Corrective Action Plans

Finding 1223596 (2026-001)

Material Weakness 2026

Oldtimers Housing Development Corporation of Chino 122-Eh-122-Wah-L8

CA

HUD Housing Programs

Management has agreed to review program requirements for fidelity bond coverage and obtain appropriate coverage

View Audit 407044

Finding 1223552 (2026-001)

Material Weakness 2026

Magnolia Heights Housing Corporation

MO

HUD Housing Programs Questioned Costs Special Tests & Provisions

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interes...

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interest bearing account in a federally insured depository. During the fiscal year the project fund was not in an interest-bearing account. Questioned Costs - None Context – During the fiscal year the project fund was not included in a interest bearing account. Effect – The Organization did not properly comply with the special test and provisions requirements. Cause – The Organization’s internal controls did not properly identify the project fund was not maintained in an interest-bearing account. Identification as a repeat finding – Not a repeat finding. Recommendation – The Organization should move the project fund into an interest-bearing account. Views of Responsible Officials and Planned Corrective Actions – During the 2027 fiscal year management will move the project fund to an interest-bearing account and implement procedures to periodically review the project fund and other HUD accounts for compliance with HUD requirements. This corrective action plan will be monitored by Nathan Mordica, Controller and Michael Jones, Director of Accounting, and is anticipated to be completed by the end of fiscal year 2027, or March 31, 2027.

View Audit 406934

Finding 1223551 (2026-001)

Material Weakness 2026

Poplar Place Housing Corporation

MO

HUD Housing Programs Questioned Costs Special Tests & Provisions

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interes...

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interest bearing account in a federally insured depository. During the fiscal year the project fund was not in an interest-bearing account. Questioned Costs - None Context – During the fiscal year the project fund was not included in a interest bearing account. Effect – The Organization did not properly comply with the special test and provisions requirements. Cause – The Organization’s internal controls did not properly identify the project fund was not maintained in an interest-bearing account. Identification as a repeat finding – Not a repeat finding. Recommendation – The Organization should move the project fund into an interest-bearing account. Views of Responsible Officials and Planned Corrective Actions – During the 2027 fiscal year management will move the project fund to an interest-bearing account and implement procedures to periodically review the project fund and other HUD accounts for compliance with HUD requirements. This corrective action plan will be monitored by Nathan Mordica, Controller and Michael Jones, Director of Accounting, and is anticipated to be completed by the end of fiscal year 2027, or March 31, 2027.

View Audit 406933

Finding 1223550 (2026-001)

Material Weakness 2026

Cedar Hill Housing Corporation

MO

HUD Housing Programs Questioned Costs Special Tests & Provisions

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interes...

Supportive Housing for Persons with Disabilities CFDA No. 14.181 U.S. Department of Housing and Urban Development (“HUD”) Criteria or Specific Requirement – Special Tests and Provisions: (24 CFR section 891.400(e)) Condition – The Organization is required to establish a separate project fund interest bearing account in a federally insured depository. During the fiscal year the project fund was not in an interest-bearing account. Questioned Costs - None Context – During the fiscal year the project fund was not included in a interest bearing account. Effect – The Organization did not properly comply with the special test and provisions requirements. Cause – The Organization’s internal controls did not properly identify the project fund was not maintained in an interest-bearing account. Identification as a repeat finding – Not a repeat finding. Recommendation – The Organization should move the project fund into an interest-bearing account. Views of Responsible Officials and Planned Corrective Actions – During the 2027 fiscal year management will move the project fund to an interest-bearing account and implement procedures to periodically review the project fund and other HUD accounts for compliance with HUD requirements. This corrective action plan will be monitored by Nathan Mordica, Controller and Michael Jones, Director of Accounting, and is anticipated to be completed by the end of fiscal year 2027, or March 31, 2027.

View Audit 406932

Finding 1223000 (2026-001)

Material Weakness 2026

Lincoln School Senior Apartments

WA

HUD Housing Programs Internal Control / Segregation of Duties § 200.303

S3800-045 ACTIONS TAKEN OR TO BE TAKEN: Management will endeavor to check files at the site level to ensure that the approval of each certification is retained on file. Management will work with the site managers and the compliance reviewing company to ensure accuracy of certifications, verification...

S3800-045 ACTIONS TAKEN OR TO BE TAKEN: Management will endeavor to check files at the site level to ensure that the approval of each certification is retained on file. Management will work with the site managers and the compliance reviewing company to ensure accuracy of certifications, verifications and rent calculations. The deficiencies found in the files audited will be corrected by Compliance and the site manager and reviewed by the Affordable Housing Director for completion and accuracy.

View Audit 406528

Finding 1222971 (2026-001)

Material Weakness 2026

Nba Hsg of St Louis/columbia/boone Dba Gateway/woodhaven Hsg

MO

HUD Housing Programs

MANAGEMENT AGREES WITH THE FINDING. THE FUNDS WERE DEPOSITED BACK INTO THE RESTRICTED ACCOUNT.

View Audit 406485

Finding 1222655 (2026-001)

Material Weakness 2026

Hickory Estates 084-Ee062-Wahnp

MO

HUD Housing Programs Cash Management

Corrective Action Plan for Current Year Findings 2026-001 Deposit of Surplus Cash into a Residual Receipts Account Corrective Action Plan No later than 90 days past the end of the fiscal year, we will identify surplus cash in the project funds account and deposit into the residual receipts account. ...

Corrective Action Plan for Current Year Findings 2026-001 Deposit of Surplus Cash into a Residual Receipts Account Corrective Action Plan No later than 90 days past the end of the fiscal year, we will identify surplus cash in the project funds account and deposit into the residual receipts account. Person(s) Responsible: Aaron Franklin Timing for Implementation: Immediate

View Audit 406221

Finding 1221712 (2026-002)

Material Weakness 2026

Belmont Elderly Housing, Inc.

NH

HUD Housing Programs Significant Deficiency

Finding 2026-002 CAPBM acknowledges the finding regarding inaccuracies identified in several tenant annual recertifications that required corrected HUD-50059-A forms to accurately reflect the Total Tenant Payment (TTP) and HUD subsidy amounts. The errors were the result of calculation and data entry...

Finding 2026-002 CAPBM acknowledges the finding regarding inaccuracies identified in several tenant annual recertifications that required corrected HUD-50059-A forms to accurately reflect the Total Tenant Payment (TTP) and HUD subsidy amounts. The errors were the result of calculation and data entry mistakes during the annual recertification process with past management. Current management is currently reviewing the affected tenant files and will complete any necessary corrections to ensure tenant rent and subsidy calculations are accurate and compliant with HUD requirements. To prevent similar errors in the future, CAPBM has implemented an additional review procedure for all annual recertifications. Once the Compliance Manager completes the annual recertification and prepares the HUD-50059, the Director of Affordable Housing will conduct a secondary review of the certification, including income calculations, asset determinations, applicable deductions, Total Tenant Payment (TTP), and subsidy calculations, prior to final approval and submission. Additionally, staff will continue to receive training on HUD occupancy requirements and annual recertification procedures to ensure compliance with HUD regulations. Management believes these corrective actions will strengthen internal controls and reduce the likelihood of future calculation errors. CAPBM is committed to maintaining accurate tenant certifications and ensuring ongoing compliance with HUD requirements. Completion Date: 12/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 405980

Finding 1221710 (2026-004)

Material Weakness 2026

Belmont Elderly Housing, Inc.

NH

HUD Housing Programs Significant Deficiency

Finding 2026-004 Plan: Please see below the new process regarding hiring additional staff and turnover at Community Action Partnership Belknap-Merrimack Counties Inc. Due to lack of management, it is understood the importance of having staff training on a regular basis to ensure management and compl...

Finding 2026-004 Plan: Please see below the new process regarding hiring additional staff and turnover at Community Action Partnership Belknap-Merrimack Counties Inc. Due to lack of management, it is understood the importance of having staff training on a regular basis to ensure management and compliance duties can be performed adequately. Community Action Program Belknap-Merrimack Counties Inc. plans to improve the standards of employee training and will be hosting quarterly trainings on employee responsibilities, performance, and areas for improvement. This includes HUD trainings and keeping up to date on any new HUD policies and procedures. We understand the importance of a well-trained staff. We are committed to our performance and adhering to HUD standards while implementing policies to follow for continuous improvement. Please see below the new process regarding filling vacancies and completing management duties in a timely manner: 1. Immediate Focus on Vacancies: We are prioritizing the filling of vacant units by having two staff members complete move ins at the same time. 2. Streamlined Recertification Process: We have updated our process to ensure all tenants are recertified in a timely manner. There has been a new system in place to monitor deadlines and improve efficiency. 3. Staffing and Training: We are actively recruiting and training additional staff to ensure these tasks are handled promptly, preventing future delays. These steps will address the backlog of management duties and ensure that all tasks, such as filling vacancies, submitting budgets, and completing tenant recertifications, are handled in a timely and efficient manner. Completion Date: 11/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 405980

Finding 1221708 (2026-003)

Material Weakness 2026

Belmont Elderly Housing, Inc.

NH

HUD Housing Programs

Finding 2026-003 Action Plan: Management has submitted all corrections to HUD, but the MOR report has not been closed out or finalized as of yearend. See 2026-003. Completion Date: 9/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

View Audit 405980

Finding 1220319 (2026-001)

Material Weakness 2026

Asi Freeport, Inc.

MN

HUD Housing Programs Questioned Costs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested did not contain a copy of the tenant's disability verification. Recommendation: The Project should obtain a copy of the tenant's disability verificati...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested did not contain a copy of the tenant's disability verification. Recommendation: The Project should obtain a copy of the tenant's disability verification and place it in the tenant file. Action Taken: The Project agrees with the finding. They obtained a copy of the tenant's disability verification during June, 2026. If the Department of Housing and Urban Development has questions regarding this plan, please call Les Russo at 847-424-5601.

View Audit 405403

Finding 1218355 (2026-001)

Material Weakness 2026

Asi-Alexandria, Inc.

MN

HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project's replacement reserve cash balance was underfunded at March 31, 2026. Recommendation: The Project should deposit $30 into the replacement reserve account. Action Taken: ...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2026-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: The Project's replacement reserve cash balance was underfunded at March 31, 2026. Recommendation: The Project should deposit $30 into the replacement reserve account. Action Taken: The Project agrees with the finding. Management deposited $30 into the replacement reserve account in April 2026. If the Department of Housing and Urban Development has questions regarding this plan, please call Jeanne Overocker at 651-645-7271.

View Audit 404632

Finding 1218249 (2026-001)

Material Weakness 2026

Shawme Heights II ,inc

MA

Cash Management HUD Housing Programs Subrecipient Monitoring

Remaining balance was deposited on April 16, 2026. In the future management will ensure deposits are made timely or obtain HUD appproval permitting delay if there were cash flows issues.

View Audit 404495

Finding 1214435 (2026-001)

Material Weakness 2026

Malone Community Center Housing Corporation Dba Malone Manor 10311083

IN

HUD Housing Programs Questioned Costs Procurement, Suspension & Debarment

Statement of Condition 2026-001 (Assistance Listing 14.155): The Corporation did not make all of the HUD required reserve for replacement deposits for the year ended January 31, 2026. Recommendation: Management should notify the lender of the new reserve for replacement deposit amount and make an ad...

Statement of Condition 2026-001 (Assistance Listing 14.155): The Corporation did not make all of the HUD required reserve for replacement deposits for the year ended January 31, 2026. Recommendation: Management should notify the lender of the new reserve for replacement deposit amount and make an additional $565 deposit to the reserve for replacements fund on the next billing. Management Response: Agree. Management has notified the lender of the new required deposit and will make an additional $565 deposit to the reserve for replacements fund on the next billing.

View Audit 401127

Finding 1235085 (2025-010)

Material Weakness 2025

State of Montana

MT

Allowable Costs / Cost Principles HUD Housing Programs Internal Control / Segregation of Duties § 200.303

Inadequate HDS System Access Controls - HVC - Commerce - The Montana Department of Commerce has developed a user access review procedure to be performed semiannually. The first review was completed in June 2026. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerc...

Inadequate HDS System Access Controls - HVC - Commerce - The Montana Department of Commerce has developed a user access review procedure to be performed semiannually. The first review was completed in June 2026. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerce Target Implementation Date - 12/16/2026

View Audit 411404

Finding 1235084 (2025-009)

Material Weakness 2025

State of Montana

MT

HUD Housing Programs Cash Management § 200.303

Noncompliant Section 8 Cash Management - HVC - Commerce - The Montana Department of Commerce took steps in September 2023 to update the Treasury State Agreement to clarify that settlement dates occur within five business days after receiving funds from the United States Department of Housing and Urb...

Noncompliant Section 8 Cash Management - HVC - Commerce - The Montana Department of Commerce took steps in September 2023 to update the Treasury State Agreement to clarify that settlement dates occur within five business days after receiving funds from the United States Department of Housing and Urban Development. In September 2024, the department again coordinated a revision to the agreement language to reflect mid-month payment practices. These updates are included in the 2026 Treasury State Agreement, signed July 1, 2025. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerce Target Implementation Date - 7/1/2025

View Audit 411404

Finding 1230267 (2025-018)

Material Weakness 2025

State of Montana

MT

Allowable Costs / Cost Principles HUD Housing Programs Special Tests & Provisions § 200.303

Inadequate HAP Reconciliation Controls - HVC - Commerce - The Montana Department of Commerce has provided additional staff training to ensure housing assistance payments are issued timely, even though the error rate was less than one percent. Responsible Party - Ingrid Mallo, Chief Financial Officer...

Inadequate HAP Reconciliation Controls - HVC - Commerce - The Montana Department of Commerce has provided additional staff training to ensure housing assistance payments are issued timely, even though the error rate was less than one percent. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerce Target Implementation Date - 8/19/2026

View Audit 411404

Finding 1230266 (2025-017)

Material Weakness 2025

State of Montana

MT

HUD Housing Programs Special Tests & Provisions § 200.303

Inadequate Inspection Controls - HVC - Commerce - The Montana Department of Commerce implemented the United States Department of Housing and Urban Development’s new inspection protocol on July 1, 2026. This protocol will ensure staff are able to perform the required inspections. Responsible Party - ...

Inadequate Inspection Controls - HVC - Commerce - The Montana Department of Commerce implemented the United States Department of Housing and Urban Development’s new inspection protocol on July 1, 2026. This protocol will ensure staff are able to perform the required inspections. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerce Target Implementation Date - 9/18/2025

View Audit 411404

Finding 1230265 (2025-016)

Material Weakness 2025

State of Montana

MT

Allowable Costs / Cost Principles HUD Housing Programs Internal Control / Segregation of Duties § 200.303

Inadequate HAPPY System Access Controls - HVC - Commerce - The Montana Department of Commerce began conducting user access reviews during the audit period. The department’s Chief Information Officer updated the Access Control Policy and distributed it to all employees. Staff received training on acc...

Inadequate HAPPY System Access Controls - HVC - Commerce - The Montana Department of Commerce began conducting user access reviews during the audit period. The department’s Chief Information Officer updated the Access Control Policy and distributed it to all employees. Staff received training on access control requirements on May 28, 2026. The department plans to obtain a new vendor to replace the HAPPY system by October 2028. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerce Target Implementation Date - 10/31/2028

View Audit 411404

Finding 1230264 (2025-015)

Material Weakness 2025

State of Montana

MT

Allowable Costs / Cost Principles Special Tests & Provisions HUD Housing Programs § 200.303

Inadequate Field Agent Payment Controls - HVC - Commerce - The Montana Department of Commerce has updated its processes to ensure that contract limits are reviewed prior to payments being issued and that contract amendments are pursued when needed. Responsible Party - Ingrid Mallo, Chief Financial O...

Inadequate Field Agent Payment Controls - HVC - Commerce - The Montana Department of Commerce has updated its processes to ensure that contract limits are reviewed prior to payments being issued and that contract amendments are pursued when needed. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerce Target Implementation Date - 8/24/2026

View Audit 411404

Finding 1230263 (2025-014)

Material Weakness 2025

State of Montana

MT

HUD Housing Programs Special Tests & Provisions Reporting § 200.303

Inadequate HQS Inspection Controls - HVC - Commerce - The Montana Department of Commerce has updated its inspection procedures to clearly outline requirements, including annual reexaminations. While the department may have lacked documentation of certain monthly reports, both the fiscal year 2024 an...

Inadequate HQS Inspection Controls - HVC - Commerce - The Montana Department of Commerce has updated its inspection procedures to clearly outline requirements, including annual reexaminations. While the department may have lacked documentation of certain monthly reports, both the fiscal year 2024 and fiscal year 2025 Section 8 Management Assessment Program Indicator 12 inspection reviews received all available points. The department is also transitioning to the National Standards for the Physical Inspection of Real Estate (NSPIRE) model for inspections. Staff completed training on June 16, 2026, and have begun using the federal inspection checklist to ensure compliance with current standards. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerce Target Implementation Date - 9/18/2025

View Audit 411404

Finding 1230262 (2025-013)

Material Weakness 2025

State of Montana

MT

Special Tests & Provisions HUD Housing Programs Reporting § 200.303

Inadequate FASS Reporting Controls - HVC - Commerce - The Montana Department of Commerce has developed procedures for the Financial Assessment Subsystem (FASS) reports to ensure they are complete and accurate and that the reviews of these reports are sufficiently documented. Responsible Party - Ingr...

Inadequate FASS Reporting Controls - HVC - Commerce - The Montana Department of Commerce has developed procedures for the Financial Assessment Subsystem (FASS) reports to ensure they are complete and accurate and that the reviews of these reports are sufficiently documented. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerce Target Implementation Date - 8/20/2026

View Audit 411404

Finding 1230261 (2025-012)

Material Weakness 2025

State of Montana

MT

HUD Housing Programs § 200.303

Inaccurate Management System Reports - HVC - Commerce - The Montana Department of Commerce implemented a process in fiscal year 2025 to ensure the completeness and accuracy of monthly Voucher Management System reports. The issues occurred during fiscal year 2024, and no issues were present in fiscal...

Inaccurate Management System Reports - HVC - Commerce - The Montana Department of Commerce implemented a process in fiscal year 2025 to ensure the completeness and accuracy of monthly Voucher Management System reports. The issues occurred during fiscal year 2024, and no issues were present in fiscal year 2025. The department will continue using these established processes to maintain accuracy and support ongoing compliance. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerce Target Implementation Date - 8/20/2025

View Audit 411404

Finding 1230260 (2025-011)

Material Weakness 2025

State of Montana

MT

HUD Housing Programs Special Tests & Provisions § 200.303

Noncompliant Waiting List Selections - HVC - Commerce - The Montana Department of Commerce identified that errors related to data entry delays for paper applications were caused by a training issue. This issue was addressed with the current Waiting List Coordinator, and training was provided to prev...

Noncompliant Waiting List Selections - HVC - Commerce - The Montana Department of Commerce identified that errors related to data entry delays for paper applications were caused by a training issue. This issue was addressed with the current Waiting List Coordinator, and training was provided to prevent future occurrences. As part of the updated process, the Waiting List Coordinator confirms data entry dates for paper applications before finalizing selections from the waiting list. In addition, the department created separate waiting lists for the ModRehab program to further reduce the potential for errors. Responsible Party - Ingrid Mallo, Chief Financial Officer, Montana Department of Commerce Target Implementation Date - 8/18/2026

View Audit 411404

Finding 1230199 (2025-080)

Material Weakness 2025

State of Montana

MT

Subrecipient Monitoring Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Inadequate Monthly Subrecipient Case File Reviews - CCDF - DPHHS - The Montana Department of Public Health and Human Services will further strengthen compliance by enhancing its internal control framework. The Department will refine supervisory review protocols, formalize documentation requirements,...

Inadequate Monthly Subrecipient Case File Reviews - CCDF - DPHHS - The Montana Department of Public Health and Human Services will further strengthen compliance by enhancing its internal control framework. The Department will refine supervisory review protocols, formalize documentation requirements, and improve monitoring procedures to ensure full alignment with State Plan objectives. The department will also review its State Plan and submit an amendment if necessary. These improvements will ensure continued compliance with State Plan requirements. The Department anticipates full implementation of these strengthened processes in early 2027. Responsible Party - Brenda Crawford, Internal Control and Compliance Officer, Montana Department of Public Health and Human Services Target Implementation Date - 3/26/2027

View Audit 411404

Corrective Action Plans

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