Corrective Action Plans

Finding 1211025 (2025-001)

Material Weakness 2025

LA

HUD Housing Programs Eligibility

The Housing Authority of New Orleans (HANO) acknowledges the deficiencies identified in the audit related to tenant eligibility documentation, Housing Assistance Payment (HAP) calculations, and file accessibility during the transition to digital records. HANO will correct the deficiencies noted in t...

The Housing Authority of New Orleans (HANO) acknowledges the deficiencies identified in the audit related to tenant eligibility documentation, Housing Assistance Payment (HAP) calculations, and file accessibility during the transition to digital records. HANO will correct the deficiencies noted in the sampled files, including completing overdue recertifications, obtaining required HUD forms and identification documentation, securing proper third-party income verification, and recalculating HAP amounts where necessary. The Authority will also conduct an expanded internal review of additional tenant files to determine whether similar issues exist and will correct any deficiencies identified. To prevent recurrence, HANO has initiated formal staff training to reinforce compliance with HUD eligibility requirements, documentation standards, and proper HAP calculation procedures. Training began on March 19, 2026, and is being conducted by Circular Consulting LLC, a thirdparty firm with expertise in Housing Choice Voucher program compliance and operations. This training will continue through September 2026 to ensure staff receive comprehensive instruction and reinforcement of HUD program requirements. In addition, HANO will strengthen internal controls by implementing additional quality control (QC) reviews of tenant files and recertifications, including supervisory review of eligibility documentation and HAP calculations to ensure accuracy and completeness. These enhanced QC monitoring procedures will begin on April 20, 2026, and will be conducted on an ongoing basis to ensure errors are identified and corrected promptly. The Authority will also reconcile physical and digital tenant records to ensure that all files are properly digitized, complete, and accessible following the transition to electronic records. Responsible Party: Sonja Young, Director Implementation Timeline: Start Date: March 30, 2026 Completion Date: May 18, 2026

View Audit 400305

Finding 1210895 (2025-005)

Material Weakness 2025

Middle MacOupin Health Care Systems and Affiliates

IL

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Federal Agency Name: Department of Housing and Urban Development Program Name: Section 242 – Mortgage Insurance - Hospitals Federal Financial Assistance Listing #: CFDA #14.128 Compliance Requirement: Special Tests and Provisions Finding Summary: During the fiscal year, the Organization entered into...

Federal Agency Name: Department of Housing and Urban Development Program Name: Section 242 – Mortgage Insurance - Hospitals Federal Financial Assistance Listing #: CFDA #14.128 Compliance Requirement: Special Tests and Provisions Finding Summary: During the fiscal year, the Organization entered into two new short term loans. A new loan is identified in the Mortgage Note Insured by HUD as the incurrence of additional indebtedness which, by terms of the agreement, should be approved by HUD in advance of entering into the loan agreement unless the loan meets certain requirements. If those requirements are met, then the Organization just needs to inform HUD of the new loan agreement. Responsible Individuals: Jay Hodges, Chief Financial Officer Corrective Action Plan: Management will enhance internal controls to ensure additional indebtedness is approved by HUD in advance of incurring such indebtedness. Anticipated Completion Date: April 29, 2026

View Audit 400243

Finding 1210894 (2025-004)

Material Weakness 2025

Middle MacOupin Health Care Systems and Affiliates

IL

HUD Housing Programs Matching / Level of Effort / Earmarking Material Weakness

Federal Agency Name: Department of Housing and Urban Development Program Name: Section 242 – Mortgage Insurance - Hospitals Federal Financial Assistance Listing #: CFDA #14.128 Compliance Requirement: Reporting Finding Summary: The Section 242 – Mortgage Insurance - Hospitals Program requires quarte...

Federal Agency Name: Department of Housing and Urban Development Program Name: Section 242 – Mortgage Insurance - Hospitals Federal Financial Assistance Listing #: CFDA #14.128 Compliance Requirement: Reporting Finding Summary: The Section 242 – Mortgage Insurance - Hospitals Program requires quarterly reports and certain annual reports. For the year ended July 31, 2025, the Organization failed to timely and accurately submit certain reports in accordance with HUD requirements. Responsible Individuals: Jay Hodges, Chief Financial Officer Corrective Action Plan: Management will enhance internal controls to ensure that required reports under the Section 242 Program are submitted timely and accurately. Anticipated Completion Date: April 29, 2026

View Audit 400243

Finding 1210888 (2025-002)

Material Weakness 2025

Tri-County Senior Citizens and Housing, Inc.

CO

Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs

Finding 2025-002: Lower Income Housing Assistance Program – Section 8 New Construction/ Substantial Rehabilitation Assistance Listing Number: 14.182 U.S. Department of Housing and Urban Development (Repeat of Finding 2024-003) Compliance Requirements: Special Tests and Provisions Type of finding: In...

Finding 2025-002: Lower Income Housing Assistance Program – Section 8 New Construction/ Substantial Rehabilitation Assistance Listing Number: 14.182 U.S. Department of Housing and Urban Development (Repeat of Finding 2024-003) Compliance Requirements: Special Tests and Provisions Type of finding: Internal Control Over Compliance (material weakness) and Compliance (material noncompliance) Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to establish a monitoring process to ensure compliance with Mortgage Restructuring Loan terms and conditions. Action Taken: Action Taken: The Organization has accepted the recommendation to strengthen internal controls regarding Mortgage Restructuring Loan terms. We are currently in active remediation, working in direct coordination with our HUD Account Exexuctive, to ensure our adopted policies align with the federal requirments. Our HUD Account Exexuctive, has been notified of the finalized 2025 Auditied financials and are currently working to set up a time to discuss a Management Action Plan regarding a recommedation for Mortgage Restructuring controls. If these are questions regarding this plan, please call the responsible part at (719)852-5578. Sincerely yours, Brenda Quintana Administrator Tri-County Senior Citizens and Housing, Inc.

View Audit 400232

Finding 1210882 (2025-002)

Material Weakness 2025

Senior Citizens Housing Development Corporation of South Boston, Inc.

FL

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

FINDING No. 2025-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures to monitor the expiration of all contracts to ensure timely preparation and approval. Action Taken: Management is in the process of renewing all management certifi...

FINDING No. 2025-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures to monitor the expiration of all contracts to ensure timely preparation and approval. Action Taken: Management is in the process of renewing all management certifications and will provide accountants with extra training to monitor. If the Oversight Agency for Audit has questions regarding the plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO

View Audit 400222

Finding 1210881 (2025-001)

Material Weakness 2025

Senior Citizens Housing Development Corporation of South Boston, Inc.

FL

HUD Housing Programs Eligibility Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of South Boston, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive,...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of South Boston, Inc. respectfully submits the following corrective action plan for the year ended December 31, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audit period: January 1, 2025 through December 31, 2025 The findings from the December 31, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures to ensure that all initial and ongoing tenant eligibility documentation is obtained timely and maintained in tenant files as required by HUD. Action Taken: Staff training has been provided with additional HUD training inclusive of EIV reporting and tenant file maintenance and included in monthly reporting procedures.

View Audit 400222

Finding 1210859 (2025-001)

Material Weakness 2025

Golden Ridge Housing Inc.

RI

HUD Housing Programs Reporting Cash Management

Failure to Establish and Fund Residual Receipts Account Management acknowledges that the residual receipts account was not funded within HUD’s required timeframe due to limited cash availability needed for operations; management will notify HUD, request guidance, and ensure timely funding or documen...

Failure to Establish and Fund Residual Receipts Account Management acknowledges that the residual receipts account was not funded within HUD’s required timeframe due to limited cash availability needed for operations; management will notify HUD, request guidance, and ensure timely funding or documented HUD approval going forward. Julie Leddy, the Executive Director, will work with the Organization to resolve this matter. The anticipated completion date is June 30, 2026.

View Audit 400193

Finding 1210858 (2025-002)

Material Weakness 2025

Kings Crossing Apartments

MN

Allowable Costs / Cost Principles HUD Housing Programs Internal Control / Segregation of Duties

View of Responsible Officials: The Project agrees with the finding and will replenish the replacement reserve by transferring $15,784 from the operating account to the replacement reserve account for the amount that was withdrawn from the replacement reserve in error. Responsible Party: Collyn Iblin...

View of Responsible Officials: The Project agrees with the finding and will replenish the replacement reserve by transferring $15,784 from the operating account to the replacement reserve account for the amount that was withdrawn from the replacement reserve in error. Responsible Party: Collyn Iblings, CFO Estimated Completion: Resolved. Funds were properly transferred on March 5, 2026.

View Audit 400190

Finding 1210856 (2025-002)

Material Weakness 2025

Carty Heights

MN

Allowable Costs / Cost Principles HUD Housing Programs Internal Control / Segregation of Duties

View of Responsible Officials: The Project agrees with the finding and will reconcile the replacement reserve account by transferring $14,899 from the replacement reserve to the operating account to properly reconcile the replacement reserve for the allowable costs and withdrawals approved by HUD. R...

View of Responsible Officials: The Project agrees with the finding and will reconcile the replacement reserve account by transferring $14,899 from the replacement reserve to the operating account to properly reconcile the replacement reserve for the allowable costs and withdrawals approved by HUD. Responsible Party: Collyn Iblings, CFO Estimated Completion: Resolved. Funds were properly transferred on March 5, 2026.

View Audit 400187

Finding 1210844 (2025-001)

Material Weakness 2025

Eaton Knolls Housing Development Fund Company, Inc.

NY

HUD Housing Programs

Corrective Action: The annual recertifications were not completed on time due to difficulty obtaining the required tenant information. Stanan will start the process earlier in the year and make a better attempt at collecting the documentation needed. Stanan's occupancy specialist and supervisor will...

Corrective Action: The annual recertifications were not completed on time due to difficulty obtaining the required tenant information. Stanan will start the process earlier in the year and make a better attempt at collecting the documentation needed. Stanan's occupancy specialist and supervisor will more closely monitor the timing and progress of all tenant annual recertifications to avoid untimely filings in the future. Stanan will notify the management of Eaton Knolls if they cannot collect the information from the tenants in advance of the filing due date. Eaton Knolls management will go on site to collect this information if need be. Anticipated completion date: The implementation of training and procedures is expected to be completed in 2026.

View Audit 400134

Finding 1210843 (2025-001)

Material Weakness 2025

Housing Authority of the City of Salisbury

NC

HUD Housing Programs § 200.302 § 200.303

Management will be refreshing training and cross-training for staff to ensure accurate calculation of rental assistance and timely completion of interim certifications whenever required. Additionally, we will provide a refresher training to staff on HUD Section 8 documentation standards.

View Audit 400132

Finding 1210797 (2025-001)

Material Weakness 2025

Amethyst Housing Development Fund Company, Inc.

NY

Special Tests & Provisions Cash Management HUD Housing Programs

Management concurs with the finding and the auditor's recommendation to utilize an interest-bearing account for project funds. Management is in the process of evluating the recommendation to determine an appropriate course of action.

View Audit 400088

Finding 1210412 (2025-001)

Material Weakness 2025

Golden Years Senior Apartments, Inc. 122-Ee-078-Wah-Np

CA

HUD Housing Programs Subrecipient Monitoring Cash Management

Statement of Condition #2025-001 (CFDA 14.157): During 2025, the Corporation did make its required residual receipts deposit of $44,817. In addition, the Corporation made a payment on the CRA loan of $44,817 without HUD approval. Recommendation: The Corporation and management should deposit surplus ...

Statement of Condition #2025-001 (CFDA 14.157): During 2025, the Corporation did make its required residual receipts deposit of $44,817. In addition, the Corporation made a payment on the CRA loan of $44,817 without HUD approval. Recommendation: The Corporation and management should deposit surplus cash into the residual receipts reserve upon receipt of the audited financial statements. Management should then seek HUD approval via HUD Form 9250 for payment on the CRA loan after the invoice is received. Action(s) taken or planned on the finding: The Corporation and management agree with the recommendation. No further action is required.

View Audit 399866

Finding 1208901 (2025-001)

Material Weakness 2025

Cedar Street Senior Apartments

CA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN Name of Auditee: Cedar Street Senior Apartments, Inc. HUD Project No. 121-EE118-NP-WAH Name of audit firm: Propp Christensen Caniglia LLP Period covered by the audit: July 1, 2024 through June 30, 2025 CAP Prepared By: Name: Chrissie Keeney Position: Corporate Controller Phone...

CORRECTIVE ACTION PLAN Name of Auditee: Cedar Street Senior Apartments, Inc. HUD Project No. 121-EE118-NP-WAH Name of audit firm: Propp Christensen Caniglia LLP Period covered by the audit: July 1, 2024 through June 30, 2025 CAP Prepared By: Name: Chrissie Keeney Position: Corporate Controller Phone: (707) 822-9000 Finding 2025-001 Comments: Management Agrees with the finding. Actions: Management will implement controls and monitor the reserve for replacement account to ensure the reserve for replacement cash account is fully funded each year in accordance with the Regulatory Agreement.

View Audit 399855

Finding 1208900 (2025-001)

Material Weakness 2025

703 Cedar Street, Inc.

CA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

CORRECTIVE ACTION PLAN Name of Auditee: 703 Cedar Street, Inc. HUD Project No. 121-EE-147-NP-WAH Name of audit firm: Propp Christensen Caniglia LLP Period covered by the audit: July 1, 2024 through June 30, 2025 CAP Prepared By: Name: Chrissie Keeney Position: Corporate Controller Phone: (707) 822-9...

CORRECTIVE ACTION PLAN Name of Auditee: 703 Cedar Street, Inc. HUD Project No. 121-EE-147-NP-WAH Name of audit firm: Propp Christensen Caniglia LLP Period covered by the audit: July 1, 2024 through June 30, 2025 CAP Prepared By: Name: Chrissie Keeney Position: Corporate Controller Phone: (707) 822-9000 Finding 2025-001 Comments: Management Agrees with the finding. Actions: Management will implement controls and monitor the reserve for replacement account to ensure the reserve for replacement cash account is fully funded each year in accordance with the Regulatory Agreement.

View Audit 399854

Finding 1208875 (2025-001)

Material Weakness 2025

Sacred Heart Village II Inc.

DE

HUD Housing Programs

Corrective Action Plan: As cash flows allow, Sacred Heart Village II will continue to make additional payments to the replacement reserve account until it is fully funded. Contact Person Responsible for Corrective Action: Karen Smith, CFO Anticipated Completion Date of Corrective Action: As soon as ...

Corrective Action Plan: As cash flows allow, Sacred Heart Village II will continue to make additional payments to the replacement reserve account until it is fully funded. Contact Person Responsible for Corrective Action: Karen Smith, CFO Anticipated Completion Date of Corrective Action: As soon as possible.

View Audit 399817

Finding 1208847 (2025-001)

Material Weakness 2025

Ebenezer Ridge Point Apartments, Inc.

MN

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Section 202 Capital Advance Federal Assistance Listing #14.157 Recommendation: We recommend management follows the controls and procedures in place and to verify these are followed prior to sending any replacement reserve withdrawal request forms to HUD. Explanation of disagreement with audit findin...

Section 202 Capital Advance Federal Assistance Listing #14.157 Recommendation: We recommend management follows the controls and procedures in place and to verify these are followed prior to sending any replacement reserve withdrawal request forms to HUD. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will ensure moving forward that all replacement reserve withdrawal request forms are properly authorized prior to sending to HUD. Name of the contact person responsible for corrective action: Todd Willett, Chief Financial Officer Planned completion date for corrective action plan: March 23, 2026 If the United States Department of Housing and Urban Development has questions regarding this plan, please call Todd Willett at 612-874-3493.

View Audit 399798

Finding 1208842 (2025-001)

Material Weakness 2025

Syracuse YMCA Senior Citizen Housing Development Fund Corporation

NY

HUD Housing Programs

Finding No. 2025-001: Section 8 Housing Assistance Payments Program – Federal Assistance Listing Number 14.195 Finding: During our testing of tenant files, it was noted that there were discrepancies between tenant rent per the monthly HAP vouchers and the respective HUD Form 50059 for the same perio...

Finding No. 2025-001: Section 8 Housing Assistance Payments Program – Federal Assistance Listing Number 14.195 Finding: During our testing of tenant files, it was noted that there were discrepancies between tenant rent per the monthly HAP vouchers and the respective HUD Form 50059 for the same period. This led to discrepancies between the approved rent schedule and the rents reported and charged in the system. Recommendation: Syracuse YMCA Senior Citizen Housing Development Fund Corporation (Syracuse YMCA Apartments) should establish a mechanism for approved rent changes and effective dates assigning responsibility for timely updates to tenant records and certifications. Procedures for implementing timely rent increases across all software platforms should be reviewed. Action Taken: Syracuse YMCA Apartments agrees with the finding and going forward will make every effort to implement timely rent increases across all software platforms. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Anne Hawkes at (315) 474-6851.

View Audit 399759

Finding 1208841 (2025-002)

Material Weakness 2025

Fremont Housing Agency

NE

HUD Housing Programs

The Fremont Housing Authority contracted with Nan McKay Consulting to create a draft of the ACOP and Administrative Plan incorporating HOTMA requirements. Due to multiple delays in HOTMA’s implementation by HUD, the provisions were not required until July 1, 2025. To ensure timely compliance in the ...

The Fremont Housing Authority contracted with Nan McKay Consulting to create a draft of the ACOP and Administrative Plan incorporating HOTMA requirements. Due to multiple delays in HOTMA’s implementation by HUD, the provisions were not required until July 1, 2025. To ensure timely compliance in the future, the Agency has established internal procedures to track HUD regulatory updates, assign responsibilities for updating policies, and review all revisions prior to their required effective dates. This process, combined with the ongoing Nan McKay subscription for monitoring and guidance, will ensure that all future regulatory changes are incorporated and approved in a timely manner.

View Audit 399753

Finding 1208833 (2025-002)

Material Weakness 2025

Bloom Township High School District 206

IL

Internal Control / Segregation of Duties Subrecipient Monitoring HUD Housing Programs

Finding Number: 2025-002 The District should review its reporting internal control processes and procedures and emphasis the need for timely reporting to ensure compliance. Response: Administration will implement a formal compliance calendar mandating the Grant Administrator to monitor and verify al...

Finding Number: 2025-002 The District should review its reporting internal control processes and procedures and emphasis the need for timely reporting to ensure compliance. Response: Administration will implement a formal compliance calendar mandating the Grant Administrator to monitor and verify all expenditure reports. This internal schedule will ensure all findings are submitted no later than 20th day following the close of each quarter to maintain compliance with reporting requirements.

View Audit 399714

Finding 1208807 (2025-001)

Material Weakness 2025

Meridian Place Development Corporation

OH

HUD Housing Programs Internal Control / Segregation of Duties

Recommendation: Management should implement procedures to ensure HUD-approved rent increases are recorded in a timely manner, accurately applied, and supported by proper documentation. Action Taken: Housing staff and management have been informed of the required processes and documentation for reque...

Recommendation: Management should implement procedures to ensure HUD-approved rent increases are recorded in a timely manner, accurately applied, and supported by proper documentation. Action Taken: Housing staff and management have been informed of the required processes and documentation for requesting and implementing rent increases. Going forward, staff will ensure all completed and HUD-approved documentation is communicated to and reviewed with supervisors to confirm accurancy and compliance.

View Audit 399675

Finding 1208795 (2025-001)

Material Weakness 2025

Working in Senior Housing of South Cumminsville

OH

HUD Housing Programs Internal Control / Segregation of Duties

S3800-090 Auditor's Summary of the Auditee's Comments on the Finding and Recommendations We concur that the Corporation did not maintain the property in good repair and condition. S3800-130 Response Indicator Agree S3800-140 Completion Date 12/31/2025 S3800-150 Response The Corporation has addressed...

S3800-090 Auditor's Summary of the Auditee's Comments on the Finding and Recommendations We concur that the Corporation did not maintain the property in good repair and condition. S3800-130 Response Indicator Agree S3800-140 Completion Date 12/31/2025 S3800-150 Response The Corporation has addressed the exigent health and safety issues. S3800-160 Contact Person First Name Jimmy S3800-180 Contact Person Last Name Wilson

View Audit 399662

Finding 1208791 (2025-002)

Material Weakness 2025

Willow Creek Housing, Inc.

MD

HUD Housing Programs

Finding 2025-002: Comments on the Finding and Each Recommendation: During the year ended December 31, 2025, one of the twenty-four resident files selected for testing under the OMB Compliance Supplement were unable to be located by the Agent. The Agent should review resident files completed by the F...

Finding 2025-002: Comments on the Finding and Each Recommendation: During the year ended December 31, 2025, one of the twenty-four resident files selected for testing under the OMB Compliance Supplement were unable to be located by the Agent. The Agent should review resident files completed by the Former Agent to ensure that all resident files include all properly executed and documented resident eligibility forms and ensure that these files are maintained at the Property for a minimum of three years. Action(s) taken or planned on the finding: The Agent concurs with the finding and the recommendation. The Agent will review resident files completed by the Former Agent to ensure that all resident files include all properly executed and documented resident eligibility forms and ensure that these files are maintained at the Property for a minimum of three years.

View Audit 399630

Finding 1208790 (2025-001)

Material Weakness 2025

Willow Creek Housing, Inc.

MD

Subrecipient Monitoring HUD Housing Programs

Finding 2025-001: Comments on the Finding and Each Recommendation: The Former Agent did not obtain a HUD approved Project Owner's/Management Agent's Certification (Form HUD-9839-B) and the Property paid unapproved management fees to the Former Agent. The Agent should obtain a HUD-approved Project Ow...

Finding 2025-001: Comments on the Finding and Each Recommendation: The Former Agent did not obtain a HUD approved Project Owner's/Management Agent's Certification (Form HUD-9839-B) and the Property paid unapproved management fees to the Former Agent. The Agent should obtain a HUD-approved Project Owner's/Management Agent's Certification. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. Management of the property transitioned to the Agent on June 1, 2025 and the Agent received a HUD-aproved Project Owner's/Management Agent's Certification for the Property.

View Audit 399630

Finding 1208785 (2025-001)

Material Weakness 2025

Robbins Way Senior Housing 092-Ee129

MN

HUD Housing Programs Special Tests & Provisions Procurement, Suspension & Debarment

Corrective Action: Management agress with the finding. Due to the federal government shutdown and the temporary suspension of HUD operations, approval for one replacement reserve withdrawal could not be obtained prior to disbursement. The withdrawal was necessary to maintain essential project operat...

Corrective Action: Management agress with the finding. Due to the federal government shutdown and the temporary suspension of HUD operations, approval for one replacement reserve withdrawal could not be obtained prior to disbursement. The withdrawal was necessary to maintain essential project operations during the lapse in rental assistance payments. Management has since resumed compliance with all HUD approval requirements and will enhance documentation and contingency planning to address similar circumstances in the future. Proposed completion date: Management has begun the corrective action and is expected to have additional internal controls in place by December 31, 2026. Name of contact person: Jennifer Anderson, Chief Financial and Operating Officer

View Audit 399613

Corrective Action Plans

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