Corrective Action Plans

Finding 485263 (2022-007)

Material Weakness 2022

Village of North Syracuse Housing Authority

NY

HUD Housing Programs Cash Management

Please see 2020-008 regarding payment standards and utility schedules. The current staff updated the current rent reasonableness comparisons during the summer of 2023. This was accomplished by completing a survey of area wide rents and amenities for comparable units. Each folder has a rent reasonabl...

Please see 2020-008 regarding payment standards and utility schedules. The current staff updated the current rent reasonableness comparisons during the summer of 2023. This was accomplished by completing a survey of area wide rents and amenities for comparable units. Each folder has a rent reasonableness form showing the comparables and justifying the rent being changed is eligible and within reason.

View Audit 318023

Finding 485262 (2022-006)

Material Weakness 2022

Village of North Syracuse Housing Authority

NY

HUD Housing Programs

When the current director, Robert Weismore was appointed his first obligation was to inspect 51 units that had been neglected by the former staff. As documentation in the files all previous nspections have been completed. The current staff, Sarah Schaefer, has become a certified inspector after comp...

When the current director, Robert Weismore was appointed his first obligation was to inspect 51 units that had been neglected by the former staff. As documentation in the files all previous nspections have been completed. The current staff, Sarah Schaefer, has become a certified inspector after completing the necessary course and passing the exam. All inspections whether annual or bi-annually are all completed within the time frame directed by HUD. The director currently will complete the supervisory inspections based on the percentage of program participation directed by HUD regulations.

View Audit 318023

Finding 485261 (2022-005)

Material Weakness 2022

Village of North Syracuse Housing Authority

NY

HUD Housing Programs Reporting

The new director and staff know that SEMAP reports are due annually. They also know that the report is the responsibility of the director to complete the SEMAP filing. The director who was in place during the 2019-2020-2021 should have filed the SEMAP report.

View Audit 318023

Finding 485260 (2022-004)

Material Weakness 2022

Village of North Syracuse Housing Authority

NY

HUD Housing Programs Cash Management Internal Control / Segregation of Duties

Effective 11/1/2022 all recommendations are completed with up to 90 days notice to prospective tenant, with notification as the proper verification needed to complete the recert to completion. Notification is also sent to the owner of the recertification. Once the proper verification is completed c...

Effective 11/1/2022 all recommendations are completed with up to 90 days notice to prospective tenant, with notification as the proper verification needed to complete the recert to completion. Notification is also sent to the owner of the recertification. Once the proper verification is completed calculations are completed the tenant and owner are mailed an addendum stating new rental breakdown. The new current staff has between 10 and 15 years' experience completing recertifications. Please see item 2020-008 regarding utilities and payment standards.

View Audit 318023

Finding 484796 (2022-001)

Material Weakness 2022

Montana Institute of Family Living Dba Park Manor

MT

HUD Housing Programs

2022-001 Underpayment of the contingent mortgage As of December 31, 2022, $173,798 had been paid through the refinancing of the mortgage on April 26, 2022, which is 26 days after the 90-day period. Surplus cash was paid off with the close of the mortgage in the refinance. Karen Burkett, Managing Age...

2022-001 Underpayment of the contingent mortgage As of December 31, 2022, $173,798 had been paid through the refinancing of the mortgage on April 26, 2022, which is 26 days after the 90-day period. Surplus cash was paid off with the close of the mortgage in the refinance. Karen Burkett, Managing Agent

View Audit 317733

Finding 481169 (2022-011)

Material Weakness 2022

Trinity Acres Housing Corporation

IL

HUD Housing Programs

On March 22, 2023, the Corporation paid $6,034.05 for overpayment of Management Agent Fees. The Corporation will reimburse the Project for the Management Fee Overpayment and Payroll Cost of the remaining balance due of $12,526.95.

View Audit 317262

Finding 481168 (2022-010)

Material Weakness 2022

Trinity Acres Housing Corporation

IL

Procurement, Suspension & Debarment HUD Housing Programs Matching / Level of Effort / Earmarking

The Corporation will register and apply for PPP Forgiveness via the SBA PPP Direct Forgiveness Portal or contact SBA Customer Service at 877-552-2692.

View Audit 317262

Finding 481165 (2022-008)

Material Weakness 2022

Trinity Acres Housing Corporation

IL

Eligibility HUD Housing Programs

The Project will adhere to the HUD rent subsidy program in accepting applications, determining eligibility, calculating the tenant's contribution toward rent and utilities, and calculating subsidy in accordance with HUD.

View Audit 317262

Finding 480943 (2022-002)

Significant Deficiency 2022

Cda Midway Plaisance Association

IL

HUD Housing Programs Internal Control / Segregation of Duties

Finding 2022-02: The Project has not received any PRAC receipts in 2022 and 2021 or subsequent to the year end. Recommendation: Management needs to work with HUD to process monthly PRAC submission receipts. Action Taken: Management is working with Darletta Baugh, HUD’s project manager regarding...

Finding 2022-02: The Project has not received any PRAC receipts in 2022 and 2021 or subsequent to the year end. Recommendation: Management needs to work with HUD to process monthly PRAC submission receipts. Action Taken: Management is working with Darletta Baugh, HUD’s project manager regarding the non-receipt of the PRAC monthly submission. In addition, Management has delegated the oversight of the PRAC process.

View Audit 317049

Finding 480942 (2022-001)

None 2022

Cda Midway Plaisance Association

IL

Procurement, Suspension & Debarment HUD Housing Programs

Finding 2022-01: The monthly deposits to the Replacement Reserve totaling $12,000 were not made in 2022 as the project assumed HUD would grant a waiver. Recommendation: Deposit past due Replacement Reserve amounts if HUD approval of suspension of monthly deposits is not received. Action Taken:...

Finding 2022-01: The monthly deposits to the Replacement Reserve totaling $12,000 were not made in 2022 as the project assumed HUD would grant a waiver. Recommendation: Deposit past due Replacement Reserve amounts if HUD approval of suspension of monthly deposits is not received. Action Taken: Management funded required Replacement Reserve funding in February 2023.

View Audit 317049

Finding 480844 (2022-003)

Material Weakness 2022

Mt Pleasant Housing Develpment Fund Company

NY

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Finding No. 2022-003; Supportive Housing for the Elderly (Section 202), CFDA 14.157 Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Condition During the year ended November 30, 2022, the project paid expenses in the amount of $326,282 on behalf of ...

Finding No. 2022-003; Supportive Housing for the Elderly (Section 202), CFDA 14.157 Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Condition During the year ended November 30, 2022, the project paid expenses in the amount of $326,282 on behalf of other affiliates from project cash without HUD approval. The amount due to the project as of November 30, 2022 is $326,282. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Effect or Potential Effect The payments of $326,282 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $326,282 Recommendation Management should immediately reimburse the amount due to the project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code: B – Allowable Costs/Cost Principles Views of Responsible Officials and Planned Corrective Actions Because the PRAC renewals were so delayed, therefore there was no money available to pay back the project. Furthermore, the insurance costs are tremendous and had to be financed. In order to ensure the payments are applied and paid timely it is best to have the entire amount pulled from one bank account. If each entity were to pay its share it would cause confusion and may result in possible cancellation. Upon finalizing the audits and submitting to HUD, management intends to request funds from the replacement reserve to enable them to pay down the due from affiliates.

View Audit 316973 Questioned Costs: $1

Finding 480843 (2022-002)

Material Weakness 2022

Mt Pleasant Housing Develpment Fund Company

NY

Questioned Costs Special Tests & Provisions HUD Housing Programs

Finding No. 2022-002; Supportive Housing for the Elderly (Section 202), CFDA 14.157 Criteria The regulatory agreement required that the project make monthly deposits to its replacement reserve. Condition During the year ended November 30, 2022, the project did not make the required monthly deposits ...

Finding No. 2022-002; Supportive Housing for the Elderly (Section 202), CFDA 14.157 Criteria The regulatory agreement required that the project make monthly deposits to its replacement reserve. Condition During the year ended November 30, 2022, the project did not make the required monthly deposits to the replacement reserve as disclosed. The project was required to make monthly deposits to the reserve in the amount of $5,000 and $9,160 related to Finding 2021-1. Total cumulative deposits due to the replacement reserve during the year ended November 30, 2022 were $69,160 of which the project made deposits of $54,569 leaving an amount remaining due to the reserve of $14,431. Cause Due to COVID-19, the Property experienced delays in receiving its annual PRAC renewal and monthly PRAC subsidy funding. Effect or Potential Effect Underfunding of the replacement reserve and a noncompliance of the regulatory agreement. Questioned Costs: $14,431 Recommendation Management should make timely deposits to ensure that the replacement reserve is funded in accordance with the terms of the regulatory agreement. Auditor Noncompliance Code: N – Special Tests and Provisions Views of Responsible Officials and Planned Corrective Actions: Due to COVID-19, delays were encountered by HUD while reviewing and renewing the annual PRAC which did not afford management enough time to settle outstanding vendor payments and make the increased reserve for replacement deposit.

View Audit 316973 Questioned Costs: $1

Finding 480842 (2022-002)

Material Weakness 2022

Casita Park Housing Development Fund Corporation

NY

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Finding 2022-002 Unauthorized loans from project assets Comments on the Finding and Each Recommendation Statement of Condition During the year ended September 30, 2022, the project paid expenses in the amount of $81,886 on behalf of an affiliate from project cash without HUD approval. The amount due...

Finding 2022-002 Unauthorized loans from project assets Comments on the Finding and Each Recommendation Statement of Condition During the year ended September 30, 2022, the project paid expenses in the amount of $81,886 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of September 30, 2022 is $81,886. Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to project operating costs. Effect or Potential Effect The payments of $81,886 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $ 81,886. Recommendation Management should immediately reimburse the amount due to the project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code B – Allowable Cost/Costs Principles Reporting Views of Responsible Officials The Corporation agrees with the finding and the auditor's recommendations have been adopted. Upon finalizing the audits and submitting to HUD, management intends to request funds from the replacement reserve to enable them to pay down the due from affiliates..

View Audit 316972 Questioned Costs: $1

Finding 480841 (2022-002)

Material Weakness 2022

Lucille Clark Housing Development Corporation

NY

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

2- Finding No. 2022-002; Unauthorized loans from project assets Statement of Condition During the year ended September 30, 2022, the project paid expenses in the amount of $32,736 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of September 30, 2022...

2- Finding No. 2022-002; Unauthorized loans from project assets Statement of Condition During the year ended September 30, 2022, the project paid expenses in the amount of $32,736 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of September 30, 2022 is $32,736. Criteria Loans are not permitted to be made from project cash without prior authorization from HUD. Cause Procedures were not in place to ensure that cash disbursements of project funds were limited to approved project operating costs. Effect or Potential Effect The payments of $32,736 were unauthorized loans and therefore considered to be questioned costs. Questioned Costs $32,736. Recommendation Management should immediately reimburse the amount due to the project and establish procedures to ensure payments of this nature are not made in the future. Auditor Noncompliance Code B – Allowable Cost/Costs Principles Reporting Views of Responsible Officials The Corporation agrees with the finding and the auditor's recommendations have been adopted. Upon finalizing the audits and submitting to HUD, management intends to request funds from the replacement reserve to enable them to pay down the due from affiliates.

View Audit 316971 Questioned Costs: $1

Finding 480828 (2022-004)

Material Weakness 2022

Houston Housing Authority

TX

HUD Housing Programs Eligibility Material Weakness

The Houston Housing Authority agrees with this finding. The Houston Housing Authority has for the past several months undertaken a program to review all voucher files for purposes of getting all deficiencies corrected. During this process if other required documents are found to be missing steps ...

The Houston Housing Authority agrees with this finding. The Houston Housing Authority has for the past several months undertaken a program to review all voucher files for purposes of getting all deficiencies corrected. During this process if other required documents are found to be missing steps are being taken to complete the missing documentation and make sure that the files are complete. This review is substantially completed with final completion expected in the third quarter of 2024. Procedures have been implemented with regards to preventing this situation from recurring. Where needed staff will be provided the necessary training to make sure that all HCVP staff have the skills needed to successfully complete their job tasks. To facilitate this training, the Houston Housing Authority has created a training center that is made available to not only Houston Housing Authority staff but also others to provide a wide variety of training classes. Current leadership at the Houston Housing Authority is committed to having a competent trained staff working in the HCVP as well as other departments with the agency. This work is handled by the Voucher Program Operations department. The VP of this department and the Director of this department are primarily responsible for making sure the necessary corrections are made and the fill review is completed within the third quarter of 2024.

View Audit 316962

Finding 480825 (2022-003)

Material Weakness 2022

Houston Housing Authority

TX

HUD Housing Programs Eligibility Material Weakness

The Houston Housing Authority agrees with this finding. The Houston Housing Authority has for the past several months undertaken a program to review all voucher files for purposes of getting all delinquent recertifications completed. During this process if other required documents are found to be...

The Houston Housing Authority agrees with this finding. The Houston Housing Authority has for the past several months undertaken a program to review all voucher files for purposes of getting all delinquent recertifications completed. During this process if other required documents are found to be missing steps are being taken to complete the missing documentation and make sure that the files are complete. This review is substantially completed with final completion expected in the third quarter of 2024. Procedures have been implemented with regards to preventing this situation from recurring. Where needed staff will be provided the necessary training to make sure that a HCVP staff have the skills needed to successfully complete their job tasks. To facilitate this training, the Houston Housing Authority has created a training center that is made available to not only Houston Housing Authority staff but also others to provide a wide variety of training classes. Current leadership at the Houston Housing Authority is committed to having a competent trained staff working in the HCVP as well as other departments with the agency. This work is handled by the Voucher Program Operations department. The VP of this department and the Director of this department are primarily responsible for making sure the necessary corrections are made and the fill review is completed within the third quarter of 2024.

View Audit 316962

Finding 480824 (2022-002)

Material Weakness 2022

Houston Housing Authority

TX

HUD Housing Programs Eligibility Material Weakness

The Houston Housing Authority agrees with this finding. The Houston Housing Authority has for the past several months undertaken a program to review all voucher files for purposes of getting all delinquent recertifications completed. During this process if other required documents are found to be...

The Houston Housing Authority agrees with this finding. The Houston Housing Authority has for the past several months undertaken a program to review all voucher files for purposes of getting all delinquent recertifications completed. During this process if other required documents are found to be missing steps are being taken to complete the missing documentation and make sure that the files are complete. This review is substantially completed with final completion expected in the third quarter of 2024. Procedures have been implemented with regards to preventing this situation from recurring. Where needed staff will be provided the necessary training to make sure that all HCVP staff have the skills needed to successfully complete their job tasks. To facilitate this training, the Houston Housing Authority has created a training center that is made available to not only Houston Housing Authority staff but also others to provide a wide variety of training classes. Current leadership at the Houston Housing Authority is committed to having a competent trained staff working in the HCVP as well as other departments with the agency. This work is handled by the Voucher Program Operations department. The VP of this department and the Director of this department are primarily responsible for making sure the necessary corrections are made and the fill review is completed within the third quarter of 2024.

View Audit 316962

Finding 480817 (2022-001)

Material Weakness 2022

Houston Housing Authority

TX

Internal Control / Segregation of Duties HUD Housing Programs Material Weakness

The Houston Housing Authority agrees with this finding and related recommendations. During this audit, as these issues arose, notes were taken, evaluation of what had happened was made so that we could make the necessary adjustments to our procedures to prevent the continuation of these issues. In...

The Houston Housing Authority agrees with this finding and related recommendations. During this audit, as these issues arose, notes were taken, evaluation of what had happened was made so that we could make the necessary adjustments to our procedures to prevent the continuation of these issues. In addition, we hired a firm to come in and undertake a review of the finance department. The purpose of this review was to review our existing staffing levels, workloads, experience, etc., for purposes of proposing a reorganization of the finance department to address any deficiencies. We have reviewed the recommendations from this consultant and are in the process of implementing many of the recommended changes. We are in the process of bringing in additional staff to expand the capacity of the Finance department. As we had fallen behind on our audits we anticipated the weaknesses noted in prior audits would continue to be present in future audits. We have been working very diligently to address the issues within the finance department that gave rise to this finding. We fully expect this finding or a similar finding to be present for the 2023 audit as many of the departmental improvements and changes were only recently made and would not have been in place for the majority of 2023.

View Audit 316962

Finding 480701 (2022-003)

Material Weakness 2022

Humboldt Park Health, Inc.

IL

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Condition: The Organization’s lacked effective controls to ensure documentation for expenses reported within the Organization’s period 2 portal submission were retained. The Organization was able to produce documentation for total expenses of $7,516,920, while the Organization had reporting to HRSA ...

Condition: The Organization’s lacked effective controls to ensure documentation for expenses reported within the Organization’s period 2 portal submission were retained. The Organization was able to produce documentation for total expenses of $7,516,920, while the Organization had reporting to HRSA that it had incurred $8,509,978 of expenses. As a result, the Organization was unable to provide support for $993,058 of the total expenses reported. Planned Corrective Action: The Organization will review its processes surrounding the retention of documentation used to report expenses and will implement additional levels of review to ensure that the proper documentation is retained for future reporting period portal submissions. Contact person responsible for corrective action: Tom Garvey, Interim CFO Anticipated Completion Date: 9/30/2023

View Audit 316928 Questioned Costs: $1

Finding 480600 (2022-006)

Material Weakness 2022

Trinity Community Housing CORP

IL

Eligibility HUD Housing Programs

The Project will have procedures in place to complete Income Verification for Form HUD-50059 accurately.

View Audit 316785

Finding 480597 (2022-004)

Material Weakness 2022

Trinity Community Housing CORP

IL

HUD Housing Programs

The Corporation will contact PNC to establish a payment arrangement to pay off the line of credit with its funds.

View Audit 316785

Finding 480592 (2022-001)

Material Weakness 2022

Trinity Community Housing CORP

IL

HUD Housing Programs Matching / Level of Effort / Earmarking

The Management Agent will properly review all statement of financial position and statement of activity accounts to determine no material misstatements every month.

View Audit 316785

Finding 479562 (2022-015)

Material Weakness 2022

Mental Health Association of Columbia-Greene Counties Inc.

NY

HUD Housing Programs Special Tests & Provisions

The Division Director of Residential Services, Susie Cody, will obtain the rent reasonable checklists, a signed lease, and any other required forms when a new client is accepted into the program. Division Director, Susie Cody, will provide the Fiscal Director, Ethan Terrio, with a copy of the follo...

The Division Director of Residential Services, Susie Cody, will obtain the rent reasonable checklists, a signed lease, and any other required forms when a new client is accepted into the program. Division Director, Susie Cody, will provide the Fiscal Director, Ethan Terrio, with a copy of the following items when an apartment is brought online, there is some other change requiring the completion of these forms, or the first week of January each year: Lease, Rent Reasonableness. All forms for new apartments are to be supplied to Director of Finance prior to the issuing of any check forrent or security deposit without Executive Director approval. All forms will be scanned and placed in the resident’s electronic health record (AWARDS). The forms will also be scanned and kept in a shared finance folder.

View Audit 316102

Finding 479398 (2022-006)

Material Weakness 2022

Gloversville Housing Authority

RI

Eligibility HUD Housing Programs Material Weakness

2022-006 – ELIGIBILITY Material Weakness/Material Noncompliance Auditee’s Response and Planned Corrective Action The Authority hired a new Executive Director in November 2023. Under new management, the Authority provided training to necessary staff. Planned Implementation Date of Corrective Action: ...

2022-006 – ELIGIBILITY Material Weakness/Material Noncompliance Auditee’s Response and Planned Corrective Action The Authority hired a new Executive Director in November 2023. Under new management, the Authority provided training to necessary staff. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Kayla Potter, Executive Director

View Audit 315892

Finding 479394 (2022-005)

Material Weakness 2022

Gloversville Housing Authority

RI

HUD Housing Programs Material Weakness Reporting

2022-005 – REPORTING: PERFORMANCE REPORTING Material Weakness/Material Noncompliance Auditee’s Response and Planned Corrective Action The Authority hired a new Executive Director in November 2023. Under new management, the Authority provided training to necessary staff and will discuss with the thir...

2022-005 – REPORTING: PERFORMANCE REPORTING Material Weakness/Material Noncompliance Auditee’s Response and Planned Corrective Action The Authority hired a new Executive Director in November 2023. Under new management, the Authority provided training to necessary staff and will discuss with the third party management company to ensure compliance with 24 CFP 982.516 in the future. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Kayla Potter, Executive Director

View Audit 315892

Corrective Action Plans

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