Finding 2025-003 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to implement procedures to ensure all replacement reserve withdrawals are supported with a HUD-signed Form HUD-9250 prior to releasing funds, the recommendation to repay the $3,970 withdrawal, and the recommendation to obtain HUD approval for the 2024 unauthorized withdrawals of $39,282 or pay the amounts back to the reserve. b. Action(s) Taken or Planned on the Finding Management stated that a correction was processed to return the $3,970 to the replacement reserve account, with the repayment clearing in October 2025. The prior year unauthorized withdrawal remains unresolved, as management does not have the funds to repay the $39,282. Management will also strengthen internal controls to ensure all future withdrawals are fully supported with HUD-signed Form HUD-9250 approvals.

View Audit 404683

Finding 1218412 (2025-002)

Material Weakness 2025

Evangeline Booth Residence, Inc., A Florida Corporation

FL

Questioned Costs Special Tests & Provisions HUD Housing Programs

Project Legal Name: Evangeline Booth Residence, Inc., A Florida Corporation HUD Project No.: 063-EE011-WAH Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/24-9/30/25 Corrective Action Plan prepared by: Name: Philip Gesner Position: Financial Project Manager, USA Southern Territory Fina...

Project Legal Name: Evangeline Booth Residence, Inc., A Florida Corporation HUD Project No.: 063-EE011-WAH Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/24-9/30/25 Corrective Action Plan prepared by: Name: Philip Gesner Position: Financial Project Manager, USA Southern Territory Finance Department Telephone Number: 470-816-5977 2. Finding 2025-002 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to review the project budget to determine if nonessential costs can be cut (or request a loan from the owner) to ensure that the replacement reserve is funded in accordance with the terms of the regulatory agreement and the recommendation to obtain from HUD a waiver for the missing replacement reserve deposits if possible, or fund the missing deposits. b. Action(s) Taken or Planned on the Finding Due to significant delays in receipt of PRAC funds for over a year, management suspended making the deposits to the reserve until PRAC funding was replenished. Management also borrowed funds from the replacement reserve in 2024 which funds were repaid during the year ended September 30, 2024 once past-due PRAC funds were received. Due to ongoing issues with PRAC funding, management continues to be behind on making the monthly deposits during the year ended September 30, 2025.

View Audit 404683

Finding 1218406 (2025-004)

Material Weakness 2025

The Salvation Army Residence Inc., A Florida Corporation

FL

HUD Housing Programs

4. Finding 2025-004 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to establish additional procedures and monitor any modifications or material changes to revenues that may impact the management fee calculation. And ...

4. Finding 2025-004 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to establish additional procedures and monitor any modifications or material changes to revenues that may impact the management fee calculation. And the recommendation to pay back the overpaid management fee. b. Action(s) Taken or Planned on the Finding Management agrees with the finding. We are reviewing our procedures to ensure we do not overpay management fees in the future. We believe it happened as a result of transition to new software, and was not intentional.

View Audit 404682

Finding 1218405 (2025-003)

Material Weakness 2025

The Salvation Army Residence Inc., A Florida Corporation

FL

HUD Housing Programs

3. Finding 2025-003 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to establish internal controls and procedures to ensure that residual receipts reserve deposits are made both timely and in the correct amount based ...

3. Finding 2025-003 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to establish internal controls and procedures to ensure that residual receipts reserve deposits are made both timely and in the correct amount based on final audited financial statements. b. Action(s) Taken or Planned on the Finding Management agrees with the finding and will deposit the shortage of $21,305 during fiscal year end September 30, 2026.

View Audit 404682

Finding 1218404 (2025-002)

Material Weakness 2025

The Salvation Army Residence Inc., A Florida Corporation

FL

HUD Housing Programs Reporting

Project Legal Name: The Salvation Army Residences, Inc., A Florida Corporation HUD Project No.: 067-11269 Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/2024 – 6/30/2025 Corrective Action Plan prepared by: Name: Philip Gesner Position: Financial Project Manager, USA Southern Territory...

Project Legal Name: The Salvation Army Residences, Inc., A Florida Corporation HUD Project No.: 067-11269 Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/2024 – 6/30/2025 Corrective Action Plan prepared by: Name: Philip Gesner Position: Financial Project Manager, USA Southern Territory Finance Department Telephone Number: 470-816-5977 A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 2. Finding 2025-002 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to implement procedures to ensure that the financial statements are submitted to the FAC in accordance with the FAC filing requirements. b. Action(s) Taken or Planned on the Finding Management agrees with the finding and is taking steps to address the issue that caused it. Management was able to implement procedures to submit the 2025 audit within the 9-month period.

View Audit 404682

Finding 1218392 (2025-002)

Material Weakness 2025

Catherine Booth Residence INC A Florida Corporation

FL

Eligibility HUD Housing Programs

Project Legal Name: Catherine Booth Residence, Inc., A Florida Corporation HUD Project No.: 067-EE054-WAH Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/2024 – 6/30/2025 Corrective Action Plan prepared by: Name: Philip Gesner Position: Financial Project Manager, USA Southern Territory...

Project Legal Name: Catherine Booth Residence, Inc., A Florida Corporation HUD Project No.: 067-EE054-WAH Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/2024 – 6/30/2025 Corrective Action Plan prepared by: Name: Philip Gesner Position: Financial Project Manager, USA Southern Territory Finance Department Telephone Number: 470-816-5977 A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 2. Finding 2025-002 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and fully documented, 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. b. Action(s) Taken or Planned on the Finding Management is reviewing the processes and procedures with site personnel to strengthen controls over the maintenance of tenant lease files.

View Audit 404679

Finding 1218389 (2025-003)

Material Weakness 2025

Evangeline Booth Friendship House Residence Inc., A Texas Corporation

TX

HUD Housing Programs Questioned Costs Special Tests & Provisions

3. Finding 2025-003 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to change its policies and procedures related to refunding of tenant security deposits to comply with the thirty-day timeline required by HUD regulat...

3. Finding 2025-003 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to change its policies and procedures related to refunding of tenant security deposits to comply with the thirty-day timeline required by HUD regulations. b. Action(s) Taken or Planned on the Finding We will review the processes and procedures with site personnel to strengthen controls over the refunding of tenant security deposits.

View Audit 404678

Finding 1218387 (2025-001)

Material Weakness 2025

Evangeline Booth Friendship House Residence Inc., A Texas Corporation

TX

Questioned Costs Special Tests & Provisions HUD Housing Programs

Project Legal Name: Evangeline Booth Friendship House Residence, Inc., A Texas Corporation HUD Project No.: 113- EE041 Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/24-9/30/25 Corrective Action Plan prepared by: Name: Philip Gesner Position: Financial Project Manager, USA Southern Te...

Project Legal Name: Evangeline Booth Friendship House Residence, Inc., A Texas Corporation HUD Project No.: 113- EE041 Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/24-9/30/25 Corrective Action Plan prepared by: Name: Philip Gesner Position: Financial Project Manager, USA Southern Territory Finance Department Telephone Number: 470-816-5977 A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2025-001 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to reimburse the project for overpaid management fee in the amount of $466 and implement procedures to ensure that the management fee paid does not exceed the amount determined in accordance with the management agreement. b. Action(s) Taken or Planned on the Finding Management will repay the property and update our procedures to correctly calculate management fees.

View Audit 404678

Finding 1218383 (2025-004)

Material Weakness 2025

Catherine Booth Friendship House Residence Inc., A Texas Corporation

TX

Questioned Costs Special Tests & Provisions Cash Management

4. Finding 2025-004 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to reimburse the amount due to the project and establish procedures to ensure reimbursement for shared costs and related receivables are made timely ...

4. Finding 2025-004 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to reimburse the amount due to the project and establish procedures to ensure reimbursement for shared costs and related receivables are made timely in accordance with established policy. b. Action(s) Taken or Planned on the Finding We will implement procedures to ensure shared costs are reimbursed on a consistent and regular basis.

View Audit 404677

Finding 1218381 (2025-002)

Material Weakness 2025

Catherine Booth Friendship House Residence Inc., A Texas Corporation

TX

Questioned Costs Special Tests & Provisions HUD Housing Programs

2. Finding 2025-002 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to deposit $21,146 into the replacement reserve account or obtain evidence of HUD approval. b. Action(s) Taken or Planned on the Finding Management a...

2. Finding 2025-002 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to deposit $21,146 into the replacement reserve account or obtain evidence of HUD approval. b. Action(s) Taken or Planned on the Finding Management acknowledges that two replacement reserve withdrawals dated February 14, 2025 were processed prior to obtaining HUD's written approval. This occurred due to a temporary lapse in oversight during a staff absence. We will attempt to retroactively obtain HUD approval for the withdrawal.

View Audit 404677

Finding 1218373 (2025-001)

Material Weakness 2025

Catherine Booth Residence Inc., A North Carolina Corporation

NC

HUD Housing Programs Reporting

Project Legal Name: Catherine Booth Residence, Inc., A North Carolina Corporation HUD Project No.: 053-EE131 Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/24-9/30/25 Corrective Action Plan prepared by: Name: Philip Gesner Position: Financial Project Manager, USA Southern Territory Fi...

Project Legal Name: Catherine Booth Residence, Inc., A North Carolina Corporation HUD Project No.: 053-EE131 Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/24-9/30/25 Corrective Action Plan prepared by: Name: Philip Gesner Position: Financial Project Manager, USA Southern Territory Finance Department Telephone Number: 470-816-5977 A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2025-001 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation to implement procedures to ensure that the financial statements are submitted to the FAC in accordance with the FAC filing requirements. b. Action(s) Taken or Planned on the Finding Management agrees with the finding and is taking steps to address the issue that caused it. Management was able to implement procedures to submit the 2025 audit in a timely manner. B. Status of Corrective Actions on Findings Reported in the Schedule of the Status of Prior Year Findings, Questioned Costs and Recommendations None

View Audit 404675

Finding 1218353 (2025-001)

Material Weakness 2025

Memphis Supportive Housing, Inc.

MN

HUD Housing Programs Questioned Costs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: In 1 of 25 cash disbursements tested, the Project paid the expense of another project under common management. Recommendation: The Project should carefully review invoices before pa...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: In 1 of 25 cash disbursements tested, the Project paid the expense of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it only pays the proper amount. Action Taken: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. The finding was corrected in January 2026. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-645-7271.

View Audit 404615

Finding 1218351 (2025-001)

Material Weakness 2025

Asi - Jamestown, Inc.

MN

HUD Housing Programs Questioned Costs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Condition: The Project's replacement reserve cash balance was underfunded at December 31, 2025. Recommendation: The Project should deposit $360 into the replacement reserve account. Action Taken: The Project agrees with the finding. Management deposited $3...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Condition: The Project's replacement reserve cash balance was underfunded at December 31, 2025. Recommendation: The Project should deposit $360 into the replacement reserve account. Action Taken: The Project agrees with the finding. Management deposited $360 into the replacement reserve account in February 2026. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-757-3038.

View Audit 404612

Finding 1218350 (2025-002)

Material Weakness 2025

Asi - Great Falls, Inc.

MN

HUD Housing Programs Questioned Costs

FINDING 2025-002: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project withdrew more funds from the replacement reserve account during 2024 than it should have. Recommendation: The Project should deposit $90 into the replacement reserve account. Action Taken: The Project agrees with ...

FINDING 2025-002: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project withdrew more funds from the replacement reserve account during 2024 than it should have. Recommendation: The Project should deposit $90 into the replacement reserve account. Action Taken: The Project agrees with the finding. The Project deposited $90 into the replacement reserve account in February 2026. If the Department of Housing and Urban Development has questions regarding these plans, please call Ling Han at 651-645-7271.

View Audit 404610

Finding 1218349 (2025-001)

Material Weakness 2025

Asi - Great Falls, Inc.

MN

HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project overpaid management fees by $1,959 to the management company. Recommendation: The management company should reduce the existing management fee payable by $1,959. Action ...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project overpaid management fees by $1,959 to the management company. Recommendation: The management company should reduce the existing management fee payable by $1,959. Action Taken: The Project agrees with the finding. The management company reduced the management fee payable by $1,959 during February 2026.

View Audit 404610

Finding 1218340 (2025-001)

Material Weakness 2025

Willow Glen Housing, Inc.

NC

Eligibility HUD Housing Programs

The Organization agrees with the finding. The file in question was corrected January 14, 2026.

View Audit 404599

Finding 1218339 (2025-001)

Material Weakness 2025

Asi Capitola, Inc.

MN

HUD Housing Programs Questioned Costs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 The Project made two replacement reserve withdrawals for the same invoice during 2024. Recommendation: The Project should repay the amount improperly withdrawn from the replacement reserve acc...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 The Project made two replacement reserve withdrawals for the same invoice during 2024. Recommendation: The Project should repay the amount improperly withdrawn from the replacement reserve account. Action Taken: The Project agrees with the finding. Management deposited $835 into the replacement reserve account during March 2026 to correct the finding. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-645-7271.

View Audit 404598

Finding 1218338 (2025-001)

Material Weakness 2025

Greenpointe Regional Housing, Inc.

NC

Eligibility HUD Housing Programs

The Organization agrees with the finding. The file in question was corrected February 24, 2026.

View Audit 404579

Finding 1218337 (2025-001)

Material Weakness 2025

Asi - St. Cloud, Inc.

MN

HUD Housing Programs Questioned Costs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 In 1 of 25 cash disbursements tested, the Project paid the expense of another project under common management. Recommendation: The Project should carefully review invoices before payment to ma...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 In 1 of 25 cash disbursements tested, the Project paid the expense of another project under common management. Recommendation: The Project should carefully review invoices before payment to make sure it only pays the proper amount. Action Taken: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. The finding was corrected in March 2026. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-645-7271.

View Audit 404578

Finding 1218336 (2025-001)

Material Weakness 2025

Fairview Housing, Inc.

NC

HUD Housing Programs

The Organization agrees with the finding. The amount owed, $210, was deposited into the Replacement Reserves account in February 2026.

View Audit 404577

Finding 1218335 (2025-001)

Material Weakness 2025

Minnehaha County Supportive Housing, Inc.

MN

Questioned Costs HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant share of monthly rent. Recommendation: The Project should rec...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant share of monthly rent. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant and adjust a future monthly billing. Project managers should be aware of the importance of computing the tenant's household income correctly. Action Taken: The Project agrees with the finding. Tenant rent was recomputed in December 2025 and will be corrected on the March 2026 HAP voucher. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-645-7271.

View Audit 404574

Finding 1218334 (2025-001)

Material Weakness 2025

Cedar Creek Housing, Inc.

NC

HUD Housing Programs

The Organization agrees with the finding. The amount owed, $2,056, was repaid to Replacement Reserves in February, 2026.

View Audit 404572

Finding 1218333 (2025-001)

Material Weakness 2025

Asi - Marshall, Inc.

MN

HUD Housing Programs Questioned Costs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: In 1 of 25 cash disbursements tested, the Project paid an incorrect amount for an invoice related to Project expenses. Recommendation: The Project should carefully review invoices b...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: In 1 of 25 cash disbursements tested, the Project paid an incorrect amount for an invoice related to Project expenses. Recommendation: The Project should carefully review invoices before payment to make sure it only pays the proper amount. Action Taken: The Project agrees with the finding. The accounts payable staff will be reminded to be careful when entering invoices for payment. The finding was corrected in December 2025. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-645-7271.

View Audit 404571

Corrective Action Plans

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