Corrective Action Plans

Finding 51942 (2022-002)

Significant Deficiency 2022

IL

HUD Housing Programs Reporting Significant Deficiency § 200.512

Finding 2022-02: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Corrective Action Plan: DuPage Housing Authority (DHA) has existing controls in place, however, DHA had to seek an emergency authorization for a 60-day waiver extension for 2 CFR ? 200.512(a)(1) Report ...

Finding 2022-02: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Corrective Action Plan: DuPage Housing Authority (DHA) has existing controls in place, however, DHA had to seek an emergency authorization for a 60-day waiver extension for 2 CFR ? 200.512(a)(1) Report Submission and the Financial Reporting Requirements per 24 CFR ? 902.33(b) for the FY2022 audit. Regulatory waivers provide relief from HUD requirements upon a finding of good cause, subject to statutory limitations, per 24 CFR 5.110. The DHA IL101 general audit submission date is March 31, 2023. DHA expected to have the financial audit submitted by April 30, 2023, as a result of the following reasons: ? Due to the abrupt quitting of the previously procured audit service provider, on February 7, 2023. DHA had to enter into an emergency Intergovernmental Agreement authorizing DuPage Housing Authority (DHA) to share the RFP process for independent audit service provider, Rubino and Company on February 27, 2023. The DHA IL101 HUD audit report submission per 2 CFR ? 200.512(a)(1) audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. The current DHA IL101 audit report submission was due March 31, 2023. ? The 60-Day Waiver extension was submitted to HUD for 2 CFR ? 200.512(a)(1) Report Submission and the Financial Reporting Requirements per 24 CFR ? 902.33(b) for the FY2022 audit will allow DHA an opportunity to avoid adverse effects including but not limited to: o Noncompliance of the audited financial data to HUD on an annual basis o Noncompliance of the annual audit being prepared in accordance with Generally Accepted Accounting Principles (GAAP), as further defined by HUD in supplementary guidance. o Noncompliance of the audited financial data being submitted electronically in the format prescribed by HUD using the Financial Data Schedule (FDS). ? HUD?s National Headquarters went through a recent organizational change; thus, delaying the approval process for the 60-dayextension waiver for 2 CFR ? 200.512(a)(1) Report Submission and the Financial Reporting Requirements per 24 CFR ? 902.33(b) for the FY2022 audit. ? DHA received official verbal approval from HUD?s Waiver Team on May 2, 2023, but the 60- day waiver extension for 2 CFR ? 200.512(a)(1) Report Submission and the Financial Reporting Requirements per 24 CFR ? 902.33(b) for the FY2022 audit is still awaiting final signature from the new HUD Deputy Assistant Secretary. Name of Responsible Person: Cheron Corbett, Executive Director Projected Completion Date: December 31, 2023

View Audit 45321

Finding 51933 (2022-003)

Significant Deficiency 2022

Prairie Inn Corporation

ND

Cash Management HUD Housing Programs Significant Deficiency

Finding 2022-003 - Special Provisions and Testing - Residual Receipts Account Federal Agency Name: US Department of Housing and Urban Development Program Name: Supportive Housing for Persons with Disabilities CFDA #: 14.181 Finding Summary: The corporation did not deposit project funds in a feder...

Finding 2022-003 - Special Provisions and Testing - Residual Receipts Account Federal Agency Name: US Department of Housing and Urban Development Program Name: Supportive Housing for Persons with Disabilities CFDA #: 14.181 Finding Summary: The corporation did not deposit project funds in a federally insured account within 60 days of fiscal year end. Responsible Individuals: Mary Simonson, Executive Director Corrective Action Plan: Management agrees with the finding and will review their internal control over compliance related to the program's residual receipts amount to ensure the excess operating funds be deposited in the fund account within 60 days following the end of the fiscal year. Anticipated Completion Date: Fiscal year 2023

View Audit 48726

Finding 51907 (2022-002)

Significant Deficiency 2022

Hospital District No 1 of Crawford County

KS

Questioned Costs HUD Housing Programs Reporting

Finding 2022-002: Corrective Action Plan: As new opportunities, applications, and reporting documents are prepared for Provider Relief Fund or other COVID-19 related funding, a second reviewer of the documentation prepared will be instituted requiring an approval prior to submission. Anticipated Com...

Finding 2022-002: Corrective Action Plan: As new opportunities, applications, and reporting documents are prepared for Provider Relief Fund or other COVID-19 related funding, a second reviewer of the documentation prepared will be instituted requiring an approval prior to submission. Anticipated Completion Date: We will implement any applicable corrective actions in 2023 for any new grant opportunities related to Provider Relief funds or other COVID-19 related grants.

View Audit 50821 Questioned Costs: $1

Finding 51890 (2022-003)

Significant Deficiency 2022

Oklahoma City Housing Authority

OK

HUD Housing Programs Eligibility Significant Deficiency

Recommendation: We recommend management to designate one person to oversee the lease up process to ensure determination of reasonable rent is performed prior to processing of the move in. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in...

Recommendation: We recommend management to designate one person to oversee the lease up process to ensure determination of reasonable rent is performed prior to processing of the move in. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HCV has one person overseeing the rent reasonableness prior to move ins. The finding is based on one file not having the rent reasonableness documentation for a special program, Single Room Occupancy, which is being corrected by signing a new MOU containing the rent reasonableness. Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12/31/2023

View Audit 49732

Finding 51889 (2022-002)

Significant Deficiency 2022

Oklahoma City Housing Authority

OK

HUD Housing Programs Eligibility Significant Deficiency

Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Explan...

Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Inspection staff has been directed to monitor abatement dates and forward to compliance to ensure payments are being abated correctly and timely. Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12/31/2023

View Audit 49732

Finding 51888 (2022-001)

Significant Deficiency 2022

Oklahoma City Housing Authority

OK

HUD Housing Programs Eligibility Significant Deficiency

Recommendation: We recommend that management increase the number of recertification?s reviewed on a monthly basis until they can ensure a majority of the files meet HUD s eligibility requirements. We also recommend that management identify the specialists responsible for the erroneous files and inve...

Recommendation: We recommend that management increase the number of recertification?s reviewed on a monthly basis until they can ensure a majority of the files meet HUD s eligibility requirements. We also recommend that management identify the specialists responsible for the erroneous files and investigate whether findings represent a systemic problem or are limited to a few specialists. Additional training for housing specialists would also improve accuracy. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Three separate employees will quality control additional files monthly. Specialists have been identified and does not appear to be a systemic problem. Name(s) of the contact person(s) responsible for corrective action: Richard Marshall Planned completion date for corrective action plan: 12/31/2023

View Audit 49732

Finding 51772 (2022-001)

Significant Deficiency 2022

Venture Cares Option 1, Inc.

NY

HUD Housing Programs Allowable Costs / Cost Principles Procurement, Suspension & Debarment § 200.303

Reference number ? 2022-001 Contact person ? Celia Solomita, CFO Management agrees that protocols will be implemented to ensure that all invoices are formally approved prior to payment. This will be in place prior to December 31, 2023.

View Audit 49966

Finding 51762 (2022-001)

Material Weakness 2022

The Harry and Jeanette Weinberg Woods, 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 timely EIV reporting. All HUD staff has been trained on the new procedures.

View Audit 45216

Finding 51575 (2022-003)

Significant Deficiency 2022

Parc Community Homes, Inc. Project No. 072-Hd077

IL

Internal Control / Segregation of Duties HUD Housing Programs Significant Deficiency

2022-003 Section 811 ? New Construction ? Capital Advance Program ? Supportive Housing for Persons with Disabilities ? CFDA No. 14.181 Recommendation: Management should ensure the Corporation makes the required payment to the reserve for replacements on a monthly basis. Explanation of disagreement w...

2022-003 Section 811 ? New Construction ? Capital Advance Program ? Supportive Housing for Persons with Disabilities ? CFDA No. 14.181 Recommendation: Management should ensure the Corporation makes the required payment to the reserve for replacements on a monthly basis. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management will make an additional deposit to make up for the $150 deficit at June 30, 2022. Name(s) of the contact person(s) responsible for corrective action: Debbie Congdon Planned completion date for corrective action plan: In process.

View Audit 47322

Finding 51574 (2022-002)

Significant Deficiency 2022

Parc Community Homes, Inc. Project No. 072-Hd077

IL

Internal Control / Segregation of Duties HUD Housing Programs Significant Deficiency

2022-002 Section 811 ? New Construction ? Capital Advance Program ? Supportive Housing for Persons with Disabilities ? CFDA No. 14.181 Recommendation: To establish proper internal control over security deposit refunds, the Corporation should design and implement the necessary procedures to ensure th...

2022-002 Section 811 ? New Construction ? Capital Advance Program ? Supportive Housing for Persons with Disabilities ? CFDA No. 14.181 Recommendation: To establish proper internal control over security deposit refunds, the Corporation should design and implement the necessary procedures to ensure the move-out notifications are provided to the accounting office in a timely manner and ensure the tenant's security deposit is processed and refunded within 30 days of the move-out date. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: Management will monitor future move-outs to ensure the security deposits are processed and refunded within 30 days of the move-out date. Name(s) of the contact person(s) responsible for corrective action: Debbie Congdon Planned completion date for corrective action plan: In process

View Audit 47322

Finding 51569 (2022-002)

Material Weakness 2022

First Baptist Church Capitol Hill Homes, Inc. D/b/a Kelly Miller Smith Towers

TN

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

First Baptist Church Capitol Hill Homes, Incorporated d/b/a Kelly Miller Smith Towers HUD Project No. 086-EH003-L7-NP-WAH 2136 Cliff Drive Nashville, TN 37218 CORRECTIVE ACTION PLAN - continued February 23, 2023 Finding ? Item 2022-2 Reporting under Government Auditing Standards Finding ? Item 2...

First Baptist Church Capitol Hill Homes, Incorporated d/b/a Kelly Miller Smith Towers HUD Project No. 086-EH003-L7-NP-WAH 2136 Cliff Drive Nashville, TN 37218 CORRECTIVE ACTION PLAN - continued February 23, 2023 Finding ? Item 2022-2 Reporting under Government Auditing Standards Finding ? Item 2022-2 Major Federal Award Program Audit Department of Housing and Urban Development (HUD): Section 223(F) Insured Loan ? Federal Assistance Listing # 14.155 Section 8 Housing Assistance Payments ? Federal Assistance Listing # 14.195 Reporting Statement of Condition: The required Single Audits were not remitted to the Federal Audit Clearinghouse (FAC) within the earlier of 30 days after the the receipted of the auditors' reports or 9 months after the end of the audit periods for the fiscal years ended April 30, 2016 - April 30, 2020. Recommendation: We recommend that the required delinquent submissions of Single Audits be completed as soon as possible. Auditee Response: The Board of Directors and management will work with the auditors to submit and certify to the FAC the Single Audit Reporting Packages for the years ended April 30, 2022 and 2021 immediately upon issuance. This will be completed by May 31, 2023. The Audit Committee of the Board of Directors will insure that future Single Audit Reporting Packages for the year ending April 30, 2023 and beyond with be remitted in accordance with federal regulations. The Board of Directors and management will work with the prior auditors to insure that missing FAC submissions for the years ended April 30, 2020 and prior will be submitted and certified as applicable and in accordance with federal regulation. Weldon B. Kidd, Board Chairman First Baptist Church Capitol Hill Homes, Inc.

View Audit 41146

Finding 51568 (2022-001)

Material Weakness 2022

First Baptist Church Capitol Hill Homes, Inc. D/b/a Kelly Miller Smith Towers

TN

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

First Baptist Church Capitol Hill Homes, Incorporated d/b/a Kelly Miller Smith Towers HUD Project No. 086-EH003-L7-NP-WAH 2136 Cliff Drive Nashville, TN 37218 CORRECTIVE ACTION PLAN February 23, 2023 To the U. S. Department of Housing and Urban Development First Baptist Church Capitol Hill Homes...

First Baptist Church Capitol Hill Homes, Incorporated d/b/a Kelly Miller Smith Towers HUD Project No. 086-EH003-L7-NP-WAH 2136 Cliff Drive Nashville, TN 37218 CORRECTIVE ACTION PLAN February 23, 2023 To the U. S. Department of Housing and Urban Development First Baptist Church Capitol Hill Homes, Incorporated d/b/a Kelly Miller Smith Towers respectfully submits the following corrective action plan for the year ended April 30, 2021. Name and address of independent public accounting firm: Tabb & Tabb, LLC Certified Public Accountants 260 Peachtree Street, NW, Suite 1201 Atlanta, Georgia 30303 Audit Period: May 1, 2021 to April 30, 2022 The findings from the April 30, 2022 schedule of findings are discussed below. The findings are numbered consistently with the number assigned in the schedule. The Summary of Audit Results does not include findings and is not addressed. Finding ? Item 2022-1 Reporting under Government Auditing Standards Finding ? Item 2022-1 Major Federal Award Program Audit Department of Housing and Urban Development (HUD): Section 223(F) Insured Loan ? Federal Assistance Listing # 14.155 Section 8 Housing Assistance Payments ? Federal Assistance Listing # 14.195 Reporting Statement of Condition: The required annual audits of the financial statements for the years ended April 30, 2022 and April 30, 2021 were not completed and submitted to HUD within the time frame required by HUD. Recommendation: We recommend that all financial reporting and submission requirements and deadlines required by HUD be strictly adhered to for future periods. Auditee Response: The Kelly Miller Smith Towers Board of Directors engaged a new audit firm to conduct the delinquent audits for the years ended April 30, 2022 and 2021. Both audits have been completed and will be submitted to HUD by May 19, 2023. The Board of Directors has established an audit committee who will assure that the audit for the year ending April 30, 2023 and subsequent years' audits will be completed and remitted within HUD's required time frame.

View Audit 41146

Finding 51562 (2022-002)

Material Weakness 2022

Metropolitan Council of the Twin Cities Area

MN

HUD Housing Programs Eligibility Material Weakness

Finding Number: 2022-002 Finding Title: Eligibility ? Source Documentation Program: 14.871 Section 8 Housing Choice Vouchers 14.879 Mainstream Vouchers Name of Contact Person Responsible for Corrective Action: Terri Smith, Director Metro HRA Corrective Action Planned: HRA staff will develop a checkl...

Finding Number: 2022-002 Finding Title: Eligibility ? Source Documentation Program: 14.871 Section 8 Housing Choice Vouchers 14.879 Mainstream Vouchers Name of Contact Person Responsible for Corrective Action: Terri Smith, Director Metro HRA Corrective Action Planned: HRA staff will develop a checklist form and update procedures for all staff to ensure signatures and forms are not missing in case files, this includes but is not limited to background checks performed, citizenship forms and members of the household. The checklist will be completed for each case and stored in each participant file as part of the quality control process. Anticipated Completion Date: The checklist and the review process is currently in place effective June 2023.

View Audit 48360

Finding 51414 (2022-001)

Significant Deficiency 2022

Lauderdale Se Svcs, Inc. - Aldersgate Retirement Center - Phase I

MS

HUD Housing Programs Reporting Internal Control / Segregation of Duties

March 27, 2023 Healthcare Account Executive U.S. Department of Housing and Urban Development 451 7th Street, S.W. Washington, DC 20410 Mississippi Methodist Senior Services Inc. respectfully submits the following corrective action plan for Lauderdale Senior Services, Inc. (the "Company") for the yea...

March 27, 2023 Healthcare Account Executive U.S. Department of Housing and Urban Development 451 7th Street, S.W. Washington, DC 20410 Mississippi Methodist Senior Services Inc. respectfully submits the following corrective action plan for Lauderdale Senior Services, Inc. (the "Company") for the year ended December 31, 2022. The Correction Plan was necessitated by findings reported by the independent public accounting firm of: HORNE LLP 661 Sunnybrook Road Suite 100 Ridgeland, MS 39157 Audit Finding #2022-001 / CFDA 14.155 - Equal Housing Opportunity Logo Auditors Recommendation: HORNE recommends that all current marketing materials without the equal housing opportunity logo be corrected, and any future materials produced include the equal housing opportunity logo. Action Taken: Current marketing materials without the equal housing opportunity logo have been corrected. Controls have been put in place to ensure the logo is placed on future marketing materials. Should you need anything further or have any questions regarding management's plan of correction response you may contact me at Mississippi Methodist Senor Services, Inc. (662-844-8977) or by email atjim.zuelzke@mss.org. Sincerely, Jim Zuelzke, CFO Mississippi Methodist Senior Services, Inc.

View Audit 41488

Finding 51413 (2022-001)

Significant Deficiency 2022

Hattiesburg Area Senior Services, Inc. - Wesley Manor I

MS

HUD Housing Programs Reporting Internal Control / Segregation of Duties

March 27, 2023 Healthcare Account Executive U.S. Department of Housing and Urban Development 451 7th Street, S.W. Washington, DC 20410 Mississippi Methodist Senior Services, Inc. respectfully submits the following corrective action plan for Hattiesburg Area Senior Services, Inc. (the "Company") for ...

March 27, 2023 Healthcare Account Executive U.S. Department of Housing and Urban Development 451 7th Street, S.W. Washington, DC 20410 Mississippi Methodist Senior Services, Inc. respectfully submits the following corrective action plan for Hattiesburg Area Senior Services, Inc. (the "Company") for the year ended December 31, 2022. The Correction Plan was necessitated by findings reported by the independent public accounting firm of: HORNE LLP 661 Sunnybrook Road Suite 100 Ridgeland, MS 39157 Audit Finding #2022-001 / CFDA 14.157 - Equal Housing Opportunity Logo Auditors Recommendation: HORNE recommends that all current marketing materials without the equal housing opportunity logo be corrected and any future materials produced include the equal housing opportunity logo. Action Taken: Current marketing materials without the equal housing opportunity logo have been updated. Controls have been put in place to ensure the logo is placed on future marketing materials. Should you need anything further or have any questions regarding management's plan of correction response, you may contact me at Mississippi Methodist Senior Services, Inc. (662-844-8977) or by email at jim.zuelzke@mss.org. Sincerely, Jim Zuelzke, CFO Mississippi Methodist Senior Services, Inc.

View Audit 48196

Finding 51410 (2022-001)

Significant Deficiency 2022

Lane Manor Rhf Housing, Inc. Dba Lane Manor 061-Ee166

CA

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Statement of Condition 2022-001 (Assistance Listing 14.157): During the year ended September 30, 2022, the Corporation paid expenses totaling $4,565 on behalf of an affiliated entity without HUD approval. Recommendation: The affiliated entity should repay $4,565 to the Corporation. Management Resp...

Statement of Condition 2022-001 (Assistance Listing 14.157): During the year ended September 30, 2022, the Corporation paid expenses totaling $4,565 on behalf of an affiliated entity without HUD approval. Recommendation: The affiliated entity should repay $4,565 to the Corporation. Management Response: Agree. The affiliated entity repaid the Corporation $4,565 on October 25, 2022.

View Audit 42068 Questioned Costs: $1

Finding 51385 (2022-002)

Significant Deficiency 2022

Durham County

NC

Eligibility HUD Housing Programs Significant Deficiency

Finding 2022-002 Significant Deficiency in Internal Controls over Compliance, Nonmaterial Noncompliance Name of Contact Person(s): Rhonda Stevens and Lynn Thomas QAT will provide refresher training to staff to reiterate the importance of correcting case errors timely and reports available to assist ...

Finding 2022-002 Significant Deficiency in Internal Controls over Compliance, Nonmaterial Noncompliance Name of Contact Person(s): Rhonda Stevens and Lynn Thomas QAT will provide refresher training to staff to reiterate the importance of correcting case errors timely and reports available to assist in managing deadlines. Proposed completion date: December 31, 2022 FEI Supervisors will review QAT cases cited in error within 10 days of receipt to verify correction/rebuttal. Supervisors are to key the date corrected in the QC tool within 30 days of the review date. FEI Supervisors are to document this expectation has been reviewed in the weekly check-in meeting minutes. Proposed completion date: December 31, 2022

View Audit 47801

Finding 51327 (2022-001)

None 2022

Roxbury Senior Housing, Inc. (bernhardt Meadow)

CT

HUD Housing Programs Reporting

Finding Reference Number: 2022-001 Concur or Do Not Concur: Concur Agree or Disagree with Auditor Recommendations: Agree Actions Taken or Planned on the Finding: Management agrees with the finding. The financial statements were submitted to HUD on June 20, 2022. Completion Date: June 20, 2022

View Audit 52360

Finding 51326 (2022-001)

None 2022

Middlebury Senior Housing Associates, Inc. - Woodside Heights

CT

HUD Housing Programs Reporting

Finding Reference Number: 2022-001 Concur or Do Not Concur: Concur Agree or Disagree with Auditor Recommendations: Agree Actions Taken or Planned on the Finding: Management agrees with the finding. The financial statements were submitted to HUD on June 16, 2022. Completion Date: June 16, 2022

View Audit 51094

Finding 51324 (2022-001)

None 2022

Oak View Housing INC

CT

HUD Housing Programs Reporting

Finding Reference Number: 2022-001 Concur or Do Not Concur: Concur Agree or Disagree with Auditor Recommendations: Agree Actions Taken or Planned on the Finding: Management agrees with the finding. The financial statements were submitted to HUD on June 16, 2022. Completion Date: June 16, 2022

View Audit 51088

Finding 51320 (2022-001)

None 2022

Kay Goss Apartments, Inc.

AR

HUD Housing Programs Reporting

The Organization agrees with the finding and is working to make the required deposits as funds become available.

View Audit 50765

Finding 51319 (2022-001)

None 2022

Senior Citizens Housing Development Corporation of Bell

FL

HUD Housing Programs Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Bell respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Cor...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Bell respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 Audit period: July 1, 2021 through June 30, 2022 The finding from the June 30, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number in the schedule. SECTION III ? FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2022-001: Section 202 Supportive Housing for Elderly, CFDA 14.157 Recommendation: The Project should calculate rent in accordance with HUD regulation and maintain all required tenant documentation. Action Taken: Management will provide training to new managers on the correct method of calculating tenant income. During the next 3-4 months, the income calculations for all move in certifications and annual re-certifications will be reviewed by Compliance for accuracy prior to the manager finalizing the certification. If the Oversight Agency for Audit has questions regarding these plans, please call Christine Harris at 954-835-9200. Sincerely yours, Christine Harris Accounting Manager

View Audit 50381

Finding 51300 (2022-002)

Significant Deficiency 2022

Capitol Commons

LA

Procurement, Suspension & Debarment HUD Housing Programs

2022 ?2 No Bids Provided Condition: Management failed to provide bids for procured services that exceeded $10,000 or more. Criteria: According to the HUD Management Agent Handbook 4381.5 Section 6.5 Contracting Guidelines when an owner/agent is contracting for goods or services involving project inc...

2022 ?2 No Bids Provided Condition: Management failed to provide bids for procured services that exceeded $10,000 or more. Criteria: According to the HUD Management Agent Handbook 4381.5 Section 6.5 Contracting Guidelines when an owner/agent is contracting for goods or services involving project income, an agent is expected to solicit written cost estimates from at least three contractors for any contract, ongoing supply or service which is expected to exceed $10,000 per year. Cause: Management decided to utilize the contractor referred by the insurance company without regard to the HUD Management Agent Handbook guidelines. Effect: The Project procured services that did not comply with HUD regulations. Recommendation: I recommend management comply with HUD rules and regulations regarding procurement. Management Response: The damage that was caused by the fire was insured. The Insurance Company determined what they were going to pay and recommended the contractor that they approved to do the work. There were no Operating Funds used to make the repairs due to the fire. There were no economic consequences to the property and the Insurance Company took care of all of the repairs.

View Audit 41231

Finding 51299 (2022-001)

Significant Deficiency 2022

Capitol Commons

LA

HUD Housing Programs Cash Management

2022-1 Excess Residual Receipts Condition: The Project did not prepare a HUD 9250 to remit excess residual receipts, nor did it mail a check or transmit a wire of those funds. Criteria: According to the Consolidated Appropriations Act, 2017, owners subject to a Section 202 or 811 Project Rental Assi...

2022-1 Excess Residual Receipts Condition: The Project did not prepare a HUD 9250 to remit excess residual receipts, nor did it mail a check or transmit a wire of those funds. Criteria: According to the Consolidated Appropriations Act, 2017, owners subject to a Section 202 or 811 Project Rental Assistance Contract (PRAC) are required to remit any excess balance in a Residual Receipts account, greater than $250 per unit, to HUD?s Accounting Center upon termination or renewal of the PRAC contract. Effect: Residual receipts balance is $598, 546 as of December 31, 2021. The allowable balance is $10,000 ($250 X 40 units), resulting in excess residual receipts. Recommendation: I recommend the Property prepare the HUD 9250 requesting to remit excess funds to HUD. Management Response: It is our understanding that the Board of Directors will be requesting a meeting with HUD to discuss the dissolution of this item. Upon meeting with HUD it will be discharged. T

View Audit 41231

Finding 51292 (2022-004)

Significant Deficiency 2022

Forest County

WI

Cash Management Internal Control / Segregation of Duties HUD Housing Programs

Management has seen significant turnover in the Social Services Department in 2022, which included the fiscal and director positions. Staff is slowly being hired and an outside financial advisor has been hired. This advisor will work through these issues and train the new staff in proper segregation...

Management has seen significant turnover in the Social Services Department in 2022, which included the fiscal and director positions. Staff is slowly being hired and an outside financial advisor has been hired. This advisor will work through these issues and train the new staff in proper segregation of duties and the importance of internal control review by a second employee. Management has hired a new director and new fiscal. The fiscal will be designated to prepare the grant claims and the director will review and approve the grant claims for submission.

View Audit 41230

Corrective Action Plans

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