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