Corrective Action Plans

Finding 58705 (2022-002)

Significant Deficiency 2022

OR

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Finding 2022-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Programs Federal Catalog Numbers: 14.871 Noncompliance ? N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial ...

Finding 2022-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Programs Federal Catalog Numbers: 14.871 Noncompliance ? N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority?s files and on discussion with management, there were failed inspections that did not pass reinspection within 30 days without penalty. Context: There were approximately 741 failed inspections during the audit period. Of a sample size of twenty-five (25) failed inspections, four (4) failed inspections did not pass reinspection within 30 days. HAP was not abated nor was the tenant evicted. Our sample size is statistically valid. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed HQS inspections in compliance with program requirements following the expiration of HUD waivers as a result of insufficient staffing . Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement a corrective action plan that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendation of the auditor, and will make the following changes to its inspection process to ensure enforcement of Housing Quality Standards (or any subsequent replacement): ? On or before July 1, 2023: o The standard notice used to notify the program participant and property owner of deficiencies will be updated to include the following language: ? HAP will be abated as early as the 1st of the month following the date of the scheduled reinspection. ? This will mitigate the need for additional notice prior to the abatement period. ? ?Tenant-caused? fail items may result in termination of rental assistance. ? The letter will include language notifying the program participant that they may request an extension or reasonable accommodation if additional time is needed to correct deficiencies. ? This will create a clear trail of documentation for the file to allow SHA to demonstrate when extensions are provided as a reasonable accommodation. ? Additionally, this will provide SHA with additional information that may facilitate referrals to community supports to assist with specific tenant-caused circumstances, such as ?high fuel load? (high amount of tenant possessions creating risk of fire/injury/damage to unit). Melanie Fletcher will be responsible to implement this corrective action by September 30, 2023.

View Audit 56513

Finding 58704 (2022-001)

Significant Deficiency 2022

Housing Authoirty of the City of Salem

OR

HUD Housing Programs Eligibility Significant Deficiency

Corrective Action Plan For the year ended September 30, 2022 U.S. Department of Housing and Urban Development: Housing Authority of the City of Salem respectfully submits the following corrective action plan for the year ended September 30, 2022. Auditor: Novogradac and Company, LLP Certified...

Corrective Action Plan For the year ended September 30, 2022 U.S. Department of Housing and Urban Development: Housing Authority of the City of Salem respectfully submits the following corrective action plan for the year ended September 30, 2022. Auditor: Novogradac and Company, LLP Certified Public Accountants 1144 Hooper Avenue Suite 203 Toms River, New Jersey 08753 The findings from the September 30, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Federal Award Findings and Questioned Costs Finding 2022-001: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Noncompliance ? E. Eligibility ? Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria:Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority?s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 2,723 Section 8 Housing Choice Vouchers units and 123 Mainstream Vouchers units. Of a sample size of forty-seven (47) tenant files, the following was noted: ? Lead based paint form was missing in 14 files ? Annual inspection report was missing in 1 file Our sample size is statistically valid. Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation:We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority accepts the recommendations of the auditor and has issued the following directives to staff in order to prevent future recurrence of similar issues: ? Administrative Advisory 2023-02 ? This Administrative Advisory requires staff, effective June 12, 2023, to obtain the Lead Based Paint (LBP) Disclosure form for any new leases / moves related to units built before 1978, as well as requiring staff to review files at annual recertification and request the LBP Disclosure form for those units built prior to 1978 as part of the recertification process. Using this method, all LBP disclosures shall be present in tenant files by the end of calendar year 2025 (SHA is moving to biennial recertifications as part of its Moving to Work Initiative). ? Administrative Advisory 2023-03 ? This Administrative Advisory directs staff to ensure that original applications and initial eligibility documentation are scanned when files are archived, or new volumes are created. Additionally, staff have been advised to pull the original application and initial eligibility forward into new volumes. If the original application and initial eligibility information are found to be incomplete or missing at the time the file is archived, staff have been instructed to document the file and replace the missing information with the best available documentation to demonstrate date of original application and that initial eligibility criteria were met. Due to the conditions of the COVID-19 pandemic, SHA was unable to contract a third party inspector to conduct inspections of units that it owns and operates, as required by HUD regulations. This led to a gap of more than 24 months between an initial inspection and a biennial inspection for a resident living in a SHA-owned unit. Inspections of SHA-owned units have since been completed under an agreement with a neighboring housing authority and will continue to be completed in accordance with HUD regulations and requirements going forward. Melanie Fletcher will be responsible to implement this corrective action by September 30, 2023.

View Audit 56513

Finding 58701 (2022-002)

Material Weakness 2022

Southeast Georgia Consolidated Housing Authority

GA

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

2022-002 Internal Controls over Documentation in Tenant Files We will implement controls and procedures to ensure proper verification of tenant information and rent calculations are performed. We will also implement a review process to detect errors timely. Date of completion: Ongoing

View Audit 56178

Finding 58700 (2022-001)

Material Weakness 2022

Southeast Georgia Consolidated Housing Authority

GA

Special Tests & Provisions HUD Housing Programs

2022-001 Operating Budget Revision Not approved by Board of Commissioners for Operating Expenditures that exceeded the originally approved Budget We will implement a process to review operating expenditures frequently to ensure that operating expenditures do not exceed approved budgeted expend...

2022-001 Operating Budget Revision Not approved by Board of Commissioners for Operating Expenditures that exceeded the originally approved Budget We will implement a process to review operating expenditures frequently to ensure that operating expenditures do not exceed approved budgeted expenditures. When actual expenditures exceed budgeted expenditures, the Authority will approve a budget revision to cover actual expenditures. Date of completion: Ongoing

View Audit 56178

Finding 58699 (2022-001)

Significant Deficiency 2022

Rowan County Housing Authority

NC

Questioned Costs HUD Housing Programs Reporting

Section II - Financial Statement Findings None Reported Section III - Federal Award Findings and Questioned Costs Finding 2022-001 Name of Contact Person: Sara Potts Executive Director Corrective Action: We concur. Management will review the internal control procedures as they relate to Reports ...

Section II - Financial Statement Findings None Reported Section III - Federal Award Findings and Questioned Costs Finding 2022-001 Name of Contact Person: Sara Potts Executive Director Corrective Action: We concur. Management will review the internal control procedures as they relate to Reports and will implement procedures to insure all Reports are submitted timely. Proposed Completion Date: Immediately

View Audit 56173 Questioned Costs: $1

Finding 58688 (2022-001)

Significant Deficiency 2022

Washington Housing Authority

NC

Eligibility HUD Housing Programs Reporting

Corrective Action Plan For the Year Ended September 30, 2022 Section II - Financial Statement Findings: None Reported Section III - Federal Award Findings and Questioned Costs Finding 2022-001 Name of Contact Person: Michael Best Executive Director Corrective Action: We will implement proper intern...

Corrective Action Plan For the Year Ended September 30, 2022 Section II - Financial Statement Findings: None Reported Section III - Federal Award Findings and Questioned Costs Finding 2022-001 Name of Contact Person: Michael Best Executive Director Corrective Action: We will implement proper internal control procedures for the Public and Indian Housing program eligibility requirements. Proposed Completion Date: Immediately

View Audit 54770

Finding 58533 (2022-001)

Material Weakness 2022

Catherine Booth Residence INC A Florida Corporation

FL

HUD Housing Programs Eligibility Reporting

CORRECTIVE ACTION PLAN Project Legal Name: Catherine Booth Towers Orlando, FL (? Project of Catherine Booth Residence, Inc., a Florida Corporation) HUD Project No.: 067-EE054-WAH Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/2021-9/30/2022 Corrective Action Plan prepared by: Name: Sr...

CORRECTIVE ACTION PLAN Project Legal Name: Catherine Booth Towers Orlando, FL (? Project of Catherine Booth Residence, Inc., a Florida Corporation) HUD Project No.: 067-EE054-WAH Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/2021-9/30/2022 Corrective Action Plan prepared by: Name: Sriparna Mitra Position: HUD Specialist, THQ (Legal) Telephone Number: 404-728-6700 A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2022-001 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The late completion of the audits for fiscal years 2020 and 2021 has contributed to management not getting the budgets for the new fiscal years submitted and approved by HUD timely. As a result, management did not have access to the EIV system for a period of time so that they could verify income. This issue is anticipated again in fiscal year 2023 because of the late submission of the fiscal year 2022 budget which required the fiscal year 2021 actual data. b. Action(s) Taken or Planned on the Finding The late completion of our audits for fiscal years 2020 and 2021 has contributed to our not getting our budgets for the new fiscal years submitted and approved timely. Therefore, Management did not have access to the Enterprise Income Verification (EIV) system [the system used to access Social Security information and Health and Human Service information] for a period of time so that they could verify income. This issue is anticipated again in fiscal year 2023 because of the late submission of the fiscal year 2022 budget which required the fiscal year 2021 actual data. Steps are being taken to have the fiscal year 2022 audit completed in a reasonable timeframe, and we do not anticipate the same problem going forward. B. Status of Corrective Actions on Findings Reported in the Schedule of the Status of Prior Year Findings, Questioned Costs and Recommendations 1. 2021-001 In process. See finding 2022-001. 2. 2021-002 Cleared.

View Audit 55323

Finding 58531 (2022-001)

Material Weakness 2022

Catherine Booth Friendship House Residence Inc., A Texas Corporation

TX

Questioned Costs HUD Housing Programs Reporting

Project Legal Name: Catherine Booth Friendship House Fort Worth, TX (A Project of Catherine Booth Friendship House Residence, Inc., A Texas Corporation) HUD Project No.: 113-EE021 Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/2021-9/30/2022 Corrective Action Plan prepared by: Name:...

Project Legal Name: Catherine Booth Friendship House Fort Worth, TX (A Project of Catherine Booth Friendship House Residence, Inc., A Texas Corporation) HUD Project No.: 113-EE021 Audit Firm: CohnReznick LLP Period covered by the audit: 10/1/2021-9/30/2022 Corrective Action Plan prepared by: Name: Sriparna Mitra Position: HUD Specialist, THQ (Legal) Telephone Number: 404-728-6700 The following is a recommended format to be followed by the auditee for preparing a corrective action plan: A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2022-001 a. Comments on the Finding and Each Recommendation The auditee agrees with the finding. The auditee agrees with the recommendation that management should obtain HUD approval of repayment of advances outstanding in the amount of $23,000 to cover PRAC shortfalls. In the future, management will request PRAC shortfall funding advances, if needed, from the replacement reserve or residual receipts reserve, or obtain HUD approval for repayment to Owner from operations upon receipt of PRAC funds. b. Action(s) Taken or Planned on the Finding In the future we will obtain HUD approval prior to repayment for advances to cover PRAC shortfall -funding, or we will request withdrawal from replacement reserves or residual receipts reserve. B. Status of Corrective Actions on Findings Reported in the Schedule of the Status of Prior Year Findings, Questioned Costs and Recommendations Finding 2021-001 Cleared. Finding 2022-001 Cleared.

View Audit 55320 Questioned Costs: $1

Finding 58526 (2022-002)

Material Weakness 2022

Fort Dodge Housing Agency

IA

Internal Control / Segregation of Duties Special Tests & Provisions HUD Housing Programs

View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding. The Agency has reviewed, assessed, and will follow the current Agency Financial Administration Policy.

View Audit 54138

Finding 58477 (2022-001)

Significant Deficiency 2022

Derry Housing & Redevelopment Authority

NH

HUD Housing Programs Internal Control / Segregation of Duties § 200.305 § 200.514

CORRECTIVE ACTION PLAN (Concerning Finding 2022-001) Contact Person Responsible for Corrective Action: Melody Ackerman, Executive Director Corrective Action: The Derry Housing and Redevelopment Authority will take the following actions to address finding 2022-001; The Derry Housing and Redev...

CORRECTIVE ACTION PLAN (Concerning Finding 2022-001) Contact Person Responsible for Corrective Action: Melody Ackerman, Executive Director Corrective Action: The Derry Housing and Redevelopment Authority will take the following actions to address finding 2022-001; The Derry Housing and Redevelopment Authority (DHRA) will select an accurate Rent Reasonableness system to use. Once an accurate NH022 Rent Reasonableness system has been selected, the PHA must update HCV Administrative Plan, including receiving Board approval, to document the use of this new system. The PHA must perform Rent Reasonableness determinations utilizing the Board approved methodology on all currently leased vouchers. The DHRA expects to have all corrections in place by December 1, 2023.

View Audit 56077

Finding 58467 (2022-002)

None 2022

Elm Manor Homes, INC 051-11208 Fka.#s 051-Eh102-Wah/l8 &051eh164wahl8

VA

Special Tests & Provisions HUD Housing Programs Internal Control / Segregation of Duties

Identifying Number: Section 223(F), HUD Insured Mortgage - CFDA 14.155 (Special Tests and Provisions) Finding: 2022-02: In conjunction with our audit in acco...

Identifying Number: Section 223(F), HUD Insured Mortgage - CFDA 14.155 (Special Tests and Provisions) Finding: 2022-02: In conjunction with our audit in accordance with the requirements established by the U.S. Department of Housing and Urban Development, tenant security deposits are required to be returned within 30 days of the tenant's move-out date. However, in performing procedures to ascertain the accuracy of the return of security deposits, we noted the security deposit returned to one tenant was more than 30 days after move-out. We recommend that security deposits be returned within 30 days of the tenant's move-out date. Corrective Action Taken or Planned Management has implemented steps to ensure that future security deposit refunds are made within the 30 day requirement.

View Audit 55291

Finding 58466 (2022-001)

None 2022

Elm Manor Homes, INC 051-11208 Fka.#s 051-Eh102-Wah/l8 &051eh164wahl8

VA

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

Identifying Number: Section 223(F), HUD Insured Mortgage - CFDA 14.155 (Special Tests and Provisions) Finding: 2022-01: The Corporation is to keep copies of ...

Identifying Number: Section 223(F), HUD Insured Mortgage - CFDA 14.155 (Special Tests and Provisions) Finding: 2022-01: The Corporation is to keep copies of all tenant checks for rent payments. We noted that 10 of 25 tenants selected for testing did not have copies of the checks available. We were unable to determine if checks are deposited timely and how much the check amount is. We recommend tat the Corporation purchases a check scanner to scan check copies as tenants pay rent. Corrective Action Taken or Planned A check scanner was purchased to scan new incoming checks from tenants. Scanned checks are retained in the rent roll software.

View Audit 55291

Finding 58446 (2022-003)

Significant Deficiency 2022

Volunteer Homes for Elderly

TN

HUD Housing Programs Internal Control / Segregation of Duties Eligibility

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

CORRECTIVE ACTION PLAN Volunteer Homes for Elderly, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Purkey, Carter, Compton, Swann, & Carter, PLLC PO. Box 727 Morristown, Tennessee 37815 Audit period: October 1, 2021 - September 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS-FINANCIAL STATEMENT AUDIT None Finding No. 2022 ? 003: Ineffective oversight and operation of internal controls over compliance by management Volunteer Homes for Elderly, Inc's managers did not follow all HUD requirements when going through the tenant recertification process. The tenant files tested for internal controls over compliance contained multiple deficiencies including missing copy of social security card in order to verify social security number; missing income verification; missing Ethnic and Racial Data conformation; incorrect calculation of tenant assets; incorrect income used on HUD Form 50059, and missing tenant signature and date on Resident Rights and Responsibilities acknowledgment. Criteria: According to HUD Handbook 4350.3: 1. All applicant and tenant household members must disclose and provide verification of the complete and accurate social security number assigned to them except for those individuals who do not contend eligible immigration status. Owners must include verification documentation in the tenant file. Owners must gather data about the race and ethnicity of applicants and tenants so that HUD can easily spot possible discrimination, track racial or ethnic concentrations, and focus enforcement actions on owners with racially or ethnically identifiable properties. 4. Owners must verify all income assets, expenses, deductions, family characteristics, and circumstances that affect family eligibility or level of assistance: for savings accounts, use the current balance and for checking accounts. use the average balance for the last six months. 5. Annual income is defined as all amounts anticipated to be received from a source outside the family during the 12?month period following admission or annual recertification and owner calculates projected annual income by annualizing current income. 6. Owners must provide applicants and tenants with a copy of the Resident Rights and Responsibilities brochure at move-in and annual recertification and all family members at least 18 years of age must acknowledge receipt of brochure by signing and dating the acknowledgement. Cause of Condition: The management agent did not have systems in place to ensure managers know of and are complying with ail HUD requirements pursuant to the HUD Handbook 4350.3. Recommendation: Auditor recommends management review HUD Handbook 4350.3 and put proper procedures in place to ensure managers know of applicable HUD requirements and are complying with HUD requirements. Action Taken: Management agent will provide additional training on HUD requirements to managers during their annual manager's training and implement procedures to ensure managers are complying with requirements pursuant to' HUD Handbook 4350.3.

View Audit 56038

Finding 58445 (2022-002)

Significant Deficiency 2022

Volunteer Homes for Elderly

TN

HUD Housing Programs Internal Control / Segregation of Duties

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

CORRECTIVE ACTION PLAN Volunteer Homes for Elderly, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Purkey, Carter, Compton, Swann, & Carter, PLLC PO. Box 727 Morristown, Tennessee 37815 Audit period: October 1, 2021 - September 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS-FINANCIAL STATEMENT AUDIT None FINDINGS-FEDERAL AWARD PROGRAMS AUDITS Finding No. 2022 ? 002: Ineffective oversight and operation of internal controls over compliance by management Volunteer Homes for Elderly, Inc?s managers are not keeping EIV data as required by HUD. After being informed by the management agent to destroy EIV data that is greater than three years after tenancy, managers proceeded to destroy EIV data before the retention period expired. Criteria: According to HUD Handbook 4350.3, owners must retain EIV data in the tenant file for the term of tenancy plus three years. Once retention period expires, owners must dispose of EIV data in proper manner. The requirements of EIV are included in chapter 9 of the HUD handbook. Cause of Condition: The managers are not following requirements for EIV data pursuant to the HUD Handbook 4350.3. Recommendation: Auditor recommends management agent provide additional training to managers regarding retention period of EIV data and put proper controls in place to ensure the managers are complying with HUD requirements. Action Taken: Management agent will remind managers of retention period of EIV data required by HUD and provide additional training at the annual manager's training.

View Audit 56038

Finding 58444 (2022-001)

Significant Deficiency 2022

Volunteer Homes for Elderly

TN

HUD Housing Programs Internal Control / Segregation of Duties

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

CORRECTIVE ACTION PLAN Volunteer Homes for Elderly, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Purkey, Carter, Compton, Swann, & Carter, PLLC PO. Box 727 Morristown, Tennessee 37815 Audit period: October 1, 2021 - September 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS-FINANCIAL STATEMENT AUDIT None FINDINGS-FEDERAL AWARD PROGRAMS AUDITS CORRECTIVE ACTION COMPLETED: Finding No. 2022 ? 001: Ineffective oversight and operation of internal controls over compliance by management Volunteer Homes for Elderly, Inc. had a Management Review (MOR) during the period under audit. The MOR had a significant number of findings in the Leasing and Occupancy section. The findings were related to the following: missing HUD required information on tenant selection plan, house rules, Violence Against Women Act (VAWA) emergency plan, eviction and rejection notices, tenant applications, marketing materials, HUD Forms, and EIV policies and procedures; EIV requirements not executed as required; new hire detail reports not filed correctly; tenant files missing HUD required documents; tenant file documents missing signatures and dates from required parties; incorrect information listed on HUD Form 9887/A; incorrect or miscalculated income, assets, and medical expenses used on HUD Form 50059; and tenants charged estimates for damages at move-out instead of actual costs. Criteria: HUD compliance requirements can be found in the HUD Handbook 4350.3 and VAWA requirements can be found at 24 CFR 5.2005 and FR?5720?F-03. Cause of Condition: Management agent and managers not aware of requirements, not following procedures properly, does not have proper procedures in place, oversight, and error. Action Taken: Management agent has updated all documents to include the missing HUD required information, sent out correspondence to managers to inform them of the requirements that were not previously followed, had managers correct tenant file deficiencies noted in the MOR, and will provide additional training to the managers at the annual on-site manager's training. Auditor validates the actions taken. Recommendation: Through compliance testing audit procedures, auditor reviewed the corrective action plan, corrections, and correspondence regarding the MOR findings and therefore. validated the actions taken. In addition, auditor recommends management agent put additional procedures in place to periodically review HUD Handbook 4350.3, periodically review property documents to ensure they are up to date with HUD requirements, and ensure managers know and are complying with HUD requirements.

View Audit 56038

Finding 58437 (2022-001)

Significant Deficiency 2022

Wofford Park, Inc.

MS

HUD Housing Programs Reporting

U.S. Department of Housing and Urban Development Program Name: Section 811 Supportive Housing for Persons with Disabilities Federal Assistance Listing Number 14.181 Grant Number: 065-HD029-CA Wofford Park, Inc. HUD Project No. 065-HD029-CA, respectfully submits the following corrective action plan ...

U.S. Department of Housing and Urban Development Program Name: Section 811 Supportive Housing for Persons with Disabilities Federal Assistance Listing Number 14.181 Grant Number: 065-HD029-CA Wofford Park, Inc. HUD Project No. 065-HD029-CA, respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit Firm: McNorton Ishee & Jones, PC 3662 Dauphin St., Ste. E Mobile, AL 36608 Audit period: September 30, 2022 Finding 2022-001: Other Finding State of Condition: The project has not filed their prior year annual single audit reporting package in the Federal Audit Clearinghouse website. Corrective Action: Management will ensure that they submit the project?s annual single audit reporting package in the Federal Audit Clearinghouse website. If the Department of Housing and Urban Development should have any questions or comments regarding this plan, please contact Craig Bounds at (228) 435-1642.

View Audit 55498

Finding 58431 (2022-002)

Material Weakness 2022

The Harry and Jeanette Weinberg Gardens at Bedford, INC

MD

HUD Housing Programs Cash Management Internal Control / Segregation of Duties

Finding 2022-2 a. Comments on the Finding and Each Recommendation Management agrees with the finding. b. Action(s) Taken or Planned on the Finding The Residual Receipts deposit was not made timely due to a turnover in staff. Management has trained all accounting staff on this process and

View Audit 55113

Finding 58430 (2022-001)

Material Weakness 2022

The Harry and Jeanette Weinberg Gardens at Bedford, INC

MD

Eligibility HUD Housing Programs Subrecipient Monitoring

Finding 2022-1 a. Comments on the Finding and Each Recommendation Management agrees with the finding. b. Action(s) Taken or Planned on the Finding In 2022 we hired additional oversight staff at the corporate level and changed the procedure for reviewing and approving annual certifications as well as...

Finding 2022-1 a. Comments on the Finding and Each Recommendation Management agrees with the finding. b. Action(s) Taken or Planned on the Finding In 2022 we hired additional oversight staff at the corporate level and changed the procedure for reviewing and approving annual certifications as well as monitoring EIV reporting. We have implanted new EIV procedures to ensure

View Audit 55113

Finding 58427 (2022-004)

Significant Deficiency 2022

Lutheran Seniorlife

PA

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

2022-004 Federal agency: U.S. Department of Housing and Urban Development Federal Program Title: Mortgage Insurance ? Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Assistance Listing #: 14.129 Criteria or specific requirement: REAC Inspection Resul...

2022-004 Federal agency: U.S. Department of Housing and Urban Development Federal Program Title: Mortgage Insurance ? Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Assistance Listing #: 14.129 Criteria or specific requirement: REAC Inspection Results Condition: St. John received a REAC inspection score of less than 31, which denotes the property has physical deficiencies that do not meet contractual obligations to HUD. Context: Results of REAC inspection 613308. Recommendation: St. John should work to address all REAC inspection findings. Action taken in response to finding: Subsequent to this survey, the facility incurred significant flooding, which required immediate action. Due to this, St. John did not have the ability to address the findings from the survey. With a protracted insurance claims process and the impact of Covid-19 on building operations, work on the outstanding deficiencies has been delayed. Due to the risk to residents and staff, all outside visitors including maintenance contractors and other vendors has been limited for a number of periods during the pandemic during FY21. Management completed an assessment of the facility?s use and has begun a repositioning plan to bring new living options into the building. In order to complete the needed improvements to the building, St. John has completed a refinancing of its existing HUD debt and negotiated a construction loan to fund the improvements. The closing on the refinancing of the existing HUD loan and the construction loan took place on July 8, 2021. Name of contact person responsible for corrective action: Jeffrey Carraway

View Audit 55905

Finding 58426 (2022-003)

Significant Deficiency 2022

Lutheran Seniorlife

PA

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

2022-003 Federal agency: U.S. Department of Housing and Urban Development Federal Program Title: Mortgage Insurance ? Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Assistance Listing #: 14.129 Criteria or specific requirement: Failure to Maintain A...

2022-003 Federal agency: U.S. Department of Housing and Urban Development Federal Program Title: Mortgage Insurance ? Nursing Homes, Intermediate Care Facilities, Board and Care Homes, and Assisted Living Facilities Assistance Listing #: 14.129 Criteria or specific requirement: Failure to Maintain Approved Management Agreements Condition: St. John Lutheran Care Center (St. John) was charged a management fee by Lutheran SeniorLife, its parent but did not have an approved management contract meeting the requirements of the regulatory agreement. Context: St. John did not have an approved management agreement. Recommendation: St. John should enter into an approved management agreement with Lutheran SeniorLife. Action taken in response to finding: St. John updated internal agreements to reflect the change from Lutheran Affiliated Services to Lutheran SeniorLife, but neglected to complete the process with HUD. St John will submit the paperwork to obtain a certified HUD approved management agreement. While the organization was operating without this agreement in place, management fees charged were only to reimburse costs incurred in performing these management functions. During Fiscal Year 2021, St John entered into a refinancing plan with a lender in order to facilitate a repositioning of the facility and to enable facility improvements that were identified. The closing on the refinancing of the existing HUD loan took place on July 8, 2021. Name of contact person responsible for corrective action: Jeffrey Carraway

View Audit 55905

Finding 58420 (2022-001)

Significant Deficiency 2022

Catholic Charities Housing Association of Biloxi, Inc.

MS

HUD Housing Programs Reporting

U.S. Department of Housing and Urban Development Program Name: Section 8 Housing Assistance Payments Federal Assistance Listing Number 14.195 Grant Number: 065-44-803SHM & 065-44-801SHM Santa Maria del Mar Apartments HUD Project No. 065-44-803SHM and Villa Maria Apartments HUD Project No. 065-44-80...

U.S. Department of Housing and Urban Development Program Name: Section 8 Housing Assistance Payments Federal Assistance Listing Number 14.195 Grant Number: 065-44-803SHM & 065-44-801SHM Santa Maria del Mar Apartments HUD Project No. 065-44-803SHM and Villa Maria Apartments HUD Project No. 065-44-801SHM, respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit Firm: McNorton Ishee & Jones, PC 3662 Dauphin St., Ste. E Mobile, AL 36608 Audit period: September 30, 2022 Finding 2022-001: Other Findings State of Condition The project has not filed their prior year annual single audit reporting package in the Federal Audit Clearinghouse website. Corrective Action: Management will ensure that they submit the project?s annual single audit reporting package in the Federal Audit Clearinghouse website. If the Department of Housing and Urban Development should have any questions or comments regarding this plan, please contact Craig Bounds at (228) 435-1642.

View Audit 55491

Finding 58411 (2022-001)

Significant Deficiency 2022

Samaritan Housing, Inc.

MS

Procurement, Suspension & Debarment HUD Housing Programs Reporting

U.S. Department of Housing and Urban Development Program Name: Section 223(F) Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Federal Assistance Listing Number: 14.155 Grant Number: 065-11077-PM Samaritan Housing, Inc. HUD Project No. 065-11077-PM, respe...

U.S. Department of Housing and Urban Development Program Name: Section 223(F) Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects Federal Assistance Listing Number: 14.155 Grant Number: 065-11077-PM Samaritan Housing, Inc. HUD Project No. 065-11077-PM, respectfully submits the following corrective action plan for the year ended September 30, 2022. Audit Firm McNorton Ishee & Jones, P. C. 3662 Dauphin St., Ste. E Mobile, AL 36608 Audit Period: September 30, 2022 Finding 2022-001: Other Findings Statement of Condition: The project has not filed their prior year annual single audit reporting package in the Federal Audit Clearinghouse website. Corrective Action: Management will ensure that they submit the project?s annual single audit reporting package in the Federal Audit Clearinghouse website. If the Department of Housing and Urban Development should have any questions or comments regarding this plan, please contact Craig Bounds at (228) 435-1642.

View Audit 54129

Finding 58404 (2022-003)

Material Weakness 2022

Housing Authority of the City of Cheyenne

WY

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Finding 2022-002 The Authority agrees with this finding ? As the Authority transitioned housing/accounting software and staff during the year, the procedures for reviewing and approving journal entries was not documented as it had been in the past. Various journal entries were not reviewed and appr...

Finding 2022-002 The Authority agrees with this finding ? As the Authority transitioned housing/accounting software and staff during the year, the procedures for reviewing and approving journal entries was not documented as it had been in the past. Various journal entries were not reviewed and approved by someone other than the preparer. o As of April 1, 2022, all journal entries are reviewed by both the Director of Accounting and Lead Staff Accountant. Part of the previous process included a listing of all journal entries for the month and a sign off sticker that was placed in the monthly journal entry book. We have located a similar report in the current operating system and returned to our previous process of review. Section III ? Federal Awards findings Finding 2022-003 The Authority agrees with this finding. ? The Authority utilized its HCV HUD Cares Act funding to pay for its annual software and support that covered the period of July 1, 2021 to June 30, 2022. As a result, one half of this expense for the period after December 31, 2021 and is not an allowable expense for HUD Cares Act grant. o Effective immediately, specialty funding that has a deadline will not be used on invoices that are considered prepaid. If funding is directly related to an invoice that would be considered a prepaid, and the period of performance extends beyond the funding deadline, a detailed analysis will be completed to ensure proper utilization of finding.

View Audit 53864 Questioned Costs: $1

Finding 58383 (2022-002)

None 2022

McKenzie Housing Authority

TN

HUD Housing Programs

2022-002 Lack of Depository Agreements ? (Noncompliance) Person Responsible for Implementing Corrective Action: Barbara Cooper, Executive Director Anticipated Completion Date of Corrective Action: September 30, 2023 Repeat Finding: Yes Planned Corrective Action: Management agrees to research the req...

2022-002 Lack of Depository Agreements ? (Noncompliance) Person Responsible for Implementing Corrective Action: Barbara Cooper, Executive Director Anticipated Completion Date of Corrective Action: September 30, 2023 Repeat Finding: Yes Planned Corrective Action: Management agrees to research the requirement including discussing the requirement with a HUD representative in order to determine the best approach to becoming compliant.

View Audit 54267

Finding 58353 (2022-001)

Significant Deficiency 2022

Assumption University

MA

HUD Housing Programs Reporting

Management agrees with the finding and corrective measures have been taken.

View Audit 59432

Corrective Action Plans

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