Corrective Action Plans

Finding 1186860 (2025-002)

Material Weakness 2025

Homeless Assistance Leadership Organization, Inc.

WI

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency

Finding #2025-002 - Wage Allocations Criteria: Wages should be allocated to federal and state programs on the basis of time spent in each program. Condition: 1 out of 40 payroll transactions reviewed had differences between the wages that were charged to the grant and the wages that should have been...

Finding #2025-002 - Wage Allocations Criteria: Wages should be allocated to federal and state programs on the basis of time spent in each program. Condition: 1 out of 40 payroll transactions reviewed had differences between the wages that were charged to the grant and the wages that should have been charged to the grant based on the number of hours worked. Questioned Costs: $1,540. Cause: Payroll software coded manager time as admin time instead of the specific grant funding code. Effect: Wages could be charged to the wrong federal awards and not detected and corrected. Recommendation: We recommend that management review payroll software inputs and outputs for accuracy prior to completing grant claims. Response: HALO's management concurs with this finding. HALO's processes will include a review of payroll software inputs and outputs to ensure hours and wages are accurately allocated. Contact Person: Yvonne MacDonald Hames Anticipated Completion: June 30, 2026

View Audit 394609

Finding 1186859 (2025-003)

Material Weakness 2025

Argus Manor Association

WA

HUD Housing Programs

S3800-010: Finding Reference Number 2025-003 S3800-030: Statement of Condition: The June 30, 2024 year-end audit reporting package required to be submitted to the federal government through United States Department of Housing and Urban Development Real Estate Assessment Center (US HUD REAC) was not ...

S3800-010: Finding Reference Number 2025-003 S3800-030: Statement of Condition: The June 30, 2024 year-end audit reporting package required to be submitted to the federal government through United States Department of Housing and Urban Development Real Estate Assessment Center (US HUD REAC) was not submitted before the submission deadline. S3800-080: Auditor Recommendation: It is our opinion that management acted in good faith and that the submission was late due to circumstances beyond their control that could not be corrected before the submission was due. S3800-045: Actions Taken or to be Taken: Management acknowledges that the annual submission due to REAC was late, but acted in good faith to correct errors in the template before proceeding, and contact HUD as instructed based upon on the HUD REAC website instructions. Management does not believe this noncompliance will reoccur.

View Audit 394602

Finding 1186857 (2025-002)

Material Weakness 2025

Argus Manor Association

WA

HUD Housing Programs

FINDINGS – MAJOR FEDERAL AWARD PROGRAMS AUDIT (Continued) S3800-010: Finding Reference Number 2025-002 S3800-030: Statement of Condition: Our audit procedures revealed that the security deposit cash account was underfunded for eight (8) out of the twelve (12) months tested. Specifically, the require...

FINDINGS – MAJOR FEDERAL AWARD PROGRAMS AUDIT (Continued) S3800-010: Finding Reference Number 2025-002 S3800-030: Statement of Condition: Our audit procedures revealed that the security deposit cash account was underfunded for eight (8) out of the twelve (12) months tested. Specifically, the required balance for security deposits was not fully met in these months, resulting in a deficiency in the account. Although the funding deficit amounts were not always significant, it is important that the security deposit cash account be fully funded at all times. S3800-080: Auditor Recommendation: We recommend that property management implement a more robust process for monitoring and reconciling the security deposit cash account on a monthly basis. This process should ensure that the account balance is consistently maintained at the required level. Furthermore, management should conduct periodic reviews of the security deposit balances to identify and address any discrepancies promptly. Training for staff involved in managing security deposits should be considered to ensure compliance with HUD regulations and internal policies S3800-045: Actions Taken or to be Taken: It is management’s policy to fully fund the security deposit account so the balance in cash meets or exceeds the total liability of deposits collected from tenants. Management discussed the importance of reviewing funding monthly with the Project Accountant, and new procedures have been implemented to include a monthly process to compare the security deposit liability to the bank account and fund any shortages to ensure the security deposit bank account is consistently maintained at the required level. The account was fully funded and monitored starting in April of 2025.

View Audit 394602

Finding 1186855 (2025-001)

Material Weakness 2025

Argus Manor Association

WA

Eligibility Internal Control / Segregation of Duties Subrecipient Monitoring

FINDINGS – MAJOR FEDERAL AWARD PROGRAMS AUDIT S3800-010: Finding Reference Number 2025-001 S3800-030: Statement of Condition: Management designed Control Activities to ensure compliance with the Eligibility requirement with respect to tenant eligibility. Those Control Activities include verification...

FINDINGS – MAJOR FEDERAL AWARD PROGRAMS AUDIT S3800-010: Finding Reference Number 2025-001 S3800-030: Statement of Condition: Management designed Control Activities to ensure compliance with the Eligibility requirement with respect to tenant eligibility. Those Control Activities include verification and review of tenant files by an independent contractor prior to finalization of tenant income certifications and new tenant move-in files. However, during our testing, we noted four (4) move-in files out of four (4) move-in files tested where tenants were approved for move-in prior to review and approval by the independent contractor, circumventing the control. In addition, there was no evidence of approvals of tenant income certifications in the tenant files prior to billing of rental assistance for eleven (11) out of twelve (12) tenant files tested. S3800-080: Auditor Recommendation: We recommend that the client immediately implement corrective actions to ensure compliance with internal control procedures. Specifically: 1. The compliance specialist should be required to wait for proper approval of tenant eligibility files before processing them. 2. Review and reinforce the approval process through additional training for staff to ensure they understand the critical importance of obtaining necessary approvals before proceeding. 3. Implement stronger oversight and monitoring mechanisms to ensure that files are not processed before approval. S3800-045: Actions Taken or to be Taken: Management has reviewed the policies and procedures with the property manager, who also serves as the compliance specialist. The property manager was instructed that no tenants are to be granted occupancy and no billing of rental assistance based on certifications should be billed until the file has been approved by the independent contractor conducting the compliance review.

View Audit 394602

Finding 1186696 (2025-102)

Material Weakness 2025

Maricopa County

AZ

Special Tests & Provisions Eligibility HUD Housing Programs

Assistance Listings number and program name: 14.195 Section 8 Project-Based Cluster (Project-Based Rental Assistance (PBRA)) Responsible Entity: Housing Authority of Maricopa County Contact Person(s): Gerald Minott, Executive Director, Housing Authority of Maricopa County. Anticipated completion dat...

Assistance Listings number and program name: 14.195 Section 8 Project-Based Cluster (Project-Based Rental Assistance (PBRA)) Responsible Entity: Housing Authority of Maricopa County Contact Person(s): Gerald Minott, Executive Director, Housing Authority of Maricopa County. Anticipated completion date: April 12, 2026 Concur: The Housing Authority of Maricopa County (HAMC) has set up automatic build in compliance alert in Yardi Voyager that will adopt HUD software requirement tools while also creating a compliance calendar for the fiscal year which should further assist in the prevention of late inspections and recertifications. Going forward the HAMC Compliance Department will be performing biannual internal monitoring tests of up to (25%) of files per site/property/program. As part of HAMC’s push to implement internal control best practices, HAMC will update its internal control policies on electronic income verification deadlines, inspection frequency, required documentation, correction of income verification steps, and file retention rules to provide better clarity. HAMC will also work with the HAMC HR Department staff to implement a zero-tolerance policy for incomplete files which will be reviewed on a yearly basis.

View Audit 394404

Finding 1186661 (2025-001)

Material Weakness 2025

Conway Apartments, Inc.

AR

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

Name: Conway Apartments, Inc. Contact: Jeffrey Woods, Director of Accounting Contact Phone Number: 479-967-5570 Audit Period Ending: June 30, 2025 Anticipated Completion Date: March 18, 2026 Finding 2025-001: The Project did not remit residual receipts in excess of $250 per unit to HUD upon renewal ...

Name: Conway Apartments, Inc. Contact: Jeffrey Woods, Director of Accounting Contact Phone Number: 479-967-5570 Audit Period Ending: June 30, 2025 Anticipated Completion Date: March 18, 2026 Finding 2025-001: The Project did not remit residual receipts in excess of $250 per unit to HUD upon renewal of its PRAC on January 1, 2025, as required by HUD guidance. Management had not recorded a liability for the recapture and was not aware of the requirements. Management’s Response and Planning Corrective Actions: Management has contacted Willaim Stokes at HUD and has been advised to use the funds on an upcoming remodel. The money will be spent by June 30, 2026. Moving forward the Residual Account will be monitored to ensure prompt repayment of funds. Management concurs with findings and plans to implement recommendations above.

View Audit 394363

Finding 1186633 (2025-002)

Material Weakness 2025

Mississippi Regional Housing Authority No. V

MS

HUD Housing Programs Subrecipient Monitoring Cash Management

To the Department of Housing and Urban Development, During the audit of the Housing Authority’s fiscal year ended June 30, 2025 financial statements, it was determined that the unaudited financial data schedule that is utilized as the Housing Authority’s underlying financial statements were not prop...

To the Department of Housing and Urban Development, During the audit of the Housing Authority’s fiscal year ended June 30, 2025 financial statements, it was determined that the unaudited financial data schedule that is utilized as the Housing Authority’s underlying financial statements were not properly stated. Significant errors existed regarding grant receivables, the allowance for doubtful accounts - tenants, capital assets, accounts payable, grant revenues and bad debt expense. Also, a desk review was performed by HUD and it was determined that the Housing Authority had not properly documented its calculation of monthly voucher leased amounts and it understated its Housing Assistance Payment expenses in its VMS reporting. The Housing Authority’s Executive Director, Ashiya Hawkins, is responsible for implementing the corrective action plan. Finding 2025-002 - VMS Reporting Deficiencies We concur with the recommendation and we will establish standard operating procedures that ensure that the HAP amounts and number of vouchers stated on the VMS report are both accurate and properly documented. We are working with our software provider to ensure that VMS reporting software is being fully and correctly utilized. We are also planning on additional training for HCV employees to make sure they are qualified to meet VMS reporting and documentation requirements.

View Audit 394328

Finding 1186608 (2025-001)

Material Weakness 2025

1260 Housing Development Corporation

PA

HUD Housing Programs Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

It is the goal of the Corporation to maintain compliance with regulatory requirements. Where hardships are encountered, the Corporation remains in ongoing communication with respective regulatory agencies to promote transparency and mitigate risk of loss in funding or default.

View Audit 394308

Finding 1186589 (2025-001)

Material Weakness 2025

Women in Safe Homes, Inc.

AK

Subrecipient Monitoring Allowable Costs / Cost Principles HUD Housing Programs

Federal Single Audit Finding: 2025-001 Reporting - Significant Deficiency in Internal Control over Compliance Name of Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH will reinforce existing policies requiring documented evidence of review and approval for all key reports....

Federal Single Audit Finding: 2025-001 Reporting - Significant Deficiency in Internal Control over Compliance Name of Contact Person: Adrienne Gaines, Executive Director Corrective Action: WISH will reinforce existing policies requiring documented evidence of review and approval for all key reports. These controls will ensure approval via physical signature or electronic approval via email correspondence of each key report. Periodic monitoring will be performed to ensure compliance with documentation requirements. Proposed Completion Date: June 30, 2026

View Audit 394292

Finding 1186588 (2025-003)

Material Weakness 2025

Housing for Rockdale Elders, Inc.

MA

Eligibility Subrecipient Monitoring HUD Housing Programs

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: Nove...

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: November 1, 2024 - October 31, 2025 The findings from the October 31, 2025 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2025-003 - Eligibility - Material Weakness Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Action Taken: Management agrees with the finding and is in the process of revising internal controls to address this issue.

View Audit 394285

Finding 1186587 (2025-002)

Material Weakness 2025

Housing for Rockdale Elders, Inc.

MA

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: Nove...

CORRECTIVE ACTION PLAN March 18, 2026 Housing for Rockdale Elders, Inc. respectfully submits the following corrective action plans for the year ended October 31, 2025: Name and address of independent accounting firm: CohnReznick LLP 350 Granite Street Suite 1200 Braintree MA 02184 Audit period: November 1, 2024 - October 31, 2025 The findings from the October 31, 2025 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the number assigned in the schedule. Finding 2025-002 - Special Tests and Provisions - Significant Deficiency Recommendation: We recommend that the Corporation establish internal controls over its residual receipts compliance requirements to ensure that the Corporation is in compliance with Uniform Guidance and its regulatory agreement. Action Taken: Management agrees with the finding and is in the process of revising internal controls to address this issue. Additionally, on February 9, 2026, this was corrected.

View Audit 394285

Finding 1182810 (2025-002)

Material Weakness 2025

Taylor Brown Hdf CO (east Main Street Apartments

NY

HUD Housing Programs

Finding 2025-002: Mortgage Insurance – Rental Housing (Section 207), federal assistance listing number 14.134 Recommendation: We recommend that East Main Street Apartments resume unit inspections and ensure those inspections are properly documented in the tenant files. Views of management and planne...

Finding 2025-002: Mortgage Insurance – Rental Housing (Section 207), federal assistance listing number 14.134 Recommendation: We recommend that East Main Street Apartments resume unit inspections and ensure those inspections are properly documented in the tenant files. Views of management and planned corrective action: East Main Street Apartments has resumed unit inspections and will ensure those inspections are properly documented in the tenant files. Anticipated Completion Date: April 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821.

View Audit 394208

Finding 1182809 (2025-001)

Material Weakness 2025

Taylor Brown Hdf CO (east Main Street Apartments

NY

HUD Housing Programs

Audit period: January 1, 2025 – December 31, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUD...

Audit period: January 1, 2025 – December 31, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2025-001: Mortgage Insurance – Rental Housing (Section 207), federal assistance listing number 14.134 Recommendation: East Main Street Apartments should ensure residual receipts are made within 90 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: East Main Street Apartments agrees with the finding and will make the required payment. Anticipated Completion Date: April 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821.

View Audit 394208

Finding 1182808 (2025-001)

Material Weakness 2025

Geneva General Housing Development Fund Company, Inc.

NY

HUD Housing Programs

Audit period: January 1, 2025 – December 31, 2025 The finding from the 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Fi...

Audit period: January 1, 2025 – December 31, 2025 The finding from the 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2025-001: Mortgage Insurance - Rental Housing (Section 207), Federal Assistance Listing Number 14.134 Recommendation: Our auditors recommended that we resume unit inspections and ensure those inspections are properly documented in the tenant files. Action Taken: We are currently in the process of completing and documenting unit inspections. Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821. Anticipated Completion Date: April 2026

View Audit 394206

Finding 1182803 (2025-003)

Material Weakness 2025

Miller Road Housing Development Fund Company, Inc.

NY

HUD Housing Programs Internal Control / Segregation of Duties Procurement, Suspension & Debarment

Finding 2025-003: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Our auditor’s recommended that Rogers Senior Apartments strengthen its overall internal controls surrounding HUD program compliance,...

Finding 2025-003: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Our auditor’s recommended that Rogers Senior Apartments strengthen its overall internal controls surrounding HUD program compliance, including improvements to supervisory oversight, tenant file documentation practices, and monitoring procedures to ensure that required certifications, inspections, and voucher submissions are completed accurately, timely, and in accordance with HUD regulations. Action Taken: Rogers Senior has hired a new apartment manager and regional property manager with significant HUD program experience. The new regional property manager is now providing enhanced oversight, including regular review of tenant files, recertification documentation, and HUD voucher submissions to ensure that all required activities are completed timely, accurately, and in accordance with HUD regulations. Management will continue to monitor compliance and strengthen internal processes to prevent recurrence of these issues. Anticipated Completion Date: April 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821.

View Audit 394204

Finding 1182802 (2025-002)

Material Weakness 2025

Miller Road Housing Development Fund Company, Inc.

NY

HUD Housing Programs

Finding 2025-002: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Rogers Senior Apartments should ensure residual receipts are made within 90 days of year-end in accordance with the HUD Regulatory A...

Finding 2025-002: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Rogers Senior Apartments should ensure residual receipts are made within 90 days of year-end in accordance with the HUD Regulatory Agreement. Views of management and planned corrective action: Rogers Senior Apartments agrees with the finding and will make the required payment. Anticipated Completion Date: March 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821.

View Audit 394204

Finding 1182799 (2025-002)

Material Weakness 2025

Loretto Apts at O'Brien Road Hdfc, Inc. (o'brien Rd SR Appts 2)

NY

HUD Housing Programs

Finding 2025-002: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 (Continued) Recommendation: Our auditor’s recommended that we ensure sufficient operating cash flow to make all required reserve for replacement deposits in the future. Views of management an...

Finding 2025-002: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 (Continued) Recommendation: Our auditor’s recommended that we ensure sufficient operating cash flow to make all required reserve for replacement deposits in the future. Views of management and planned corrective action: Management concurs. The December payment was made on January 9, 2026. Action Taken: The December payment was made on January 9, 2026. Completion Date: January 9, 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821

View Audit 394200

Finding 1182798 (2025-001)

Material Weakness 2025

Loretto Apts at O'Brien Road Hdfc, Inc. (o'brien Rd SR Appts 2)

NY

HUD Housing Programs

Audit period: January 1, 2025 – December 31, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. Findings are numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Fi...

Audit period: January 1, 2025 – December 31, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. Findings are numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2025-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Recommendation: Our auditor’s recommended that O’Brien Road Senior Apartments 2 remit the overage of $14,632 to HUD’s Accounting Center or submit HUD 9250 for HUD approved application if directed. Views of management and planned corrective action: Management concurs and will submit form HUD 9250. Action Taken: Management is in the process of submitting form HUD 9250. Anticipated Completion Date: May 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821

View Audit 394200

Finding 1182795 (2025-002)

Material Weakness 2025

St. Peter's Italian Church Housing Development Fund Co., Inc.

NY

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Finding 2025-001: U.S. Department of Housing and Urban Development - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 See Findings – Financial Statement Audit Finding 2025-002: U.S. Department of Housing and Urban D...

Finding 2025-001: U.S. Department of Housing and Urban Development - Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 See Findings – Financial Statement Audit Finding 2025-002: U.S. Department of Housing and Urban Development - Program: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Recommendation: Our auditor’s recommended that Villa Scalabrini strengthen its overall internal controls surrounding HUD program compliance, including improvements to supervisory oversight, tenant file documentation practices, and monitoring procedures to ensure that required certifications, inspections, and voucher submissions are completed accurately, timely, and in accordance with HUD regulations. Action Taken: Villa Scalabrini has hired a new apartment manager and regional property manager with significant HUD program experience. The new regional property manager is now providing enhanced oversight, including regular review of tenant files, recertification documentation, and HUD voucher submissions to ensure that all required activities are completed timely, accurately, and in accordance with HUD regulations. Management will continue to monitor compliance and strengthen internal processes to prevent recurrence of these issues. Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821. Anticipated Completion Date: March 2026

View Audit 394197

Finding 1182789 (2025-001)

Material Weakness 2025

Hanac, Inc. and Affiliates

NY

Eligibility HUD Housing Programs Material Weakness

CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 HANAC, Inc. and Affiliates (HANAC) respectfully submits the following corrective action plan for the year ended June 30, 2025. CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2025 The finding from the June 30, 2025...

CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2025 HANAC, Inc. and Affiliates (HANAC) respectfully submits the following corrective action plan for the year ended June 30, 2025. CohnReznick LLP 1301 Avenue of the Americas New York, NY 10019 Audit Period: June 30, 2025 The finding from the June 30, 2025 consolidated and combined schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None reported. FINDINGS – FEDERAL AWARD PROGRAMS AUDITS Material Weakness FINDING 2025-001 Eligibility U.S. Department of Housing and Urban Development 14.157 Supportive Housing for the Elderly Section 202 Loan Condition: During our testing, we noted that the income verification of tenant eligibility through Enterprise Income Verification (“EIV”) system was not performed timely. Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: Management agrees with the recommendation and has begun to implement the following: • A checklist form will be completed for every certification and signed off once file is approved. • An AR form will be created for the move in, transfer and move out process which is to be attached with proof of payment. Once completed it is to be sent to senior staff for review. • The file setup format and recertification updates will be monitored on a monthly basis. • EIVs are being run according to the frequency provisions related to the type of reports we are annually required to complete as per HUD. • Annual inspections are being scheduled as per Annual Recertifications are being processed. • Bi-weekly meetings will be in place to discuss the results collected with a tracking log on the progress of the project. • Trainings will be scheduled to keep on top of HUD updates/compliance procedures; Yardi software trainings; and in-house trainings covering compliance with the files and Yardi 50059 module. Expected completion date: 07/31/2026 If any cognizant or oversight agency has questions regarding this plan, please call Lola Maroulis, Chief Financial Officer at 212-840-8005, extension 111. Sincerely yours, Lola Maroulis, Chief Financial Officer

View Audit 394172

Finding 1182704 (2025-001)

Material Weakness 2025

Hancock County Housing Associates

IL

HUD Housing Programs Cash Management

Management agent will be responsible for signing off and completion of PRAC renewal. As part of the PRAC renewal process checklist, verification of returned residual receipts will be added. Consistent review of Marion Corner Financials balance sheet will further ensure compliance with HUD requiremen...

Management agent will be responsible for signing off and completion of PRAC renewal. As part of the PRAC renewal process checklist, verification of returned residual receipts will be added. Consistent review of Marion Corner Financials balance sheet will further ensure compliance with HUD requirements.

View Audit 394133

Finding 1182702 (2025-001)

Material Weakness 2025

Findley Place Apartments

IL

HUD Housing Programs Cash Management

Management agent will be responsible for signing off and completion of PRAC renewal. As part of the PRAC renewal process checklist, verification of returned residual receipts will be added. Consistent review of Findley Place Financials balance sheet will further ensure compliance with HUD requiremen...

Management agent will be responsible for signing off and completion of PRAC renewal. As part of the PRAC renewal process checklist, verification of returned residual receipts will be added. Consistent review of Findley Place Financials balance sheet will further ensure compliance with HUD requirements.

View Audit 394131

Finding 1182700 (2025-001)

Material Weakness 2025

Charles Place Apartments

IL

HUD Housing Programs Cash Management

Management agent will be responsible for signing off and completion of PRAC renewal. As part of the PRAC renewal process checklist, verification of returned residual receipts will be added. Consistent review of Charles Place Financials balance sheet will further ensure compliance with HUD requiremen...

Management agent will be responsible for signing off and completion of PRAC renewal. As part of the PRAC renewal process checklist, verification of returned residual receipts will be added. Consistent review of Charles Place Financials balance sheet will further ensure compliance with HUD requirements.

View Audit 394130

Finding 1182620 (2025-002)

Material Weakness 2025

City of American Canyon

CA

Reporting HUD Housing Programs Internal Control / Segregation of Duties

All errors in the SEFA, including incorrect pass-through grants and outdated grant numbers, have been corrected. A review process is now in place before the audit, with an additional accuracy check. The Senior Accountant will prepare the SEFA, and the Finance Director will review it for completeness...

All errors in the SEFA, including incorrect pass-through grants and outdated grant numbers, have been corrected. A review process is now in place before the audit, with an additional accuracy check. The Senior Accountant will prepare the SEFA, and the Finance Director will review it for completeness and accuracy. We will confirm grant details with the granting agencies to verify federal status and use a checklist to ensure proper classification. Going forward, federal and state grants will be recorded accurately, grants will be properly classified in the general ledger, and annual training on SEFA preparation and Uniform Guidance compliance will be provided.

View Audit 394051

Finding 1182560 (2025-004)

Material Weakness 2025

City of Southfield, Michigan

MI

HUD Housing Programs § 200.303

Condition: The City had insufficient controls in place related to reviews of Section 8 employee timesheets. Planned Corrective Action: The City acknowledges this finding and has updated our procedures to include the City Administrators’ review and approval, as evidenced by his signature, on all Sect...

Condition: The City had insufficient controls in place related to reviews of Section 8 employee timesheets. Planned Corrective Action: The City acknowledges this finding and has updated our procedures to include the City Administrators’ review and approval, as evidenced by his signature, on all Section 8 employee timesheets. The City believes this finding will be corrected by June 30, 2026. Contact person responsible for corrective action: Austen Michaels Anticipated Completion Date: June 30, 2026

View Audit 394002

Corrective Action Plans

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