Corrective Action Plans

Finding 59522 (2022-001)

Material Weakness 2022

NY

HUD Housing Programs Material Weakness Special Tests & Provisions

Finding Number 2022-001 SPECIAL TESTS AND PROVISIONS- ENVIRONMENTAL CONTAMINANTS TESTING AND REMEDIATION ? MATERIAL WEAKNESS Agency Name FEDERAL AGENCY: PUBLIC AND INDIAN HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Program ALN 14.850 ? PUBLIC AND INDIAN HOUSING Contract # N/A Criteria Spec...

Finding Number 2022-001 SPECIAL TESTS AND PROVISIONS- ENVIRONMENTAL CONTAMINANTS TESTING AND REMEDIATION ? MATERIAL WEAKNESS Agency Name FEDERAL AGENCY: PUBLIC AND INDIAN HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Program ALN 14.850 ? PUBLIC AND INDIAN HOUSING Contract # N/A Criteria Special Tests and Provisions - Environmental Contaminants Testing and Remediation As stated in the April 2022 Compliance Supplement, Public Housing must be decent, safe, sanitary, and in good repair. Public Housing Authority?s (PHA) must maintain such housing in a manner that meets the physical condition standards set forth in 24 CFR section 5.703 in order to be considered decent, safe, sanitary, and in good repair. Those standards address the major areas of the public housing: the site; the building exterior; the building systems; the dwelling units; the common areas; and health and safety considerations. Health and safety considerations require that all areas and components of the housing must be free of health and safety hazards. These areas include, but are not limited to, air quality, electrical hazards, elevators, emergency/fire exits, flammable materials, garbage and debris, handrail hazards, infestation, and lead-based paint. The housing must have no evidence of infestation by rats, mice, or other vermin, or of garbage and debris. The housing must have no evidence of electrical hazards, natural hazards, or fire hazards. The dwelling units and common areas must have proper ventilation and be free of mold, odor (e.g., propane, natural gas, methane gas), or other indoor air hazards such as radon. The housing must comply with all requirements related to the evaluation and reduction of lead-based paint hazards and have available proper certifications of such (see 24 CFR Part 35). For the period under audit, the PHA is required to test for and remediate environmental contaminates including but not limited to lead-based paint, radon gas, and mold to ensure that public housing met the physical condition standards for health and safety considerations set forth in 24 CFR section 5.703. Condition/Context The New York City Housing Authority (the ?Authority?) performs environmental contaminates testing and remediation including but not limited to Lead-based paint, Mold, Pest Control, Elevators, Heating and Annual Apartment Inspections. To track compliance with the Agreement executed on January 31, 2019 by and among the Authority, the U.S. Department of Housing and Urban Development (?HUD?) and the U.S. Attorney?s Office for the Southern District of New York (SDNY) and The City Of New York (the ?HUD Agreement?), the Authority maintains monthly inspection reports for the various inspections performed and provides that information to HUD, the SDNY and the Federal Monitor appointed under the HUD Agreement. Deloitte obtained the bi-annual lead-based paint compliance reports from the Authority and for the Period from February 2022 through July 2022 and August 2022 through December, 2022, we read extermination, heat outage, mold inspections, annual apartment inspections, and elevator outage reports for the months of February 2022; April 2022; July 2022; September 2022 and November 2022. During our audit, we noted that the Authority did not complete all corrective actions in the 2022 audit period and is in the process of addressing these issues Recommendation We recommend that the Authority continue to ensure that all environmental contaminates are properly remediated during the audit period through the HUD Agreement. Corrective Action Plan In January 2019, the Authority entered into the HUD Agreement to address building conditions, including conditions related to lead-based paint, mold, pests, elevators, and heating. Among other things, the HUD Agreement appointed a federal Monitor and established three new Departments ? Compliance, Environmental Health & Safety, and Quality Assurance. It also required the promulgation of action plans around these health and safety issues and other items. These action plans are publicly available at https://www1.nyc.gov/site/nycha/about/reports.page, along with other reports on health and safety issues, which detail the Authority?s efforts to inspect for and correct deficiencies associated with environmental contaminants like lead-based paint and mold. The Authority plans to continue to work to address these health and safety issues, and to work towards meeting the multi-year obligations laid out in the HUD agreement in addition to the action plans. NYCHA has recorded $3,808,843,000 of pollution remediation obligations as of December 31, 2022 which relates to costs to inspect for and correct deficiencies associated with environmental contaminants. Action Date Ongoing milestones through January 31, 2039 Final Implementation The latest in time obligation under the HUD Agreement is the Authority?s obligation to abate 100% of the apartment units that contain lead-based paint, and the interior common areas that contain lead-based paint in the same building as those units, by January 31, 2039 Name And Phone Number Of Person Responsible For Implementation Brad Greenburg Chief Compliance Officer 212-306-4240

View Audit 54678

Finding 59502 (2022-001)

Material Weakness 2022

City of Pittsburgh

PA

Subrecipient Monitoring Special Tests & Provisions HUD Housing Programs

The City?s corrective action follows. Action Taken: The City has developed an internal process to ensure compliance with contracting deadlines. The Community Development leadership team now conducts monthly contract check-in meetings with Program Coordinators. During these meetings, contract execut...

The City?s corrective action follows. Action Taken: The City has developed an internal process to ensure compliance with contracting deadlines. The Community Development leadership team now conducts monthly contract check-in meetings with Program Coordinators. During these meetings, contract execution timelines are discussed. If a subrecipient has not submitted contract documentation 90 days before the appropriate deadline, the Program Coordinator will contact the subrecipient to better understand why the contract documents were not submitted. The Program Coordinator will continue to contact the subrecipient, via email and telephone, each week until all materials are submitted and the agreement is executed. Additionally, all deadlines are clearly marked on a large calendar in a shared workspace as well as on individual electronic calendars. If you have any questions, I can be reached at 412-255-2640. Sincerely, Jake Pawlak Director, Office of Management & Budget

View Audit 55108

Finding 59500 (2022-001)

Material Weakness 2022

Housing Authority of the City of Pittsburgh

PA

HUD Housing Programs Eligibility Reporting

Finding 2022-001 U.S. Department of Housing and Urban Development Moving to Work Demonstration Program - ALN 14.881 Eligibility and Reporting Repeat Finding from 2021 Maher Duessel Finding Condition: During our review of 60 tenant files prepared by the Housing Authority of the City of Pittsburgh (...

Finding 2022-001 U.S. Department of Housing and Urban Development Moving to Work Demonstration Program - ALN 14.881 Eligibility and Reporting Repeat Finding from 2021 Maher Duessel Finding Condition: During our review of 60 tenant files prepared by the Housing Authority of the City of Pittsburgh (Authority) as part of the biennial reexamination process, we noted a lack of functioning internal controls which led to the below exceptions in our testing. We noted two (2) tenant files (which provide eligibility and reporting information) were unable to be provided. Additionally, we noted four (4) tenants for which the most recent recertification was not completed on a timely basis. Also noted was one (1) tenant file that did not contain the required income verification support. In all cases previously described the HUD-50058 Family Report (OMB No. 2577-0083) (HUD-50058) forms prepared by the HACP were not completed and/or did not contain support for the calculations. All instances related to the MTW ? Housing Choice Voucher (HCV) Program. In addition, we noted the following exceptions related to the tenant recertification process: We noted two (2) instances where the application was missing or not signed, three (3) instances where the tenant files was missing a social security card or driver's license, two (2) instances where a signed lease agreement was missing and two (2) instances where a signed HAP contract was missing. HACP Management Response/Action Taken: Action Taken: The HACP will continue to monitor and train staff regarding processes and procedures, to include and not limited to the HUD's hierarchy of income verification. In fiscal year (FY) 2022 the HCV Department had a significant turnover in line and managerial staff. The HACP promoted an aggressive hiring plan to attract new talent to fill vacant positions due to the great resignation that the HACP along with other national Agencies continue to experience. In addition, the HACP retained the services of CVR and Associates to train newly hired staff on all aspects of the HCV Program, to include and not limited to recertifications, contracts, interims, and rent increases. The HACP will continue managerial and internal audits by the HACP Internal Compliance Department to reduce the necessity of corrections subsequent to the initial submission. The HACP continues to: ? Send notices regarding re-certifications 120 days in advance of the due date, ? Require Managers to review reports to assure timely submission of re-certifications, ? Utilize the Internal Compliance (IC) Department to review and sample files from the Occupancy and the HCV portfolio, ? Make corrections when discovered, ? Make payment adjustments to participant accounts when errors are discovered and corrected. ? The HACP will offer periodic staff training on re-certification, ? The HACP offers participants the use of technology to complete paperwork. During FY 2022, the HACP was closed to the public. In July of 2023, the HACP opened a "One Stop Shop" that is open to the public from 8 a.m. to - 4:30 p.m. daily. The One Stop Shop has is staffed with four (4) full-time staff members to receive information from participants and landlords to provide timely customer service. The opening of the One Stop Shop has been successful in receiving the public and responding to concerns.

View Audit 55099

Finding 59442 (2022-003)

Material Weakness 2022

Mennonite Memorial Home and Affiliates

OH

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding Number: 2022-003 Condition: The Organization did not submit audited financial statements to REAC within the required time frame after the fiscal year end for the year ended December 31, 2022. Planned Corrective Action: No further corrective action will be taken. The Section 232 HUD insured m...

Finding Number: 2022-003 Condition: The Organization did not submit audited financial statements to REAC within the required time frame after the fiscal year end for the year ended December 31, 2022. Planned Corrective Action: No further corrective action will be taken. The Section 232 HUD insured mortgage is in default. The Mortgage Servicer made claim on the HUD insurance and has been paid. HUD is working through the process to bring the note/mortgage to sale later in 2023 or early 2024. Contact person responsible for corrective action: Daren Lee, Chief Operating Officer Anticipated Completion Date: March 31, 2024

View Audit 54583

Finding 59441 (2022-002)

Material Weakness 2022

Mennonite Memorial Home and Affiliates

OH

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding Number: 2022-002 Condition: As of December 31, 2022, principal and interest payments on the mortgage are delinquent by $53,154. In addition, the various escrows are underfunded by $13,635. Planned Corrective Action: No further corrective action will be taken. The Section 232 HUD insured mort...

Finding Number: 2022-002 Condition: As of December 31, 2022, principal and interest payments on the mortgage are delinquent by $53,154. In addition, the various escrows are underfunded by $13,635. Planned Corrective Action: No further corrective action will be taken. The Section 232 HUD insured mortgage is in default. The Mortgage Servicer made claim on the HUD insurance and has been paid. HUD is working through the process to bring the note/mortgage to sale later in 2023 or early 2024. Contact person responsible for corrective action: Daren Lee, Chief Operating Officer Anticipated Completion Date: March 31, 2024

View Audit 54583 Questioned Costs: $1

Finding 59436 (2022-001)

Material Weakness 2022

Metro Apartments, Inc. 092-Hh011-Cmi

MN

HUD Housing Programs Subrecipient Monitoring Eligibility

2022-001 Income Certifications Name of contact person ? Angela Riley, CFO Corrective action ? The Corporation agrees with the finding, and has continued to implement strategies to address these issues throughout 2021 and 2022, including: assembled and deployed a team of external consultants and temp...

2022-001 Income Certifications Name of contact person ? Angela Riley, CFO Corrective action ? The Corporation agrees with the finding, and has continued to implement strategies to address these issues throughout 2021 and 2022, including: assembled and deployed a team of external consultants and temporary workers to assist site staff in completing tenant recertifications, hired a team of 6 additional roving property management/compliance teams to cover open property management positions and to support site staff in completing tenant recertifications, developed a new training program to onboard site staff, and developed a monitoring program to set expectations and hold employees accountable to those expectations. Proposed completion date ? Management has begun the corrective action and is expected to have additional internal controls and training done by December 31, 2023.

View Audit 55167

Finding 59334 (2022-001)

Significant Deficiency 2022

Faith Housing New Hope Apartments 122-Hd127-Wpd-Np

CA

HUD Housing Programs Questioned Costs Special Tests & Provisions

Name of auditee: Faith Housing New Hope Apartments HUD auditee identification number: 122-HD127-WPD-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2022 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone numb...

Name of auditee: Faith Housing New Hope Apartments HUD auditee identification number: 122-HD127-WPD-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2022 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition # 2022-001 Comments on Finding and Recommendation: The Corporation's required deposit of $12,057 to the residual receipts account per the June 30, 2021 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited within 90 days of the fiscal year end. Action(s) taken or planned on the finding: Management deposited $12,057 into the residual receipts fund on November 8, 2021.

View Audit 56625 Questioned Costs: $1

Finding 59331 (2022-001)

Significant Deficiency 2022

Silver Lake New Hope Courtyard Apts 122-Hd047-Wpd-Np

CA

HUD Housing Programs Questioned Costs Special Tests & Provisions

Name of auditee: Silver Lake New Hope Courtyard Apartments HUD auditee identification number: 122-HD047-WPD-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2022 CAP prepared by Name: Christien Tran Position: Management agent representative Teleph...

Name of auditee: Silver Lake New Hope Courtyard Apartments HUD auditee identification number: 122-HD047-WPD-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2022 CAP prepared by Name: Christien Tran Position: Management agent representative Telephone number: 323-838-8556 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition # 2022-001 Comments on Finding and Recommendation: The Corporation's required deposit of $53,828 to the residual receipts account per the June 30, 2021 Computation of Surplus Cash, Distributions and Residual Receipts was not deposited within 90 days of the fiscal year end. Action(s) taken or planned on the finding: Management deposited $53,828 into the residual receipts fund on November 12, 2021.

View Audit 56624 Questioned Costs: $1

Finding 59325 (2022-001)

Significant Deficiency 2022

Eastside Home Association

WA

HUD Housing Programs Questioned Costs Procurement, Suspension & Debarment

Management agrees with the finding and is in the process of replenishing the funds.

View Audit 54728

Finding 59304 (2022-002)

Significant Deficiency 2022

Tri-County Senior Citizens and Housing, Inc.

CO

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

Finding 2022-002:Section 8 Project-Based Cluster Federal Assistance Number: 14.182 and 14.195 U.S. Department of Housing and Urban Development Compliance Requirements: Cash Management, Eligibility, Reporting Type of finding: Internal Control Over Compliance (significant deficiency) Reco...

Finding 2022-002:Section 8 Project-Based Cluster Federal Assistance Number: 14.182 and 14.195 U.S. Department of Housing and Urban Development Compliance Requirements: Cash Management, Eligibility, Reporting Type of finding: Internal Control Over Compliance (significant deficiency) Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The Organization should consider assessing and realigning the duties and responsibilities of administrative staff allowing the administrator to act in a more supervisory position. Action Taken: This is not a "non-compliance" finding, however, management and the Board understand that internal controls and best management practices need to be strengthened. Management will review job descriptions and evaluate the number of staff needed to strengthen internal controls. Policies and procedures will be reviewed and adopted to segregate duties for best management practices in internal controls given the size of the organization we are. If the U.S. Department of Housing and Urban Development have questions regarding this plan, please call the responsible party at (719) 852-5778. Sincerely yours, Karla Shriver Managing Board Member Tri-County Senior Citizens and Housing, Inc.

View Audit 51940

Finding 59278 (2022-002)

Significant Deficiency 2022

Los Angeles Education Partnership

CA

Allowable Costs / Cost Principles HUD Housing Programs

May 5, 2023 Los Angeles Education Pannership (LAEP) Co1Tective Action Plan for the year ended June 30. 2022 Fincling 2022-001 Condition: LAEP does not have a robust year-end financial sratemenr close process that results in the financial statemenrs being closed accurately and timely. In addition, LA...

May 5, 2023 Los Angeles Education Pannership (LAEP) Co1Tective Action Plan for the year ended June 30. 2022 Fincling 2022-001 Condition: LAEP does not have a robust year-end financial sratemenr close process that results in the financial statemenrs being closed accurately and timely. In addition, LAEP had difficulty prepa1ing an accurate Schedule of Expenditures of Federal Awards. Auditee Response: Concur Co1Tective Action Plan: 1. LAEP will require Finance staff to attend training on recognition. measurement. and presentation of revenue as well as provide on-going training on all policies and procedures. 2. The Accounting Manual will be updated to include a step-by-step financial sratement close process and Management will require Finance staff to follow the procedures diligenrly. A year-end review of all accounts will also be pe1fo1med. 3. Another Sr. Accountant was hired on May l '1, 2023, to free up the workload of the Director of Finance. In addition, LAEP has temporarily augmented its staff by hiring a fo1mer consultant to assist with training. year-end closing. and audit process. 4. LAEP will implement controls to ensure accuracy and completeness of the Schedule ofExpendinires of Federal Awards. Management will be aware of all Federal awards received and expended. their source. and their compliance requiremenrs. LAEP will also ensure that accounting/reconciliation of SEF A will be perfo1med and reviewed prior to audit col1ll1lencement. Projected Completion Dare: October 31 , 2023 Contact Person Responsible for Co1Tecrive Action: Director of Finance Phone: 213 .622.5237 ext. 255 Finding 2022-002 Condition: LAEP did not comply with federal requirements at the bi-weekly payroll level. Not all the documentation supporting the salmy expense charged to the federal award for ce1tain employees was maintained. Auditee Response: Concur Co1Tective Action Plan: LAEP encountered significant delay in the implementation of a new payroll processing software, hence, this repeat finding. LAEP has since trm1sitionecl from Gusto to Paylocity effective its March 3ot11, 2023 payroll. This new system has automated the process of tracking approvals, real time audit trail, coITect sala1y allocations with proper documentation supp01t within the software. Projected Completion Date: Completed March 2023 Contact Person Responsible for Co1rnctive Action: Director of Finance Phone: 213 .622.5237 ext. 255

View Audit 54677

Finding 59277 (2022-001)

None 2022

Villa Del Asociado Jenaro Cortes, Inc.

PR

HUD Housing Programs

2022-01 We prepare the inspection schedule beginning in May 2023. This schedule was included in the answer to the PR Housing Finance Authority in the corrective action to the Management Review. Enclosed the inspection schedule. Marangely Delgado Housing Administrator (787) 751-0871 September 6, 2023

View Audit 54955

Finding 59273 (2022-001)

Material Weakness 2022

Spokane Housing Authority

WA

HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Spokane Housing Authority January 1, 2022 through December 31, 2022 This schedule presents the corrective action planned by the Housing Authority for findings reported in this report in accordance with Title 2 U.S. Code of Federal R...

CORRECTIVE ACTION PLAN FOR FINDINGS REPORTED UNDER UNIFORM GUIDANCE Spokane Housing Authority January 1, 2022 through December 31, 2022 This schedule presents the corrective action planned by the Housing Authority for findings reported in this report in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Finding ref number: 2022-01 Finding caption: The Housing Authority had inadequate internal controls for ensuring compliance with Housing Quality Standards enforcement requirements of its Housing Voucher Cluster program. Name, address, and telephone of Housing Authority contact person: Kathy Clark, Finance Director 25 W. Nora Avenue Spokane, WA 99205 (509) 252-7109 Corrective action the auditee plans to take in response to the finding: Spokane Housing Authority acknowledges the above reference finding. Although personnel responsible for conducting the HQS inspections and ensuring owners corrected the cited life-threatening deficiencies were trained on policy and procedure, SHA did not establish the internal controls to ensure proper follow-up was made. In September 2022, SHA, established a Housing Support Specialist position, which will log life-threatening HQS deficiencies as documented on the HQS inspector?s reports daily and follow-up with the landlord within the 24-hour timeframe to ensure that repairs have been addressed and completed. If repairs have been made pursuant to the directive given by the inspector, then a letter will be sent to the landlord and tenant indicating that the 24-hour hazards have been fixed. If the landlord fails to comply within the 24-hour timeframe, then the unit fails, and a Notice of Termination of HAP letter will be sent to the landlord and tenant. SHA will work with the tenant to start the process of locating a new unit that passes HQS. The log of deficiencies will be reviewed by the Inspections Coordinator regularly as an additional internal control. Anticipated date to complete the corrective action: January 1, 2023

View Audit 54676

Finding 59223 (2022-002)

None 2022

Rayne Elderly Housing Corporation Operating As Leisure Lane Apartments

FL

HUD Housing Programs Subrecipient Monitoring Reporting

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Recommendation: The Project should comply with HUD regulations for timely renewal of PRAC contract to ensure no interruption in funding. Action Taken: Staff is going to be trained on the proper procedures to follow for...

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Recommendation: The Project should comply with HUD regulations for timely renewal of PRAC contract to ensure no interruption in funding. Action Taken: Staff is going to be trained on the proper procedures to follow for the PRAC contract renewal process. This will include meeting deadlines for submission to HUD. As of March 2023 Compliance created a spreadsheet of dates when contract renewals are due. Compliance will be monitoring this process and will be making monthly contacts to the Community Manager and Regional Property Manager to ensure deadlines will be met. 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 56151

Finding 59222 (2022-001)

None 2022

Rayne Elderly Housing Corporation Operating As Leisure Lane Apartments

FL

HUD Housing Programs Reporting

Oversight Agency for Audit, Rayne Elderly Housing Corporation respectfully submits the following corrective action plan for the year ended December 31,2022. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201 Coral Springs, Florida 330...

Oversight Agency for Audit, Rayne Elderly Housing Corporation respectfully submits the following corrective action plan for the year ended December 31,2022. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201 Coral Springs, Florida 33067 Audit period: January 1, 2022 through December 31, 2022 The findings from the December 31, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month. Action Taken: The project underfunded by one month in FY22 to compensate for the one month over funding in PY. A 9250 was submitted and is awaiting approval.

View Audit 56151

Finding 59220 (2022-001)

None 2022

Mermentau Elderly Housing Corporation Dba Riverbend Apartments

FL

HUD Housing Programs Subrecipient Monitoring Reporting

Oversight Agency for Audit, Mermentau Elderly Housing Corporation respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201 Coral Springs, Florid...

Oversight Agency for Audit, Mermentau Elderly Housing Corporation respectfully submits the following corrective action plan for the year ended December 31, 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: January 1, 2022 through December 31, 2022 The finding from the December 31, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING NO. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding and establish procedures to ensure that Project implements approved rent charges on the effective date approved by HUD. Action Taken: All new staff now receives additional training on HUD guidelines. In addition, management is implementing a monitoring software to assist in ensuring timely submissions. If the audit Oversight Agency has questions regarding these plans, please call Christine Harris at 954-835-9200. Sincerely yours, Christine Harris Accounting Manager

View Audit 55077

Finding 59137 (2022-001)

Significant Deficiency 2022

Asbury Arms North, Inc.

FL

Internal Control / Segregation of Duties Questioned Costs Cash Management

Recommendation: : We recommend that management compute surplus cash on an annual basis and make the deposit within 90 days after year end, as required by the Regulatory Agreement. Views of responsible officials: : Management originally did not remit surplus cash within the 90-day requirement due to ...

Recommendation: : We recommend that management compute surplus cash on an annual basis and make the deposit within 90 days after year end, as required by the Regulatory Agreement. Views of responsible officials: : Management originally did not remit surplus cash within the 90-day requirement due to the Project not having a finalized calculation of surplus cash until the financial statement audit as completed. The Project remitted the funds top the residual receipt escrow account during November 2021.

View Audit 55968 Questioned Costs: $1

Finding 59134 (2022-001)

Material Weakness 2022

Southwest Care Center

NM

Internal Control / Segregation of Duties Questioned Costs Subrecipient Monitoring

COVID-19: FY 2020 HEALTH CENTERS PROGRAM LOOK-ALIKES: EXPANDING CAPACITY FOR CORONAVIRUS TESTING ? Assistance Listing No. 93.527 Recommendation: Our auditors recommended the Organization review internal controls in regard to the determination, recording, and monitoring of the sliding fee process to...

COVID-19: FY 2020 HEALTH CENTERS PROGRAM LOOK-ALIKES: EXPANDING CAPACITY FOR CORONAVIRUS TESTING ? Assistance Listing No. 93.527 Recommendation: Our auditors recommended the Organization review internal controls in regard to the determination, recording, and monitoring of the sliding fee process to ensure that appropriate sliding fee rates/categories are utilized for each sliding fee encounter. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The case management team conducted a comprehensive training in April 2022 including instructions for completing a sliding fee scale and appropriately filing the documentation in the EMR. In May 2022, an internal monthly audit process was implemented that includes a review of slides completed in the prior month to further reduce the error rate. In response to this audit finding, the case management team will conduct a training session highlighting issues identified during the recent audit including the appropriate utilization of sliding fees. The revenue cycle and pharmacy teams have also implemented processes to ensure that sliding fee scales are active on the service date for medical visits and/or prescriptions from the pharmacy. Name(s) of the contact person(s) responsible for corrective action: Jason Sanchez, CFO Planned completion date for corrective action plan: Has been implemented

View Audit 55087

Finding 59052 (2022-002)

Significant Deficiency 2022

Hamilton Health Center, Inc.

PA

Internal Control / Segregation of Duties Questioned Costs HUD Housing Programs

Management concurs with the finding. Management will ensure that net, not gross revenues will be utilized in the calculation of lost revenues. On a monthly basis, net revenues will be calculated from internal reports and tied to the general ledger. This will ensure that such reporting not only ties ...

Management concurs with the finding. Management will ensure that net, not gross revenues will be utilized in the calculation of lost revenues. On a monthly basis, net revenues will be calculated from internal reports and tied to the general ledger. This will ensure that such reporting not only ties to the general ledger, but complies with the established U.S. Department of Health and Human Services reporting guidance, which will be reviewed by management.

View Audit 49787

Finding 59049 (2022-001)

Material Weakness 2022

Goose II Housing Development Fund Company, Inc.

NY

Eligibility HUD Housing Programs Reporting

2022-001: Section 202, Assistance Listing No. 14.157 Two tenant files were selected for testing and the required documentation to determine eligibility, as required by the HUD Regulatory Agreement, could not be located as follows: ? 2 files were missing Form HUD-50059, Owner?s Certification of Com...

2022-001: Section 202, Assistance Listing No. 14.157 Two tenant files were selected for testing and the required documentation to determine eligibility, as required by the HUD Regulatory Agreement, could not be located as follows: ? 2 files were missing Form HUD-50059, Owner?s Certification of Compliance ? 2 files were missing the move-in and move-out inspection forms Recommendation: We recommend the Corporation establish procedures for maintaining tenant files to comply with HUD requirements for verification of tenant information, as required. Action Taken: Management agrees with the recommendation and will establish procedures with the managing agent to ensure all tenant files are maintained in accordance with HUD regulations.

View Audit 54295

Finding 58997 (2022-002)

Significant Deficiency 2022

Fairview Woods

MN

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Recommendation: Recommend management put a policy in place to monitor the bank rating quarterly for financial institutions the projects hold funds at. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will...

Recommendation: Recommend management put a policy in place to monitor the bank rating quarterly for financial institutions the projects hold funds at. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review and update their policies and procedures to ensure the bank ratings for the financial institutions where their projects hold assets is monitored on a quarterly basis. Name of the contact person responsible for corrective action: Connie Bednarek, Controller Planned completion date for corrective action plan: March 31, 2023

View Audit 54742

Finding 58996 (2022-001)

Material Weakness 2022

Fairview Woods

MN

Questioned Costs HUD Housing Programs Material Weakness

Recommendation: Recommend management review their policies to ensure distributions are made based on the biannual surplus cash calculations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review an...

Recommendation: Recommend management review their policies to ensure distributions are made based on the biannual surplus cash calculations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review and update their policies and procedures to ensure distributions are made based on the biannual surplus cash calculations based on the dates in the regulatory agreement. Name of the contact person responsible for corrective action: Connie Bednarek, Controller Planned completion date for corrective action plan: June 30, 2023

View Audit 54742 Questioned Costs: $1

Finding 58985 (2022-001)

Significant Deficiency 2022

Augustana Lutheran Homes Inc. Dba: Gloria Dei Manor

MN

Questioned Costs Student Financial Aid HUD Housing Programs

202 Flex Subsidy Assistance Loan ? Assistance Listing No. 14.157 Replacement Reserve Deposits: Per the regulatory agreement a monthly deposit is to be made into the replacement reserve. Per HUD-9250, starting January 1, 2022 that monthly amount is $4,343.50 which equates to an annual deposit of $52...

202 Flex Subsidy Assistance Loan ? Assistance Listing No. 14.157 Replacement Reserve Deposits: Per the regulatory agreement a monthly deposit is to be made into the replacement reserve. Per HUD-9250, starting January 1, 2022 that monthly amount is $4,343.50 which equates to an annual deposit of $52,122. The replacement reserve was underfunded $1,122 at December 31, 2022. Recommendation: Recommend that a catch-up payment is made as soon as possible to make the replacement reserve whole. There is no disagreement with the audit finding. Action taken in response to finding: Management made the additional $1,122 deposit on February 24, 2023. Name of the contact person responsible for corrective action: Lisa Gindt Planned completion date for corrective action plan: February 24, 2023.

View Audit 56100

Finding 58980 (2022-004)

Significant Deficiency 2022

Fairbanks Community Homes 176-Hd-021

AK

Questioned Costs HUD Housing Programs Reporting

Finding 2022-004: Failure to submit REAC report Name of Contact: Kendrick D. Blais, President Management's view: Management agrees wit...

Finding 2022-004: Failure to submit REAC report Name of Contact: Kendrick D. Blais, President Management's view: Management agrees with the finding. Corrective Action: The Organization is working with its management company to file timely in the future. Proposed Completion Date: June 30, 2023

View Audit 55079

Finding 58979 (2022-003)

Significant Deficiency 2022

Fairbanks Community Homes 176-Hd-021

AK

HUD Housing Programs Questioned Costs Cash Management

Finding 2022-003: Failure to Return Residual Receipts to HUD Name of Contact: Kendrick D. Blais, President Management's view: Management agrees with...

Finding 2022-003: Failure to Return Residual Receipts to HUD Name of Contact: Kendrick D. Blais, President Management's view: Management agrees with the finding. Corrective Action: The Organization is working with its management company to return the residual receipts to HUD. Proposed Completion Date: June 30, 2023

View Audit 55079

Corrective Action Plans

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