Corrective Action Plans

Finding 1164490 (2024-003)

Material Weakness 2024

PA

Special Tests & Provisions Cash Management HUD Housing Programs

Management’s Response: Although the Organization does not currently use an interest-bearing account for project funds, due to the ongoing operation of the program and continuous activity within the project funds account, any interest earned in such an account would be negligible. Management is in th...

Management’s Response: Although the Organization does not currently use an interest-bearing account for project funds, due to the ongoing operation of the program and continuous activity within the project funds account, any interest earned in such an account would be negligible. Management is in the process of evaluating this recommendation to determine the appropriate course of action.

View Audit 374062

Finding 1164488 (2024-002)

Material Weakness 2024

Catholic Housing Corporation of Mt Penn

PA

HUD Housing Programs Significant Deficiency

Management’s Response: Management agrees with the finding above. Both the CEO and Director of Finance have been replaced by a new transitional CEO and Director of Finance and they will review the existing accounting policies and procedures and implement appropriate procedures and controls to incorpo...

Management’s Response: Management agrees with the finding above. Both the CEO and Director of Finance have been replaced by a new transitional CEO and Director of Finance and they will review the existing accounting policies and procedures and implement appropriate procedures and controls to incorporate the recommendations above.

View Audit 374062

Finding 1164486 (2024-003)

Material Weakness 2024

Catholic Housing Corporation of Lansford

PA

Special Tests & Provisions Cash Management HUD Housing Programs

Management’s Response: Although the Corporation does not currently use an interest-bearing account for project funds, due to the ongoing operation of the program and continuous activity within the project funds account, any interest earned in such an account would be negligible. Management is in the...

Management’s Response: Although the Corporation does not currently use an interest-bearing account for project funds, due to the ongoing operation of the program and continuous activity within the project funds account, any interest earned in such an account would be negligible. Management is in the process of evaluating this recommendation to determine the appropriate course of action.

View Audit 374060

Finding 1164484 (2024-002)

Material Weakness 2024

Catholic Housing Corporation of Lansford

PA

HUD Housing Programs Significant Deficiency

Management’s Response: Management agrees with the finding above. Both the CEO and Director of Finance have been replaced by a new transitional CEO and Director of Finance and they will review the existing accounting policies and procedures and implement appropriate procedures and controls to incorpo...

Management’s Response: Management agrees with the finding above. Both the CEO and Director of Finance have been replaced by a new transitional CEO and Director of Finance and they will review the existing accounting policies and procedures and implement appropriate procedures and controls to incorporate the recommendations above.

View Audit 374060

Finding 1164481 (2024-002)

Material Weakness 2024

Goose II Housing Development Fund Company, Inc.

NY

Questioned Costs HUD Housing Programs Eligibility

2024-002: Section 202, Assistance Listing No. 14.157 Two tenant files were selected for testing and for both the required documentation to determine eligibility, as required by the HUD regulations, could not be located as follows: • Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tena...

2024-002: Section 202, Assistance Listing No. 14.157 Two tenant files were selected for testing and for both the required documentation to determine eligibility, as required by the HUD regulations, could not be located as follows: • Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures was not updated before the tenant’s anniversary date. • There was no verification of income by a third party provided. • There was no signed move-in/move-out inspection form provided. • There was no signed lease provided. Additionally, our testing indicated that the required deposits to the replacement reserve account had not been made for the last quarter of the Corporation’s fiscal year for any tenants. Recommendation: We recommend the Corporation establish procedures and internal controls to ensure that all required documentation is maintained, and all required reserve deposits are made timely, in accordance with HUD requirements. Action Taken: Management concurs with this recommendation. Since assuming property management on June 1, 2025, ULREDC has conducted a tenant file audit. All property management staff have been properly trained to ensure compliance with certification, documentation, and inspection requirements. Missing documentation, including Form HUD-50059, income verifications, and leasing inspections, is being corrected. Replacement reserve deposits were delayed because properties were not cash flowing. As leasing stabilizes, deposits will resume and be verified once RealPage is fully active. RealPage will serve as the compliance and record-retention platform. Quarterly internal compliance reviews will be instituted to confirm file accuracy and documentation completeness.

View Audit 374026 Questioned Costs: $1

Finding 1164479 (2024-002)

Material Weakness 2024

West Henrietta Housing Development Fund Corporation

NY

Questioned Costs HUD Housing Programs Eligibility

MATERIAL WEAKNESS 2024-002: Section 202, Assistance Listing No. 14.157 One tenant file was selected for testing and the following findings were noted: • Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures was not updated for the year tested • Move-in...

MATERIAL WEAKNESS 2024-002: Section 202, Assistance Listing No. 14.157 One tenant file was selected for testing and the following findings were noted: • Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures was not updated for the year tested • Move-in/move-out inspection form was not provided • Lease was not provided • Annual recertification of income by a third party was not provided Additionally, our testing indicated that the required deposits to the replacement reserve account had not been made for the last quarter of the Corporation’s fiscal year for any tenants. Recommendation: We recommend the Corporation establish procedures and internal controls to ensure that all required documentation is maintained, and all required reserve deposits are made timely, in accordance with HUD requirements. Action Taken: Management concurs with this recommendation. Since assuming property management on June 1, 2025, ULREDC has conducted a tenant file audit. All property management staff have been properly trained to ensure compliance with certification, documentation, and inspection requirements. Missing documentation, including Form HUD-50059, income verifications, and leasing inspections, is being corrected. Replacement reserve deposits were delayed because properties were not cash flowing. As leasing stabilizes, deposits will resume and be verified once RealPage is fully active. RealPage will serve as the compliance and record-retention platform. Quarterly internal compliance reviews will be instituted to confirm file accuracy and documentation completeness.

View Audit 374024 Questioned Costs: $1

Finding 1164477 (2024-002)

Material Weakness 2024

East River Road Housing Development Fund Company,inc.

NY

HUD Housing Programs Eligibility

2024-002: Section 202, Assistance Listing No. 14.157 Two tenant files were selected for testing and signatures, as required by HUD regulations, were missing from Form HUD-50059, Owner’s Certification of Compliance. Additionally, our testing indicated that the required deposits to the replacement res...

2024-002: Section 202, Assistance Listing No. 14.157 Two tenant files were selected for testing and signatures, as required by HUD regulations, were missing from Form HUD-50059, Owner’s Certification of Compliance. Additionally, our testing indicated that the required deposits to the replacement reserve account had not been made for the last quarter of the Corporation’s fiscal year for any tenants. Recommendation: We recommend the Corporation establish procedures and internal controls to ensure that all required documentation is maintained, and all required reserve deposits are made timely, in accordance with HUD requirements. Action Taken: Management concurs with this recommendation. Since assuming property management on June 1, 2025, ULREDC has conducted a tenant file audit. All property management staff have been properly trained to ensure compliance with certification, documentation, and inspection requirements. Missing documentation, including Form HUD-50059, income verifications, and leasing inspections, is being corrected. Replacement reserve deposits were delayed because properties were not cash flowing. As leasing stabilizes, deposits will resume and be verified once RealPage is fully active. RealPage will serve as the compliance and record-retention platform. Quarterly internal compliance reviews will be instituted to confirm file accuracy and documentation completeness.

View Audit 374022

Finding 1164475 (2024-002)

Material Weakness 2024

Corn Hill Housing Development Fund Corporation

NY

HUD Housing Programs

2024-002: Section 811, Assistance Listing No. 14.181 One tenant file was selected for testing and the following items were noted: • Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures was not signed • Move-in/move-out inspection form was not provided...

2024-002: Section 811, Assistance Listing No. 14.181 One tenant file was selected for testing and the following items were noted: • Form HUD-50059, Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures was not signed • Move-in/move-out inspection form was not provided • Lease was not signed Additionally, our testing indicated that the required deposits to the replacement reserve account had not been made for the last quarter of the Corporation’s fiscal year for any tenants. Recommendation: We recommend the Corporation establish procedures and internal controls to ensure that all required documentation is maintained, and all required reserve deposits are made timely, in accordance with HUD requirements. Action Taken: Management concurs with this recommendation. Since assuming property management on June 1, 2025, ULREDC has conducted a tenant file audit. All property management staff have been properly trained to ensure compliance with certification, documentation, and inspection requirements. Missing documentation, including Form HUD-50059, income verifications, and leasing inspections, is being corrected. Replacement reserve deposits were delayed because properties were not cash flowing. As leasing stabilizes, deposits will resume and be verified once RealPage is fully active. RealPage will serve as the compliance and record-retention platform. Quarterly internal compliance reviews will be instituted to confirm file accuracy and documentation completeness.

View Audit 374018

Finding 1164473 (2024-002)

Material Weakness 2024

Akeley Landing Housing Development Fund Company, Inc.

NY

Questioned Costs HUD Housing Programs Eligibility

2024-002: Section 202, Assistance Listing No. 14.157 One tenant file was selected for testing, and none of the required documentation to determine eligibility, as required by the HUD regulations, was provided. Additionally, our testing indicated that the required deposits to the replacement reserve ...

2024-002: Section 202, Assistance Listing No. 14.157 One tenant file was selected for testing, and none of the required documentation to determine eligibility, as required by the HUD regulations, was provided. Additionally, our testing indicated that the required deposits to the replacement reserve account had not been made for the last quarter of the Corporation’s fiscal year for any tenants. Recommendation: We recommend the Corporation establish procedures and internal controls to ensure that all required documentation is maintained, and all required reserve deposits are made timely, in accordance with HUD requirements. Action Taken: Management concurs with this recommendation. Since assuming property management on June 1, 2025, ULREDC has conducted a tenant file audit. All property management staff have been properly trained to ensure compliance with certification, documentation, and inspection requirements. Missing documentation, including Form HUD-50059, income verifications, and leasing inspections, is being corrected. Replacement reserve deposits were delayed because properties were not cash flowing. As leasing stabilizes, deposits will resume and be verified once RealPage is fully active. RealPage will serve as the compliance and record-retention platform. Quarterly internal compliance reviews will be instituted to confirm file accuracy and documentation completeness.

View Audit 374016 Questioned Costs: $1

Finding 1164471 (2024-002)

Material Weakness 2024

Blossom Village Housing Development Fund Corporation

NY

HUD Housing Programs

2024-002: Section 811, Assistance Listing No. 14.181 Three tenant files were selected for testing and the required documentation to determine eligibility, as required by the HUD regulations, could not be located as follows: • One of the files was missing Form HUD-50059, Owner’s Certification of Comp...

2024-002: Section 811, Assistance Listing No. 14.181 Three tenant files were selected for testing and the required documentation to determine eligibility, as required by the HUD regulations, could not be located as follows: • One of the files was missing Form HUD-50059, Owner’s Certification of Compliance. • One of the files was missing verification of income by a third party. • All three of the files were missing signed move-in/move-out inspection forms. Additionally, our testing indicated that the required deposits to the replacement reserve account had not been made for the last quarter of the Corporation’s fiscal year for any tenants. Recommendation: We recommend the Corporation establish procedures and internal controls to ensure that all required documentation is maintained, and all required reserve deposits are made timely, in accordance with HUD requirements. Action Taken: Management concurs with this recommendation. Since assuming property management on June 1, 2025, ULREDC has conducted a tenant file audit. All property management staff have been properly trained to ensure compliance with certification, documentation, and inspection requirements. Missing documentation, including Form HUD-50059, income verifications, and leasing inspections, is being corrected. Replacement reserve deposits were delayed because properties were not cash flowing. As leasing stabilizes, deposits will resume and be verified once RealPage is fully active. RealPage will serve as the compliance and record-retention platform. Quarterly internal compliance reviews will be instituted to confirm file accuracy and documentation completeness. We are committed to compliance and accuracy as required by the U.S. Department of Housing and Urban Development. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please contact Dr. Hawkins at shawkins@ulr.org.

View Audit 374015

Finding 1164423 (2024-007)

Material Weakness 2024

Reach Community Development, Inc.

OR

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Finding No. 2024-007 HUD Low Income Housing Preservation and Resident Homeownership Act of 1990 Federal Assistance Listing Number #99.999 Statement of Condition The owner was unable to provide support that they ensured passing HQS inspections were performed during 2024. Corrective Action Plan REACH ...

Finding No. 2024-007 HUD Low Income Housing Preservation and Resident Homeownership Act of 1990 Federal Assistance Listing Number #99.999 Statement of Condition The owner was unable to provide support that they ensured passing HQS inspections were performed during 2024. Corrective Action Plan REACH has policies in place for annual HQS inspections. During the audit, we were informed that the inspection form did not include inspection, work orders, and re-inspection. As a result of the 2024 audit, Management implemented using a new form in 2025 to capture inspection, work orders, and re-inspection.

View Audit 373851

Finding 1164421 (2024-005)

Material Weakness 2024

Reach Community Development, Inc.

OR

Eligibility HUD Housing Programs Material Weakness

Finding No. 2024-005 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Statement of Condition The owner was unable to provide a listing that detailed the available to HOME tenants the contracted number and type of HOME units and therefore we were unable to test the H...

Finding No. 2024-005 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Statement of Condition The owner was unable to provide a listing that detailed the available to HOME tenants the contracted number and type of HOME units and therefore we were unable to test the HOME program compliance for the audit year. Corrective Action Plan REACH utilizes a 3rd party property management company to manage the two properties located in Washougal, Washington. Management is setting up a new process to ensure that the 3rd party property management company can provide all required information.

View Audit 373851

Finding 1164420 (2024-004)

Material Weakness 2024

Reach Community Development, Inc.

OR

Eligibility HUD Housing Programs Significant Deficiency

Finding No. 2024-004 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Statement of Condition The owner did not make available to HOME tenants the contracted number and type of HOME units. This is considered a temporary noncompliance as follows: "Next Available Unit"...

Finding No. 2024-004 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Statement of Condition The owner did not make available to HOME tenants the contracted number and type of HOME units. This is considered a temporary noncompliance as follows: "Next Available Unit" rule: The owner must rent the next comparable or smaller unit that becomes vacant to a low-income household. Temporary noncompliance: The unit is temporarily out of compliance with HOME requirements, but the property can regain compliance by following the "next available unit" rule. Unit conversion: If the owner fails to comply and rents a comparable vacant unit to a non-low-income tenant, the over-income unit loses its low-income status and the building's compliance is reduced. A two bedroom unit did become available in 2024 and this tenant was not relocated. Corrective Action Plan A new review process is in placed to review the HOME units that will be re-classified the next time there is a vacant unit of the corresponding size/type.

View Audit 373851

Finding 1164419 (2024-003)

Material Weakness 2024

Reach Community Development, Inc.

OR

Eligibility HUD Housing Programs Significant Deficiency

Finding No. 2024-003 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Statement of Condition The owner did not make available to HOME tenants the contracted number and type of HOME units. Corrective Action Plan A new process is in placed to review HOME unit count wh...

Finding No. 2024-003 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Statement of Condition The owner did not make available to HOME tenants the contracted number and type of HOME units. Corrective Action Plan A new process is in placed to review HOME unit count when a unit becomes available.

View Audit 373851

Finding 1164418 (2024-002)

Material Weakness 2024

Reach Community Development, Inc.

OR

Eligibility HUD Housing Programs Significant Deficiency

Finding No. 2024-002 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Statement of Condition In connection with our lease file review, we noted six instances of eight tenants tested where management did not provide support that they performed a 3rd party income veri...

Finding No. 2024-002 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Statement of Condition In connection with our lease file review, we noted six instances of eight tenants tested where management did not provide support that they performed a 3rd party income verification in accordance with policy. Corrective Action Plan As a result of the 2024 audit, a new process is set up to ensure that new employees receive HUD annual training. Management will continue to ensure that 3rd party income verification is performed in accordance with policy.

View Audit 373851

Finding 1164417 (2024-001)

Material Weakness 2024

Reach Community Development, Inc.

OR

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Finding No. 2024-001 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Statement of Condition The owner did not ensure passing HQS inspections were performed during 2024. Corrective Action Plan REACH has policies in place for annual HQS inspections, and in 2023 retur...

Finding No. 2024-001 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Statement of Condition The owner did not ensure passing HQS inspections were performed during 2024. Corrective Action Plan REACH has policies in place for annual HQS inspections, and in 2023 returned to performing these inspections after suspending this activity during prior years impacted by COVID-era policies. Though inspections were performed according to requirements, during the audit we were informed that our inspection form did not include details related to inspection follow-up, work orders and re-inspection. As a result of the 2024 audit, Management implemented the use of a new form in 2025 to capture this additional information related to inspections, work orders and re-inspection

View Audit 373851

Finding 1164398 (2024-008)

Material Weakness 2024

Camillus House, Inc. and Subsidiaries

FL

Special Tests & Provisions Allowable Costs / Cost Principles HUD Housing Programs

Camillus House will be implementing enhanced procedures to ensure full compliance with HUD rent reasonableness requirements, including establishing standardized documentation protocols, instituting supervisory review prior to payment approval, providing staff training on rent reasonableness standard...

Camillus House will be implementing enhanced procedures to ensure full compliance with HUD rent reasonableness requirements, including establishing standardized documentation protocols, instituting supervisory review prior to payment approval, providing staff training on rent reasonableness standards, and conducting ongoing quarterly monitoring to verify compliance. These corrective actions are designed to ensure that all rental payments under the Continuum of Care Program are properly supported, reviewed, and retained in accordance with federal regulations by June, 2026.

View Audit 373839

Finding 1164282 (2024-003)

Material Weakness 2024

Mac Housing Development Fund Corporation

NY

HUD Housing Programs Special Tests & Provisions Cash Management

Name of auditee: MAC Housing Development Fund Corporation TIN: 014-EE134 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: September 30, 2024 CAP prepared by: Amanda Hamilton Finance Director Franklin County Community Housing Council, Inc. (518) 483-5934 Current Finding on the Sche...

Name of auditee: MAC Housing Development Fund Corporation TIN: 014-EE134 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: September 30, 2024 CAP prepared by: Amanda Hamilton Finance Director Franklin County Community Housing Council, Inc. (518) 483-5934 Current Finding on the Schedule of Findings and Questioned Costs and Recommendations (3) Finding 2024-003 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management has deposited the underfunded amount as of the date of this report.

View Audit 373668

Finding 1164281 (2024-002)

Material Weakness 2024

Mac Housing Development Fund Corporation

NY

Special Tests & Provisions HUD Housing Programs

Name of auditee: MAC Housing Development Fund Corporation TIN: 014-EE134 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: September 30, 2024 CAP prepared by: Amanda Hamilton Finance Director Franklin County Community Housing Council, Inc. (518) 483-5934 Current Finding on the Sche...

Name of auditee: MAC Housing Development Fund Corporation TIN: 014-EE134 Name of Audit Firm: EFPR Group, CPAs, PLLC Period covered by audit: September 30, 2024 CAP prepared by: Amanda Hamilton Finance Director Franklin County Community Housing Council, Inc. (518) 483-5934 Current Finding on the Schedule of Findings and Questioned Costs and Recommendations (2) Finding 2024-002 (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management has deposited the underfunded amount as of the date of this report.

View Audit 373668

Finding 1164259 (2024-001)

Material Weakness 2024

Hiv Alliance INC

OR

Allowable Costs / Cost Principles Internal Control / Segregation of Duties Subrecipient Monitoring § 200.303

U.S. Department of Health and Human Services Significant Deficiency in Internal Controls over Compliance: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Recommendation: CLA recommends that additional emphasis of documentary evidence of approvals be made, and such evidenc...

U.S. Department of Health and Human Services Significant Deficiency in Internal Controls over Compliance: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting Recommendation: CLA recommends that additional emphasis of documentary evidence of approvals be made, and such evidence obtained and retained by the Alliance as proof of oversight of expenditure of federal funds. Additionally, CLA recommends increased emphasis and training on the importance of consistent application of procedures and controls. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: All reports relating to a federally funded project will be reviewed prior to being submitted to the funding agency and documentation relating to that review will be retained by HIV Alliance. Name(s) of the contact person(s) responsible for corrective action: Renee Yandel, Executive Director; Wayne Hamblin, Finance Director Planned completion date for corrective action plan: July 1, 2025

View Audit 373559

Finding 1163592 (2024-002)

Material Weakness 2024

Zvago Cooperative at Long Lake

MN

Special Tests & Provisions HUD Housing Programs Significant Deficiency

The Cooperative is making required deposits to the General Operating Reserve. Management will implement a process to ensure deposits are made as required by the HUD regulatory agreement.

View Audit 373336

Finding 1163581 (2024-005)

Material Weakness 2024

Housing Authority of the City of Asheville

NC

Questioned Costs HUD Housing Programs Special Tests & Provisions

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers & Housing Voucher Cluster Federal Assistance Listing Numbers: 14.881, 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisio...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers & Housing Voucher Cluster Federal Assistance Listing Numbers: 14.881, 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisions – HQS Inspections Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family at least biennially to determine if the unit meets HQS standards and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports 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 inspection reports that were unavailable for examination at the time of audit. Context: Of a sample size of thirty-six (36) units in the Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers, one (1) unit did not have a biennial HQS inspection performed. Of a sample size of fifteen (15) units in the Housing Voucher Cluster, three (3) units did not have a have a biennial HQS inspection performed. Our sample size is statistically valid. Known Questioned Costs: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers Program: $4,000 Housing Voucher Cluster: $9,268 Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. 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 Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and Housing Voucher Cluster are in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Auditors' Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement related to HQS inspections. View of Responsible Officials and Corrective Actions: The Authority has recognized the significant deficiency in the Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and Housing Voucher Cluster and will implement internal control procedures that will ensure compliance with federal regulations. Noelle Tackett, Director of the Housing Choice Voucher Program, will be responsible to implement this corrective action by December 31, 2025.

View Audit 373324 Questioned Costs: $1

Finding 1163580 (2024-004)

Material Weakness 2024

Housing Authority of the City of Asheville

NC

Questioned Costs HUD Housing Programs

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers & Housing Voucher Cluster Federal Assistance Listing Numbers: 14.881, 14.871, 14.879, 14.EHV Noncompliance – E. Eligibility – Tenant Files...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers & Housing Voucher Cluster Federal Assistance Listing Numbers: 14.881, 14.871, 14.879, 14.EHV 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: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers Program: There are approximately 2,556 units. Of a sample size of thirty-six (36) tenant files, the following information was unavailable for examination at the time of audit: • Original application was missing in three (3) files • HUD-9887 form was missing in two (2) files • Lead based paint form was missing in one (1) file • Signed lease was missing in four (4) files • Verification of income was missing in two (2) files Housing Voucher Cluster: There are approximately 347 units. Of a sample size of fifteen (15) tenant files, the following information was unavailable for examination at the time of audit: • Citizenship declaration form was missing in one (1) file • Signed lease was missing in one (1) files • Verification of income was missing in two (2) files Our sample size is statistically valid. Known Questioned Costs: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers Program: $21,643 Housing Voucher Cluster: $34,166 Cause: There is a material weakness in internal controls over the compliance in the Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and Housing Voucher Cluster 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 Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and Housing Voucher Cluster are in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Auditors' Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement related to eligibility requirements. View of Responsible Officials and Corrective Actions: The Authority accepts the recommendation of the auditor on the inspection of tenant files and has made arrangements to comply with the Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and Housing Voucher Cluster. Noelle Tackett, Director of the Housing Choice Voucher Program, will be responsible to implement this corrective action by December 31, 2025.

View Audit 373324 Questioned Costs: $1

Finding 1163579 (2024-003)

Material Weakness 2024

Housing Authority of the City of Asheville

NC

Questioned Costs HUD Housing Programs Special Tests & Provisions

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers & Housing Voucher Cluster Federal Assistance Listing Numbers: 14.881, 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisio...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers & Housing Voucher Cluster Federal Assistance Listing Numbers: 14.881, 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) & HQS Enforcement Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS & HQS Enforcement. For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct all life threatening HQS deficiencies within 24 hours after the inspections and all other deficiencies within 30 days or within a specified PHA-approved extension. Condition: Based upon inspection of the Authority’s files and on discussion with management, the Authority did not properly abate or provide proper extension documentation for failed inspections selected for testing. In addition, there were inspection reports that were unavailable for examination at the time of audit. Context: The Authority did not properly abate thirteen (13) out of twenty-five (25) annual failed inspections selected for testing in the Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers Program. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). The Authority did not properly abate one (1) out of two (2) annual failed inspections selected for testing in the Housing Voucher Cluster. Additionally, the Authority was unable to provide inspection reports for 2 (two) out of 2 (two) failed inspections selected for testing, therefore we were unable to determine if the unit passed reinspection within the required time in the Housing Voucher Cluster. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: Moving to Work Demonstration Program - Section 8 Housing Choice Vouchers Program: $22,500 Housing Voucher Cluster: $6,940 Cause: There is a material weakness in internal controls over the compliance in the Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and the Housing Voucher Cluster for the special tests and provisions type of compliance related to HQS enforcement. 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 Moving to Work Demonstration - Section 8 Housing Choice Vouchers Program and Housing Voucher Cluster are in material non-compliance with the special tests and provisions type of compliance related to HQS enforcement. Auditors' Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement related to HQS enforcement. View of Responsible Officials and Corrective Actions: The Authority accepts the recommendation of the auditor regarding HQS inspections and has made arrangements to comply with the Moving to Work Demonstration - Section 8 Housing Choice Vouchers program. Noelle Tackett, Director of the Housing Choice Voucher Program, will be responsible to implement this corrective action by December 31, 2025.

View Audit 373324 Questioned Costs: $1

Finding 1163578 (2024-006)

Material Weakness 2024

Housing Authority of the City of Asheville

NC

HUD Housing Programs Special Tests & Provisions Reporting

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisions – Depository Agreements Non Compliance Material to the Financial Statements: No ...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, 14.EHV Noncompliance – N. Special Tests and Provisions – Depository Agreements Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: PHAs are required to enter into general depository agreements (GDA) with their financial institutions in the form required by HUD. The agreements serve as safeguards for federal funds and provide third party rights to HUD. Among the terms in many agreements are requirements for funds to be placed in an interest-bearing account (24 CFR section 982.156). Condition: Based on inspection of files and discussions with management, it was determined that the depository agreements were signed after the reporting period. Context: The Authority did not have signed depository agreements with their financial institutions on file during the reporting period, therefore we were unable to verify the existence of depository agreements and unable to determine if the Authority met the terms of the agreements. Cause: There is a significant deficiency in internal controls over compliance for the special tests and provision type of compliance related to depository agreements. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls for their partnered management company that assures the program is in compliance. Effect: The Housing Voucher Cluster is in noncompliance with the special tests and provisions type of compliance related to depository agreements. Auditors' Recommendation: We recommend that the Authority properly file HUD-51999 forms in accordance with HUD guidelines. View of Responsible Officials and Corrective Actions: The Authority accepts the recommendation of the auditor and will properly file HUD- 51999 forms in accordance with HUD guidelines. Noelle Tackett, Director of the Housing Choice Voucher Program, will be responsible to implement this corrective action by December 31, 2025.

View Audit 373324

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