Corrective Action Plans

Finding 71642 (2022-001)

Significant Deficiency 2022

TX

Questioned Costs HUD Housing Programs Eligibility

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. M...

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis. Miguel Hernandez, Executive Director, will be responsible to implement this corrective action by June 30, 2023.

View Audit 63135 Questioned Costs: $1

Finding 70898 (2022-001)

Significant Deficiency 2022

Cairo-Durham Central School District

NY

HUD Housing Programs

The district received from RBT, CPA's, LLP the year-end June 30, 2022 Report on Federal Compliance Audit Report for the school district. The district is required to complete a corrective action plan within ninety (90) days of receiving the report or management letter. The corrective action plan is t...

The district received from RBT, CPA's, LLP the year-end June 30, 2022 Report on Federal Compliance Audit Report for the school district. The district is required to complete a corrective action plan within ninety (90) days of receiving the report or management letter. The corrective action plan is the response to any Management Letter Comments/Findings contained in the annual external audit report or management letter, and will be filed with the State Education Department once approved by the Board of Education. Listed below is the corrective action plan for the Management Letter comments contained in the Financial Statement for the year ended June 30, 2022: Management Letter Comment #1: Federal Program: CFDA Nos.: 84.425D Education Stabilization Fund, ESSER2, 84.425U Education Stabilization Fund, ESSER3 ARP, 84.425W Education Stabilization Fund, ESSER3 Homeless and 84.425U Education Stabilization Fund, UPK ARP Condition: The District does not comply with the required standards of Support of Salaries and Wages because employees whose time was charged to federal grants during fiscal year ending 6/30/2022 did not complete monthly or semiannual time certification forms or personnel activity reports (PAR) for their time distribution. Some employees used timesheet to support their time charges on the grants but the timesheets did not indicate the grant they were working on. Criteria: The distribution of the salaries and wages of employees are to be supported by either time certifications or personnel activity reports or equivalent documentation which meets the standards in Subsection 8.h. (5) of the 0MB Circular A-87 Part 225 Appendix B. The certification for employees who work on one cost objective must be prepared at least semi-annually. Personnel activity reports (PAR) for employees who work on multiple activities or cost objectives must be prepared at least monthly and meet certain prescribed standards, such as accounting for the employee's total compensation, and reflecting an after-the-fact distribution of the actual activity of each employee. The costs of such compensation are allowable to the extent that they satisfy the specific requirements of this and other appendices under 2 CFR Part 225, and that the total compensation for individual employees: (3) Is determined and supported as provided in Subsection h. (8. Compensation for Personal Services. A. (3).) Questioned Costs: There are no questioned costs. Effect: The District did not comply with the required standards of supports of salaries and wages. It is more likely that the extent of effort charged to the various cost objectives may not be representative of the related time devoted to the respective cost objectives. Cause: District did not have a system in place to ensure the District complied with the required standards of Support of Salaries and Wages for an employee who needed to complete monthly certifications during the fiscal year and the time sheets did not identify the grant the employee was spending time on. Recommendation: In order to prevent future occurrences of this deficiency, we recommend that management require that copies of these payroll certifications be forward to the District Treasurer on a timely basis. Perspective: This is a systematic issue in that controls over the requirement have not been developed to ensure . . issues anse. Repeat: This is not a repeat finding. Management's Response: To address this comment we have revised time sheets to reflect specific grants and have created monthly check sheets for payroll of salaried individuals whose time allocated to each grant is 1 FTE or less. To prevent future occurrences of this deficiency, management has created a checklist of employees who fall in the monthly and semi-annual payroll certification requirement, which is reconciled by the District Treasurer. This will ensure that we receive certifications on a timely basis and can quickly identify missing certifications. Implementation: January 2023

View Audit 63132

Finding 65277 (2022-001)

Material Weakness 2022

Cable Telecommunications Association of New York, Inc.

NY

HUD Housing Programs

CTANY agrees with the recommendation that accounts receivable and related revenue should be monitored for accuracy. Due to management transition over the past year, the CTANY board and administrative consultants are working to ensure that best practices are put in place going forward to ensure accou...

CTANY agrees with the recommendation that accounts receivable and related revenue should be monitored for accuracy. Due to management transition over the past year, the CTANY board and administrative consultants are working to ensure that best practices are put in place going forward to ensure accounts receivable and related revenue are constantly monitored. In terms of the outside accountant CTANY is considering the option of consulting with an outside firm to help manage the books and accounting records per the recommendations of this audit report.

View Audit 65627

Finding 64086 (2022-001)

Significant Deficiency 2022

Cocaa Seminole Development, Inc.

OK

HUD Housing Programs Reporting

CORRECTIVE ACTION PLAN ISSUED BY THE BOARD OF DIRECTORS COCAA Seminole Development, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2022. Name and address of public accounting firm: John Flusche, CPA 5735 East 102nd Street Tulsa, Oklahoma 74137 Audit Perio...

CORRECTIVE ACTION PLAN ISSUED BY THE BOARD OF DIRECTORS COCAA Seminole Development, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2022. Name and address of public accounting firm: John Flusche, CPA 5735 East 102nd Street Tulsa, Oklahoma 74137 Audit Period: Year ended March 31, 2022 The findings from the March 2022, 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. FINDING No. 2022-001: Recommendation: The Project?s management should redeposit the funds into the Replacement Reserve account as soon as possible, to bring the account to the correct balance. Action Taken: The Project?s management has partially redeposited the funds into the Replacement Reserve account in 2022 and will not withdraw funds in the future without proper authorization. If the Department of HUD has questions regarding this plan, please contact Rick Gowin, Westchester Realty & Development. June 23, 2022 Fred Combs, President Date June 23, 2022 Rick Gowin, Management Agent Date

View Audit 70020

Finding 64081 (2022-001)

Significant Deficiency 2022

Housing Authority for the City of Freeport

IL

HUD Housing Programs

Finding 2022-001 Finding Summary: Tenant files were not in compliance with HUD regulations. Responsible Individuals: Babette Jamison-Varner, Chief Executive Director Corrective Action Plan: HACF will continue to conduct its scheduled annual audit. Additionally, the organization will be consistent i...

Finding 2022-001 Finding Summary: Tenant files were not in compliance with HUD regulations. Responsible Individuals: Babette Jamison-Varner, Chief Executive Director Corrective Action Plan: HACF will continue to conduct its scheduled annual audit. Additionally, the organization will be consistent in its conduct of bi-annual file reviews. These reviews will sample of up to 20 files. Both annual and bi-annual audits will result in documentation of file errors and needed corrections. All audit files will be signed off by the operations manager and the staff. Property management staff will receive ongoing training on reviewing income, assets and rent calculations, tenant record keeping and recertification requirements. Anticipated Completion Date: Annual and bi-annual audit months: December 2022, April 2023, August 2023 & December 2023.

View Audit 69234

Finding 63669 (2022-002)

Material Weakness 2022

Housing Authority of the City of York

SC

HUD Housing Programs Material Weakness Special Tests & Provisions

2022-002 Special Tests and Provisions ? Income Targeting Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (CFDA 14.871) Type of Finding: Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2021-002 from June 30, 2021 Statement of C...

2022-002 Special Tests and Provisions ? Income Targeting Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (CFDA 14.871) Type of Finding: Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2021-002 from June 30, 2021 Statement of Condition The Authority did not have adequate controls over income targeting to assure that the Authority is in compliance with this requirement. During our testing, we noted that tenants with incomes that were extremely low accounted for approximately 59% of new admissions during the fiscal year, which is below the minimum required percentage of 75%. Recommendation We recommend the Authority assure that at least 75% of new admissions be in the extremely low-income bracket. This should be monitored throughout the year. The Authority can also select applicants on the waiting list who are extremely low income by bypassing others on the list that don?t meet the requirement and documenting that the person was selected ahead of others to be able to meet the requirement Action Taken: We concur with this finding. We will closely monitor new admissions and focus on applicants on the waiting list who meet the criteria as extremely low income so that the 75% requirement is met. Our lease rate has been decreasing due to a decrease in availability in our area. We have been issuing vouchers every month and have little to no wait on our waiting list. We are also accepting applications every week. We have been unable to exclude persons due to the extremely low income bracket requirement because we are trying to increase the overall utilization in our voucher program.

View Audit 70550

Finding 63668 (2022-001)

Material Weakness 2022

Housing Authority of the City of York

SC

HUD Housing Programs Eligibility Material Weakness

2022-001 Eligibility ? Tenant Files Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (CFDA 14.871) Type of Finding: Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2021-001 from June 30, 2021 Statement of Condition Out of a ...

2022-001 Eligibility ? Tenant Files Program: U.S. Department of HUD: Section 8 Housing Choice Vouchers (CFDA 14.871) Type of Finding: Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2021-001 from June 30, 2021 Statement of Condition Out of a total tenant population of approximately 200 vouchers, 20 files were selected for testing. Exceptions were noted as follows: ? 1 error where the utility allowance was calculated incorrectly and reported incorrectly on the 50058 form. The HAP rent amount did not change. ? 1 file where the tenant?s wage income was calculated using only one paystub even though the tenant provided two. This changes the tenant?s HAP rent from $592 to $579. ? 1 file where the $360 for food stamps was included in the tenant?s income and should have been excluded. This changes the HAP rent from $466 to $475. ? 1 file where there was no support for a full-time student deduction for one member of the household. The HAP rent amount did not change. ? 1 file that did not contain a signed lease agreement and HAP contract for the current landlord and unit address. In addition to the above, during our new admissions testing (3 tested out of 22 new admissions) we noted the following: ? 1 error where the request for tenancy form was signed three days after voucher expiration with no proof of extension in the file. ? 1 error where the HAP contract was signed by the owner more than 11 months after the move-in date. Recommendation The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Action Taken We concur with this finding and have implemented various controls. A tenant file and unit quality control procedure has been developed and implemented.

View Audit 70550

Finding 63277 (2022-004)

Significant Deficiency 2022

City of Gardena

CA

Subrecipient Monitoring HUD Housing Programs Reporting

2022-004 Reporting ? Internal Control and Compliance over Reporting City?s Corrective Action Plan: City will follow its grant management policies to ensure the reporting requirements are met in a timely manner. Responsible Person: Ray Beeman, Director of Administrative Services Expected Implementati...

2022-004 Reporting ? Internal Control and Compliance over Reporting City?s Corrective Action Plan: City will follow its grant management policies to ensure the reporting requirements are met in a timely manner. Responsible Person: Ray Beeman, Director of Administrative Services Expected Implementation Date: July 1, 2023

View Audit 69837

Finding 62792 (2022-001)

Significant Deficiency 2022

The Pines Housing, Inc.

OR

Questioned Costs HUD Housing Programs Reporting

Condition: The security deposit liabilities of $20.052 exceeded the balance in the security deposit bank account of $18,496. There is a security deposit funding deficit of $1,556, resulting in an instance of noncompliance. Comments on the finding and the recommendation: The Organization concurs with...

Condition: The security deposit liabilities of $20.052 exceeded the balance in the security deposit bank account of $18,496. There is a security deposit funding deficit of $1,556, resulting in an instance of noncompliance. Comments on the finding and the recommendation: The Organization concurs with the finding and the recommendation. Action(s) taken or planned on the finding: The management agent, Quantum, is responsible for reconciling the security liability account with the security deposit funding. The Asset Management Director, Holly Vander Schaaf is responsible for reviewing the security deposit handling and accounting on a monthly basis.

View Audit 54429 Questioned Costs: $1

Finding 62122 (2022-001)

Significant Deficiency 2022

Volunteer Residences-Two, Inc.

TN

HUD Housing Programs Internal Control / Segregation of Duties Eligibility

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

CORRECTIVE ACTION PLAN Volunteer Residences-Two, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2022. Purkey, Carter, Compton, Swann, & Carter, PLLC P.O. 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 ? 001: Ineffective oversight and operation of internal controls over compliance by management The Project managers at two out of the three complexes did not follow all HUD requirements when performing the tenant recertification process. The tenant files tested for internal controls over compliance contained multiple deficiencies, including missing manager signatures and dates on HUD Form 50059 and HUD Forms 9887/A; missing tenant signatures and dates on HUD Form 50059, citizenship declaration, and HUD Forms 9887/A; missing spouse signatures and dates on HUD Form 50059, HUD Forms 9887/A, and lease; and incorrect calculation of tenant assets. Criteria: According to the HUD Handbook 4350.3: 1. The HUD-50059 certifications must be signed and dated by the manager, tenant, and spouse (if applicable). 2. The lease must be signed and dated by the head-of-household, spouse, co-head (if applicable), and any adult family members and the manager. 3. The HUD-9887 and HUD-9887A must be signed by the tenant, manager, and spouse (if applicable). 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. For checking accounts, use the average balance for the last six months. 5. Citizens must sign declaration certifying U.S. Citizenship. Cause of Condition: The management agent did not have proper systems in place to ensure that all documents are completed per HUD requirements pursuant to HUD Handbook 4350.3. Recommendation: Auditor recommends management agent review HUD Handbook 4350.3 and put proper internal controls in place to ensure manager of the Project is trained on the handbook and is complying with all applicable requirements pursuant to HUD Handbook 4350.3. 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 54157

Finding 61915 (2022-006)

Significant Deficiency 2022

Housing Opportunities Commission of Montgomery County, MD

MD

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

2022-006 Section 8 Project Based Cluster-PBRA/MOD Tenant Utility Allowances ? Assistance Listing No. 14.195 / 14.856 Context: Testing of 40 tenant files for eligibility standards revealed the following: ? One recertification displayed a tenant utility allowance that did not match the value listed in...

2022-006 Section 8 Project Based Cluster-PBRA/MOD Tenant Utility Allowances ? Assistance Listing No. 14.195 / 14.856 Context: Testing of 40 tenant files for eligibility standards revealed the following: ? One recertification displayed a tenant utility allowance that did not match the value listed in HUD Form-52667 effective for the period tested. Recommendation: The Commission should review the procedures taken by Section 8 Cluster employees to ensure that they correctly add utility allowance values from HUD Form-52667 to newly processed certifications. All Section 8 cluster employees should be trained on any changes made to these procedures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ? HRD will hire an internal trainer to address systemic errors, reinforce program rules and introduce new regulatory requirements. The trainer will meet with staff monthly to reinforce program requirements and provide individual coaching as needed. Moreover, HOC will continue to archive recorded trainings in a resource library so the materials are accessible to staff at all times ? The HOC Compliance Team will conduct quality control reviews of completed files. Staff from the Property Management Team will meet with the HOC Compliance Team following each review period to discuss systemic findings and schedule staff trainings in areas requiring improvement. ? HOC will procure a professional consulting company to provide a comprehensive refresher training on the HCV eligibility requirements Name(s) of the contact person(s) responsible for corrective action: Lynn Hayes, Director of Housing Resources/Darcel Cox, Chief Compliance Officer Planned completion date for corrective action plan: June 30, 2023

View Audit 52878

Finding 61914 (2022-005)

Material Weakness 2022

Housing Opportunities Commission of Montgomery County, MD

MD

HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

2022-005 Section 8 Project Based Cluster-PBRA/MOD Housing Quality Standards ? Assistance Listing No. 14.195 / 14.856 Context: Testing of 40 HCVP tenant files for annual inspection standards revealed the following: ? 22 files did not have an annual inspection completed during or subsequent to the fis...

2022-005 Section 8 Project Based Cluster-PBRA/MOD Housing Quality Standards ? Assistance Listing No. 14.195 / 14.856 Context: Testing of 40 HCVP tenant files for annual inspection standards revealed the following: ? 22 files did not have an annual inspection completed during or subsequent to the fiscal year. ? 15 files did not have an annual inspection that was completed within the 12-month fiscal period. Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained for inspections of tenant residences. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ? Property Management staff will be retrained on the unit inspection requirements to ensure that all inspections are documented and the that the completed executed signed inspection forms are scanned into the resident?s record in HOC?s Yardi system. ? Managers will review these actions and provide greater oversight to ensure that move-in and move-out inspections are performed for every unit upon lease signing and when residents vacate a unit. ? The Property Management and Maintenance Divisions will develop an annual inspection schedule ? The HOC Compliance Team will review inspections as part of the quality control review. Name(s) of the contact person(s) responsible for corrective action: Ellen Goff, Acting Director of Property Management/Darcel Cox, Chief Compliance Officer Planned completion date for corrective action plan: June 30, 2023

View Audit 52878

Finding 61913 (2022-004)

Material Weakness 2022

Housing Opportunities Commission of Montgomery County, MD

MD

HUD Housing Programs Eligibility Material Weakness

2022-004 Section 8 Project Based Cluster-PBRA/MOD Eligibility ? Assistance Listing No. 14.195 / 14.856 Context: Testing of 40 tenant files for eligibility standards revealed that 34 files had the following exceptions: ? Nine files missing documentation needed to support and recalculate total income ...

2022-004 Section 8 Project Based Cluster-PBRA/MOD Eligibility ? Assistance Listing No. 14.195 / 14.856 Context: Testing of 40 tenant files for eligibility standards revealed that 34 files had the following exceptions: ? Nine files missing documentation needed to support and recalculate total income per HUD-50059. ? Eight files that were missing support needed to substantiate the asset total per HUD-50059. ? Seven files that were missing support needed to substantiate the expense total per HUD-50059. ? 25 files missing documentation supporting that the tenant was selected from the waitlist in accordance with the Commission?s Administration Plan. ? 28 files did not have a certification checklist, or an alternative document, reflecting an HCVP Employee?s signoff on the application or file being completed to document an internal control. Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained during the recertification process for every tenant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ? HOC will procure a third party reviewing to complete a 100% audit of the Project Based Rental Assistance program across all properties. ? Property Management will implement new procedures to ensure that all resident documents are properly maintained. The updated procedures will require that all staff completing recertifications utilize a checklist to ensure that all required documents are obtained and that each document is scanned as attachments directly into HOC?s Yardi system. ? Managers will perform quality control reviews to ensure that procedures are followed and that documents are scanned into the system for all recertifications completed. ? The Regional Manager will review reports monthly to enable confirmation of scanned documents for proper file maintenance. ? The HOC Compliance Team will conduct quality control reviews of completed files. Staff from the Property Management Team will meet with the HOC Compliance Team following each review period to discuss systemic findings and schedule staff trainings in areas requiring improvement. ? The HOC Compliance Team will offer a refresher Housing Path Waitlist training to existing staff and perform monthly quality control reviews to ensure that procedures are followed. ? HOC will procure a professional consulting company to provide a comprehensive refresher training on the Project Based Rental Assistance eligibility requirements. Name(s) of the contact person(s) responsible for corrective action: Ellen Goff, Acting Director of Property Management/Darcel Cox, Chief Compliance Officer Planned completion date for corrective action plan: June 30, 2023

View Audit 52878

Finding 61900 (2022-003)

Significant Deficiency 2022

Housing Opportunities Commission of Montgomery County, MD

MD

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

2022-003 Housing Voucher Cluster-HCVP Housing Quality Standards and Enforcement ? Assistance Listing No. 14.871 / 14.879 Context: Testing of 40 HCVP tenant files for failed inspection standards revealed the following: ? Three files where abatement ought to have been implemented, but records could no...

2022-003 Housing Voucher Cluster-HCVP Housing Quality Standards and Enforcement ? Assistance Listing No. 14.871 / 14.879 Context: Testing of 40 HCVP tenant files for failed inspection standards revealed the following: ? Three files where abatement ought to have been implemented, but records could not be located. Context: Testing of 40 HCVP tenant files for annual inspection standards revealed the following: ? Three files where the inspection was not completed annually or within HUD?s granted extension for COVID 19. Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained for inspections of tenant residences. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ? HOC procured Inspection Experts Inc. (?IEI?) on July 1, 2022, to conduct all initial, annual, special and quality control inspections ? HOC meets with IEI monthly to provide the report of annual inspections, and discuss progress and the alignment of expectations. ? HOC staff receives a report of units requiring abatement daily from IEI & immediately place the units in abatement. ? An HOC Senior Manager reviews the abatement report weekly to conduct quality control reviews of all records, ensuring that all units are placed in abatement ? The HOC Compliance Team will conduct quality control reviews of completed files. Staff from the Housing Resources Management Team will meet with the HOC Compliance Team following each review period to discuss systemic findings and schedule staff trainings in areas requiring improvement. Name(s) of the contact person(s) responsible for corrective action: Lynn Hayes, Director of Housing Resources/Darcel Cox, Chief Compliance Officer Planned completion date for corrective action plan: June 30, 2023

View Audit 52878

Finding 61899 (2022-002)

Significant Deficiency 2022

Housing Opportunities Commission of Montgomery County, MD

MD

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

2022-002 Housing Voucher Cluster-HCVP Rent Reasonableness Test ? Assistance Listing No. 14.871 / 14.879 Context: Testing of 40 HCVP tenant files for rent reasonableness standards revealed the following: ? One file that was missing the rent reasonableness comparison report to substantiate the contrac...

2022-002 Housing Voucher Cluster-HCVP Rent Reasonableness Test ? Assistance Listing No. 14.871 / 14.879 Context: Testing of 40 HCVP tenant files for rent reasonableness standards revealed the following: ? One file that was missing the rent reasonableness comparison report to substantiate the contract rent. ? One file that was missing the lease amendment letter effective for the sampled contract rent change. Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained during the rent approval process for every tenant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ? HOC will continue to work with the software developer to identify and resolve software glitches. ? The HOC Compliance Team will conduct quality control reviews of completed files. Staff from the Housing Resources Management Team will meet with the HOC Compliance Team following each review period to discuss systemic findings and schedule staff trainings in areas requiring improvement. ? HOC implemented Rent Cafe, Yardi?s software module to process electronic recertifications. The Lease Amendment Letter is automatically uploaded into Yardi when a customer completes the recertification online. Name(s) of the contact person(s) responsible for corrective action: Lynn Hayes, Director of Housing Resources/Darcel Cox, Chief Compliance Officer Planned completion date for corrective action plan: June 30, 2023

View Audit 52878

Finding 61898 (2022-001)

Significant Deficiency 2022

Housing Opportunities Commission of Montgomery County, MD

MD

HUD Housing Programs Eligibility Significant Deficiency

2022-001 Housing Voucher Cluster-HCVP Eligibility ? Assistance Listing No. 14.871 / 14.879 Context: Testing of 40 HCVP tenant files for eligibility standards revealed the following: ? One file where the tenant received an allowance without proper verification or support. Recommendation: The Commissi...

2022-001 Housing Voucher Cluster-HCVP Eligibility ? Assistance Listing No. 14.871 / 14.879 Context: Testing of 40 HCVP tenant files for eligibility standards revealed the following: ? One file where the tenant received an allowance without proper verification or support. Recommendation: The Commission should implement processes to ensure that all proper documentation is being maintained during the recertification process for every tenant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: ? The Housing Resources Division(HRD) will hire an internal trainer to address systemic errors, reinforce program rules and introduce new regulatory requirements. The trainer will meet with staff monthly to reinforce program requirements and provide individual coaching as needed. Moreover, HOC will continue to archive recorded trainings in a resource library so the materials are accessible to staff at all times ? The HOC Compliance Team will conduct quality control reviews of completed files. Staff from the Housing Resources Management Team will meet with the HOC Compliance Team following each review period to discuss systemic findings and schedule staff trainings in areas requiring improvement. ? HOC will procure a professional consulting company to provide a comprehensive refresher training on the Housing Choice Voucher (HCV) eligibility requirements. ? The Housing Resources Management Team will continue to meet with staff regularly to provide staff development trainings, including reiteration of the Quality Control Checklist, the HUD verification hierarchy and uploading all documents into AO Docs, HOCs electronic filing system. Name(s) of the contact person(s) responsible for corrective action: Lynn Hayes, Director of Housing Resources/Darcel Cox, Chief Compliance Officer Planned completion date for corrective action plan: June 30,, 2023

View Audit 52878

Finding 61861 (2022-001)

Material Weakness 2022

Highland Rim Terrace, Inc.

TN

Internal Control / Segregation of Duties HUD Housing Programs Material Weakness

"Finding 2022-001. Inadequate segregation of duties Recommendation: We believe the cash receipts process represents a lesser risk to the Project because the only funds easily susceptible to fraud or error would be receipts other than rent which are immaterial to the Project. Regarding cash disbursem...

"Finding 2022-001. Inadequate segregation of duties Recommendation: We believe the cash receipts process represents a lesser risk to the Project because the only funds easily susceptible to fraud or error would be receipts other than rent which are immaterial to the Project. Regarding cash disbursements, with the administrator responsible for approving invoices, entering them into the general ledger and signing checks there remains a material weakness that could only be improved by hiring additional personnel. Action Taken: Highland Rim Terrace, Inc. is not financially able to hire a third person so as to divide the responsibilities any more than they are now. We have discussed with local HUD representatives and have determined not to hire additional personnel at this time. Anticipated Completion Date: September 15, 2022"

View Audit 57043

Finding 61849 (2022-001)

None 2022

Ammonoosuc Community Health Services, Inc.

NH

Subrecipient Monitoring Special Tests & Provisions HUD Housing Programs

Finding Number: 2022-001 Condition Found: The Organization has not applied sliding fee discounts to patient charges consistent with its sliding fee discount program. Individual(s) Responsible for Corrective Action: Tammy Talotta, CFO, Michelle Routhier, Billing Manager Corrective Action Planned: ...

Finding Number: 2022-001 Condition Found: The Organization has not applied sliding fee discounts to patient charges consistent with its sliding fee discount program. Individual(s) Responsible for Corrective Action: Tammy Talotta, CFO, Michelle Routhier, Billing Manager Corrective Action Planned: Staff Training on Community Health Enhancement and Billing Profiles in Visualutions. All new sliding fee applications are now sent to a manager to review and make sure the information has been entered into the system correctly, all dates match, and we have the correct supporting documentation. Monthly sliding fee reports to be run for all patients with active sliding fee and reviewed by the billing manager to review for accuracy of setup in the billing profile. Monthly sliding fee reports to be run for patients with an expiring sliding fee. The billing manager will review the report in the month following expiration to be sure a new sliding fee has been set up correctly. If it has not been set up, the patient is changed to self-pay, preventing a patient from getting a sliding fee without an active application on file. Any person in the billing department who applies a sliding fee as a secondary insurance will also verify that the sliding fee is active for the visit and the correct sliding fee is applied. Any person in the billing department coding charges will double check that the sliding fee is active for the date of service and the correct sliding fee is applied. Anticipated Completion Date: All of the above items have been implemented as of October 25, 2022.

View Audit 56970

Finding 61825 (2022-001)

None 2022

Holy Cross Villas, Inc. 064-11090

LA

HUD Housing Programs

Finding Reference Number: 2022-1 Statement of Condition: Holy Cross Villas, Inc.?s HUD approved Management Agent?s Certification (form HUD-9839 B) has expired as of March 31, 2022. View of Responsible Officials and Corrective Actions: Management concurs with the finding and has submitted a new Manag...

Finding Reference Number: 2022-1 Statement of Condition: Holy Cross Villas, Inc.?s HUD approved Management Agent?s Certification (form HUD-9839 B) has expired as of March 31, 2022. View of Responsible Officials and Corrective Actions: Management concurs with the finding and has submitted a new Management Agent Certification (form HUD-9839-B) to HUD for approval. Contact Person Responsible: Tom Farris, Director of Accounting and Finance Date: September 22, 2022

View Audit 56884

Finding 61745 (2022-001)

Significant Deficiency 2022

Schertz Housing Authority

TX

HUD Housing Programs Subrecipient Monitoring Eligibility

Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations. 1. Finding 2022 -001 a. Comments on the Finding and Each Recommendation: The Authority is in concurrence with the finding and recommendation provided by the Auditors. b. Action(s) Taken or Planned on the Finding The...

Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations. 1. Finding 2022 -001 a. Comments on the Finding and Each Recommendation: The Authority is in concurrence with the finding and recommendation provided by the Auditors. b. Action(s) Taken or Planned on the Finding The Authority has since implemented new policies regarding storage of tenant files which are designed to reduce the risk of the loss of files, and make it easier to retrieve files when needed.

View Audit 53619

Finding 61743 (2022-002)

Material Weakness 2022

Housing Authority of the City of New Britain

CT

HUD Housing Programs Eligibility Material Weakness

2022-002 Eligibility Material Weakness/Material Non-compliance From our sample of 40 recertification actions in the Public Housing Program, we identified 8 instances of missing verifications or the instances where verifications obtained did not agree to amounts reported on the form 50058. Auditee?s ...

2022-002 Eligibility Material Weakness/Material Non-compliance From our sample of 40 recertification actions in the Public Housing Program, we identified 8 instances of missing verifications or the instances where verifications obtained did not agree to amounts reported on the form 50058. Auditee?s Response and Planned Corrective Action: The 4 files were all from one AMP (Oval Grove) which experienced turnover of the Property Manager, Occupancy Specialist and even the Director of Public Housing during the audit period. Positions were termed for cause. The new Director of Public Housing was hired November of 2022. A new Property Manager and Occupancy Specialist were hired in June of 2023. The authority has budgeted and will be hiring a compliance person for tenant who will audit tenant files and wait list. NBHA will review and strengthen policies and procedures to ensure all proper documentation and annul recertifications are maintained in all tenant files to document edibility. Planned Implementation Date of Corrective Action: Underway in 2023, compliance person to be hired in 2024 Person Responsible for Corrective Action: Director of Public Housing, (860)225-3534

View Audit 50410

Finding 61742 (2022-003)

Material Weakness 2022

Housing Authority of the City of New Britain

CT

HUD Housing Programs Material Weakness Special Tests & Provisions

2022-003 Special Test and Provisions ? HQS Enforcement Material Weakness/Material Non-compliance Reinspection, follow up and/or abatement documentation was missing for 4 out of 40 initial failed inspections. Auditee?s Response and Planned Corrective Action: NBHA will work more closely with the contr...

2022-003 Special Test and Provisions ? HQS Enforcement Material Weakness/Material Non-compliance Reinspection, follow up and/or abatement documentation was missing for 4 out of 40 initial failed inspections. Auditee?s Response and Planned Corrective Action: NBHA will work more closely with the contractor to make sure notes are submitted, clear so that the proper action can be taken. The HCV Director will monitor inspections completed for proper disposition and also run reports on units due in the upcoming month to make sure they are executed and updated in PHA-Web. Procedures be strengthened to ensure that documentation is maintained for all inspections and enforcements. All units were under abatement to avoid payment to landlord not in compliance. See Corrective Action Plan for chart/table. Planned Implementation Date of Corrective Action: Underway in 2023, compliance person to be hired in 2024 Person Responsible for Corrective Action: Director of Public Housing - (860)225-3534

View Audit 50410

Finding 61690 (2022-001)

Material Weakness 2022

Hanna City Home Association D/b/a Heritage Senior Homes

IL

Internal Control / Segregation of Duties HUD Housing Programs Material Weakness

Finding No. 2022-001 ? Segregation of Duties Jeff Cottingham, Management agent and Wes Clanton, board president of project will be responsible for monitoring monthly financial results and accounting information as correction is not practical.

View Audit 57130

Finding 61689 (2022-003)

Significant Deficiency 2022

Integrated Living, Inc.

KS

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

2022-003 Written Procedures of Internal Control over Compliance (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should develop written policies for ...

2022-003 Written Procedures of Internal Control over Compliance (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should develop written policies for the internal control over compliance of federal awards. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over compliance of federal awards John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2023.

View Audit 57071

Finding 61683 (2022-001)

Material Weakness 2022

St. Sharbel's Maronite Housing Corporation II Project No. 072-Ee135

IL

HUD Housing Programs Internal Control / Segregation of Duties

Finding No. 2022-001 ? Segregation of Duties Jeff Cottingham, Management agent, and Father Elia, sponsor of the project, will be responsible for monitoring monthly financial results and accounting information as correction is not practical

View Audit 57015

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