Corrective Action Plans

Finding 1165631 (2025-003)

Material Weakness 2025

WI

Internal Control / Segregation of Duties Cash Management HUD Housing Programs

Child Nutrition Cluster – Assistance Listing No. 10.553 and 10.555 Recommendation: The auditors recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is different from the individual responsib...

Child Nutrition Cluster – Assistance Listing No. 10.553 and 10.555 Recommendation: The auditors recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is different from the individual responsible for preparing, even when there are gaps of coverage in preparer and reviewer positions, and that the review and approval happens prior to submitting the reports to the granting agency. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The District acknowledges the oversight in the separation of duties for preparation and reviewing of reports. Corrective measures have been implemented to require assignment of a preparer different from the approver before finalizing the report. The procedures for submitting monthly claims have been updated to include submitting the report to the Finance Director for review and approval prior to submission. The Finance Director has added a monthly calendar reminder to review claim submission reports as part of the internal control process. Name(s) of the contact person(s) responsible for corrective action: Steven Van Wyhe Planned completion date for corrective action plan: Immediately

View Audit 376301

Finding 1165427 (2025-001)

Material Weakness 2025

Detroit Public Schools Community District

MI

Subrecipient Monitoring Cash Management HUD Housing Programs § 200.403

Condition: Costs charged to ALN 97.036 – Disaster Grants: Public Assistance were also charged to ALN 84.425 - Education Stabilization Fund (Elementary and Secondary School Emergency Relief - "ESSER") in prior fiscal years, indicating potential duplication of expenditures across federal programs. Pla...

Condition: Costs charged to ALN 97.036 – Disaster Grants: Public Assistance were also charged to ALN 84.425 - Education Stabilization Fund (Elementary and Secondary School Emergency Relief - "ESSER") in prior fiscal years, indicating potential duplication of expenditures across federal programs. Planned Corrective Action: The District applied for reimbursement of potentially eligible COVID expenditures in 2022. Per an April 5, 2022 FEMA memo “FEMA Continues Funding to Support the Safe Operations of Schools”, school districts could apply for reimbursement for ESSER funded expenditures, and then upon approval of application shift the funds to general fund. “Schools and school districts may utilize FEMA Public Assistance to receive full reimbursement for costs for the purposes above. Schools and districts may also use Elementary and Secondary School Emergency Relief (ESSER) funding from the U.S. Department of Education as a way to provide the up-front cost for the above health and safety measures, and later seek reimbursement through the FEMA Public Assistance process. For example, a local education agency (LEA) may use ESSER funds for costs that may ultimately be covered by FEMA; however, once it receives funds from FEMA for those costs, it must reimburse the ESSER grant account.” FEMA provided District award notification for COVID testing in December 2024 and January 2025, by this time the ESSER grant had closed on September 30, 2024 and the final expenditure reports for ESSER had been submitted to MDE in November 2024. Therefore the District could not complete the allowable general fund swaps. The District notified Michigan Department of Education and Michigan State Police of the timing issue. Upon request from MI State Police, the District provided documentation that available general funds were available to conduct the swaps if the FEMA approval had been received in a timely manner. Contact person responsible for corrective action: Jeremy Vidito, CFO Anticipated Completion Date: Requested documentation was submitted to Michigan State Police on November 7, 2025

View Audit 376137

Finding 1165396 (2025-001)

Material Weakness 2025

Harlingen Housing Authority

TX

HUD Housing Programs Internal Control / Segregation of Duties § 200.302 § 200.303

Finding: 2025-001 Incomplete Tenant Records - Section 8 HCV Program (ALN 14.871) Condition: 1. For one (I) tenant, income verification was not performed for the current During our review of forty ( 40) tenant files under the Section 8 Housing Choice Voucher (HCV) Program, we identified multiple inst...

Finding: 2025-001 Incomplete Tenant Records - Section 8 HCV Program (ALN 14.871) Condition: 1. For one (I) tenant, income verification was not performed for the current During our review of forty ( 40) tenant files under the Section 8 Housing Choice Voucher (HCV) Program, we identified multiple instances of missing documentation and compliance lapses: year, and prior year income was rolled forward. The HUD-50058 (Family Report) form was reviewed in the PIC system but was not present in the tenant file. 2. For one (I) tenant, the Approved Lease, HUD-52517 (Request for Tenancy Approval), and HUD-52641 (HAP Contract) forms were not present in the tenant file. Recommendation: We recommend that the Housing Authority strengthen internal controls over tenant file documentation by implementing a standardized checklist to ensure all required forms and records are consistently retained. Staff should receive periodic training on HUD documentation and compliance requirements to reinforce expectations and reduce errors. Management should also conduct routine internal reviews to verify that income verification and lease documentation are properly completed and maintained. These measures will help ensure that tenant eligibility and payment determinations are adequately supported and compliant with federal regulations. Planned Corrective Action: To address these findings, the Housing Authority will implement a standardized checklist for all tenant file changes, ensuring that all required forms and records are consistently retained. The Program Administrator and staff will conduct monthly reviews of completed re-examinations to verify that all necessary documentation is present and properly filed. All paperwork related to annual reexams, transfers, move-ins, and interims will be scanned into the Lindsey software system within five working days of receipt, prior to physical filing. The Program Administrator will organize monthly training sessions on HCY/S8 program requirements, with participation tracked to ensure all staff attend. Weekly spot checks will be performed to confirm that the checklist is being used appropriately. These actions will be supported by updated training materials, access to the Lindsey software, and dedicated staff time for audits and training. To mitigate risks such as incomplete documentation, missed scanning deadlines, or low training attendance, the Housing Authority will implement pre-audit checklists, set automated reminders for staff, and make training mandatory. Management will monitor the implementation of these corrective actions and conduct follow-up reviews to ensure sustained compliance with HUD regulations.

View Audit 376005

Finding 1165388 (2025-004)

Material Weakness 2025

Independent School District No. 593

MN

Internal Control / Segregation of Duties Cash Management HUD Housing Programs

Contact Person – Randal Bergquist, Superintendent Corrective Action Plan – The District will implement policies and procedures to ensure all monthly reimbursement reports are reviewed and approved before they are submitted. Completion Date – January 31, 2026

View Audit 375994

Finding 1165302 (2025-001)

Material Weakness 2025

Housing Authority of Lake City

SC

HUD Housing Programs Allowable Costs / Cost Principles Cash Management

2025-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. In 2021, the Authority was instructed by Keith Landrum of the Colu...

2025-001 ALN 14.871 – Housing Voucher Cluster – Activities Allowed or Unallowed The Executive Director acknowledges the finding and is following the auditor's recommendation as listed in the Schedule of Findings and Questioned Costs. In 2021, the Authority was instructed by Keith Landrum of the Columbia, South Carolina HUD Field Office to stop making payments until the matter could be further investigated to see what amounts, if any, are still owed. Management will continue to monitor budgets to ensure that funds are adequate. Management has and will continue to make budget revisions to reduce unessential operating costs. The Authority has designed and implemented a Board approved formal repayment agreement. Person Responsible for Correction of Finding: Mark Fountain, Executive Director Projected Completion Date: June 30, 2026

View Audit 375853

Finding 1165298 (2025-001)

Material Weakness 2025

Somerville Housing Authority

MA

HUD Housing Programs

Finding 2025-001 – Housing Choice Voucher Tenant Files – Eligibility – Rent Calculations Noncompliance & Significant Deficiency Section 8 Housing Choice Voucher Cluster – ALNs 14.871 and 14.879 Corrective Action Plan: Finding: Somerville Housing Authority (SHA) received the authority’s Single Audit ...

Finding 2025-001 – Housing Choice Voucher Tenant Files – Eligibility – Rent Calculations Noncompliance & Significant Deficiency Section 8 Housing Choice Voucher Cluster – ALNs 14.871 and 14.879 Corrective Action Plan: Finding: Somerville Housing Authority (SHA) received the authority’s Single Audit for the year ended March 31, 2025, indicating that SHA received a finding of Significant Deficiencies. Auditors identified four instances of miscalculated income, two instances of missing or improper income verification, two instances of missing or improper deduction verification, and six instances in which the EIV report was not maintained in the tenant file. Extrapolation of errors to the population found the potential misstatement to be immaterial to program HAP expense. Auditors note that all income-related discrepancies were found in files selected from a HAP register dated earlier in the fiscal year, indicating improvements in compliance as the year progressed. Auditors recommend that SHA should continue to monitor areas and strengthen controls pertaining to income verification, calculation, and documentation retention to promote continued improvement and prevent recurrence of similar issues PHA Response: The SHA has implemented a corrective action plan to address noted deficiencies. The SHA has had significant staffing turnover in the last year. While vacant positions were filled, the SHA contracted with Nan McKay Associates (NMA) to complete all Annual Recertifications. NMA assigned four full-time staff to complete all recertifications and assigned one additional full-time staff person to conduct a monthly Qualify Control Review of all recertifications completed by NMA. During NMA’s contract, SHA focused on hiring and training new staff. SHA has hired a new Director of Leased Housing, a new Leased Housing Supervisor, three Leasing Coordinators, and a Tenant Selector. The Director and Supervisor have been providing one-on-one training and support. New staff have also been enrolled in training opportunities provided by outside vendors such as the Nan McKay Rent Calculation Class. As of 7/31/2024, SHA has resumed program management from NMA. SHA has also increased the agency’s internal quality control audits. The Director of Leased Housing has increased monthly SEMAP review from 40 to 50 files. Monthly feedback is provided to staffers individually and systemic issues are addressed to the entire department. The Supervisor also conducts a monthly review of the Income Verification Tool, following up with staffers to assist them in addressing discrepancies with their client’s records. Additionally, SHA has fully implemented an electronic file storage system, utilizing PHA Web’s online system to better organize, track, and maintain client files. Since implementation of the corrective action plan, 99% of reviewed files were found to have appropriate Payment Standards, 97% have appropriate third party documentation, and 94% have appropriate adjusted income. 97% were found to have appropriate Utility Allowances. Corrective action has been taken on all errors, and guidance has been provided to staff. SHA will continue conducting file audits, as well as following up with staff. PHA Goal: Based on the SHA’s monthly quality control sample of tenant files: (A) The SHA obtains third party verification of reported family annual income, the value of assets totaling more than $5,000, expenses related to deductions from annual income, and other factors that affect the determination of adjusted income, and uses the verified information in determining adjusted income, and/or documents tenant files to show why third party verification was not available; (B) The SHA properly attributes and calculates allowances for any medical, child care, and/or disability assistance expenses; and (C) The SHA uses the appropriate utility allowances to determine gross rent for the unit leased, (D) The SHA applies the appropriate payment standard in accordance with 24 CFR 982.505. PHA Strategies: Target Completion Date: 1) The SHA will review its current quality control tracking system to record the results of random sampling of files as required in 985.2. The SHA will revise this system on an ongoing basis if necessary. 3/31/2026 2) Confirm that 90% or more files sampled contain proper third party written verification (or equivalent) of income and assets, proper calculation of appropriate deductions and allowances and that appropriate utility allowance were used in the calculation of tenant rent. 3/31/2026 Persons Responsible: Matt Lincoln, Director of Leased Housing David Hospedales, Leased Housing Supervisor

View Audit 375845

Finding 1165296 (2025-003)

Material Weakness 2025

Somerville Housing Authority

MA

HUD Housing Programs Eligibility

Finding 2025-003 – Section 8 Project-Based Cluster Tenant Files – Eligibility – Rent Calculations Noncompliance & Significant Deficiency Section 8 Housing Choice Voucher Cluster – ALNs 14.195 and 14.249 Corrective Action Plan: Finding: Somerville Housing Authority (SHA) received the authority’s Sing...

Finding 2025-003 – Section 8 Project-Based Cluster Tenant Files – Eligibility – Rent Calculations Noncompliance & Significant Deficiency Section 8 Housing Choice Voucher Cluster – ALNs 14.195 and 14.249 Corrective Action Plan: Finding: Somerville Housing Authority (SHA) received the authority’s Single Audit for the year ended March 31, 2025, indicating that SHA received a finding of Significant Deficiencies. Auditors identified two files missing proper income verification, and seven files missing the EIV report. Extrapolation of errors to the population found the potential misstatement to be immaterial to program HAP expense. Auditors note that all income-related discrepancies were found in files selected from a HAP register dated earlier in the fiscal year, indicating improvements in compliance as the year progressed. Auditors recommend that SHA should enhance its quality control procedures to ensure compliance with HUD income verification regulations and EIV review requirements. Regular internal reviews and staff training should be conducted t oaddress these compliance issues effectively. PHA Response: The SHA has implemented a corrective action plan to address noted deficiencies. The SHA has had significant staffing turnover in the last year. While vacant positions were filled, the SHA contracted with Nan McKay Associates (NMA) to complete all Annual Recertifications. NMA assigned four full-time staff to complete all recertifications and assigned one additional full-time staff person to conduct a monthly Qualify Control Review of all recertifications completed by NMA. During NMA’s contract, SHA focused on hiring and training new staff. SHA has hired a new Director of Leased Housing, a new Leased Housing Supervisor, three Leasing Coordinators, and a Tenant Selector. The Director and Supervisor have been providing one-on-one training and support. New staff have also been enrolled in training opportunities provided by outside vendors such as the Nan McKay Rent Calculation Class. As of 7/31/2024, SHA has resumed program management from NMA. SHA has also increased the agency’s internal quality control audits. The Director of Leased Housing has increased monthly SEMAP review from 40 to 50 files. Monthly feedback is provided to staffers individually and systemic issues are addressed to the entire department. The Supervisor also conducts a monthly review of the Income Verification Tool, following up with staffers to assist them in addressing discrepancies with their client’s records. Additionally, SHA has fully implemented an electronic file storage system, utilizing PHA Web’s online system to better organize, track, and maintain client files. Since implementation of the corrective action plan, 97% of reviewed files have appropriate third party documentation, 94% have appropriate adjusted income, and 97% were found to have appropriate Utility Allowances. Corrective action has been taken on all errors, and guidance has been provided to staff. SHA will continue conducting file audits, as well as following up with staff. PHA Goal: Based on the SHA’s monthly quality control sample of tenant files: (A) The SHA obtains third party verification of reported family annual income, the value of assets totaling more than $5,000, expenses related to deductions from annual income, and other factors that affect the determination of adjusted income, and uses the verified information in determining adjusted income, and/or documents tenant files to show why third party verification was not available; (B) The SHA properly attributes and calculates allowances for any medical, child care, and/or disability assistance expenses; and (C) The SHA uses the appropriate utility allowances to determine gross rent for the unit leased in accordance with 24 CFR 982.505. PHA Strategies: Target Completion Date: 1) The SHA will review its current quality control tracking system to record the results of random sampling of files as required in 985.2. The SHA will revise this system on an ongoing basis if necessary. 3/31/2026 2) Confirm that 90% or more files sampled contain proper third party written verification (or equivalent) of income and assets, proper calculation of appropriate deductions and allowances and that appropriate utility allowance were used in the calculation of tenant rent. 3/31/2026 Persons Responsible: Matt Lincoln, Director of Leased Housing David Hospedales, Leased Housing Supervisor

View Audit 375845

Finding 1165294 (2025-002)

Material Weakness 2025

Somerville Housing Authority

MA

HUD Housing Programs

Finding 2025-002 – Low Rent Public Housing Tenant Files – Eligibility – Rent Calculations Noncompliance & Significant Deficiency Low Rent Public Housing – ALN 14.850 Condition & Cause: Our review of thirty (30) Low Rent Public Housing tenant files identified noncompliance in twelve (12) files within...

Finding 2025-002 – Low Rent Public Housing Tenant Files – Eligibility – Rent Calculations Noncompliance & Significant Deficiency Low Rent Public Housing – ALN 14.850 Condition & Cause: Our review of thirty (30) Low Rent Public Housing tenant files identified noncompliance in twelve (12) files within one or more categories. Of these, eight (8) files, or roughly 26%, were for the determination of adjusted annual income. Specifically, we noted the following: • Three (3) files were missing proper income verification • Three (3) files included income miscalculations • Two (2) files lacked required documentation to support deductions • Five (5) units did not have evidence of an annual inspection on file Based on extrapolation of these errors to the population, we identified likely questioned costs totaling $134,699, representing approximately 3.25% of total dwelling rental income. We also observed that the Public Housing department operated with significant staffing shortages for much of the fiscal year, which likely contributed to these deficiencies. PHA Response: The SHA has reviewed these deficiencies with the responsible staff members. Public housing staff have received internal training on required and acceptable income and deduction verifications and subsequent calculations. A file integrity checklist has been created for housing managers to ensure all required forms, calculations and required support is included and accurate. Further, internal file review procedures will be established in the current fiscal year. File integrity reviews will be performed by the Division Director and SHA is also exploring the value of peer reviews between housing managers and support staff. Internal inspection processes have also been improved. SHA has created a new Director of Operations position that is responsible for oversight and scheduling of inspections. This will provide more direct oversight of unit inspections and ensure that all annual and other inspections are performed timely and resulting reports are provided to the housing manager for the resident file. Persons Responsible: Lisa Taylor, Director of Admissions, Occupancy and Compliance Anticipate Completion Date: March 31, 2026

View Audit 375845

Finding 1165272 (2025-001)

Material Weakness 2025

South Carolina Victim Assistance Network

SC

HUD Housing Programs

The duties will be segregated as much as possible and the Board of Directors will remain involved in the financial affairs of the Network to provide oversight and independent review functions.

View Audit 375776

Finding 1165261 (2025-001)

Material Weakness 2025

North Providence Housing Authority

RI

HUD Housing Programs Special Tests & Provisions

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2025-001 – SPECIAL TESTS AND PROVISIONS: PAYMENT STANDARDS Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development CFDA #: 14.871 / 14.879 – Housing Voucher Cluster Issue Identified: It was brought to the attentio...

SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 2025-001 – SPECIAL TESTS AND PROVISIONS: PAYMENT STANDARDS Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development CFDA #: 14.871 / 14.879 – Housing Voucher Cluster Issue Identified: It was brought to the attention of the North Providence Housing Authority (NPHA) in May 2025 that a procedural error occurred regarding the implementation of decreased payment standards for existing subsidized participants. The error involved applying the decreased payment standards immediately (at most recent annual reexamination), rather than adhering to the required 12-month written notice period for existing participants. The correct procedure, as per HUD policy, requires applying the decreased payment standards only at the participant's second annual review of income following the effective date of the decrease. Corrective Action: The NPHA took the following immediate and diligent steps to rectify this oversight: 1. Identification of Affected Participants: A comprehensive review was conducted to accurately identify all families whose subsidies were incorrectly calculated due to the premature application of the decreased payment standards. 2. Recalculation and Adjustment: For all affected participants, the housing assistance payment (HAP) was retroactively recalculated using the higher, correct payment standard that should have remained in effect during the notice period. 3. Issuance of Refunds: The difference between the higher, correct HAP, and the lower, incorrect HAP was calculated. This amount was then refunded to compensate participants for any increased tenant rent they may have paid as a result of the error. Status of Correction: The NPHA confirms that the corrective action is complete. • As of Friday, September 26, 2025, all identified affected participants have been fully compensated and made whole. • The distribution of all calculated refunds related to the incorrect application of the 2024/2025 payment standards is finalized. Preventative Measures: To prevent recurrence, the NPHA has implemented updated policies and procedures to ensure strict compliance with HUD regulations regarding changes to payment standards: • The NPHA staff is now fully aware of the specific HUD policy requiring a 12-month written notice for existing participants before a decreased payment standard is applied. • New internal controls and verification steps have been established to ensure that future decreased payment standards are applied only at the second annual income review for existing participants, following the issuance of the 12-month notice. Planned Implementation Date of Corrective Action: July 1, 2025. Person Responsible for Corrective Action: Marilee Arsenault, Stephnie Dos Reis, and Eileen Reyes

View Audit 375748

Finding 1165258 (2025-001)

Material Weakness 2025

Hillside Elderly Housing, Inc.

CT

HUD Housing Programs

Management agrees with the finding. The financial statements were submitted to HUD on June 25, 2025.

View Audit 375729

Finding 1165247 (2025-002)

Material Weakness 2025

Portland Disciples Housing, Inc.

CA

Cash Management HUD Housing Programs

Management agrees with the finding. The residual receipts account deficiency was funded on November 27, 2024 in the amount of $58,162. Management will ensure that the residual receipts account is properly funded in the future.

View Audit 375696

Finding 1165246 (2025-001)

Material Weakness 2025

Portland Disciples Housing, Inc.

CA

HUD Housing Programs

Management agrees with the finding. The excess funds were accrued to offset future Section 8 HAP requests.

View Audit 375696

Finding 1165245 (2025-002)

Material Weakness 2025

Northwestern Retirement Housing, Inc.

CA

Cash Management HUD Housing Programs

Management agrees with the finding. The residual receipts account deficiency was funded on November 15, 2024 in the amount of $4,556. Management will ensure that the residual receipts account is properly funded in the future.

View Audit 375695

Finding 1165244 (2025-001)

Material Weakness 2025

Northwestern Retirement Housing, Inc.

CA

HUD Housing Programs

Management agrees with the finding. The excess funds were accrued to offset future Section 8 HAP requests.

View Audit 375695

Finding 1165230 (2025-001)

Material Weakness 2025

CommCare St. Tammany

LA

HUD Housing Programs

Finding 2025-001 – Significant Deficiency – Internal Control over Distributions to Owners Compliance Status: Completed. Planned Corrective Action: CommCare Corporation will return the $20,989 distribution to CommCare St. Tammany. CommCare St. Tammany will deposit this amount into a residual receipts...

Finding 2025-001 – Significant Deficiency – Internal Control over Distributions to Owners Compliance Status: Completed. Planned Corrective Action: CommCare Corporation will return the $20,989 distribution to CommCare St. Tammany. CommCare St. Tammany will deposit this amount into a residual receipts account within the required 90 days after year-end. Management will review the HUD Regulatory Agreement to understand the Program compliance requirements and prevent future noncompliance. Person(s) Responsible: Alec Lundberg, CFO Estimated Completion Date: August 18, 2025

View Audit 375591

Finding 1165228 (2025-001)

Material Weakness 2025

West Palm Beach Housing Authority

FL

HUD Housing Programs Eligibility Reporting

Moving to Work Demonstration Program -Assistance Listing No. 14.881 Recommendation: We recommend that management assign a designated individual to ensure rent reasonableness, income verification, and recertifications are completed accurately and on time, in accordance with HUD guidelines and the Aut...

Moving to Work Demonstration Program -Assistance Listing No. 14.881 Recommendation: We recommend that management assign a designated individual to ensure rent reasonableness, income verification, and recertifications are completed accurately and on time, in accordance with HUD guidelines and the Authority's administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Director of HCV Program Administration and Ass istant Director of HCV Program Administration will be in charge of reviewing all Rent Reasonableness. Name(s) of the contact person(s) responsible for corrective action: Teresa J. Gonzalez, and Darrell Mciver. Planned completion date for corrective action plan: Effective immediately.

View Audit 375578

Finding 1165127 (2025-001)

Material Weakness 2025

The Housing Authority of the City of Fairfield

AL

HUD Housing Programs

Corrective Action Management has issued a formal response to HUD’s Findings dated August 12, 2024, outlining specific corrective actions and considers the corrective actions satisfactorily implemented as of December 3, 2025. The Authority’s Executive Director, Julius Howard has assumed the responsib...

Corrective Action Management has issued a formal response to HUD’s Findings dated August 12, 2024, outlining specific corrective actions and considers the corrective actions satisfactorily implemented as of December 3, 2025. The Authority’s Executive Director, Julius Howard has assumed the responsibility of continued execution of the corrective actions.

View Audit 375448

Finding 1165102 (2025-001)

Material Weakness 2025

Housing Authority of the City of New Albany

IN

HUD Housing Programs

The New Albany Housing Authority is converting its financial systems and will be changing process to identify and reduce spending that may cause the Use of Operating Funds by any other fund.

View Audit 375361

Finding 1165048 (2025-001)

Material Weakness 2025

Housing Authority of Washington County

MD

HUD Housing Programs Significant Deficiency

U.S. Department of Housing and Urban Development Housing Voucher Cluster-Assistance Listing No. No. 14.871 and 14.879 Recommendation: We recommend that the housing authority designate an individual to ensure HQS inspections are completed timely. Explanation of disagreement with audit finding: There ...

U.S. Department of Housing and Urban Development Housing Voucher Cluster-Assistance Listing No. No. 14.871 and 14.879 Recommendation: We recommend that the housing authority designate an individual to ensure HQS inspections are completed timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Our internal audits take place monthly. The HCV department leadership pulls the list of recertifications, interims, and new admissions and samples 10% of each to ensure they have been done correctly, with all information documented. This internal audit includes checking the rent calculation, utilities, verification documents, and tenant/landlord notification. The agency has been completing this internal practice consistently since February 2024. We have designated this responsibility to an HCV staff member. Name(s) of the contact person(s) responsible for corrective action: Morgan Gower Planned completion date for corrective action plan: In progress as of February 2024 and ongoing.

View Audit 375153

Finding 1164992 (2025-003)

Material Weakness 2025

Belmont Metropolitan Housing Authority

OH

HUD Housing Programs Reporting

The Housing Authority will appoint staff not already responsible for entering utility consumption and cost to check data entry for errors, and inform staff who enters this data what needs corrected on a monthly basis. For the inconsistencies relating to Form 52722, this form is prepared by our fee a...

The Housing Authority will appoint staff not already responsible for entering utility consumption and cost to check data entry for errors, and inform staff who enters this data what needs corrected on a monthly basis. For the inconsistencies relating to Form 52722, this form is prepared by our fee accountant with data provided by Belmont Metropolitan Housing Authority. Due to the retirement of both the Executive Director and the Finance Manager in October 2021 and January 2022 respectively, there was not proper explanation on preparing this form internally. Since then BMHA staff have gained a better understanding of this, particularly through this audit finding and will be checking form 52772 for accuracy after it is completed by the fee accountant more thoroughly and with a better understanding of what this form entails and requires

View Audit 375097

Finding 1164983 (2025-002)

Material Weakness 2025

Lexington Housing Authority

NC

HUD Housing Programs

The PHA accepts the recommendations from the audit report, to ensure all future SEM<AP submissions are reviewed and approved by the Board of Commissioners within 60 dayts of the fiscal year end

View Audit 375029

Finding 1164980 (2025-001)

Material Weakness 2025

Gibb Cairo Village, Inc.

FL

Cash Management HUD Housing Programs

MANAGEMENT AGREES WITH THE FINDING. THE SECURITY DEPOSIT DEFICIENCY WAS FUNDED ON OCTOBER 3, 2024, IN THE AMOUNT OF $1,802. MANAGEMENT WILL ENSURE THAT THE SECURITY DEPOSITS ARE PROPERLY FUNDED IN THE FUTURE.

View Audit 375012

Finding 1164963 (2025-001)

Material Weakness 2025

St. Simeon II Housing Development Fund Company, Inc.

NY

Cash Management HUD Housing Programs

Management will implement measures to ensure the Organization will deopsit "Surplus Cash" as defined by HUD, existing at the end of the fiscal year in a residual receipts account in the name of the Organization within 90 days subsequent to the end of the fiscal year.

View Audit 374934

Finding 1164891 (2025-002)

Material Weakness 2025

Pontiac Housing Commission

MI

HUD Housing Programs

1. Strengthen Internal Controls: Implement a second-party review process for all annual rent certifications to ensure accuracy in calculations. Develop a checklist for tenant file reviews to ensure compliance with 24 CFR section 982.516. 2. Staff Training: Provide targeted training for staff on fede...

1. Strengthen Internal Controls: Implement a second-party review process for all annual rent certifications to ensure accuracy in calculations. Develop a checklist for tenant file reviews to ensure compliance with 24 CFR section 982.516. 2. Staff Training: Provide targeted training for staff on federal eligibility requirements, income verification, and rent calculation processes. Include training on local demographics and common income sources to improve accuracy in income assessments. 3. Leverage Technology for Tenant File Management: Invest in software that automates rent calculations, tracks utility allowances, and flags discrepancies. Use electronic systems to maintain tenant files and ensure proper documentation. 4. Periodic File Audits: Conduct quarterly internal audits of tenant files to identify and correct discrepancies. Address any compliance issues promptly and report findings to HUD as required.

View Audit 374807

Corrective Action Plans

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