Corrective Action Plans

Finding 2682 (2021-003)

Significant Deficiency 2021

Sacramento Housing and Revelopment Agency

CA

Questioned Costs HUD Housing Programs Special Tests & Provisions

Recommendation: We recommend that the Agency designate an individual to review HQS inspections to assure they are done in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have devised a compreh...

Recommendation: We recommend that the Agency designate an individual to review HQS inspections to assure they are done in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have devised a comprehensive training plan focused on scheduling re-inspections and abatements. Our staff has undergone training in accordance with this plan, and supervisors will be responsible for monitoring and providing necessary follow-ups. Furthermore, our staff engages in routine meetings with the contractor responsible for inspection scheduling and completion. These regular meetings will now include a review of inspection schedules to guarantee that no inspections are overlooked. Name(s) of the contact person(s) responsible for corrective action: Troy Lynch Planned completion date for corrective action plan: New staff members were assigned to this task, and their training was successfully concluded by August 7, 2023.

View Audit 4551 Questioned Costs: $1

Finding 2679 (2021-002)

Significant Deficiency 2021

Sacramento Housing and Revelopment Agency

CA

Questioned Costs HUD Housing Programs Subrecipient Monitoring

Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordance with internal policies and verify the compliance deficiencies have bee...

Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordance with internal policies and verify the compliance deficiencies have been corrected. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We have introduced a revised approach for the allocation of recertifications to individual caseworkers instead of the caseload as a whole. This change ensures that recertifications, initially assigned to caseworkers with temporarily vacant caseloads, will be promptly reassigned to other available staff members. Moreover, we have established a robust monitoring process for supervisors to oversee the workload and track the progress of their respective teams. Name(s) of the contact person(s) responsible for corrective action: Melanie Olsen Planned completion date for corrective action plan: These measures have been effectively implemented since July 1, 2023.

View Audit 4551 Questioned Costs: $1

Finding 1820 (2021-007)

Material Weakness 2021

Athens Metropolitan Housing Authority

OH

Allowable Costs / Cost Principles HUD Housing Programs Reporting

Finding Number: 2021-007 Planned Corrective Action: The new Fiscal Procedure Manual addresses reconciliation of cash, bank to book and sets the procedure for staff to complete monthly reconciliations which are to be reviewed by the Executive Director always and periodically presented to the Board fo...

Finding Number: 2021-007 Planned Corrective Action: The new Fiscal Procedure Manual addresses reconciliation of cash, bank to book and sets the procedure for staff to complete monthly reconciliations which are to be reviewed by the Executive Director always and periodically presented to the Board for review. The finding for Adjustment will be forwarded to the engaged accounting firm for assessment and advice on how to accomplish that. Anticipated Completion Date: June 30, 2023 Responsible Contact Person: Stan W. Popp, Acting Executive Director

View Audit 3185

Finding 1819 (2021-006)

Material Weakness 2021

Athens Metropolitan Housing Authority

OH

HUD Housing Programs Eligibility Material Weakness

Finding Number: 2021-006 Planned Corrective Action: The previous Executive Director was supposed to do quality control reviews on HCV files, however that was not being done. At present, the Coordinator of Housing Programs and Administration is assigned to do quality controls on a percentage of files...

Finding Number: 2021-006 Planned Corrective Action: The previous Executive Director was supposed to do quality control reviews on HCV files, however that was not being done. At present, the Coordinator of Housing Programs and Administration is assigned to do quality controls on a percentage of files touched within the previous 30 days. Each month, a number of files will be reviewed. Also, the Housing Authority has purchased a complete training academy as part of the Yardi software system that the Housing Authority has used since 2017. The training academy offers on-line courses in each of the areas of the HCV process and will be assigned all training modules that apply to the HCV process. Anticipated Completion Date: July 31, 2023 Responsible Contact Person: Stan W. Popp, Acting Executive Director

View Audit 3185

Finding 1818 (2021-005)

Material Weakness 2021

Athens Metropolitan Housing Authority

OH

HUD Housing Programs Procurement, Suspension & Debarment Material Weakness

Finding Number: 2021-005 Planned Corrective Action: Housing Quality Standards inspection had been contracted for since the pandemic began in 2020, and the agreement had not included quality control or reinspection for failed inspections. That was supposedly corrected but for much of 2021, HQS inspec...

Finding Number: 2021-005 Planned Corrective Action: Housing Quality Standards inspection had been contracted for since the pandemic began in 2020, and the agreement had not included quality control or reinspection for failed inspections. That was supposedly corrected but for much of 2021, HQS inspections had been suspended due to the pandemic. Since that time failed, HQS is tracked by each staff person who has that unit in their caseload, and they assure a reinspection is automatically scheduled and notice sent to the landlord and tenant. If the unit fails a second inspection, in most cases the HAP is abated, or a formal extension is granted on occasion. The plan going forward is to bring the inspection process back in-house within the next year when the existing contract expires. An outside contractor will still be used for inspection when Housing Choice Vouchers are used in the AMHA owed units. All files will be reviewed to ensure compliance. Anticipated Completion Date: July 31, 2023 Responsible Contact Person: Stan W. Popp, Acting Executive Director

View Audit 3185

Finding 1578 (2021-004)

Material Weakness 2021

Municipality of Añasco

PR

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.302 § 200.403

Training finance staff assigned on management and reports preparation, as required by this federal award. stablish adequate internal control regarding documents, establish and provide the necessary and required training, including guidelines and procedures, to all personnel who work directly or indi...

Training finance staff assigned on management and reports preparation, as required by this federal award. stablish adequate internal control regarding documents, establish and provide the necessary and required training, including guidelines and procedures, to all personnel who work directly or indirectly with the management of these federal funds. Key Task / Action Items Locate and document all required reports and reconciliations as required. We are implementing a supervision process and instructions will be given to finance’s staff and personnel to increase the ability to search, identify and produce financial documents and reports. Resources Coronavirus Relief Fund (CRF) PHE-Testing and Contact Tracing 2 CFR Section 200.302 (a) of the Uniform Guidance 2 CFR Section 200.403 Puerto Rico Department of Health; Guidelines for the Writing of Proposals and Request for Funds Directed to the Research System Project for the Municipal Case Investigation and Contact Case Investigation and Municipal Contact Tracing System Project Response to COVID-19. Lead Staff Finance’s Director Federal Program Directors Completion date Estimated completion date of December 31, 2023. Actual Completion Date In progress Implementation Progress/Comments The Municipality used the funds in accordance with the proposal and the guidelines established by AAFAF and PR Department of Health for these purposes. Coronavirus Relief Fund (CRF) Public Health Emergency (PHE) (Testing and Contact Tracing). According to the information obtained from Mr. Carlos R. Nazario Barreto, Senior Business Consultant of the SAB Consulting, regarding the compliance of the Municipality, we were provided with the table of the monitoring of the Proposed Municipal System of Investigation of Cases and Tracking of Contact (SMIRC) of the Municipality of Añasco. The referred table of the monitoring of the Proposed Municipal System of Investigation of Cases and Tracking of Contact of the Municipality of Añasco was send to the external auditor as part of this Corrective Action Plan. The detailed table is maintained by the Municipality as part of the federal program supporting documentation. These funds were initially administered and disbursed by former municipal administration personnel. At the time of the audit, we did not find the documents and reports as the files were not available. Following the Auditor's recommendations and as a corrective action, we are currently working on the review of the fiscal documents submitted by the Municipality to determine if there are any reports that need to be worked on and to submit them to AFFAF, PR-OMB or the agencies concerned.

View Audit 2817

Finding 1576 (2021-005)

Material Weakness 2021

Municipality of Añasco

PR

HUD Housing Programs Reporting Subrecipient Monitoring

The pandemic caused by the outbreak of COVID-19 disrupted and delayed many accounting and reporting processes during the fiscal years 2020 and 2021 since the Municipality had to shut down operations for various months. Consequently, several projects and tasks calendarized were postponed or delayed, ...

The pandemic caused by the outbreak of COVID-19 disrupted and delayed many accounting and reporting processes during the fiscal years 2020 and 2021 since the Municipality had to shut down operations for various months. Consequently, several projects and tasks calendarized were postponed or delayed, including certain reports required by the US Housing and Urban Development. Expected Implementation Schedule: a) REAC - Audited Submission FY 2020-2021: will be submitted as soon as the final single audit report is issued. b) REAC- Unaudited Submission FY 2021-2022: was submitted and approved by REAC. c) REAC - Audited Submission FY 2021-2022: will be submitted as soon as the final 2022 single audit report is issued.

View Audit 2817

Finding 754 (2021-004)

Material Weakness 2021

Municipality of Corozal

PR

HUD Housing Programs Material Weakness Reporting

The pandemic caused by the outbreak of COVID-19 disrupted and delayed many accounting processes during fiscal year 2020 and 2021, since the Municipality had to modified its way of operating and some services were being interrupted due personnel turn overs. Consequently, several projects and tasks ca...

The pandemic caused by the outbreak of COVID-19 disrupted and delayed many accounting processes during fiscal year 2020 and 2021, since the Municipality had to modified its way of operating and some services were being interrupted due personnel turn overs. Consequently, several projects and tasks calendared were postponed, including the reconciliation and review of bank reconciliations and financial reports required by HUD. The person In charge of this task is the Federal Program Director and the anticipated completion date is for December of 2022.

View Audit 1414

Finding 703 (2021-003)

Material Weakness 2021

Housing Authority of the County of Monterey

CA

Questioned Costs HUD Housing Programs Eligibility

Finding 2021-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Material Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Ma...

Finding 2021-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Catalog Numbers: 14.871 Material Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 3,383 units. Of a sample size of forty (40) tenant files, the following was noted: Original application was missing in 3 files, Lead based paint form was missing in 5 files, signed lease was missing in 5 files, Rent reasonableness was missing in 10 files , Annual inspection report was missing in 15 files. Our sample size is statistically valid. Known Questioned Costs: $294,952. Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The affected files relate to clients that have been on the program for decades and as files get large, archiving takes place. To correct this finding, a directive will be issued to staff that will ensure that when files are archived the original application must be placed in the current working file going forward. Zulieka Boykin, Executive Director, will be responsible to implement this corrective action by June 30, 2022.

View Audit 1338 Questioned Costs: $1

Finding 355 (2021-004)

Significant Deficiency 2021

Wicomico County Housing Authority

MD

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Views of Responsible Officials: The Authority has addressed this finding. The Bank has signed the depository agreements effective March 30, 2022.

View Audit 724

Finding 354 (2021-003)

Material Weakness 2021

Wicomico County Housing Authority

MD

HUD Housing Programs Material Weakness Special Tests & Provisions

Views of Responsible Officials: The Authority specialist responsible for file maintenance and recertifications during fiscal year 2021 is no longer with the Agency. In addition the Authority misinterpreted the COVID waiver related to HQS inspections. The Authority has experienced staff now in place ...

Views of Responsible Officials: The Authority specialist responsible for file maintenance and recertifications during fiscal year 2021 is no longer with the Agency. In addition the Authority misinterpreted the COVID waiver related to HQS inspections. The Authority has experienced staff now in place to perform these services. The Authority will revisit our policy and procedures over recertification, HQS, and file maintenance to ensure documentation is maintained and is in compliance with HUD regulations.

View Audit 724

Finding 353 (2021-002)

Material Weakness 2021

Wicomico County Housing Authority

MD

Questioned Costs HUD Housing Programs Eligibility

Views of Responsible Officials: The Authority specialist responsible for file maintenance and recertifications during fiscal year 2021 is no longer with the Agency. The Authority has experienced staff now in place to perform these services. The Authority will revisit our policy and procedures over r...

Views of Responsible Officials: The Authority specialist responsible for file maintenance and recertifications during fiscal year 2021 is no longer with the Agency. The Authority has experienced staff now in place to perform these services. The Authority will revisit our policy and procedures over recertification and file maintenance to ensure documentation is maintained and is in compliance with HUD regulations.

View Audit 724 Questioned Costs: $1

Finding 352 (2021-001)

Significant Deficiency 2021

Wicomico County Housing Authority

MD

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency

Views of Responsible Officials: The Authority will review and enhance our policies and procedures over payroll processing, to ensure all timesheets have visual approval by supervisor, and employee files obtain copy of the annual board approved salary worksheet.

View Audit 724

Finding 573288 (2020-008)

Material Weakness 2020

Richmond Housing Authority

CA

HUD Housing Programs Cash Management Reporting

The recommendations have since been addressed and implemented. The City and Authority staff have implemented a process of providing a form that is reviewed and approved by the Authority Director before drawdowns are processed in LOCCS to ensure that all obligations of Capital Funds for operations (B...

The recommendations have since been addressed and implemented. The City and Authority staff have implemented a process of providing a form that is reviewed and approved by the Authority Director before drawdowns are processed in LOCCS to ensure that all obligations of Capital Funds for operations (BLI 1406) are recorded in its accounting system based on the actual voucher request.

View Audit 364071

Finding 573286 (2020-007)

Material Weakness 2020

Richmond Housing Authority

CA

HUD Housing Programs Matching / Level of Effort / Earmarking

The recommendations have since been addressed and implemented. On May 6, 2025, the Authority Board of Commissioners passed a resolution to authorize a contract for conducting a physical needs assessment of Nystrom Village and Richmond Village. This assessment aims to identify repair, maintenance, an...

The recommendations have since been addressed and implemented. On May 6, 2025, the Authority Board of Commissioners passed a resolution to authorize a contract for conducting a physical needs assessment of Nystrom Village and Richmond Village. This assessment aims to identify repair, maintenance, and capital improvement activities for future environmental reviews.

View Audit 364071

Finding 573285 (2020-006)

Material Weakness 2020

Richmond Housing Authority

CA

HUD Housing Programs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

The recommendations have since been addressed and implemented. The Authority maintains a comprehensive list of all owned and insured assets within our Asset Repositioning strategy document. The Housing Authority will establish an electronic filing system to securely store all declarations of trust. ...

The recommendations have since been addressed and implemented. The Authority maintains a comprehensive list of all owned and insured assets within our Asset Repositioning strategy document. The Housing Authority will establish an electronic filing system to securely store all declarations of trust. In accordance with PHI Notice 2014-14, the Housing Authority will formally request the release of the Declaration of Trust (DOT) from HUD prior to the closing or transfer of the title of any public housing property.

View Audit 364071

Finding 573284 (2020-005)

Material Weakness 2020

Richmond Housing Authority

CA

Procurement, Suspension & Debarment HUD Housing Programs

The recommendations have since been addressed and implemented. The Authority understands and accepts the recommendation that documentation of vendor suspension or debarment status must be retained. The Authority staff has followed the City’s process in verifying this information, but there was no pr...

The recommendations have since been addressed and implemented. The Authority understands and accepts the recommendation that documentation of vendor suspension or debarment status must be retained. The Authority staff has followed the City’s process in verifying this information, but there was no proof retained. It has been inquired on the sufficient requirement and the understanding is that a screenshot will suffice. Staff will proceed with retaining a screenshot of vendor verification.

View Audit 364071

Finding 573283 (2020-004)

Material Weakness 2020

Richmond Housing Authority

CA

HUD Housing Programs

The recommendations have since been addressed and implemented. As part of ongoing efforts to strengthen file integrity and compliance standards, the Authority has implemented the following measures: Standardized File Checklist: A comprehensive checklist has been developed and is included in all resi...

The recommendations have since been addressed and implemented. As part of ongoing efforts to strengthen file integrity and compliance standards, the Authority has implemented the following measures: Standardized File Checklist: A comprehensive checklist has been developed and is included in all resident files. This tool is designed to ensure that all required documentation is accounted for and consistently organized. Dedicated File Oversight Personnel: The Authority has hired designated staff responsible for the oversight, organization, and quality control of file documentation. These individuals will ensure ongoing compliance with HUD regulations and internal standards, as well as support audit readiness. Income Certification Systemization: All income calculations for resident certifications are now completed and documented exclusively within the Property Management system, Yardi One. This centralizes data processing, improves accuracy, and ensures a reliable audit trail for all income determinations.

View Audit 364071

Finding 573282 (2020-003)

Material Weakness 2020

Richmond Housing Authority

CA

Questioned Costs HUD Housing Programs

The recommendations have since been addressed and implemented. The City and the Authority staff require a document/invoice from Easter Hill Development to request the amount of operating subsidy to be drawn down from eLOCCS and paid via wire transfer as a passthrough payment, based on their needs an...

The recommendations have since been addressed and implemented. The City and the Authority staff require a document/invoice from Easter Hill Development to request the amount of operating subsidy to be drawn down from eLOCCS and paid via wire transfer as a passthrough payment, based on their needs and/or eligible amount set forth by HUD.

View Audit 364071 Questioned Costs: $1

Finding 573280 (2020-001)

Material Weakness 2020

Richmond Housing Authority

CA

HUD Housing Programs Reporting Internal Control / Segregation of Duties § 200.303

The recommendations have since been addressed and implemented. The City has assigned staff to specific duties to support the Authority’s financial operations. Staff have implemented new processes that align with the City’s policies and procedures, while also in accordance with HUD regulations and re...

The recommendations have since been addressed and implemented. The City has assigned staff to specific duties to support the Authority’s financial operations. Staff have implemented new processes that align with the City’s policies and procedures, while also in accordance with HUD regulations and requirements, to improve the integrity and accuracy of the Authority’s financial reporting and management of federal awards. The procedures ensure separation of duties and levels of approval to handle and manage federal funds. Staff also continue to attend trainings to understand Federal statutes and regulations.

View Audit 364071

Finding 569329 (2020-007)

Material Weakness 2020

St. Croix Chippewa Housing Authority

CA

Eligibility HUD Housing Programs Material Weakness

2020-007 Tenant Eligibility Material Weakness Recommendation: In general, we continue to recommend a review of the re-certification process to determine areas of weakness. Specifically, we recommend the use of a standard checklist in the recertification process. We further recommend that each re-cer...

2020-007 Tenant Eligibility Material Weakness Recommendation: In general, we continue to recommend a review of the re-certification process to determine areas of weakness. Specifically, we recommend the use of a standard checklist in the recertification process. We further recommend that each re-certification clerk’s work be routinely audited. We also recommend more standardization in resident files organization of information, and procedures established to make sure all files are maintained adequately in order to be compliant. Action Taken: The Housing Authority agrees with this finding and will implement this recommendation within 120 days of this audit report.

View Audit 360843

Finding 537439 (2020-002)

Material Weakness 2020

Salem Housing Development Corporation

NE

Questioned Costs Cash Management HUD Housing Programs

Management agrees with the recommendation and will fund the residual receipts account during 2025.

View Audit 348643 Questioned Costs: $1

Finding 537438 (2020-001)

Material Weakness 2020

Salem Housing Development Corporation

NE

HUD Housing Programs

Management agrees with the recommendation and submitted the audited financial statements to HUD. No further action is required.

View Audit 348643

Finding 519936 (2020-006)

Material Weakness 2020

Health & Education Housing Service, INC

MA

HUD Housing Programs Material Weakness Special Tests & Provisions § 200.625

2020-006 - Special Tests and Provisions - Material Weakness Recommendation: Management should obtain a HUD approved AFHMP and add the equal opportunity logo to marketing materials. Action Taken: Although it was believed that a HUD approved AFHMP was in place, documentation of this plan couldnot b...

2020-006 - Special Tests and Provisions - Material Weakness Recommendation: Management should obtain a HUD approved AFHMP and add the equal opportunity logo to marketing materials. Action Taken: Although it was believed that a HUD approved AFHMP was in place, documentation of this plan couldnot be located by all parties. The Managing Agent will take steps to obtain a new HUD approved AFHMP and include the equal opportunity logo to marketing materials.

View Audit 339371

Finding 519935 (2020-005)

Material Weakness 2020

Health & Education Housing Service, INC

MA

Internal Control / Segregation of Duties HUD Housing Programs Reporting

2020-005 - Reporting - Material Weakness Recommendation: Management should ensure timely completion of a Uniform Guidance audit, as required. Action Taken: Historically, Uniform Guidance Data Collection Form submissions were scheduled by the sponsor. In April 2019, the management agent experienc...

2020-005 - Reporting - Material Weakness Recommendation: Management should ensure timely completion of a Uniform Guidance audit, as required. Action Taken: Historically, Uniform Guidance Data Collection Form submissions were scheduled by the sponsor. In April 2019, the management agent experienced significant staff turnover including the Chief Financial Officer. The Entity's fiscal year fiscal year 2019 closed shortly thereafter. Management Agent Staff were unaware the required fiscal year 2019 and subsequent audit(s) had not been scheduled by the Sponsor; Covid 19 hit shortly thereafter. This issue went unaddressed throughout the pandemic, followed by the resignation of the Management Agent Accounting Manager in 2021, a position that remained vacant for nearly a year. The Management agent engaged with a CPA firm to conduct the 2019, 2020 and 2021 audits.

View Audit 339371

Corrective Action Plans

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