Corrective Action Plans

Finding 374645 (2023-004)

Significant Deficiency 2023

RI

HUD Housing Programs

management has met with the bank and made arrangements to sweep funds to other member insured banks to provide for full FDIC coverage.

View Audit 294324

Finding 374644 (2023-003)

Significant Deficiency 2023

Statewide Bay Landing, Inc.

RI

HUD Housing Programs

the property makes every effort to deposit reserves on a timely basis and due to cash flow constraints, has been unable too. The property will continue to whittle away at the shortfall and make every effort to deposit the required funds on a monthly basis.

View Audit 294324

Finding 374490 (2023-001)

Significant Deficiency 2023

Gilbert Straub Plaza, INC

PA

HUD Housing Programs Procurement, Suspension & Debarment Eligibility

United States Department of Housing and Urban Development Gilbert Straub Plaza, Inc., respectfully submits the following corrective action plan for the year ended August 31, 2023. Name and address of independent public accounting firm: Maher Duessel, CPA's 503 Martindale Street, Suite 600 Pittsbur...

United States Department of Housing and Urban Development Gilbert Straub Plaza, Inc., respectfully submits the following corrective action plan for the year ended August 31, 2023. Name and address of independent public accounting firm: Maher Duessel, CPA's 503 Martindale Street, Suite 600 Pittsburgh, PA 15212 Audit period: September 1, 2022 - August 31, 2023 The finding from the August 31, 2023 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT See Below FINDINGS— FEDERAL AWARD PROGRAMS AUDITS Finding 2023-001 Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects - Section 223(f)/207 ALN 14.155. Recommendation: The Property should have internal controls in place to review Form HUD-50059 to ensure all documentation used to calculate the tenant rent and assistance payment is supported and properly calculated. Action taken: The property management company has revisited the internal controls with the on-site manager. The manager certifies that they will do diligence in the future to ensure that they follow these controls in calculating tenant rent and assistance payments. If the Department of Housing and Urban Development has questions regarding this plan, please call Dan Barbusio at 412-646-5193.

View Audit 294185

Finding 374343 (2023-001)

Significant Deficiency 2023

Lexington-Fayette Urban County Housing Authority

KY

HUD Housing Programs Subrecipient Monitoring Eligibility

Re: 2023-01 Audit Finding/Plan of Action The Lexington Housing Authority (LHA) proposes this corrective plan of action to address the late recertifications (13) and annual recertification (1) from the audit conducted by Rector, Reeder & Lofton PC, onsite at LHA September 25-29, 2023. ADDRESSING S...

Re: 2023-01 Audit Finding/Plan of Action The Lexington Housing Authority (LHA) proposes this corrective plan of action to address the late recertifications (13) and annual recertification (1) from the audit conducted by Rector, Reeder & Lofton PC, onsite at LHA September 25-29, 2023. ADDRESSING STAFFING Securing qualified candidates to fill Housing Management Specialist (HMS) positions throughout 2020, 2021 and 2022 was challenging for LHA. In some instances, positions were vacant for up to 12 months before they were filled. LHA will do the following to address staffing: • Seek to fill HMS positions within forty-five (45) days of the position going vacant. • Advertise to hire two full-time HMS positions for the two management teams with the most units in their management portfolio. • Continue to advertise open positions online, on social media and in the local newspaper. • Offer incentive bonus up to $1,500 to newly hired HMS, paying $750 to new hires after six month of employment and an additional $750 after 12 months of employment. • Over-time will be allowed on an as-needed basis to complete and process certifications. CERTIFICATION PROCEDURES Further, LHA housing management staff will adhere to the following procedures to facilitate timely completion of annual certifications. - HMS staff will continue utilize in-person interviews and mail (via USPS and email) to complete needed documentation for annual certifications. - All housing management staff may utilize electronic signature to attain required signatures when necessary. - The first day of each month housing managers will run the certification audit report to be shared with the Chief Operating Officer to monitor the status of in-progress and upcoming certifications. - July 1, 2023, LHA implemented quality control (QC) of public housing files to be conducted by a newly created compliance position. LHA' s compliance coordinator will complete 229 (25%) QC reviews of public housing files during FY2024 (July 1, 2023 - June 30, 2024). - At least once monthly on a rotating basis housing management staff from all offices will convene at a selected housing management office to complete and process certifications. This schedule will continue until all offices are up to date on certifications. LHA staff will apply these procedures as outlined to mitigate this finding to ensure compliance and proper documentation of future certifications. Contact Person: Andrea Wilson, Chief Operating Officer Anticipated Completion Date: June 30, 2024

View Audit 293932

Finding 374269 (2023-001)

Significant Deficiency 2023

Kalihi-Palama Health Center (hale Ho'ola Hou)

HI

Special Tests & Provisions Subrecipient Monitoring Eligibility

Finding 2023-001 Special Tests and Provisions - Sliding Fee Scale Recommendation Kalihi-Palama Health should establish a system of internal controls to ensure that all sliding fee discounts are properly calculated, and patients receive the correct sliding fee discount. Action Taken: We implemented...

Finding 2023-001 Special Tests and Provisions - Sliding Fee Scale Recommendation Kalihi-Palama Health should establish a system of internal controls to ensure that all sliding fee discounts are properly calculated, and patients receive the correct sliding fee discount. Action Taken: We implemented a new EHR system AthenaOne and it includes a sliding fee scale calculation tool. By March 18, 2024 we will have completed doing all of the testing and training of all current Patient Services/Front Desk staff. Effective April 1 2024, we will implement the following changes to ensure clients are appropriately charged according to the sliding fee scale: • Update recurring sliding fee scale employee training sessions to quarterly. • Update training process documentation and reference materials for sliding fee scale. • Implement monthly review and spot check procedures to ensure compliance with the sliding fee scale requirements and guidelines. Based on the results of the reviews and spot checks, individualized training will be provided staff. • Onboarding new Patient Services/Front Desk staff will be based on the updated training and reference materials. Should you need additional information or have questions, you can reach me at ekintu@kphc.org or (808) 791-6315. Emmuel Kintu, D. Mgt, MBA Chief Executive Office & Executive Director

View Audit 293873

Finding 372635 (2023-007)

Material Weakness 2023

Autonomous Municipality of Ponce

PR

HUD Housing Programs Material Weakness Reporting

As indicated for the finding 2023-004, the Federal Program Director has assigned additional trained personnel to ensure that the financial reports required by the federal government are submitted on time. In addition, internal controls have been strengthened to ensure that reports are prepared corre...

As indicated for the finding 2023-004, the Federal Program Director has assigned additional trained personnel to ensure that the financial reports required by the federal government are submitted on time. In addition, internal controls have been strengthened to ensure that reports are prepared correctly. Implementation Date: During the fiscal year 2023-2024 Responsible Persons: Mr. Job Bonilla Federal Program Director

View Audit 293712

Finding 372634 (2023-006)

Material Weakness 2023

Autonomous Municipality of Ponce

PR

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

As indicated in this finding, the auditors found evidence that the current HAP and Administrative Fee Equity balances are accurate. However, in order to realize the proper correction of prior-year balances, the Section Program Director and the Municipal Finance Office are evaluating the initial HAP ...

As indicated in this finding, the auditors found evidence that the current HAP and Administrative Fee Equity balances are accurate. However, in order to realize the proper correction of prior-year balances, the Section Program Director and the Municipal Finance Office are evaluating the initial HAP and Administrative Fee Equity balances. Implementation Date: During the fiscal year 2022-2023 Responsible Persons: Mr. Job Bonilla Federal Program Director

View Audit 293712

Finding 372633 (2023-005)

Significant Deficiency 2023

Autonomous Municipality of Ponce

PR

HUD Housing Programs Subrecipient Monitoring Eligibility

The Section 8 Program will improve its internal controls and monitoring procedures to assure the correction of income included in the 50058-Family Report. Implementation Date: During the fiscal year 2023-2024 Responsible Persons: Mr. Job Bonilla Federal Program Director

View Audit 293712

Finding 372632 (2023-004)

Material Weakness 2023

Autonomous Municipality of Ponce

PR

HUD Housing Programs Material Weakness Reporting

The Federal Program Director has assigned additional trained personnel to ensure that financial reports required by the federal government are submitted on time. In addition, internal controls have been strengthened to ensure that reports are prepared correctly. Implementation Date: During the fisca...

The Federal Program Director has assigned additional trained personnel to ensure that financial reports required by the federal government are submitted on time. In addition, internal controls have been strengthened to ensure that reports are prepared correctly. Implementation Date: During the fiscal year 2023-2024 Responsible Persons: Mr. Job Bonilla Federal Program Director

View Audit 293712

Finding 372621 (2023-006)

Significant Deficiency 2023

Agate Housing and Services, Inc.

MN

Special Tests & Provisions Eligibility HUD Housing Programs

2023-006 Reasonable Rents Documentation Name of contact person – Laura Straw, Finance Director and/or Elizabeth Machart, Director of Contracts, Compliance, & Special Initiatives Corrective action – Management has reviewed the current practice and has implemented a new form and procedures for do...

2023-006 Reasonable Rents Documentation Name of contact person – Laura Straw, Finance Director and/or Elizabeth Machart, Director of Contracts, Compliance, & Special Initiatives Corrective action – Management has reviewed the current practice and has implemented a new form and procedures for documenting the determination and approvals in the case files. Completion date – Management and the Board of Directors implemented the above as of 2/28/2024

View Audit 293672

Finding 372578 (2023-001)

Material Weakness 2023

Lutheran Housing Corporation at Middletown, Inc.

MA

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Audit period: July 1, 2022 – June 30, 2023The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS2023-001 Section 202 Supportive Housi...

Audit period: July 1, 2022 – June 30, 2023The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT MATERIAL WEAKNESS2023-001 Section 202 Supportive Housing for the Elderly – Assistance Listing No. 14.157 Recommendation: The auditor recommends that the Organization review the HUD Management Agent Handbook and revise its internal control policies with regards to calculating its allowable management fee per the Handbook. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is reviewing its current training regarding the calculation of allowable management per the Handbook. While budgeted revenue will remain as the basis for the calculation, a process will be put in place to review amounts charged against allowed % of collected revenues each year. Management will review the calculation and a Receivable or Payable will be recorded to “true up” the amount to actual for the Fiscal Year. Name(s) of the contact person(s) responsible for corrective action: Sergio Plaza Planned completion date for corrective action plan: December 15, 2023 and Ongoing If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Sergio Plaza at 508-688-5608.

View Audit 293658

Finding 372297 (2023-004)

None 2023

North Dade Senior Citizens Housing Developement Corporation, Inc., Rsi

FL

Questioned Costs HUD Housing Programs Subrecipient Monitoring

FINDING No. 2023-004: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should improve monitoring of the payroll disbursement process to ensure the appropriate approved wages are paid. Action Taken: Additio...

FINDING No. 2023-004: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should improve monitoring of the payroll disbursement process to ensure the appropriate approved wages are paid. Action Taken: Additional payroll controls are being evaluated and implemented in 2024. This will include establishing procedures to ensure the completeness and accuracy of payroll and related oversight. If the audit Oversight Agency has questions regarding these plans, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO Irene Phillips CFO

View Audit 293594 Questioned Costs: $1

Finding 372296 (2023-003)

None 2023

North Dade Senior Citizens Housing Developement Corporation, Inc., Rsi

FL

Questioned Costs HUD Housing Programs Reporting

FINDING No. 2023-003: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should make sufficient monthly deposits to the escrow accounts in a timely manner. Action Taken: The shortfall was due to the property...

FINDING No. 2023-003: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should make sufficient monthly deposits to the escrow accounts in a timely manner. Action Taken: The shortfall was due to the property insurance premium unexpectedly increasing by more than $170,000. The account was subsequently analyzed, and the monthly escrow deposit is now sufficient to cover the new rates.

View Audit 293594 Questioned Costs: $1

Finding 372295 (2023-002)

None 2023

North Dade Senior Citizens Housing Developement Corporation, Inc., Rsi

FL

HUD Housing Programs Reporting

FINDING No. 2023-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Action Take...

FINDING No. 2023-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Action Taken: Management nor the lender received the approved 9250 dated 06.06.2023 until 10.26.2023. Management will submit the retro amount of $174.84 in December 2023.

View Audit 293594

Finding 372294 (2023-001)

None 2023

North Dade Senior Citizens Housing Developement Corporation, Inc., Rsi

FL

HUD Housing Programs Eligibility Reporting

Oversight Agency for Audit, North Dade Senior Citizens Housing Development Corporation, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite ...

Oversight Agency for Audit, North Dade Senior Citizens Housing Development Corporation, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audit period: July 1, 2022 through June 30, 2023 The findings from the June 30, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2023-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should implement procedures to ensure initial tenant income through EIV system and third-party documentation are verified in a timely manner, annual unit inspections are performed, and all required tenant documentation is complete and accurate. Action Taken: Monthly reminders are being sent to all managers to run their EIV reports for the month. In addition, random files are being reviewed by compliance to ensure EIV reports are pulled, unit inspections performed, and required documentation is complete and accurate.

View Audit 293594

Finding 372229 (2023-003)

Significant Deficiency 2023

Housing Authority of the City of Galveston, Texas

TX

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Housing Choice Vouchers - CFDA No. 14.871 - Special Tests - HQS Inspections Recommendation: The Authority should implement processes to ensure all HQS reinspections are completed timely and that there is proper documentation of approved extensions and abatements. Explanation of disagreement with a...

Housing Choice Vouchers - CFDA No. 14.871 - Special Tests - HQS Inspections Recommendation: The Authority should implement processes to ensure all HQS reinspections are completed timely and that there is proper documentation of approved extensions and abatements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: This is complete. GHA monitors the inspections to ensure they are current. GHA runs PIC inspection SEMAP reports monthly to ensure inspection dates are tracked thoroughly. GHA will continue to conduct and submit all inspections timely. Name(s) of the contact person(s) responsible for corrective action: Maria Godwin Planned completion date for corrective action plan: Ongoing

View Audit 293526

Finding 372228 (2023-002)

Significant Deficiency 2023

Housing Authority of the City of Galveston, Texas

TX

HUD Housing Programs Eligibility Significant Deficiency

Housing Choice Vouchers - CFDA No. 14.871 - Eligibility Recommendation: The Authority should implement processes to ensure that all documentation is received and that the correct inputs are being accurately reported on the HUD-50058. Explanation of disagreement with audit finding: There is no disa...

Housing Choice Vouchers - CFDA No. 14.871 - Eligibility Recommendation: The Authority should implement processes to ensure that all documentation is received and that the correct inputs are being accurately reported on the HUD-50058. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The errors found where: Income was miscalculated. GHA'S staff will continue to have refresher trainings to ensure that all documentation is correct and properly reported on the HUD-50058 Name(s) of the contact person(s) responsible for corrective action: Maria Godwin Planned completion date for corrective action plan: Ongoing

View Audit 293526

Finding 372227 (2023-001)

Significant Deficiency 2023

Housing Authority of the City of Galveston, Texas

TX

HUD Housing Programs Reporting Significant Deficiency

Housing Choice Vouchers - CFDA No. 14.871 - PIC Reporting Recommendation: The Authority should implement processes to ensure the HUD-50058's are submitted into the PIC system timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in r...

Housing Choice Vouchers - CFDA No. 14.871 - PIC Reporting Recommendation: The Authority should implement processes to ensure the HUD-50058's are submitted into the PIC system timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The HUD-50058 submissions are done daily but there are exceptions where we find that some 50058's submitted do not return as an error later we notice that are not showing in PIC and have to be resubmitted. This has been reported to our field office and the PIC Help Desk with no resolution. Name(s) of the contact person(s) responsible for corrective action: Maria Godwin Planned completion date for corrective action plan: Ongoing

View Audit 293526

Finding 372172 (2023-001)

None 2023

Alpha Arms, Inc. 053-36033

NC

HUD Housing Programs

The lead maintenance person was out on long term disability which created a staffing shortage and a delay in our normal semi annual unit inspections. This position is now filled and unit inspections are scheduled for October 19th. Multifamily Select Inc will monitor unit inspections to insure semi a...

The lead maintenance person was out on long term disability which created a staffing shortage and a delay in our normal semi annual unit inspections. This position is now filled and unit inspections are scheduled for October 19th. Multifamily Select Inc will monitor unit inspections to insure semi annual inspections are conducted regularly

View Audit 293469

Finding 372074 (2023-002)

None 2023

Yw-Wny Housing Development Fund Co., Inc. - Project #014-Ee084

NY

Special Tests & Provisions HUD Housing Programs

Name of auditee: YW-WNY Housing Development Fund Company, Inc. d/b/a School House Commons TIN: 014-EE084 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: June 30, 2023 CAP prepared by: Henry Rodriguez, Jr. President Corvus Property Intelligence, LLC (410) 896-6770 Current Finding ...

Name of auditee: YW-WNY Housing Development Fund Company, Inc. d/b/a School House Commons TIN: 014-EE084 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: June 30, 2023 CAP prepared by: Henry Rodriguez, Jr. President Corvus Property Intelligence, LLC (410) 896-6770 Current Finding on the Schedule of Findings and Questioned Costs and Recommendations (2) Finding 2023-002 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation, please see below for action taken. (b) Action taken: The Company currently does not have enough operating funds to deposit the underfunded amount of $129,160 into the reserve for replacements account. Management will deposit funds as they become available.

View Audit 293351

Finding 372005 (2023-001)

None 2023

Hands Center City Apartments, Inc.

PA

HUD Housing Programs

A. Audit Finding No. 2023-01 Statement of Condition: The project did not complete tenant recertifications timely. Criteria: In accordance with HUD Regulations, recertifications of tenant income and composition must be completed annually. Effect of Condition: This is a violation of the H...

A. Audit Finding No. 2023-01 Statement of Condition: The project did not complete tenant recertifications timely. Criteria: In accordance with HUD Regulations, recertifications of tenant income and composition must be completed annually. Effect of Condition: This is a violation of the HUD Regulations. Cause of Condition: The procedures in place to ensure that recertifications were done timely were not consistently followed. Recommendation: It is recommended that procedures in place to ensure that recertifications are completed annually are consistently followed. Response: See Corrective Action Plan. B. Comment on Findings and Recommendations We concur with the auditors' finding that the recertifications were not done timely and in accordance with HUD Regulations. C. Actions Taken or Planned The Occupancy Specialist will be checking for on-time certifications in our management software program on a monthly basis to ensure that all certifications are being done properly and on time.

View Audit 293257

Finding 371988 (2023-001)

Significant Deficiency 2023

Adams County Housing Authority

PA

HUD Housing Programs Reporting Significant Deficiency

Adams County Housing Authority 40 E. High Street, Gettysburg, PA 17325 Phone (717) 334-1518 Fax (717) 334-8326 TDD/TTY Relay Service: 1-800-654-5984 www.adamscha.org CORRECTIVE ACTION PLAN February 28, 2024 Adams County Housing Authority respectfully submits the following corrective action plan f...

Adams County Housing Authority 40 E. High Street, Gettysburg, PA 17325 Phone (717) 334-1518 Fax (717) 334-8326 TDD/TTY Relay Service: 1-800-654-5984 www.adamscha.org CORRECTIVE ACTION PLAN February 28, 2024 Adams County Housing Authority respectfully submits the following corrective action plan for the year ended on June 30, 2023 Cognizant or Oversight Agency for Audit: Section 8 Housing Choice Vouchers, CFDA #14 .871 Name and address of independent public accounting firm: Hamilton & Musser, PC 176 Cumberland Parkway Mechanicsburg, PA 17055 Audit Period: July 1, 2022 -June 30, 2023 The finding from June 30, 2023, schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings - Financial Statement Audit: NONE Findings and Questioned Cost- Major Federal Award Programs Audit # 2023-001- Significant Deficiency- Housing Assistance Payments Section 8 Housing Choice Vouchers , CFDA #14.871 Recommendation We recommend that the Authority implement additional review procedures over the HAP contract and documentation prior to or soon after the file is finalized. View of responsible officials and planned corrective action We agree that this compliance requirement is listed in the compliance supplement. We will implement additional review procedures to capture any missing information or errors in the reporting. Additional training has been provided to the HCV Staff. If the PA Housing Finance Agency has any questions regarding this plan, please call Adams County Housing Authority Executive Director, Stephanie Mcllwee at (717) 334-1518 . Stephanie Mcllwee Executive Director

View Audit 293233

Finding 371933 (2023-001)

Significant Deficiency 2023

Saint Joseph's Tower, INC

IN

HUD Housing Programs Allowable Costs / Cost Principles Eligibility

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Supp...

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Supportive Housing for the Elderly (ALN# 14.157)  Section 8 Housing Assistance Payments Program (ALN# 14.195) Condition. Out of a sample of 8 tenant files, we noted three instances where an EIV was not run for a tenant within 90 days of move in. Additionally, out of a sample of 8 tenant files, we noted one instance where a refund check was not disbursed to the tenant within 60 days of move out. Effect. As a result of this condition, employees did not follow HUD guideline procedures. While there were no differences in the amount of subsidies allowed upon review of the subsequent EIV compared to subsidies received, the lack of effective internal controls could lead to future significant noncompliance. Additionally, a former tenant was not disbursed a refund in a timely manner under the HUD guidelines. Plan. Management agrees with finding 2023-001. All files are to be inspected in the current fiscal year to ensure compliance with HUD regulations. File maintenance will be competed following each move in, move out, and annual recertification. In addition to one-on-one training, the housing administrator has signed up for additional training including a WebEx on annual recertification and a basic EIV course. Additional training sessions are forthcoming. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: December 31, 2024

View Audit 293201

Finding 371928 (2023-001)

Significant Deficiency 2023

East Detroit Area Non-Profit Housing Corporation

MI

Allowable Costs / Cost Principles Eligibility HUD Housing Programs

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Supp...

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Eligibility - Tenant File Documentation Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Eligibility) Federal programs U.S. Department of Housing and Urban Development  Supportive Housing for the Elderly (ALN# 14.157) Condition. Out of a sample of 6 tenant files, it was noted: 1. Two out of six instances where an EIV was not run for a tenant file within 90 days of move in; 2. One out of six instances where the incorrect tenant income was used to calculate the tenant assistance payment; 3. One out of six instances where a tenant moved out and the requested overages were not adjusted for the correct time period; In addition, procedures were not in place to document the applicants, admissions, and removals to and from the tenant waitlist. Effect. As a result of this condition, certain tenant files did not contain all required supporting documentation. In addition, employees did not follow HUD guideline procedures, and/or did not properly calculate the tenant subsidy in HUD Form 50059. While there were no significant differences in the amount of subsidies allowed compared to subsidies received, the lack of effective internal controls could lead to future significant noncompliance. Plan. Management agrees with finding 2023-001. All files are to be inspected in the current fiscal year to ensure compliance with HUD regulations. File maintenance will be competed following each move in and annual recertification. In addition to one-on-one training, the housing administrator has signed up for additional training including a WebEx on annual recertification and a basic EIV course. Additional training sessions are forthcoming. A tenant waitlist will be created and maintained. Contact Person Responsible for This Corrective Action: Laura Maisevich, Senior Housing Manager Anticipated completion date: December 31, 2024

View Audit 293198

Finding 371927 (2023-001)

Significant Deficiency 2023

Highland Area Non-Profit Housing Corporation

MI

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

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Timely Payment of Mortgage Balance Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Special Tests and Provisions) Federal programs U.S. Department of Housing and Urban Deve...

March 1, 2024 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2023-001 – Timely Payment of Mortgage Balance Finding Type. Immaterial noncompliance, Significant deficiency in internal controls over compliance (Special Tests and Provisions) Federal programs U.S. Department of Housing and Urban Development Supportive Housing for the Elderly (ALN# 14.157) Condition. Out of 12 monthly payments on the Project's HUD insured mortgage payable, that are due each fiscal year, 1 payment was late, resulting in a late fee. Effect. As a result of this condition, the mortgage was not paid on time. While there was ultimately payment of the delinquent monthly balance, the lack of effective internal controls could lead to future significant noncompliance. Plan. Management agrees with finding 2023-001 and has developed the following plan. Mortgage invoices are now sent to two accounts payable employees, as well as a monitored inbox, to ensure timely processing. Contact Person Responsible for This Corrective Action: David DeFrain Anticipated completion date: July 17, 2023

View Audit 293195

Corrective Action Plans

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