Corrective Action Plans

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Planned Corrective Action: Management does not concur. Documentation or explanations were provided for all files tested. Expected Implementation Date: None required. Contact Person: Housing Inspector Supervisor
Planned Corrective Action: Management does not concur. Documentation or explanations were provided for all files tested. Expected Implementation Date: None required. Contact Person: Housing Inspector Supervisor
Planned Corrective Action: Management does not concur and requests review of documentation provided during fieldwork. Expected Implementation Date: None required; pending auditor review. Contact Person: Housing Program Director
Planned Corrective Action: Management does not concur and requests review of documentation provided during fieldwork. Expected Implementation Date: None required; pending auditor review. Contact Person: Housing Program Director
Medicaid deployed a system enhancement to automatically run eligibility on CHIP individuals for whom TPL information was received from MMIS. This enhancement went live in May 2026. This enhancement will improve the accuracy of eligibility determinations for the Medicaid and CHIP populations. In July...
Medicaid deployed a system enhancement to automatically run eligibility on CHIP individuals for whom TPL information was received from MMIS. This enhancement went live in May 2026. This enhancement will improve the accuracy of eligibility determinations for the Medicaid and CHIP populations. In July 2024, federal partners operating the PARIS interstate match informed the State of a hold on PARIS interstate matching files. PARIS lifted the hold in October 2024. In November 2024, the State identified several defects in the PARIS results and suppressed requests for verification. A temporary system enhancement was logged to address the deficiencies and ensure the process was only requesting residency verification from individuals believed to be receiving Medicaid in another State. Long-term enhancements to the PARIS interstate match process are scheduled for late 2027. Anticipated Completion Date: Q4 2027 Contact Person: Anthony Salvo, Implementation Director of Policy and Programs, Executive Office of Health and Human Services Anthony.Salvo@ohhs.ri.gov
Name of Contact Person: Michael Gaddy, Executive Director. Corrective Action: We will implement proper internal control procedures for the Public Housing Capital Fund. Management will establish procedures to obtain proper documentation to support all Public Housing Capital Fund expenses. Proposed Co...
Name of Contact Person: Michael Gaddy, Executive Director. Corrective Action: We will implement proper internal control procedures for the Public Housing Capital Fund. Management will establish procedures to obtain proper documentation to support all Public Housing Capital Fund expenses. Proposed Completion Date: Immediately.
Name of Contact Person: Michael Gaddy, Executive Director. Corrective Action: We will implement proper internal control procedures for the Public and Indian Housing program eligibility requirements. Management has established a checklist for applications and will establish a checklist for Move-ins a...
Name of Contact Person: Michael Gaddy, Executive Director. Corrective Action: We will implement proper internal control procedures for the Public and Indian Housing program eligibility requirements. Management has established a checklist for applications and will establish a checklist for Move-ins and Move-outs. Proposed completion date: Immediately.
Name of Contact Person: Michael Gaddy, Executive Director. Corrective Action: Management will ensure that all records are provided timely in the future. Proposed Completion Date: Immediately.
Name of Contact Person: Michael Gaddy, Executive Director. Corrective Action: Management will ensure that all records are provided timely in the future. Proposed Completion Date: Immediately.
Finding 1224913 (2025-001)
Material Weakness 2025
Finding Number 2025-001 – Special Tests and Provisions (Rent Reasonableness) Corrective Action: What we've already been doing to correct the issue LifeWire has strengthened oversight within Services by consolidating the Services and Rapid Rehousing programs under a single Director, creating clearer ...
Finding Number 2025-001 – Special Tests and Provisions (Rent Reasonableness) Corrective Action: What we've already been doing to correct the issue LifeWire has strengthened oversight within Services by consolidating the Services and Rapid Rehousing programs under a single Director, creating clearer accountability and consistency in implementation. Additionally, we have expanded our approval workflow to include multiple levels of review: Advocate → Manager → Director → Finance. This structured, multi-tiered review process increases oversight and enhances our ability to identify and address issues related to rent reasonableness documentation prior to payment. As part of this enhanced workflow, we require that internal audit practices occur at each level of approval, ensuring that rent reasonableness and comparable unit analysis documentation is reviewed for completeness, accuracy, and timeliness — and that review and approval occur prior to tenant move-in — before advancing to the next stage. At each level, reviewers will audit a minimum of 5% of files or 5 files per month, whichever is greater. What else we are putting in place LifeWire will continue to provide comprehensive training for all Services staff, including advocates, managers, and directors, focused on rent reasonableness requirements and the timing of comparable unit analysis completion and review. The Services Director is responsible for delivering and overseeing this training. This training will address the specific requirements outlined in 24 CFR §578.49 and §578.51 and reinforce expectations that documentation is completed, reviewed, andapproved prior to tenant move-in. All staff will be required to formally acknowledge completion ofthe training and their understanding of the updated requirements. Responsible Staff: Olivia Montgomery •Advocates (initial preparation of rent reasonableness and comparable unit analysisdocumentation) •Services Managers (first-level supervisory review and approval prior to move-in) •Services Director (program oversight and secondary review) •Executive Director (internal audit of Services Director approvals) •Finance Director / Finance Department (final review, approval, and payment oversight) Anticipated Completion Date: Enhancements are currently in progress, with full implementation and demonstrated compliance expected by Q3 2026.
Corrective Action: The City will establish a centralized grant reporting calendar to monitor federal reporting deadlines; assign responsibility for the timely preparation and submission of required reports; and implement review procedures to ensure compliance with federal reporting requirements. Res...
Corrective Action: The City will establish a centralized grant reporting calendar to monitor federal reporting deadlines; assign responsibility for the timely preparation and submission of required reports; and implement review procedures to ensure compliance with federal reporting requirements. Responsible Individual(s): Michael Elizalde, Grants & Strategic Initiatives Director. Timeline: In Progress. Estimated September 2026.
Corrective Action Plan: The NCHA has implemented enhanced financial management procedures to ensure the proper segregation of Public Housing and Housing Choice Voucher program funds and prevent the use of one program’s resources to support another program’s expenditures without appropriate authoriza...
Corrective Action Plan: The NCHA has implemented enhanced financial management procedures to ensure the proper segregation of Public Housing and Housing Choice Voucher program funds and prevent the use of one program’s resources to support another program’s expenditures without appropriate authorization, documentation, and accounting treatment. Interprogram transactions are now recorded through established due to/due from accounts and reconciled monthly to ensure accurate fund accountability. Financial policies and procedures have been updated to reinforce program-specific allowable uses of funds, and Finance staff have received training on HUD financial management requirements, fund segregation, and proper accounting practices. Ongoing monthly financial reviews by management will provide continued oversight and ensure compliance with HUD requirements. 1. Program Fund Segregation and Accounting Controls The NCHA has revised its accounting procedures to ensure that all program revenues and expenditures are recorded within the appropriate program fund and cost center. Public Housing Operating Funds will only be utilized for eligible Public Housing activities, and HCV program costs will be supported through HCV Administrative Fees, HCV reserves, or other allowable funding sources. Any transactions identified as requiring temporary interprogram support will be recorded through appropriate due to/due from accounts and will not be treated as program expenditures. Interprogram balances will be tracked separately from operating activity and monitored for timely repayment or resolution. 2. Review and Correction of Historical Transactions Finance staff has completed a review of interprogram transactions to identify instances where costs were charged to the incorrect program. Necessary accounting adjustments have been processed to properly allocate expenditure to the appropriate funding source. Going forward, all program cost allocations will be reviewed to confirm that expenses are:  Reasonable and allowable under applicable HUD requirements;  Charged of the appropriate program;  Supported by adequate documentation; and  Consistent with approved cost allocation methodologies. 3. Updated Financial Policies and Procedures The Authority has updated its financial procedures to reinforce:  Program-specific expenditure requirements;  Prohibited uses of Public Housing funds for HCV activities;  Proper recording of interprogram receivables and payables;  Required approval and documentation for interprogram transactions; and  Monthly reconciliation requirements. The updated procedures establish clear responsibilities for Finance staff, program managers, and supervisory personnel involved in financial review and approval processes. 4. Staff Training and Awareness Finance and program staff have received training regarding:  HUD program fund restrictions;  Public Housing Operating Fund eligible uses;  HCV Administrative Fee limitations;  Proper accounting treatment of interprogram activity; and  Documentation requirements under federal financial management standards. Additional training will be provided as needed to reinforce compliance and prevent recurrence. 5. Ongoing Monitoring and Quality Control The Finance Director will conduct monthly financial reviews to verify:  Public Housing and HCV funds remain properly segregated;  Due to/due from balances are accurately recorded and reconciled;  Program expenditures are charged to the appropriate funding source; and  Corrective actions remain effective. Management will review monthly financial reports, including program-level income statements, balance sheets, and interprogram activity reports, to identify and address potential compliance issues in a timely manner. As part of the corrective action, the NCHA executed an Agreement with BDO to provide financial management training, technical assistance, and workflow support related to HUD program accounting requirements, fund segregation, and proper recording of interprogram activity. BDO assisted Finance staff with strengthening accounting processes, including the development and implementation of standardized Yardi workflows to ensure program-specific coding, proper cost allocation, approval routing, and accurate financial reporting. Responsible Official: CFO, Sr. Staff Accountant with oversight by Executive Director Expected Completion Date: Implemented July 31, 2026; ongoing monitoring and reconciliation
Corrective Action Plan: The NCHA has implemented CFP drawdown procedures to ensure that all eLOCCS requests are supported by eligible expenditures, properly documented, and submitted in accordance with applicable federal cash management requirements and HUD Capital Fund Program regulations. Effectiv...
Corrective Action Plan: The NCHA has implemented CFP drawdown procedures to ensure that all eLOCCS requests are supported by eligible expenditures, properly documented, and submitted in accordance with applicable federal cash management requirements and HUD Capital Fund Program regulations. Effective immediately, the Authority has established the following corrective actions:  CFP Drawdown Review and Approval Process  All CFP drawdown requests are now reviewed by Finance staff before submission to verify that requested amounts are supported by eligible CFP expenditures, available obligations, and approved Capital Fund budgets.  A Management approval requirement has been implemented for all eLOCCS draw requests before submission.  Supporting documentation, including invoices, purchase orders, contracts, payroll allocations, and other eligible expenditure support, is maintained with each draw request.  Monthly eLOCCS-to-Expenditure Reconciliation  Finance staff perform a monthly reconciliation of CFP eLOCCS drawdowns to actual expenditures recorded in the accounting system.  The reconciliation process confirms that: o Drawdowns do not exceed eligible costs incurred; o Funds are properly recorded for the appropriate Capital Fund grant year and project; o Outstanding balances and remaining grant funds are accurately monitored; and o Any discrepancies are identified and corrected on time through appropriate accounting adjustments.  Improved Cash Management Controls  NCHA revised its CFP cash management procedures to align drawdown timing with actual cash needs and incurred eligible costs.  Draw requests are limited to amounts necessary to reimburse expenditures and avoid excessive cash balances.  Finance staff have been trained in federal cash management requirements, CFP eligible cost principles, and proper eLOCCS drawdown procedures.  Documentation and Record Retention  NCHA implemented a CFP Drawdown Checklist to document: o Grant availability; o Eligible expenditures supporting the draw; o Required approvals; o Reconciliation completion; and o Supporting documentation retention.  CFP financial records are maintained in accordance with federal record retention requirements and are available for HUD review.  Ongoing Monitoring and Quality Control  The CFO or designee conducts periodic quality control reviews of CFP drawdowns and related reconciliations to ensure continued compliance.  Any identified exceptions are documented, corrected, and incorporated into ongoing staff training and process improvements. Responsible Official: CFO, Sr. Staff Accountant with oversight by Executive Director/CEO Responsible for implementation, monitoring, and continued compliance with CFP drawdown procedures. Expected Completion Date: Implemented July 2026; Ongoing monitoring and monthly reconciliation procedures will continue as part of the Authority’s standard financial management practices
Corrective Action Plan: The NCHA has initiated a comprehensive audit of participant files and implemented standardized eligibility checklists integrated with Yardi workflows and aligned with HUD program requirements. Staff has received retraining on income calculation, third-party verification requi...
Corrective Action Plan: The NCHA has initiated a comprehensive audit of participant files and implemented standardized eligibility checklists integrated with Yardi workflows and aligned with HUD program requirements. Staff has received retraining on income calculation, third-party verification requirements, and documentation standards, including proper data entry and supporting documentation within Yardi. A supervisory quality control review process has been established requiring review and approval of all new admissions and annual/interim reexaminations to ensure eligibility determinations, income calculations, and participant records are accurate, complete, and supported before final processing. Responsible Official: HCV Program Director / Public Housing Manager Expected Completion Date: File audit and training completed by September 30, 2026; ongoing monitoring thereafter
Corrective Action Plan: The NCHA has implemented a structured SEMAP tracking and certification process, including designation of a SEMAP Coordinator responsible for indicator tracking and submission. A quality control review checklist aligned with SEMAP indicators has been implemented. Staff receive...
Corrective Action Plan: The NCHA has implemented a structured SEMAP tracking and certification process, including designation of a SEMAP Coordinator responsible for indicator tracking and submission. A quality control review checklist aligned with SEMAP indicators has been implemented. Staff received training in SEMAP documentation and compliance requirements to ensure accurate and complete submissions. Responsible Official: HCV Program Director (or Designee) with oversight by Executive Director/CEO Expected Completion Date: Implemented August 1, 2026; full compliance beginning next SEMAP cycle
Corrective Action Plan: The Lake County Housing Authority, in its administrative oversight of the North Chicago Housing Authority, acknowledges the finding related to the untimely submission of its audited financial statements to the Federal Audit Clearinghouse and the U.S. Department of Housing and...
Corrective Action Plan: The Lake County Housing Authority, in its administrative oversight of the North Chicago Housing Authority, acknowledges the finding related to the untimely submission of its audited financial statements to the Federal Audit Clearinghouse and the U.S. Department of Housing and Urban Development Real Estate Assessment Center (REAC), as required under 2 CFR §200.512. The delay resulted from control deficiencies within the financial reporting and audit coordination process during a period of system transition and evolving staffing capacity. These conditions affected the timely preparation of audit-ready financial information and supporting schedules. Management has implemented corrective actions to strengthen internal controls and ensure timely submission of future audits. These actions include the establishment of a formal audit timeline with defined milestones and assigned responsibilities; enhanced year-end close and reconciliation procedures to ensure audit-ready financial data; and the implementation of routine audit status monitoring to track progress and address issues in real time. In addition, the Authority engaged BDO USA to provide technical assistance, system support, and audit readiness consulting to improve financial reporting accuracy and alignment with HUD requirements. These measures address the underlying control deficiencies and establish a sustainable framework to ensure compliance with federal reporting deadlines. Responsible Staff: Executive Director/CEO in coordination with Chief Financial Officer Expected Completion Date: Implemented August 1, 2026; ongoing compliance thereafter
Program Name: Emergency Housing Voucher (EHV) Program (Housing Voucher Cluster) 14.EHV During the audit of the financial statements for the year ended September 30, 2025, testing of Emergency Housing Voucher (EHV) program activity identified that approximately $90,317 of EHV funds were used for acti...
Program Name: Emergency Housing Voucher (EHV) Program (Housing Voucher Cluster) 14.EHV During the audit of the financial statements for the year ended September 30, 2025, testing of Emergency Housing Voucher (EHV) program activity identified that approximately $90,317 of EHV funds were used for activities outside of the EHV program - specifically, within the Moving to Work (MTW) Demonstration Program - without a waiver or approval from HUD. EHV funds are restricted to activities allowable under the EHV program and are not subject to MTW funding fungibility; any application of MTW administrative flexibilities to EHV vouchers requires HUD approval before implementation. The Authority did not maintain adequate controls to ensure EHV funds were restricted to allowable EHV expenditures or to verify that appropriate HUD approval was obtained prior to using EHV funds for non-EHV activities. As a result, federal funds may have been expended for purposes not authorized under the EHV program, resulting in noncompliance with federal requirements and questioned costs of $90,317. This condition represents noncompliance and a significant deficiency in internal control over compliance. Questioned Costs: $90,317 The Authority concurs with the finding and questioned costs of $90,317. The Authority will strengthen controls over federal program expenditures to ensure EHV funds are used solely for allowable EHV activities; establish procedures to obtain and retain documentation of any HUD approvals or waivers before applying MTW flexibilities to EHV vouchers or using EHV funds outside of their intended purpose; work with HUD to resolve the questioned costs; and provide staff training on EHV program eligibility and allowable-cost requirements.Timeline for completion: 3 months
Compliance Deficiencies Identified in HUD Monitoring Review (Repeat of Finding 2024-006) Program Name: N/A ALN: N/A Description: The compliance deficiencies identified in the U.S. Department of Housing and Urban Development (HUD) Compliance Monitoring Review conducted June 24-28, 2024 (formalized in...
Compliance Deficiencies Identified in HUD Monitoring Review (Repeat of Finding 2024-006) Program Name: N/A ALN: N/A Description: The compliance deficiencies identified in the U.S. Department of Housing and Urban Development (HUD) Compliance Monitoring Review conducted June 24-28, 2024 (formalized in HUD's letter dated March 24, 2025) remained unresolved as of September 30, 2025. The open items span multiple program areas, including governance and internal controls, HoJsing Choice Voucher (HCV) program compliance, Project-Based Voucher (PBV) documentation, Public Housing operations, ROSS grant administration, Violence Against Women Act (VAWA) policy, and Section 3 compliance. This condition is a repeat of prior year finding 2024-006. Planned Corrective Action: The Authority concurs with the finding and acknowledges it is a repeat of finding 2024-006. Maintain a remediation tracker; implement corrective actions identified by HUD; conduct training and file reviews; submit required certifications; and provide progress updates until all items are closed. Timeline for completion: 6 months
Moving to Work Demonstration Program ALN: 14.881 Description: The Authority's fiscal year ended September 30, 2025. The unaudited Financial Data Schedule (FDS) was required to be submitted electronically to HUD's Real Estate Assessment Center (REAC) through the Financial Assessment Subsystem (FASS-P...
Moving to Work Demonstration Program ALN: 14.881 Description: The Authority's fiscal year ended September 30, 2025. The unaudited Financial Data Schedule (FDS) was required to be submitted electronically to HUD's Real Estate Assessment Center (REAC) through the Financial Assessment Subsystem (FASS-PH) no later than December 31, 2025 (60 days after fiscal year end). The Authority did not submit the unaudited FDS until May 29, 2026 -approximately five months after the required due date. Planned Corrective Action: The Authority concurs with the finding regarding late submission of the unaudited FDS. Establish a regulatory reporting calendar; assign responsibilities and supervisory review; and accelerate year-end closing procedures to support timely FDS submissions.
Title: Inadequate Tenant File Documentation in MTW Housing Choice Vouchers (ALN 14.881) (Repeat of Finding 2024-005) Program Name: Moving to Work Demonstration Program - Housing Choice Voucher ALN: 14.881 Description: During tenant file testing for the Housing Choice Voucher (HCV) component of the M...
Title: Inadequate Tenant File Documentation in MTW Housing Choice Vouchers (ALN 14.881) (Repeat of Finding 2024-005) Program Name: Moving to Work Demonstration Program - Housing Choice Voucher ALN: 14.881 Description: During tenant file testing for the Housing Choice Voucher (HCV) component of the MTW Demonstration Program, we identified the following deficiencies. This condition is a repeat of prior year finding 2024-005: 1. Melissa McCullum (port-out tenant): The tenant file did not contain the required HUD Form 50058 or the Enterprise Income Verification (EIV} documentation. As a result, the family's eligibility, income determination, and assistance could not be substantiated from the file. 2. Mark'elia Keyona Reaves: The Authority was unable to provide the HUD Form 50058; the form was not retained in the tenant file and only tenant balances from the Authority's housing software were available. The data is reportedly retrievable from HUD's IMS/PIC system but could not be reproduced from the Authority's records. 3. Deborah Waiters: The income determination was incorrect. Social Security income was not recalculated based on the prior-year recertification; although an updated Social Security benefit letter was received indicating a change in the monthly benefit, the income reported on the HUD Form 50058 was not updated accordingly, resulting in an inaccurate rent and housing assistance payment (HAP) calculation. Planned Corrective Action: The Authority concurs with the finding and questioned costs of $395,580.79 and acknowledges it is a repeat of finding 2024-005. Ensure Forms 50058 and supporting documentation are retained; recalculate household income when required; retrieve or reconstruct missing records; resolve questioned costs with HUD; conduct file reviews; and prcvide staff training. Timeline for completion: 6 months
The Authority's unaudited Financial Data Schedule (FDS) for the fiscal year ended September 30, 2025 was submitted on April 27, 2026, approximately four months after the HUD-required deadline of 60 days following fiscal year end (November 29, 2025). Planned Corrective Action: The Authority will esta...
The Authority's unaudited Financial Data Schedule (FDS) for the fiscal year ended September 30, 2025 was submitted on April 27, 2026, approximately four months after the HUD-required deadline of 60 days following fiscal year end (November 29, 2025). Planned Corrective Action: The Authority will establish a financial reporting calendar with assigned responsibility and interim deadlines to ensure the unaudited Financial Data Schedule (FDS) is prepared, reviewed, and submitted to HUD within 60 days of fiscal year end. The Authority will perform timely monthly general ledger reconciliations to support a timely year-end close.
During testing of the MTW Demonstration Program - Capital Fund Program (CFP), four eLOCCS drawdown vouchers were identified for which funds were drawn down but not disbursed within a reasonable timeframe (ranging from 7 to 36 days after deposit), contrary to the federal immediate-disbursement ("just...
During testing of the MTW Demonstration Program - Capital Fund Program (CFP), four eLOCCS drawdown vouchers were identified for which funds were drawn down but not disbursed within a reasonable timeframe (ranging from 7 to 36 days after deposit), contrary to the federal immediate-disbursement ("just-in-time") requirement. Planned Corrective Action: The Authority will implement a process to ensure that Capital Fund Program drawdowns are requested only when funds are needed for immediate disbursement, consistent with federal ca􀀉h management ("just-in-time") requirements. Drawdowns will be reconciled to disbursements, the elapsed time between each drawdown and the related disbursement will be monitored, and any excess cash held will be returned or interest remitted to HUD as required.
Title: Inadequate Tenant File Documentation in Public Housing Program Name: Moving to Work Demonstration Program - Public Housing ALN: 14.881 Description: During tenant file testing for the Public Housing component of the MTW Demonstration Program, food stamp (SNAP) income was not fully excluded fro...
Title: Inadequate Tenant File Documentation in Public Housing Program Name: Moving to Work Demonstration Program - Public Housing ALN: 14.881 Description: During tenant file testing for the Public Housing component of the MTW Demonstration Program, food stamp (SNAP) income was not fully excluded from the annual income calculations for three tenants. In addition, the Authority was unable to locate the entire tenant file, including all required compliance documentation, for one additional tenant. Planned Corrective Action: The Authority will review and correct the affected income determinations to ensure that food stamp (SNAP) benefits are properly excluded from tenant annual income, with corrections to be reflected at the December 2026 annual recertification. The Authority will reconstruct or obtain the missing tenant file and will implement supervisory review over annual recertifications. Staff will receive training on income calculation and exclusion requirements, and periodic file reviews will be performed to verify completeness and accuracy.
2025-001 – ALN 14.872 – Public Housing Capital Fund Program – Period of Performance The Authority has developed and implemented the necessary standard operating procedures to verify the timing of drawdowns relative to obligations and actual payments and periodically review drawdown and expenditure r...
2025-001 – ALN 14.872 – Public Housing Capital Fund Program – Period of Performance The Authority has developed and implemented the necessary standard operating procedures to verify the timing of drawdowns relative to obligations and actual payments and periodically review drawdown and expenditure records to proactively identify and correct discrepancies. Person Responsible for Correction of Finding: Krista Bolemon, Executive Director Projected Completion Date: December 31, 2026
Management concurs that stronger documentation surrounding the collection and monitoring of Continuum of Care program income would have strengthened internal controls and the audit trail. The finding relates to a program that has since been discontinued. Throughout the audit period, all program inco...
Management concurs that stronger documentation surrounding the collection and monitoring of Continuum of Care program income would have strengthened internal controls and the audit trail. The finding relates to a program that has since been discontinued. Throughout the audit period, all program income that was collected was used for allowable program purposes; however, management acknowledges that documentation supporting assessment, collection, monitoring, and reconciliation procedures should have been more comprehensive. Although this activity is no longer part of the Organization's operations, Ability1st has strengthened its overall documentation standards. Should the Organization administer future programs involving program income, written policies and procedures will be implemented prior to program implementation and will include: • documented fee assessment methodology; • collection and deposit procedures; • reconciliation requirements; • supervisory review; • record retention standards; and • periodic internal monitoring. Management believes these procedures will provide an appropriate level of accountability and compliance with federal requirements should program income be collected in the future. Responsible Official: Executive Director Implementation Date: Completed for discontinued program; procedures will be implemented before any future program income activity.
U.S. Department of Housing and Urban Development MATERIAL WEAKNESS Segregation of Duties Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information is the best means of preventing or detecting errors and fraud. Explanation of disag...
U.S. Department of Housing and Urban Development MATERIAL WEAKNESS Segregation of Duties Recommendation: When this condition exists, management’s and the board’s close supervision and review of accounting information is the best means of preventing or detecting errors and fraud. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We agree and will continue to monitor financial results and accounting information as hiring additional employees is not practical. Name(s) of the contact person(s) responsible for corrective action: Donald Bly Planned completion date for corrective action plan: In process
Corrective Action Plan – December 31, 2025 Audit Findings 2025-001 Condition: Deficiencies Noted in Examination of Housing Choice Voucher Program Participant Files Auditor Recommendation: The Authority should review its internal control procedures over tenant file re-certifications and documentation...
Corrective Action Plan – December 31, 2025 Audit Findings 2025-001 Condition: Deficiencies Noted in Examination of Housing Choice Voucher Program Participant Files Auditor Recommendation: The Authority should review its internal control procedures over tenant file re-certifications and documentation. Response: The audit indicates there were egregious errors with the participants’ files. We agree. Even though 50058 were processed, for over 95% of the participants, there were two issues which made the 50058 submissions inadequate. 1. The 50058’s were submitted through Yardi MTCS files, but often records were rejected by PIC. We did not review and resolve the PIC errors in a timely manner. These errors were due to our change in operating programs, from Lindsey to Yardi. In Yardi, we complete biannual inspections and annual recertifications. However, if there were any issues with dates of submissions relative to date either transaction was processed, they often failed in the PIC submission. It takes a great deal of work and effort to go back and fix these issues, and we got very behind and finally hired a consultant to assist us with the cleanup. 2. The second issue is more concerning. Our two Section 8 analysts completed 50058 for recertifications and interims but often did not include the back up in the electronic file or the paper file for the participant. They also made many calculation issues, rule issues, and would forget to process the 50058 all the way through. Even when the system showed there might be an error of some type, they did not clear those errors before submitting. a. As background, we implemented Yardi in August 2024. It took several months to a year to clean the data that was put into the system by the Yardi implementation team. b. Our Section 8 analysts had over 15 days of on-site personal training with Yardi trainers and provided a great deal of documentation for each module/class. c. Our Section 8 analysts have both completed a Section 8 Certification course with industry leaders like Nan McKay. d. We are a four-person office, so our Section 8 analyst have access to two other people in the office as well as a contractor who has 25 years of housing experience with Fort Lauderdale Housing and Yardi implementation a year before us. The contractor is on site for 4 ½ hours on Wednesday and available via email and phone. She has provided process documents, instructions, and sometimes multiple times for the same issue. e. The workload on both Section 8 analysts has been reduced. Each analyst is responsible for approximately 235 files, interims and recertifications. The inspections are mostly outsourced, and analysts only get involved with placing abatements. f. The failure to complete the recertifications when they are incorrect relative to information and calculations, and not maintaining the backup documentation is inexcusable. g. These issues were discovered before the auditor came on site, when we started up our file audits and we shared our findings with the auditor when they came on site. The auditor came to the same opinion as us. 38 Therefore, to correct this situation, we are taking the following steps and implementing several processes to ensure the files are in line with HUD’s standards. 1. Every 50058 processed will have to be printed, and management will review the 50058, changes made, calculations, and all pertinent information including family composition, answers on recertification packages, et. The manager will sign and date and file the record. 2. The agency will continue to randomly select 15 – 25 files for spot audit each month relative to last interim and annual recertification. The sample will depend on the number of files processed for the month. 3. The Housing Authority will run recertification and inspection reports at least twice a month to ensure all recertifications and inspections due are being completed timely and not processed as late transactions. 4. The agency will continue training and retraining for all employees. This has been ongoing for several years including HOTMA, NSpire, calculating HAP, verifying eligibility, reviewing deductions, processing reasonable accommodations requests to name a few. 5. We have implemented a no override policy for any information in Yardi including dates, payment standards, etc. without Executive Director approval. 6. We have implemented that all reasonable accommodation requests must be signed by the Assistant Executive Director or the Executive Director. 7. We are looking at purchasing licensing software solutions such as Monday which helps manage daily tasks. 8. We have already documented some of the egregious transactions for each analyst and will continue to do so. If there is no improvement over time, counseling may include termination of employment. We hope these steps will reverse the errors with the files immediately. If there is time available, we plan to start a review of every file to make corrections. We are currently doing that with about forty participants who appeared in the EIV/IVT report. We have been meeting with each head of household and correcting records or executing a repayment agreement. Timeframe: By FYE December 31, 2026 Individual responsible for correction: Ms. Anne Castro, Executive Director
The Authority will strengthen internal controls over the income determination process by enhancing review procedures, verifying income documentation, and providing additional staff training to ensure compliance with HUD requirements.
The Authority will strengthen internal controls over the income determination process by enhancing review procedures, verifying income documentation, and providing additional staff training to ensure compliance with HUD requirements.
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