Corrective Action Plans

Finding 22558 (2022-001)

Significant Deficiency 2022

South Central Alabama Regional Housing Authority

AL

Questioned Costs HUD Housing Programs Significant Deficiency

CORRECTIVE ACTION PLAN November 8, 2022 Birmingham Office Public Housing Division Medical Form Building 950 22nd Street North Suite 900 Birmingham, AL 35203 Dear Sir or Madam: The following details the Corrective Action Plan recommended for the March 31, 2022 audit: Name and address of independe...

CORRECTIVE ACTION PLAN November 8, 2022 Birmingham Office Public Housing Division Medical Form Building 950 22nd Street North Suite 900 Birmingham, AL 35203 Dear Sir or Madam: The following details the Corrective Action Plan recommended for the March 31, 2022 audit: Name and address of independent public accounting firm: Moody & Company P. 0. Box 698 Odenville, AL 35120 PART III. FEDERAL AWARD FINDING AND QUESTIONED COST 2022-001 - Section 8 Housing Choice Vouchers Program CFDA Number: 14.871 Compliance Requirements: Special Tests and Provisions Condition and Criteria: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(3) and 982.405(b)). For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies with 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month Page Two following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family's failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family- caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Auditors' review of HQS inspections reflected that several inspections failed and were not reinspected within the required time frame. Type of Finding: Significant Deficiency Cause: The internal control structure was not adequate to prevent these deficiencies. Effect: HAP payments were not abated. Questioned Costs: $12,612 Auditors' Recommendation: We recommend the Housing Authority strengthen its internal controls to ensure that HQS deficiencies are corrected within the required time frame. Response to Finding: The Auditors' review reflected a sampling of inspections that were for HCV participants assigned to one coordinator who was about to retire and became complacent in her job responsibilities. The internal control system to prevent this from occurring was affected by a job position change. Corrective Action Plan: An inspection company has already been contracted with to schedule all annual and follow-up inspections for all HCV participants. Additionally, internal controls have been established as part of the new Assistant Director's position. Contact Person Responsible For Corrective Action: Sharon Parker, Executive Director Anticipated Completion Date: Already completed Sincerely, Sharon Parker Executive Director

View Audit 24967 Questioned Costs: $1

Finding 22517 (2022-003)

Material Weakness 2022

Housing Authority of the Town of Windsor Locks

CT

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Windsor Locks Housing Authority 120 Southwest Ave Windsor Locks, CT 06096 Phone (860) 627-1455 Fax (860) 292-5994 Email: wlha@wlocks.com CORRECTIVE ACTION PLAN 2022-003 ? HCV Program Management-HUD ...

Windsor Locks Housing Authority 120 Southwest Ave Windsor Locks, CT 06096 Phone (860) 627-1455 Fax (860) 292-5994 Email: wlha@wlocks.com CORRECTIVE ACTION PLAN 2022-003 ? HCV Program Management-HUD Monitoring Review, CFDA #14.871 Compliance Requirement: Activities Allowed or Unallowed Type of Finding: Noncompliance, Material Weakness Auditee?s Response and Planned Corrective Action In order to properly monitor inspection deadlines and compliance with HQS inspections, the Interim Executive Director worked with the board and HUD to draft new policies and procedures to ensure compliance with future HQS inspections. These updated policies were voted on and accepted by the board to be implement by the Interim Executive Director and subsequently DeMarco Management Corporation. Additional consideration is being given to arranging for third party [pre-]inspections. Regardless training related to HQS inspections will be made available to staff. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Windsor Locks Management Company and Board Members while working with the Fee Accountant and at first the Interim Executive Director followed by DeMarco Management Corporation after their hire on 2/1/23.

View Audit 24959

Finding 22498 (2022-001)

None 2022

Hands Triad Housing, Inc.

PA

HUD Housing Programs Cash Management

Comment on Findings and Recommendations: We concur with the auditor's finding that the balance in the excess residual receipts was above the limit allowed by HUD and was not remitted per HUD's guidelines. Action Taken or Planning: The Director of Accounting will review the Residual Receipts balan...

Comment on Findings and Recommendations: We concur with the auditor's finding that the balance in the excess residual receipts was above the limit allowed by HUD and was not remitted per HUD's guidelines. Action Taken or Planning: The Director of Accounting will review the Residual Receipts balance, determine amount eligible for retainage and return the remainder to HUD in accordance with current regulations.

View Audit 18528

Finding 22460 (2022-001)

None 2022

Hands Metro Apartments, Inc.

PA

HUD Housing Programs Cash Management

Comment on Findings and Recommendations: We concur with the auditor's finding that the balance in the excess residual receipts was above the limit allowed by HUD and was not remitted per HUD's guidelines. Action Taken or Planning: The Director of Accounting will review the Residual Receipts balan...

Comment on Findings and Recommendations: We concur with the auditor's finding that the balance in the excess residual receipts was above the limit allowed by HUD and was not remitted per HUD's guidelines. Action Taken or Planning: The Director of Accounting will review the Residual Receipts balance, determine amount eligible for retainage and return the remainder to HUD in accordance with current regulations.

View Audit 22540

Finding 22451 (2022-002)

None 2022

Drake Manor Housing Development Fund Corporation

MA

HUD Housing Programs

Name of Auditee: Drake Manor Housing Development Fund Corporation Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2022 CAP Prepared by: Brian Tasso, Controller Phone: 781-932-9229 (A) Current Finding on the Schedule of Findings and Responses (2) Audit ...

Name of Auditee: Drake Manor Housing Development Fund Corporation Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2022 CAP Prepared by: Brian Tasso, Controller Phone: 781-932-9229 (A) Current Finding on the Schedule of Findings and Responses (2) Audit Finding 2022-002 - Unauthorized Use of Project Funds (a) Comments on the finding and recommendation: Management agrees with the finding. (b) Actions Taken: Management will deposit the $17,826 as soon as possible. (c) Anticipated Completion Date: Management anticipates this finding will be resolved by December 31, 2023.

View Audit 22426

Finding 22450 (2022-001)

None 2022

Drake Manor Housing Development Fund Corporation

MA

HUD Housing Programs

Name of Auditee: Drake Manor Housing Development Fund Corporation Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2022 CAP Prepared by: Brian Tasso, Controller Phone: 781-932-9229 (A) Current Finding on the Schedule of Findings and Responses (1) Audit ...

Name of Auditee: Drake Manor Housing Development Fund Corporation Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: Year ended December 31, 2022 CAP Prepared by: Brian Tasso, Controller Phone: 781-932-9229 (A) Current Finding on the Schedule of Findings and Responses (1) Audit Finding 2022-001 - Supportive Housing for the Elderly - 14.157 (a) Comments on the finding and recommendation: Management agrees with the finding. (b) Actions Taken: Management will deposit the $4,749 as soon as cash flow permits. (c) Anticipated Completion Date: Management anticipates this finding will be resolved by December 31, 2023.

View Audit 22426

Finding 22429 (2022-001)

Material Weakness 2022

Las Animas / Bent County Housing Authority

CO

HUD Housing Programs Internal Control / Segregation of Duties

Views of responsible officials and corrective action plans: the one staff position turned over in 2021 and 2022 and the organization experienced recruitment difficulties in the small rural community. The Management Agent implemented a short-term solution by utilizing upper management to perform ess...

Views of responsible officials and corrective action plans: the one staff position turned over in 2021 and 2022 and the organization experienced recruitment difficulties in the small rural community. The Management Agent implemented a short-term solution by utilizing upper management to perform essential functions of the position until it was filled in early 2023 by permanent staff. In that short-term interim, HQS were performed if tenant had an issue that needed addressed, or a request was presented to LA/BC HA. It was also determined that PIC was not being updated in early 2022 due to staff performance and INSPIRE technology issues. Bi-annual inspections continued until permanent staff were hired. As of February 2023, the LA/BC HA has performed all HQS inspections to move to the triennial inspection allowable for small rural Housing Authorities. We believe this Finding has been resolved.

View Audit 20798

Finding 22401 (2022-006)

Material Weakness 2022

Iron County Housing Commission

MI

Special Tests & Provisions HUD Housing Programs Internal Control / Segregation of Duties

Housing Choice Vouchers ? CFDA 14.871 Recommendation: The Commission should implement policies and procedures to ensure the utility allowance schedule is updated yearly. Action Taken: New management has taken over the Commission subsequent to the period under audit and will implement stronger int...

Housing Choice Vouchers ? CFDA 14.871 Recommendation: The Commission should implement policies and procedures to ensure the utility allowance schedule is updated yearly. Action Taken: New management has taken over the Commission subsequent to the period under audit and will implement stronger internal controls over the utility allowance schedule. Anticipated Completion Date of Action: June 15, 2023

View Audit 20168

Finding 22400 (2022-005)

Material Weakness 2022

Iron County Housing Commission

MI

Special Tests & Provisions HUD Housing Programs Internal Control / Segregation of Duties

Housing Choice Vouchers ? CFDA 14.871 Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to housing quality inspections and HQS enforcement. Action Taken: New management has taken over the Commission subsequent to the ...

Housing Choice Vouchers ? CFDA 14.871 Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to housing quality inspections and HQS enforcement. Action Taken: New management has taken over the Commission subsequent to the period under audit and will implement stronger internal controls over housing quality inspections. Anticipated Completion Date of Action: June 15, 2023

View Audit 20168

Finding 22399 (2022-004)

Material Weakness 2022

Iron County Housing Commission

MI

Special Tests & Provisions HUD Housing Programs Internal Control / Segregation of Duties

Housing Choice Vouchers ? CFDA 14.871 Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to selection from the waiting list. Action Taken: New management has taken over the Commission subsequent to the period under aud...

Housing Choice Vouchers ? CFDA 14.871 Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to selection from the waiting list. Action Taken: New management has taken over the Commission subsequent to the period under audit and will implement stronger internal controls over ensuring support of selection from the waiting list is maintained in the tenant files. Anticipated Completion Date of Action: June 15, 2023

View Audit 20168

Finding 22398 (2022-003)

Material Weakness 2022

Iron County Housing Commission

MI

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Housing Choice Vouchers ? CFDA 14.871 Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to eligibility. Action Taken: New management has taken over the Commission subsequent to the period under audit and will ensure ...

Housing Choice Vouchers ? CFDA 14.871 Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to eligibility. Action Taken: New management has taken over the Commission subsequent to the period under audit and will ensure all staff members involved in the annual recertification and interim examinations are properly trained with respect to the rules and regulations pertaining to this process. Management will also implement stronger internal controls and policies regarding rent certifications. Anticipated Completion Date of Action: June 15, 2023

View Audit 20168

Finding 22397 (2022-002)

Significant Deficiency 2022

Iron County Housing Commission

MI

Questioned Costs Eligibility HUD Housing Programs

Recommendation: The Commission should consider reviewing its current policy regarding rent certifications. The Commission should ensure all persons involved in the certification process are properly trained and understand regulations in order to accurately identify errors. The Commission should ad...

Recommendation: The Commission should consider reviewing its current policy regarding rent certifications. The Commission should ensure all persons involved in the certification process are properly trained and understand regulations in order to accurately identify errors. The Commission should adopt policies and procedures that would require a second person to be involved in the certification process to ensure the accountability of tenant files. The reviewer should sign and date the verification form, evidencing the control is being performed.Action Taken: New management has taken over the Commission subsequent to the period under audit and will ensure all staff members involved in the annual recertification and interim examinations are properly trained with respect to the rules and regulations pertaining to this process. Management will also implement stronger internal controls and policies regarding rent certifications. Anticipated Completion Date of Action: June 15, 2023.

View Audit 20168 Questioned Costs: $1

Finding 22396 (2022-001)

None 2022

Senior Citizens Housing Development Corporation of Stonington

FL

HUD Housing Programs Eligibility Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Stonington respectfully submits the following corrective action plan for the year ended December 31, 2022. ...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Stonington 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. FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures to ensure that tenant income utilized at move-in is accurate in determining the tenant?s monthly rent, and verification through the EIV system is completed in a timely manner. The Project should have made an immediate correction to form HUD-50059 upon receiving the correct income from the EIV system. Action Taken: Training on income calculations and including the double checking of calculations more than once for accuracy will be conducted with managers. In addition, compliance has created an income calculation worksheet with formulas where managers can enter data and the worksheet will complete the calculations. 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 20246

Finding 22387 (2022-001)

None 2022

Gardenside Terrace, Inc.

IN

Questioned Costs HUD Housing Programs Reporting

Gardenside Terrace, Inc. respectfully submits the following Corrective Action Plan for the year ended October 31, 2022. Name and address of the independent public accounting firm who conducted the related audit: Comer, Nowling And Associates, P.C. 10475 Crosspoint Boulevard, Suite 200 Indianapo...

Gardenside Terrace, Inc. respectfully submits the following Corrective Action Plan for the year ended October 31, 2022. Name and address of the independent public accounting firm who conducted the related audit: Comer, Nowling And Associates, P.C. 10475 Crosspoint Boulevard, Suite 200 Indianapolis, Indiana 46256 Finding 2022-001 Corrective Action Planned ? No action needed. Management deposited $3,288 into the replacement reserve on December 9, 2022. Contact Person(s) Responsible ? Joe Holland, Director of Accounting, Kirkpatrick Management Anticipated Completion Date ? December 9, 2022 Auditee Disagreements ? N/A This corrective action plan was prepared by Kirkpatrick Management, the management company, on behalf of Gardenside Terrace, Inc. _______________________________ Joe Holland, Director of Accounting Kirkpatrick Management 5702 Kirkpatrick Way Indianapolis, Indiana 46220 317-570-4358

View Audit 20911 Questioned Costs: $1

Finding 22386 (2022-001)

Significant Deficiency 2022

Magnolia Housing Corporation of Natchitoches, Inc.

LA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Magnolia Manor has taken steps to assure that the Replacement Reserve account will not be underfunded again by making the transfer an automatic transfer from the Operating account to the Replacement Reserve account. The amount that the account was underfunded was deposited on September 15, 2022.

View Audit 20670

Finding 22263 (2022-001)

Significant Deficiency 2022

School District of Westfield

WI

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Eligibility

Finding #2022-001- Segregation of Duties (Prior Year Finding #2021-001) Condition: A properly designed system of internal control includes adequate staffing, policies, and procedures to properly segregate duties. This includes systems that are designed to limit access or control of any one individu...

Finding #2022-001- Segregation of Duties (Prior Year Finding #2021-001) Condition: A properly designed system of internal control includes adequate staffing, policies, and procedures to properly segregate duties. This includes systems that are designed to limit access or control of any one individual to your government?s assets, and to achieve a higher likelihood that errors or irregularities in your processes would be discovered by your staff. There are key controls related to significant transaction cycles that are important in reducing the risk of errors or irregularities. At this time, the District does not have the following controls in place: -Persons processing accounts payable are not always separate from those ordering or receiving goods or services. -Persons initiating electronic fund transfers are not separate from those authorizing, confirming, or reconciling the transactions. -There are no procedures in place for review and approval of new vendors. -Persons preparing the payroll also maintain employee records, change employee rates, and change data in the payroll system. -The person reviewing free and reduced food service eligibility can also modify information entered into the system to determine eligibility. -Account reconciliations are not performed by someone independent of the processing of transactions in the account. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities as a result of the lack of segregation of duties. Cause: Limited number of personnel. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or has the ability to both make and conceal an error, whether such error is intentional or unintentional. Recommendation: We recommend that the District consider the benefits of implementing additional policies and procedures to address key controls related to its significant transaction cycles as noted. Response: We agree with this finding but do not believe it is cost effective to increase the office staff in an attempt to bring about a more effective segregation of duties. The Building Principals and the Business Manager approve purchase orders and the Business Manager approves monthly accounts payable checks. Also, the Building Principals or department supervisors approve payroll timesheets prior to processing payroll. The payroll along with the time sheets are then approved by the Business Manager. The Business Manager, Building Principals, and department supervisors will continue to monitor transactions of the District. Contact Person: Greg Benz Anticipated Completion: Not applicable

View Audit 27055

Finding 22163 (2022-002)

None 2022

Palermo Lakes, Inc.

FL

HUD Housing Programs Subrecipient Monitoring Reporting

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding. Action Taken: Compliance Department is now monitoring and tracking PRAC contra...

FINDING No. 2022-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should comply with HUD regulations for timely renewal of the PRAC contract to ensure no interruption in funding. Action Taken: Compliance Department is now monitoring and tracking PRAC contract renewals for properties. Going forward, reminders and follow-up to deadlines will be conducted to ensure the contract renewal is completed. 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 23412

Finding 22162 (2022-001)

None 2022

Palermo Lakes, Inc.

FL

Cash Management HUD Housing Programs Reporting

Oversight Agency for Audit, Palermo Lakes, Inc. 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 per...

Oversight Agency for Audit, Palermo Lakes, Inc. 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, ALN 14.157 Recommendation: The Project should return the excess withdrawal to the replacement reserve account. Action Taken: Management has implemented a 3-step review process for all 9250?s prior to submitting them to HUD. In addition, the duplicated funds have been returned to the replacement reserve account.

View Audit 23412

Finding 22158 (2022-001)

Significant Deficiency 2022

Society of St. Vincent De Paul, Archdiocese of Galveston-Houston

TX

Eligibility HUD Housing Programs Significant Deficiency

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of Agriculture Food Distribution Cluster: Emergency Food Assistance Program (Food Commodities) Assistance Listing #10.569 Passed through The Houston Food Bank, Montgomery County Food Ban...

Finding #2022-001 ? Significant Deficiency and Other Noncompliance Applicable federal program: U. S. Department of Agriculture Food Distribution Cluster: Emergency Food Assistance Program (Food Commodities) Assistance Listing #10.569 Passed through The Houston Food Bank, Montgomery County Food Bank, and Galveston County Food Bank Contract Year: 10/01/21 ? 09/30/22 Recommendation: Communicate and emphasize adherence to contractual requirements for determining and documenting eligibility and retaining documentation and provide training to volunteers as needed to ensure compliance. Planned corrective action: We will implement action plans of retraining of Vincentian food pantry volunteers at the two food pantries that were missing application forms by March 31, 2023. The single audit requirements will be emphasized to ensure volunteers have a complete understanding of the policy and procedures. From April 1, 2023 through June 30, 2023, The Council will conduct internal audits to determine whether the deficiencies have been addressed. Responsible officer: Kirk Vogeley, Director of Finance Estimated completion date: June 30, 2023

View Audit 19425

Finding 22104 (2022-001)

Material Weakness 2022

Theatre for Children, Inc.

CA

HUD Housing Programs Matching / Level of Effort / Earmarking

Finding 2022-001: Financial Conditions Organization?s Response: We concur Views of Responsible Officials and Corrective Action: While we agree that COVID-19 created financial hardships, we do not feel that there is any risk of the organization not surviving. All six auditor recommendations were actu...

Finding 2022-001: Financial Conditions Organization?s Response: We concur Views of Responsible Officials and Corrective Action: While we agree that COVID-19 created financial hardships, we do not feel that there is any risk of the organization not surviving. All six auditor recommendations were actually accomplished prior to receiving this audit report?most significantly the creation of a strategic plan providing for a strong future of the organization. Name of Responsible Official: Lyndsay Burch Projected Implementation Date: Already implemented

View Audit 23437

Finding 22094 (2022-001)

Significant Deficiency 2022

City of Pittsburg

CA

HUD Housing Programs

SINGLE AUDIT FOR THE YEAR ENDED JUNE 30, 2022 CORRECTIVE ACTION PLAN FOR THE CITY OF PITTSBURG FINANCIAL STATEMENT FINDINGS-CURRENT YEAR: There were no financial statement findings in the current year. FEDERAL AWARD FINDINGS-CURRENT YEAR: Finding SA2022-001: Housing Quality Inspection...

SINGLE AUDIT FOR THE YEAR ENDED JUNE 30, 2022 CORRECTIVE ACTION PLAN FOR THE CITY OF PITTSBURG FINANCIAL STATEMENT FINDINGS-CURRENT YEAR: There were no financial statement findings in the current year. FEDERAL AWARD FINDINGS-CURRENT YEAR: Finding SA2022-001: Housing Quality Inspections and Re-Inspections for Units with Deficiencies Assistance Listing Number: 14.871 Assistance Listing Title: Section 8 Housing Choice Vouchers Program Name of Federal Agency: Department of Housing and Urban Development Federal Award Identification Number and Year: CA060VO (2022) Fiscal Year of Initial Finding: 2022: Name(s) of the contact person: ? Bruce Smargiasso, Tanya Ray Corrective Action Plan: ? The Housing Authority of the City of Pittsburg encountered many challenges post COVID operations. After 15 months of suspended inspections, the Housing Authority utilized a third-party vendor to conduct HQS inspections as well as send all inspection notices in a very short, compacted time period. In addition, two staff members were absent for several months near the end of this period making follow-up reporting difficult. ? As a result, HA Management & Staff have reinstituted a tracking log for 24-hour deficiencies and informed all Inspectors to notify the Housing Authority (HA) immediately. The HA has provided inspectors batteries for smoke detectors so 24-hour deficiencies can be more accurately tracked. ? In addition, the Housing Authority plans to implement a Request for Proposals (if needed under the HA Purchasing Policy) to execute a contract with a third-party vendor that will complete all aspects of HUD?s required inspection process. Anticipated Completion Date: ? The Housing Authority Manager has requested a quote for Inspection Services and will pursue an RFP if required. This process is anticipated to be executed within 90-120 days.

View Audit 22404

Finding 22090 (2022-001)

Material Weakness 2022

The Housing Authority of the City of West Point

MS

HUD Housing Programs

Corrective Action Plan (CAP) The management of the Housing Authority of the City of West Point (WPHA) has worked to establish and maintain effective internal controls over reporting while maintaining the WPHA during the COVID Pandemic. Executive Director Mauresha Harris is responsible for the imple...

Corrective Action Plan (CAP) The management of the Housing Authority of the City of West Point (WPHA) has worked to establish and maintain effective internal controls over reporting while maintaining the WPHA during the COVID Pandemic. Executive Director Mauresha Harris is responsible for the implementation of the corrective action plan. CAP developed to resolve audit finding: 2022-002 ? Federal Audit Deadlines not met. 1. The Executive Director shall keep a list of federal audit deadlines that are applicable to the WPHA in her office to reference to throughout the fiscal year. 2. Copies of these federal audit deadlines will be provided to each member of the WPHA?s board of commissioners. 3. The WPHA?s fiscal year end document will be provided to the WPHA?s fee accountant and auditor within a 40-day period subsequent to the WPHA?s fiscal year end.

View Audit 20296

Finding 22088 (2022-003)

Material Weakness 2022

Low Rent Housing Agency of Grinnell, Iowa

IA

Questioned Costs HUD Housing Programs Material Weakness

Section III: Finding 2022 ? 003 Deposit Collateralization Agree with finding. The Authority will contact its financial institution and other area financial institutions to meet the proper depository requirements and have depository agreement signed by financial institution.

View Audit 20049 Questioned Costs: $1

Finding 22087 (2022-002)

Material Weakness 2022

Low Rent Housing Agency of Grinnell, Iowa

IA

Questioned Costs Internal Control / Segregation of Duties Special Tests & Provisions

Section III: Finding 2022-002 Internal Control Structure Material Weakness ? Eligibility, Reporting and Special Tests and Provisions, Repeat Finding 2022-001 Agree with finding. The Authority is relatively small with limited administrative staff. Further, the Board of Commissioners is a volunteer...

Section III: Finding 2022-002 Internal Control Structure Material Weakness ? Eligibility, Reporting and Special Tests and Provisions, Repeat Finding 2022-001 Agree with finding. The Authority is relatively small with limited administrative staff. Further, the Board of Commissioners is a volunteer oversight board and not a managing board and does not have the time or expertise to provide the necessary services to correct the internal control deficiencies noted. The Board has reviewed the issue and determined that there are no additional procedures which can be reasonably done to eliminate the deficiencies and accepts them.

View Audit 20049 Questioned Costs: $1

Finding 22081 (2022-002)

Material Weakness 2022

Housing Authority of the County of Marin

CA

Questioned Costs HUD Housing Programs Eligibility

Finding 2022-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers - Mainstream Vouchers Federal Catalog Numbers: 14.871, 14.879 Noncompliance ? E. Eligibility ? Tenant Files Non Compliance Material t...

Finding 2022-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers - Mainstream Vouchers Federal Catalog Numbers: 14.871, 14.879 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 2,313 units. Of a sample size of forty-five (45) tenant files, the following was noted: - HUD 9886 Form was missing in 1 file - Verification of income was missing in 2 files - Verification of assets was missing in 1 file - HUD 50058 annual recertification was missing in 4 files - Original Application was missing in 5 files Our sample size is statistically valid. Known Questioned Costs: $215,596 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 Housing Voucher Cluster 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. Finding 2022-002 (continued): Authority Response: MHA agrees with the findings that some tenant file documents were essentially unavailable for examination at the time of the audit and that a system of consistent document filing, and regular file reviews are necessary. The ?missing? documents were subsequently found but in various electronic locations, thereby making them not easily accessible to the auditors. There were also timing issues, in that a recertification was begun in 2022 but not completed or made effective until 2023 once all documents had been received. ? The tenant documents will now be filed in one place, in Yardi as attachments to the Family Detail Info (FDI) screen in the proper subfolder depending upon subject (e.g. Assets, Income, Member). MHA is working to create and label the subfolders needed for this purpose. ? The contractor and internal staff will receive detailed instructions on how to file all documents, from the receipt of documents from the tenant to the commemoration of the transaction in a HUD Form 50058. All will be required to sign a confirmation they received such instructions. ? All new staff responsible for collecting documents, processing transactions and creating 50058s will obtain training in the correct system of filing such documents as part of their on-boarding packet of trainings. ? MHA will institute a quality control procedure for the regular review of random sample files at least quarterly to ensure that the filing system is being followed and the documents are complete and readily found. Views of responsible officials and planned corrective action: Susanne Joyce, HCV Program Manager, is responsible for implementing this corrective action by December 31, 2023.

View Audit 19934 Questioned Costs: $1

Corrective Action Plans

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