Corrective Action Plans

Finding 88033 (2022-003)

None 2022

NH

HUD Housing Programs

Nutfield Heights Inc. Project No. 024-44801-NP-SUP Year Ended April 30, 2022 Findings and Questioned Cost: Finding 2022-001: Mortgage did not increase the required monthly replacement reserve deposit. Corrective Action: William Roberson, Accountant of management company, will submit a check to mortg...

Nutfield Heights Inc. Project No. 024-44801-NP-SUP Year Ended April 30, 2022 Findings and Questioned Cost: Finding 2022-001: Mortgage did not increase the required monthly replacement reserve deposit. Corrective Action: William Roberson, Accountant of management company, will submit a check to mortgage company for replacement reserve shortfall Finding 2022-002: Property paid another property?s invoice totaling $1,791.00 Corrective Action: William Roberson, Accountant of management company, has reimbursed the property for the payment made in error. Finding 2022-003: The security deposit account is deficient by $1,730.00. Corrective Action: William Roberson will transfer sufficient amount from the operating account to the security deposit account

View Audit 78098

Finding 86899 (2022-001)

Significant Deficiency 2022

Kankakee County Housing Authority

IL

HUD Housing Programs

The Executive Director will start the budget process timely and present to Board at the May meeting each year.

View Audit 87232

Finding 86279 (2022-001)

Significant Deficiency 2022

Charlotte Rhf Housing, Inc. Dba Barringer Gardens 053-Ee199

CA

Subrecipient Monitoring HUD Housing Programs

Statement of Condition 2022-001 (Assistance Listing No. 14.157): The Property received a score of 59c* on a physical inspection of the Property performed on October 5, 2021 by a representative of HUD. By reference, the REAC inspection is included as a statement of condition. Recommendation: Manageme...

Statement of Condition 2022-001 (Assistance Listing No. 14.157): The Property received a score of 59c* on a physical inspection of the Property performed on October 5, 2021 by a representative of HUD. By reference, the REAC inspection is included as a statement of condition. Recommendation: Management should ensure all necessary repairs have been made. Management should continue to conduct routine unit and general property inspections and deficiencies should be corrected in a timely manner. Action(s) taken or planned on the finding: Agree. Management has responded to HUD in regards to this inspection report and has addressed all health and safety issues. Management will continue to correct all remaining deficiencies noted and will implement a process of self-inspection of units and common areas.

View Audit 81129

Finding 83021 (2022-001)

Significant Deficiency 2022

Housing Authority of the City of Waynesboro

GA

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

2022-1 Condition: Deficiencies Noted in Examination of Low-Rent Public Housing Tenant Files Steps to resolve: We concur with this finding and the Auditor?s recommendation. We will review the internal control procedures over tenant file re-certifications and documents. Management has implemented ...

2022-1 Condition: Deficiencies Noted in Examination of Low-Rent Public Housing Tenant Files Steps to resolve: We concur with this finding and the Auditor?s recommendation. We will review the internal control procedures over tenant file re-certifications and documents. Management has implemented procedures in order to clear this finding in FY 2023 Timeframe: By FYE June 30, 2023 Individual responsible for correction: Brent Meeks, Executive Director

View Audit 76233

Finding 79319 (2022-001)

Significant Deficiency 2022

Housing Authority of the County of Dekalb

IL

HUD Housing Programs Reporting

Responsible staff will receive SEMAP training before the FY23 processing deadline. The SEMAP indicators and backup will be reviewed by staff who have been trained. The sample size calculations will be verified by a second party, and the submission answers will be double verified with the indicator b...

Responsible staff will receive SEMAP training before the FY23 processing deadline. The SEMAP indicators and backup will be reviewed by staff who have been trained. The sample size calculations will be verified by a second party, and the submission answers will be double verified with the indicator backup before submitting.

View Audit 73224

Finding 79317 (2022-001)

Significant Deficiency 2022

Housing 2006

IL

HUD Housing Programs

Corrective Action Plan We will make timely deposits into the Replacement Reserve account. Anticipated Completion Date No later than the end of each month. Responsible Parties Tammy Grissom, Accounts Payable Angie Dean, Director of Finance Stacy Mixer, Housing Specialist

View Audit 73221

Finding 79316 (2022-001)

Material Weakness 2022

Housing Authority of the City of New Iberia

LA

Eligibility HUD Housing Programs Material Weakness

Finding 2022-001 ? Lack of Controls over Annual Tenant Re-examinations and Assistance Calculations Corrective Action The Authority has performed all applicable tenant re-examinations and rent calculations as of March 31, 2022. Dr. Janice Wade, Executive Director, directed the completion of the re-...

Finding 2022-001 ? Lack of Controls over Annual Tenant Re-examinations and Assistance Calculations Corrective Action The Authority has performed all applicable tenant re-examinations and rent calculations as of March 31, 2022. Dr. Janice Wade, Executive Director, directed the completion of the re-examinations as of March 31, 2022, and has assumed the responsibility of executing timely tenant re-examinations annually thereafter.

View Audit 73218

Finding 79314 (2022-002)

Significant Deficiency 2022

Charles Place Apartments

IL

Eligibility HUD Housing Programs Reporting

Finding 2022-002 - Oversight of Computation of Tenant Eligibility of Assistance Responsible Person, Title: Vanessa Keppner, Board Secretaryrrreasurer Anticipated Completion Date: Ongoing Response: Management will conduct initial certification reviews prior to an incoming tenants move in finalization...

Finding 2022-002 - Oversight of Computation of Tenant Eligibility of Assistance Responsible Person, Title: Vanessa Keppner, Board Secretaryrrreasurer Anticipated Completion Date: Ongoing Response: Management will conduct initial certification reviews prior to an incoming tenants move in finalization. Additionally, reviews will take place for all tenants during the annual recertification process to ensure accurate calculations. Documentation will then be kept with each years information within the tenant file. Vanessa Keppner Secretary/Treasurer

View Audit 71648

Finding 77935 (2022-001)

Significant Deficiency 2022

Kitsap County Consolidated Housing Authority Dba Housing Kitsap

WA

Questioned Costs HUD Housing Programs Eligibility

Views of responsible officials and planned corrective action: The Authority has an interlocal agreement with a neighboring housing authority for administration of the Section 8 Housing Choice Vouchers Program. It is the Authority's responsibility to monitor the agreements and verify adequate process...

Views of responsible officials and planned corrective action: The Authority has an interlocal agreement with a neighboring housing authority for administration of the Section 8 Housing Choice Vouchers Program. It is the Authority's responsibility to monitor the agreements and verify adequate processing of compliance activities. The neighboring housing authority suffered a significant technical issue during the period of the effective date for the one file that did not have adequate documentation, which may have been a factor. The Authority intends to bring the Section 8 Housing Choice Vouchers Program back "in-house" soon, so it can better control administration of this significant program. In the interim, however, the Authority will be conducting quality control reviews monthly of a percentage of the Authority's Section 8 Housing Choice Voucher Program participant files (in addition to the quality control reviews already being performed by the neighboring housing authority) to better monitor adequacy with compliance requirements. Heather Blough, Executive Director, will be responsible to implement this corrective action by June 30, 2023.

View Audit 67498 Questioned Costs: $1

Finding 77130 (2022-001)

Significant Deficiency 2022

West Chicago Preservation Corporation 071-11482/il06m000208

IL

HUD Housing Programs Internal Control / Segregation of Duties Reporting

Finding Number: 2022-001 Condition: The Corporation failed to make the required reserve for replacements deposits in the current fiscal year. Planned Corrective Action: Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over complianc...

Finding Number: 2022-001 Condition: The Corporation failed to make the required reserve for replacements deposits in the current fiscal year. 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 $113 to the reserve for replacements account during the fiscal year ended December 31, 2023. Contact person responsible for corrective action: Laura Selby, Executive Vice President - COO Anticipated Completion Date: March 31, 2023

View Audit 66841

Finding 75487 (2022-001)

Significant Deficiency 2022

Beechview Manor, Inc.

PA

HUD Housing Programs Procurement, Suspension & Debarment Eligibility

Beechview Manor CORRECTIVE ACTION PLAN March 24, 2023 United States Department of Housing and Urban Development Beechview Manor, Inc., respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Maher Du...

Beechview Manor CORRECTIVE ACTION PLAN March 24, 2023 United States Department of Housing and Urban Development Beechview Manor, Inc., respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Maher Duessel, CPA's 503 Martindale Street, Suite 600 Pittsburgh, PA 15212 Audit period: January 1, 2022 - December 31, 2022 The finding from the December 31, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS?FINANCIAL STATEMENT AUDIT See Below FINDINGS? FEDERAL AWARD PROGRAMS AUDITS Finding 2022-001 Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects - Section 223(f)/207 ALN 14.155. Recommendation: The Property should have internal controls in place to review Form HUD-50059 to ensure all documentation used to calculate the tenant rent and assistance payment is supported and properly calculated. Action taken: The Property Manager has a Recertification Checklist. The managers have been reminded to utilize the checklist to its fullest at tenant recertification. Also, managers have been reminded to double check all calculations after submitting rent calculations to the servicer, Paulhus and Associates. If the Department of Housing and Urban Development has questions regarding this plan, please call Dan Barbusio at 412-646-5193.

View Audit 66138

Finding 72447 (2022-001)

Significant Deficiency 2022

Housing 1989

IL

HUD Housing Programs

Corrective Action Plan We will make timely deposits into the Replacement Reserve account. Anticipated Completion Date No later than the end of each month. Responsible Parties Tammy Grissom, Accounts Payable Angie Dean, Director of Finance

View Audit 63283

Finding 71642 (2022-001)

Significant Deficiency 2022

El Paso County Housing Authority

TX

Questioned Costs HUD Housing Programs Eligibility

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. M...

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. Miguel Hernandez, Executive Director, will be responsible to implement this corrective action by June 30, 2023.

View Audit 63135 Questioned Costs: $1

Finding 70898 (2022-001)

Significant Deficiency 2022

Cairo-Durham Central School District

NY

HUD Housing Programs

The district received from RBT, CPA's, LLP the year-end June 30, 2022 Report on Federal Compliance Audit Report for the school district. The district is required to complete a corrective action plan within ninety (90) days of receiving the report or management letter. The corrective action plan is t...

The district received from RBT, CPA's, LLP the year-end June 30, 2022 Report on Federal Compliance Audit Report for the school district. The district is required to complete a corrective action plan within ninety (90) days of receiving the report or management letter. The corrective action plan is the response to any Management Letter Comments/Findings contained in the annual external audit report or management letter, and will be filed with the State Education Department once approved by the Board of Education. Listed below is the corrective action plan for the Management Letter comments contained in the Financial Statement for the year ended June 30, 2022: Management Letter Comment #1: Federal Program: CFDA Nos.: 84.425D Education Stabilization Fund, ESSER2, 84.425U Education Stabilization Fund, ESSER3 ARP, 84.425W Education Stabilization Fund, ESSER3 Homeless and 84.425U Education Stabilization Fund, UPK ARP Condition: The District does not comply with the required standards of Support of Salaries and Wages because employees whose time was charged to federal grants during fiscal year ending 6/30/2022 did not complete monthly or semiannual time certification forms or personnel activity reports (PAR) for their time distribution. Some employees used timesheet to support their time charges on the grants but the timesheets did not indicate the grant they were working on. Criteria: The distribution of the salaries and wages of employees are to be supported by either time certifications or personnel activity reports or equivalent documentation which meets the standards in Subsection 8.h. (5) of the 0MB Circular A-87 Part 225 Appendix B. The certification for employees who work on one cost objective must be prepared at least semi-annually. Personnel activity reports (PAR) for employees who work on multiple activities or cost objectives must be prepared at least monthly and meet certain prescribed standards, such as accounting for the employee's total compensation, and reflecting an after-the-fact distribution of the actual activity of each employee. The costs of such compensation are allowable to the extent that they satisfy the specific requirements of this and other appendices under 2 CFR Part 225, and that the total compensation for individual employees: (3) Is determined and supported as provided in Subsection h. (8. Compensation for Personal Services. A. (3).) Questioned Costs: There are no questioned costs. Effect: The District did not comply with the required standards of supports of salaries and wages. It is more likely that the extent of effort charged to the various cost objectives may not be representative of the related time devoted to the respective cost objectives. Cause: District did not have a system in place to ensure the District complied with the required standards of Support of Salaries and Wages for an employee who needed to complete monthly certifications during the fiscal year and the time sheets did not identify the grant the employee was spending time on. Recommendation: In order to prevent future occurrences of this deficiency, we recommend that management require that copies of these payroll certifications be forward to the District Treasurer on a timely basis. Perspective: This is a systematic issue in that controls over the requirement have not been developed to ensure . . issues anse. Repeat: This is not a repeat finding. Management's Response: To address this comment we have revised time sheets to reflect specific grants and have created monthly check sheets for payroll of salaried individuals whose time allocated to each grant is 1 FTE or less. To prevent future occurrences of this deficiency, management has created a checklist of employees who fall in the monthly and semi-annual payroll certification requirement, which is reconciled by the District Treasurer. This will ensure that we receive certifications on a timely basis and can quickly identify missing certifications. Implementation: January 2023

View Audit 63132

Finding 65277 (2022-001)

Material Weakness 2022

Cable Telecommunications Association of New York, Inc.

NY

HUD Housing Programs

CTANY agrees with the recommendation that accounts receivable and related revenue should be monitored for accuracy. Due to management transition over the past year, the CTANY board and administrative consultants are working to ensure that best practices are put in place going forward to ensure accou...

CTANY agrees with the recommendation that accounts receivable and related revenue should be monitored for accuracy. Due to management transition over the past year, the CTANY board and administrative consultants are working to ensure that best practices are put in place going forward to ensure accounts receivable and related revenue are constantly monitored. In terms of the outside accountant CTANY is considering the option of consulting with an outside firm to help manage the books and accounting records per the recommendations of this audit report.

View Audit 65627

Finding 64086 (2022-001)

Significant Deficiency 2022

Cocaa Seminole Development, Inc.

OK

HUD Housing Programs Reporting

CORRECTIVE ACTION PLAN ISSUED BY THE BOARD OF DIRECTORS COCAA Seminole Development, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2022. Name and address of public accounting firm: John Flusche, CPA 5735 East 102nd Street Tulsa, Oklahoma 74137 Audit Perio...

CORRECTIVE ACTION PLAN ISSUED BY THE BOARD OF DIRECTORS COCAA Seminole Development, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2022. Name and address of public accounting firm: John Flusche, CPA 5735 East 102nd Street Tulsa, Oklahoma 74137 Audit Period: Year ended March 31, 2022 The findings from the March 2022, 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. FINDING No. 2022-001: Recommendation: The Project?s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Action Taken: The Project?s management has partially redeposited the funds into the Replacement Reserve account in 2022 and will not withdraw funds in the future without proper authorization. If the Department of HUD has questions regarding this plan, please contact Rick Gowin, Westchester Realty & Development. June 23, 2022 Fred Combs, President Date June 23, 2022 Rick Gowin, Management Agent Date

View Audit 70020

Finding 64081 (2022-001)

Significant Deficiency 2022

Housing Authority for the City of Freeport

IL

HUD Housing Programs

Finding 2022-001 Finding Summary: Tenant files were not in compliance with HUD regulations. Responsible Individuals: Babette Jamison-Varner, Chief Executive Director Corrective Action Plan: HACF will continue to conduct its scheduled annual audit. Additionally, the organization will be consistent i...

Finding 2022-001 Finding Summary: Tenant files were not in compliance with HUD regulations. Responsible Individuals: Babette Jamison-Varner, Chief Executive Director Corrective Action Plan: HACF will continue to conduct its scheduled annual audit. Additionally, the organization will be consistent in its conduct of bi-annual file reviews. These reviews will sample of up to 20 files. Both annual and bi-annual audits will result in documentation of file errors and needed corrections. All audit files will be signed off by the operations manager and the staff. Property management staff will receive ongoing training on reviewing income, assets and rent calculations, tenant record keeping and recertification requirements. Anticipated Completion Date: Annual and bi-annual audit months: December 2022, April 2023, August 2023 & December 2023.

View Audit 69234

Finding 63669 (2022-002)

Material Weakness 2022

Housing Authority of the City of York

SC

HUD Housing Programs Material Weakness Special Tests & Provisions

2022-002 Special Tests and Provisions ? Income Targeting Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (CFDA 14.871) Type of Finding: Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2021-002 from June 30, 2021 Statement of C...

2022-002 Special Tests and Provisions ? Income Targeting Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (CFDA 14.871) Type of Finding: Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2021-002 from June 30, 2021 Statement of Condition The Authority did not have adequate controls over income targeting to assure that the Authority is in compliance with this requirement. During our testing, we noted that tenants with incomes that were extremely low accounted for approximately 59% of new admissions during the fiscal year, which is below the minimum required percentage of 75%. Recommendation We recommend the Authority assure that at least 75% of new admissions be in the extremely low-income bracket. This should be monitored throughout the year. The Authority can also select applicants on the waiting list who are extremely low income by bypassing others on the list that don?t meet the requirement and documenting that the person was selected ahead of others to be able to meet the requirement Action Taken: We concur with this finding. We will closely monitor new admissions and focus on applicants on the waiting list who meet the criteria as extremely low income so that the 75% requirement is met. Our lease rate has been decreasing due to a decrease in availability in our area. We have been issuing vouchers every month and have little to no wait on our waiting list. We are also accepting applications every week. We have been unable to exclude persons due to the extremely low income bracket requirement because we are trying to increase the overall utilization in our voucher program.

View Audit 70550

Finding 63668 (2022-001)

Material Weakness 2022

Housing Authority of the City of York

SC

HUD Housing Programs Eligibility Material Weakness

2022-001 Eligibility ? Tenant Files Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (CFDA 14.871) Type of Finding: Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2021-001 from June 30, 2021 Statement of Condition Out of a ...

2022-001 Eligibility ? Tenant Files Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (CFDA 14.871) Type of Finding: Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2021-001 from June 30, 2021 Statement of Condition Out of a total tenant population of approximately 200 vouchers, 20 files were selected for testing. Exceptions were noted as follows: ? 1 error where the utility allowance was calculated incorrectly and reported incorrectly on the 50058 form. The HAP rent amount did not change. ? 1 file where the tenant?s wage income was calculated using only one paystub even though the tenant provided two. This changes the tenant?s HAP rent from $592 to $579. ? 1 file where the $360 for food stamps was included in the tenant?s income and should have been excluded. This changes the HAP rent from $466 to $475. ? 1 file where there was no support for a full-time student deduction for one member of the household. The HAP rent amount did not change. ? 1 file that did not contain a signed lease agreement and HAP contract for the current landlord and unit address. In addition to the above, during our new admissions testing (3 tested out of 22 new admissions) we noted the following: ? 1 error where the request for tenancy form was signed three days after voucher expiration with no proof of extension in the file. ? 1 error where the HAP contract was signed by the owner more than 11 months after the move-in date. Recommendation The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Action Taken We concur with this finding and have implemented various controls. A tenant file and unit quality control procedure has been developed and implemented.

View Audit 70550

Finding 63277 (2022-004)

Significant Deficiency 2022

City of Gardena

CA

Subrecipient Monitoring HUD Housing Programs Reporting

2022-004 Reporting ? Internal Control and Compliance over Reporting City?s Corrective Action Plan: City will follow its grant management policies to ensure the reporting requirements are met in a timely manner. Responsible Person: Ray Beeman, Director of Administrative Services Expected Implementati...

2022-004 Reporting ? Internal Control and Compliance over Reporting City?s Corrective Action Plan: City will follow its grant management policies to ensure the reporting requirements are met in a timely manner. Responsible Person: Ray Beeman, Director of Administrative Services Expected Implementation Date: July 1, 2023

View Audit 69837

Finding 62792 (2022-001)

Significant Deficiency 2022

The Pines Housing, Inc.

OR

Questioned Costs HUD Housing Programs Reporting

Condition: The security deposit liabilities of $20.052 exceeded the balance in the security deposit bank account of $18,496. There is a security deposit funding deficit of $1,556, resulting in an instance of noncompliance. Comments on the finding and the recommendation: The Organization concurs with...

Condition: The security deposit liabilities of $20.052 exceeded the balance in the security deposit bank account of $18,496. There is a security deposit funding deficit of $1,556, resulting in an instance of noncompliance. Comments on the finding and the recommendation: The Organization concurs with the finding and the recommendation. Action(s) taken or planned on the finding: The management agent, Quantum, is responsible for reconciling the security liability account with the security deposit funding. The Asset Management Director, Holly Vander Schaaf is responsible for reviewing the security deposit handling and accounting on a monthly basis.

View Audit 54429 Questioned Costs: $1

Finding 62122 (2022-001)

Significant Deficiency 2022

Volunteer Residences-Two, Inc.

TN

HUD Housing Programs Internal Control / Segregation of Duties Eligibility

CORRECTIVE ACTION PLAN Volunteer Residences-Two, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Purkey, Carter, Compton, Swann, & Carter, PLLC P.O. Box 727 Morristown, Tennessee 37815 Audit period: October 1, 2021 - September 30, 2022 The find...

CORRECTIVE ACTION PLAN Volunteer Residences-Two, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Purkey, Carter, Compton, Swann, & Carter, PLLC P.O. Box 727 Morristown, Tennessee 37815 Audit period: October 1, 2021 - September 30, 2022 The findings from the 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 ? FINANCIAL STATEMENT AUDIT None FINDINGS ? FEDERAL AWARD PROGRAMS AUDITS Finding No. 2022 ? 001: Ineffective oversight and operation of internal controls over compliance by management The Project managers at two out of the three complexes did not follow all HUD requirements when performing the tenant recertification process. The tenant files tested for internal controls over compliance contained multiple deficiencies, including missing manager signatures and dates on HUD Form 50059 and HUD Forms 9887/A; missing tenant signatures and dates on HUD Form 50059, citizenship declaration, and HUD Forms 9887/A; missing spouse signatures and dates on HUD Form 50059, HUD Forms 9887/A, and lease; and incorrect calculation of tenant assets. Criteria: According to the HUD Handbook 4350.3: 1. The HUD-50059 certifications must be signed and dated by the manager, tenant, and spouse (if applicable). 2. The lease must be signed and dated by the head-of-household, spouse, co-head (if applicable), and any adult family members and the manager. 3. The HUD-9887 and HUD-9887A must be signed by the tenant, manager, and spouse (if applicable). 4. Owners must verify all income, assets, expenses, deductions, family characteristics, and circumstances that affect family eligibility or level of assistance. For savings accounts, use the current balance. For checking accounts, use the average balance for the last six months. 5. Citizens must sign declaration certifying U.S. Citizenship. Cause of Condition: The management agent did not have proper systems in place to ensure that all documents are completed per HUD requirements pursuant to HUD Handbook 4350.3. Recommendation: Auditor recommends management agent review HUD Handbook 4350.3 and put proper internal controls in place to ensure manager of the Project is trained on the handbook and is complying with all applicable requirements pursuant to HUD Handbook 4350.3. Action Taken: Management agent will provide additional training on HUD requirements to managers during their annual manager?s training and implement procedures to ensure managers are complying with requirements pursuant to HUD Handbook 4350.3.

View Audit 54157

Finding 61915 (2022-006)

Significant Deficiency 2022

Housing Opportunities Commission of Montgomery County, MD

MD

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

2022-006 Section 8 Project Based Cluster-PBRA/MOD Tenant Utility Allowances ? Assistance Listing No. 14.195 / 14.856 Context: Testing of 40 tenant files for eligibility standards revealed the following: ? One recertification displayed a tenant utility allowance that did not match the value listed in...

2022-006 Section 8 Project Based Cluster-PBRA/MOD Tenant Utility Allowances ? Assistance Listing No. 14.195 / 14.856 Context: Testing of 40 tenant files for eligibility standards revealed the following: ? One recertification displayed a tenant utility allowance that did not match the value listed in HUD Form-52667 effective for the period tested. Recommendation: The Commission should review the procedures taken by Section 8 Cluster employees to ensure that they correctly add utility allowance values from HUD Form-52667 to newly processed certifications. All Section 8 cluster employees should be trained on any changes made to these procedures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ? HRD will hire an internal trainer to address systemic errors, reinforce program rules and introduce new regulatory requirements. The trainer will meet with staff monthly to reinforce program requirements and provide individual coaching as needed. Moreover, HOC will continue to archive recorded trainings in a resource library so the materials are accessible to staff at all times ? The HOC Compliance Team will conduct quality control reviews of completed files. Staff from the Property Management Team will meet with the HOC Compliance Team following each review period to discuss systemic findings and schedule staff trainings in areas requiring improvement. ? HOC will procure a professional consulting company to provide a comprehensive refresher training on the HCV eligibility requirements Name(s) of the contact person(s) responsible for corrective action: Lynn Hayes, Director of Housing Resources/Darcel Cox, Chief Compliance Officer Planned completion date for corrective action plan: June 30, 2023

View Audit 52878

Finding 61914 (2022-005)

Material Weakness 2022

Housing Opportunities Commission of Montgomery County, MD

MD

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

2022-005 Section 8 Project Based Cluster-PBRA/MOD Housing Quality Standards ? Assistance Listing No. 14.195 / 14.856 Context: Testing of 40 HCVP tenant files for annual inspection standards revealed the following: ? 22 files did not have an annual inspection completed during or subsequent to the fis...

2022-005 Section 8 Project Based Cluster-PBRA/MOD Housing Quality Standards ? Assistance Listing No. 14.195 / 14.856 Context: Testing of 40 HCVP tenant files for annual inspection standards revealed the following: ? 22 files did not have an annual inspection completed during or subsequent to the fiscal year. ? 15 files did not have an annual inspection that was completed within the 12-month fiscal period. Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained for inspections of tenant residences. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ? Property Management staff will be retrained on the unit inspection requirements to ensure that all inspections are documented and the that the completed executed signed inspection forms are scanned into the resident?s record in HOC?s Yardi system. ? Managers will review these actions and provide greater oversight to ensure that move-in and move-out inspections are performed for every unit upon lease signing and when residents vacate a unit. ? The Property Management and Maintenance Divisions will develop an annual inspection schedule ? The HOC Compliance Team will review inspections as part of the quality control review. Name(s) of the contact person(s) responsible for corrective action: Ellen Goff, Acting Director of Property Management/Darcel Cox, Chief Compliance Officer Planned completion date for corrective action plan: June 30, 2023

View Audit 52878

Finding 61913 (2022-004)

Material Weakness 2022

Housing Opportunities Commission of Montgomery County, MD

MD

HUD Housing Programs Eligibility Material Weakness

2022-004 Section 8 Project Based Cluster-PBRA/MOD Eligibility ? Assistance Listing No. 14.195 / 14.856 Context: Testing of 40 tenant files for eligibility standards revealed that 34 files had the following exceptions: ? Nine files missing documentation needed to support and recalculate total income ...

2022-004 Section 8 Project Based Cluster-PBRA/MOD Eligibility ? Assistance Listing No. 14.195 / 14.856 Context: Testing of 40 tenant files for eligibility standards revealed that 34 files had the following exceptions: ? Nine files missing documentation needed to support and recalculate total income per HUD-50059. ? Eight files that were missing support needed to substantiate the asset total per HUD-50059. ? Seven files that were missing support needed to substantiate the expense total per HUD-50059. ? 25 files missing documentation supporting that the tenant was selected from the waitlist in accordance with the Commission?s Administration Plan. ? 28 files did not have a certification checklist, or an alternative document, reflecting an HCVP Employee?s signoff on the application or file being completed to document an internal control. Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained during the recertification process for every tenant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ? HOC will procure a third party reviewing to complete a 100% audit of the Project Based Rental Assistance program across all properties. ? Property Management will implement new procedures to ensure that all resident documents are properly maintained. The updated procedures will require that all staff completing recertifications utilize a checklist to ensure that all required documents are obtained and that each document is scanned as attachments directly into HOC?s Yardi system. ? Managers will perform quality control reviews to ensure that procedures are followed and that documents are scanned into the system for all recertifications completed. ? The Regional Manager will review reports monthly to enable confirmation of scanned documents for proper file maintenance. ? The HOC Compliance Team will conduct quality control reviews of completed files. Staff from the Property Management Team will meet with the HOC Compliance Team following each review period to discuss systemic findings and schedule staff trainings in areas requiring improvement. ? The HOC Compliance Team will offer a refresher Housing Path Waitlist training to existing staff and perform monthly quality control reviews to ensure that procedures are followed. ? HOC will procure a professional consulting company to provide a comprehensive refresher training on the Project Based Rental Assistance eligibility requirements. Name(s) of the contact person(s) responsible for corrective action: Ellen Goff, Acting Director of Property Management/Darcel Cox, Chief Compliance Officer Planned completion date for corrective action plan: June 30, 2023

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