Corrective Action Plans

Finding 393256 (2023-001)

Significant Deficiency 2023

CT

Questioned Costs HUD Housing Programs Significant Deficiency

Deposits required by HUD were not made during fiscal year 2023 to the reserve fund. Recommendation: CLA Recommends the Project make all fiscal year 2023 deposits as soon as funds allow. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned...

Deposits required by HUD were not made during fiscal year 2023 to the reserve fund. Recommendation: CLA Recommends the Project make all fiscal year 2023 deposits as soon as funds allow. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management has received the delayed rental income payments and is working to make the back deposits. Name of the contact person responsible for corrective action: Matthew Fontaine, Controller DeMarco Management Corp. Planned completion date for corrective action plan: April 1, 2024

View Audit 303527 Questioned Costs: $1

Finding 393194 (2023-004)

Significant Deficiency 2023

State of New Jersey

NJ

Reporting Matching / Level of Effort / Earmarking HUD Housing Programs § 200.303

The Department of Labor and Workforce Development (DLWD) continues to monitor all first payment and non-monetary time lapse figures in order to meet the established USDOL Acceptable Levels of Performance (ALP). As workloads return to normal levels after the increased activity from the COVID-19 pand...

The Department of Labor and Workforce Development (DLWD) continues to monitor all first payment and non-monetary time lapse figures in order to meet the established USDOL Acceptable Levels of Performance (ALP). As workloads return to normal levels after the increased activity from the COVID-19 pandemic related claims, greater emphasis will continue to be placed on meeting all ALPs. Specifically relating to first payments and the previously discussed issues with claimants verifying their identity before any payments can be made, the DLWD has made some internal changes to how returned verified IDs from our ID verification partner (ID.me) are handled. These modifications to the internal process used to clear verified IDs are expected to have a positive impact on overall time lapse numbers as verified claimants will not be delayed longer than they previously were under the old process. The month of April starts the new reporting year for these figures to USDOL and New Jersey expects to see significant increases to first payment and non-monetary time lapse figures by the third quarter of calendar year 2024. COMPLETION DATE/ CONTACT PERSON September 2023 Theresa Vallely (609) 984-1779 Theresa.Vallely@dol.nj.gov

View Audit 303516

Finding 393188 (2023-001)

Material Weakness 2023

State of New Jersey

NJ

Questioned Costs Eligibility Internal Control / Segregation of Duties § 200.303

The Department of Labor and Workforce Development (DLWD) has controls in place to only allow an FPUC payment to be made when an underlying Unemployment Insurance (UI) payment has also been processed. FPUC payments should not be issued to any claim without the underlying UI payment being made for th...

The Department of Labor and Workforce Development (DLWD) has controls in place to only allow an FPUC payment to be made when an underlying Unemployment Insurance (UI) payment has also been processed. FPUC payments should not be issued to any claim without the underlying UI payment being made for the same week. The FPUC payments issued and noted as exceptions during eligibility testing will be reviewed independently by DLWD to determine if the payments issued were to eligible recipients or not. For the PUA exceptions noted during Eligibility testing, overall the DLWD issued PUA payments to over 680,000 claimants during the COVID-19 pandemic. DLWD had controls in place to require a COVID related reason to make the claim PUA eligible and the weekly PUA certification required claimants to choose a COVID related reason for why they were out of work before they could get paid. The PUA payments in question will be reviewed independently by the DLWD to determine if the payments issued under PUA were appropriate or if they should have been paid instead under the regular UI program. DLWD corrective actions related to FPUC and PUA payments were fully implemented as of September 2023. COMPLETION DATE/ CONTACT PERSON September 2023 Theresa Vallely (609) 984-1779 Theresa.Vallely@dol.nj.gov

View Audit 303516 Questioned Costs: $1

Finding 393180 (2023-001)

Significant Deficiency 2023

Cedar Lake - Washburn, Inc.

KY

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Recommendation: The design of the current controls should be reviewed to ensure tenant files are accurate, complete, and orderly and include a checklist of required documentation and retention guidelines. Procedures should also be established to ensure that the Form 50059 is completed timely and pr...

Recommendation: The design of the current controls should be reviewed to ensure tenant files are accurate, complete, and orderly and include a checklist of required documentation and retention guidelines. Procedures should also be established to ensure that the Form 50059 is completed timely and properly executed. The documentation in the files should support the data used in preparing the Form 50059 and calculating the tenant’s share of the rent. Action Taken: Management has started the process of reviewing, revising, streamlining and educating all staff on the HUD guidelines related to tenant file documentation requirements and proper completion of the Form 50059, including the documentation required to support the rent calculations.

View Audit 303501

Finding 393179 (2023-002)

Significant Deficiency 2023

Cedar Lake - L'esprit, Inc.

KY

HUD Housing Programs Internal Control / Segregation of Duties

Recommendation: Procedures should be established to properly track requests, approvals and withdrawals form the reserve for replacements account. Action Taken: Management has started the process of reviewing, revising, streamlining and educating all staff on the HUD guidelines related to the reserv...

Recommendation: Procedures should be established to properly track requests, approvals and withdrawals form the reserve for replacements account. Action Taken: Management has started the process of reviewing, revising, streamlining and educating all staff on the HUD guidelines related to the reserve for replacements account.

View Audit 303500

Finding 393178 (2023-001)

Significant Deficiency 2023

Cedar Lake - L'esprit, Inc.

KY

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Recommendation: The design of the current controls should be reviewed to ensure tenant files are accurate, complete, and orderly and include a checklist of required documentation and retention guidelines. Procedures should also be established to ensure that the Form 50059 is completed timely and pr...

Recommendation: The design of the current controls should be reviewed to ensure tenant files are accurate, complete, and orderly and include a checklist of required documentation and retention guidelines. Procedures should also be established to ensure that the Form 50059 is completed timely and properly executed. The documentation in the files should support the data used in preparing the Form 50059 and calculating the tenant’s share of the rent. Action Taken: Management has started the process of reviewing, revising, streamlining and educating all staff on the HUD guidelines related to tenant file documentation requirements and proper completion of the Form 50059, including the documentation required to support the rent calculations.

View Audit 303500

Finding 393177 (2023-001)

Significant Deficiency 2023

Cedar Lake - Monticello Parke, Inc.

KY

HUD Housing Programs Eligibility Significant Deficiency

Recommendation: The design of the current controls should be reviewed to ensure tenant files are accurate, complete, and orderly and include a checklist of required documentation and retention guidelines. Procedures should also be established to ensure that the Form 50059 is completed timely and pr...

Recommendation: The design of the current controls should be reviewed to ensure tenant files are accurate, complete, and orderly and include a checklist of required documentation and retention guidelines. Procedures should also be established to ensure that the Form 50059 is completed timely and properly executed. The documentation in the files should support the data used in preparing the Form 50059 and calculating the tenant’s share of the rent. Action Taken: Management has started the process of reviewing, revising, streamlining and educating all staff on the HUD guidelines related to tenant file documentation requirements and proper completion of the Form 50059, including the documentation required to support the rent calculations.

View Audit 303499

Finding 393164 (2023-001)

Significant Deficiency 2023

Indianapolis Aids Housing Corporation, Inc.

IN

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding 2023-001: Comments on the Finding and Each Recommendation: Management fees of $2,383 were prepaid at December 31, 2023. The Agent should reimburse $2,383 to the Community. Action(s) taken or planned on the finding: Agree. On March 26, 2024, the Agent reimbursed $2,383 to the Community...

Finding 2023-001: Comments on the Finding and Each Recommendation: Management fees of $2,383 were prepaid at December 31, 2023. The Agent should reimburse $2,383 to the Community. Action(s) taken or planned on the finding: Agree. On March 26, 2024, the Agent reimbursed $2,383 to the Community.

View Audit 303483 Questioned Costs: $1

Finding 393082 (2023-001)

Significant Deficiency 2023

Meadowood Glen Ii, Ltd.

ID

Questioned Costs HUD Housing Programs Cash Management

During the audit of the 2023 financials, it was noted as a finding that a transfer was done from Residual Receipts to the Operating Account without HUD approval. This was to pay for damage done to unit #19 until the insurance funds were received; the Residual Receipts Account was reimburse as soon a...

During the audit of the 2023 financials, it was noted as a finding that a transfer was done from Residual Receipts to the Operating Account without HUD approval. This was to pay for damage done to unit #19 until the insurance funds were received; the Residual Receipts Account was reimburse as soon as the insurance check was received. There was no authorization from HUD for the transfer. In the future, this will not be done unless we have approval from HUD to do the transfer.

View Audit 303422 Questioned Costs: $1

Finding 393080 (2023-001)

Significant Deficiency 2023

Neider House Project No. 124-Ee023

ID

Questioned Costs HUD Housing Programs Cash Management

During the audit of the 2023 financials, it was noted as a finding that a transfer was done from Residual Receipts to the Operating Account without HUD approval. This was to pay for the repairs done before the REAC inspection; the Residual Receipts Account was reimburse as soon as we received the ap...

During the audit of the 2023 financials, it was noted as a finding that a transfer was done from Residual Receipts to the Operating Account without HUD approval. This was to pay for the repairs done before the REAC inspection; the Residual Receipts Account was reimburse as soon as we received the approval to transfer the funds from the Reserve account. There was no authorization from HUD for the transfer (Residual Receipts to Operating) but there is approval from HUD for Reserve to Operating. In the future, this will not be done unless we have approval from HUD to do the transfer.

View Audit 303421 Questioned Costs: $1

Finding 393055 (2023-003)

Significant Deficiency 2023

Interfaith Works, Inc.

MD

Special Tests & Provisions Allowable Costs / Cost Principles HUD Housing Programs

Views of Responsible Officials: IW is utilizing a procedure to ensure that procured units are compliant with rent reasonableness standards. Currently, the Housing Locator identifies rental units of similar size and within a similar geographic region. The asking rental cost for each unit is compared ...

Views of Responsible Officials: IW is utilizing a procedure to ensure that procured units are compliant with rent reasonableness standards. Currently, the Housing Locator identifies rental units of similar size and within a similar geographic region. The asking rental cost for each unit is compared to the daily FMR rate. Based on the audit results we have revised this procedure to include documentation of this process in a spreadsheet. The unit once chosen by the client will be clearly indicated. The rent reasonableness rate during the selection period will also be indicated on the spreadsheet.

View Audit 303346

Finding 393051 (2023-001)

Significant Deficiency 2023

Myers Senior Residence, Inc. Hud Project No. 031-Ee074

NJ

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

UNDEFUNDING OF THE RESERVE RECOMMENDATION: WE RECOMMEND THAT MANAGEMENT TAKE THE NECESSARY STEPS TO ENSURE THAT FUTURE DEPOSITS ARE MADE IN ACCORDANCE WITH HUD REGULATION. PAYMENTS SHOULD BE MADE MONTHLY INTO THE REPLACEMENNT RESERVE. THERE IS NO DISAGREEMENT WITH THE AUDIT FINDING. ACTION PLANNE...

UNDEFUNDING OF THE RESERVE RECOMMENDATION: WE RECOMMEND THAT MANAGEMENT TAKE THE NECESSARY STEPS TO ENSURE THAT FUTURE DEPOSITS ARE MADE IN ACCORDANCE WITH HUD REGULATION. PAYMENTS SHOULD BE MADE MONTHLY INTO THE REPLACEMENNT RESERVE. THERE IS NO DISAGREEMENT WITH THE AUDIT FINDING. ACTION PLANNED IN RESPONSE TO FINDING: THE PROJECT'S OPERATING SYSTEM AND ANNUAL PROCEDURES ARE BEING ADDRESSED TO COMPLY WITH HUD. NAME OF THE CONTACT PERSON RESPONSIBLE FOR CORRECTIVE ACTION: JOHN WESTERVELT, PRESIDENT PLANNED COMPLETION DATE FOR CORRECTIVE ACTION PLAN: JANUARY 31, 2024

View Audit 303332

Finding 393050 (2023-001)

None 2023

Cleveland County Senior Citizens Housing, Inc. 053-11205

NC

Questioned Costs HUD Housing Programs Procurement, Suspension & Debarment

Cleveland County Senior Citizens Housing, Inc. Shelby, North Carolina CORRECTIVE ACTION PLAN ...

Cleveland County Senior Citizens Housing, Inc. Shelby, North Carolina CORRECTIVE ACTION PLAN March 18, 2024 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Cleveland County Senior Citizens Housing, Inc. respectfully submits the following Corrective Action Plan for the year ended December 31, 2023. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Greensboro, North Carolina 27410 The finding from the December 31, 2023 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS - Financial Statement and Federal Award Program Audit Finding 2023-001: Recommendation: We recommend management continue to maintain strong internal controls at the site to effectively catch any employee theft that may occur. Action Taken: We agree with Finding 2023-001 and the recommendation described in the accompanying schedule of findings and questioned costs. Management will continue to ensure that strong internal controls are maintained at the site to effectively catch any employee theft that may occur. If HUD has questions regarding this action plan, please call Joe Ward at (336)724-1110. Sincerely yours, Joe Ward NC Asset Manager Residential Properties Management, Inc. Managing Agent

View Audit 303325 Questioned Costs: $1

Finding 392960 (2023-001)

None 2023

Rainbow Plaza, INC

CA

HUD Housing Programs

Corrected action has been completed. The financial statements were submitted on May 2, 2023.

View Audit 303286

Finding 392949 (2023-001)

Significant Deficiency 2023

Dignity Housing Association, Inc. 054-11074

SC

Questioned Costs HUD Housing Programs Procurement, Suspension & Debarment

Finding #2023-001 Comments on Findings and Recommendation: The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $10,490 was not deposited within 90 days of the fiscal year end. Management s...

Finding #2023-001 Comments on Findings and Recommendation: The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $10,490 was not deposited within 90 days of the fiscal year end. Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. Management deposited $10,490 into the residual receipts fund on May 23, 2023. No further action is required.

View Audit 303230 Questioned Costs: $1

Finding 392948 (2023-002)

Significant Deficiency 2023

Baptist Educational and Missionary Services, Inc.054-Eh131-Wah-L8

SC

Questioned Costs Subrecipient Monitoring Cash Management

Finding #2023-002 Comments on Findings and Recommendation: At December 31, 2023, management has only made $16,583 of the required $60,829 deposit to the residual receipts account base on the December 31, 2022 Computation of Surplus Cash Distributions and Residual Receipts. Management should transfer...

Finding #2023-002 Comments on Findings and Recommendation: At December 31, 2023, management has only made $16,583 of the required $60,829 deposit to the residual receipts account base on the December 31, 2022 Computation of Surplus Cash Distributions and Residual Receipts. Management should transfer the deficient amount of $44,246 to the residual receipts account. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. Management deposited $44,246 to the residual receipts account on February 1, 2024. No further action is required.

View Audit 303229 Questioned Costs: $1

Finding 392947 (2023-001)

Significant Deficiency 2023

Baptist Educational and Missionary Services, Inc.054-Eh131-Wah-L8

SC

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding #2023-001 Comments on Findings and Recommendation: At December 31, 2023, deposits to the reserve for replacements account of $3,938 had not been made. Management should transfer $3,938 from the operating account to the reserve for replacements account. Action(s) taken or planned on the findi...

Finding #2023-001 Comments on Findings and Recommendation: At December 31, 2023, deposits to the reserve for replacements account of $3,938 had not been made. Management should transfer $3,938 from the operating account to the reserve for replacements account. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation.

View Audit 303229 Questioned Costs: $1

Finding 392946 (2023-001)

Significant Deficiency 2023

Amelia Village Hsg Corp. Dba Amelia Village 054-11075

SC

Questioned Costs HUD Housing Programs Subrecipient Monitoring

Finding #2023-001 Comments on the Finding and Recommendation: The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $19,539 was not deposited within 90 days of the fiscal year end. Managemen...

Finding #2023-001 Comments on the Finding and Recommendation: The Corporation's required deposit into the residual receipts account per the December 31, 2022 Computation of Surplus Cash, Distributions and Residual Receipts of $19,539 was not deposited within 90 days of the fiscal year end. Management should make all required residual receipts deposits per the annual Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after the fiscal year end. Management Response: Agree. Management deposited $19,539 into the residual receipts fund on November 30, 2023. No further action is required.

View Audit 303228 Questioned Costs: $1

Finding 392900 (2023-002)

Material Weakness 2023

North Providence Housing Authority

RI

HUD Housing Programs Special Tests & Provisions Material Weakness

In April of 2023, the North Providence Housing Authority hired an outside company to perform yearly rent reasonableness studies. Nelrod has given us the tools to perform these studies fast and efficiently with the use of their software program. Additionally, due to being a small housing authority, w...

In April of 2023, the North Providence Housing Authority hired an outside company to perform yearly rent reasonableness studies. Nelrod has given us the tools to perform these studies fast and efficiently with the use of their software program. Additionally, due to being a small housing authority, with only one HCV staff member, we have hired an HCV Assistant to help the HCV Coordinator in obtaining all information needed to comply with HUD’s regulations. Planned Implementation Date of Corrective Action: April 2023 Planned Implementation Date of Corrective Action: Eileen Reyes/Michael McMahon/Cheryl Lonardo

View Audit 303175

Finding 392898 (2023-001)

Significant Deficiency 2023

North Providence Housing Authority

RI

HUD Housing Programs Eligibility Significant Deficiency

The North Providence Housing Authority will be creating a check list which will include Income Verification as part of the participants file to be used for examinations, and reexaminations of income. This check list will be completed by the Housing Authority staff member, signed, and dated, showing ...

The North Providence Housing Authority will be creating a check list which will include Income Verification as part of the participants file to be used for examinations, and reexaminations of income. This check list will be completed by the Housing Authority staff member, signed, and dated, showing that all required documents have been obtained and used for a successful processing of the tenants rent. Additionally, due to being a small housing authority, with only one HCV staff member, we have hired an HCV Assistant to help the HCV Coordinator in obtaining all information needed to comply with HUD’s regulations. Planned Implementation Date of Corrective Action: January 1, 2024 Planned Implementation Date of Corrective Action: Eileen Reyes/Michael McMahon/ Cheryl Lonardo

View Audit 303175

Finding 392897 (2023-001)

None 2023

Ncr of Manhattan, Kansas D/b/a Garden Grove Apartments

OH

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

The security deposit has been refunded and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are returned timely.

View Audit 303173

Finding 392890 (2023-005)

Significant Deficiency 2023

Sioux Falls Housing and Redevelopment Commission

SD

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Contact Person Brent Tucker, Interim Executive Director Corrective Action Plan Plans are in place to move accounts to another bank. A RFP for a new bank will be released in 2024. Planned Completion Date for CAP June 30, 2024

View Audit 303161

Finding 392883 (2023-004)

Significant Deficiency 2023

Sioux Falls Housing and Redevelopment Commission

SD

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Brent Tucker, Interim Executive Director Corrective Action Plan Management has begun the process of creating a quality control plan to ensure that all HQS inspections and abatements are monitored. Staff have been trained on when to properly abate a payment and how to properly document abatements. Pl...

Brent Tucker, Interim Executive Director Corrective Action Plan Management has begun the process of creating a quality control plan to ensure that all HQS inspections and abatements are monitored. Staff have been trained on when to properly abate a payment and how to properly document abatements. Planned Completion Date for CAP March 1, 2024

View Audit 303161

Finding 392876 (2023-003)

Significant Deficiency 2023

Sioux Falls Housing and Redevelopment Commission

SD

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Contact Person Brent Tucker, Interim Executive Director Corrective Action Plan Management has implemented a new software program that provides rent reasonableness documentation. Staff have been trained on the proper way to utilize the software and are also now aware of when to run a rent reasonablen...

Contact Person Brent Tucker, Interim Executive Director Corrective Action Plan Management has implemented a new software program that provides rent reasonableness documentation. Staff have been trained on the proper way to utilize the software and are also now aware of when to run a rent reasonableness comparison. Planned Completion Date for CAP March 1, 2024

View Audit 303161

Finding 392869 (2023-002)

Significant Deficiency 2023

Sioux Falls Housing and Redevelopment Commission

SD

HUD Housing Programs Eligibility Significant Deficiency

Contact Person Brent Tucker, Interim Executive Director Corrective Action Plan Management has begun the process of creating a quality control plan to ensure that all files are accurate and follow all local, state and federal compliance guidelines. An Independent entity has also been hired to review ...

Contact Person Brent Tucker, Interim Executive Director Corrective Action Plan Management has begun the process of creating a quality control plan to ensure that all files are accurate and follow all local, state and federal compliance guidelines. An Independent entity has also been hired to review all current files and all corrections have been made. Planned Completion Date for CAP April 30, 2024

View Audit 303161

Corrective Action Plans

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