Corrective Action Plans

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

Finding 1164890 (2025-001)

Material Weakness 2025

National Church Residences of Bolivar, Tn D/b/a Pecan Grove

OH

HUD Housing Programs Procurement, Suspension & Debarment

Condition: The Corporation failed to refund a security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: The security deposit has been refunded and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are returne...

Condition: The Corporation failed to refund a security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: The security deposit has been refunded and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are returned timely. Contact person responsible for corrective action: Sean Alexander, Vice President – Housing Accounting Completion Date: August 15, 2025

View Audit 374801

Finding 1164841 (2025-001)

Material Weakness 2025

Melrose Mindoro School District

WI

Internal Control / Segregation of Duties HUD Housing Programs

2025-001 Segregation of Duties; District management is cognizant of their internal control structure and continues to evaluate cost effective opportunities to further improve segregation of duties. In addition, they will continue to closely monitor the financial operations of the District.

View Audit 374672

Finding 1164820 (2025-001)

Material Weakness 2025

National Church Residences of South River, Nj D/b/a Willett Manor

OH

HUD Housing Programs Procurement, Suspension & Debarment

Condition: The Corporation failed to refund a security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: The security deposit has been refunded, and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are return...

Condition: The Corporation failed to refund a security deposit to a tenant within 30 days of their move out date. Planned Corrective Action: The security deposit has been refunded, and management is currently reviewing internal controls over security deposit refunds to ensure all deposits are returned timely. Contact person responsible for corrective action: Sean Alexander, Vice President – Housing Accounting Completion Date: August 11, 2025

View Audit 374642

Finding 1164818 (2025-001)

Material Weakness 2025

Housing Authority of Brevard County

FL

HUD Housing Programs

2025-001 Eligibility – Tenant Files Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream – Vouchers CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2024-001 from March 31, 2024 (initially occurred as Finding 2021-00...

2025-001 Eligibility – Tenant Files Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream – Vouchers CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2024-001 from March 31, 2024 (initially occurred as Finding 2021-003, Significant Deficiency) Condition: Out of a total tenant population of approximately 1,849 tenants, 25 files were selected for testing. Exceptions were noted as follows: • 3 tenant file errors where there was no EIV form for the recertification period. • 1 tenant file error where the Form 50058 reported an incorrect utility allowance, and correcting the allowance would decrease the HAP rent from $1,179 to $1,174. • 1 tenant file error where the authority stated they did not have the lease on file. • 1 tenant file error where the Form 50058 reported an incorrect utility allowance, and correcting the allowance would increase the HAP rent from $731 to $751. • 1 tenant file had the following errors and correcting the errors would increase the HAP rent from $740 to $820: o An incorrect utility allowance was reported on the Form 50058. o Tenant’s social security income was miscalculated and reported incorrectly on the Form 50058. • 1 tenant file error where the Form 50058 reported an incorrect utility allowance, and correcting the allowance would decrease the HAP rent from $851 to $789. • 1 tenant file error where the Form 50058 reported an incorrect utility allowance, and correcting the allowance would increase the HAP rent from $986 to $1,016. • 1 tenant file had the following errors: o No EIV form on file for the recertification period. o Income support was not obtained by the Authority. • 1 tenant file error where tenant wage income was calculated incorrectly. Correcting the income issue would increase the HAP rent from $1,604 to $1,625. Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Action Taken: We concur with the recommendation. Due to transitioning the Authority’s core management software from Tenmast to Yardi and related staff absences and turnover, we were unable to provide an ongoing quality control review processes and provide ongoing staff training and timely management reviews. We are focused on implementing such procedures and will review staffing levels, skill sets, and case load for each employee.

View Audit 374631

Finding 1164801 (2025-001)

Material Weakness 2025

Germantown Home Section 202 Corporation T/a the Apartments on the Germantown Home Campus

PA

HUD Housing Programs Matching / Level of Effort / Earmarking

Information on Federal Program Federal Grantor: U.S. Department of Housing and Urban Development Program: Section 202 Capital Advance, Project Rental Assistance Payments (PRAC) Assistance Listing #: 14.157 Title: Supportive Housing for the Elderly Audit Period: July 1, 2024- June 30, 2025 Recommenda...

Information on Federal Program Federal Grantor: U.S. Department of Housing and Urban Development Program: Section 202 Capital Advance, Project Rental Assistance Payments (PRAC) Assistance Listing #: 14.157 Title: Supportive Housing for the Elderly Audit Period: July 1, 2024- June 30, 2025 Recommendation- We recommend that management establish internal controls to ensure annual recertifications are completed and processed timely. We also recommend that targeted training be provided to the individuals responsible for processing annual tenant recertifications. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To address the finding, management has enhanced the review process whereby all tenant recertifications will be submitted to the Compliance Officer for review and approval prior to the effective date. In addition, a centralized tracking log will be maintained to monitor upcoming and completed recertifications, reducing the risk of delays or omissions. In the event of a management vacancy, the Compliance Officer will assume responsibility for ensuring all recertifications are processed timely. Name of contact person responsible for corrective action: Michael DeMarco, CFO / VP Finance Email: MDeMarco@NewCourtland.org

View Audit 374604

Finding 1164795 (2025-001)

Material Weakness 2025

North Dakota Housing Finance Agency

ND

HUD Housing Programs Matching / Level of Effort / Earmarking

Corrective Action Plan: 1. System Remediation: Our servicing software payo􀆯 logic has been corrected to ensure no excess escrow mortgage insurance funds are held back at payo􀆯. Fix date: August 12, 2025 2. Sta􀆯 Training: Provide training to escrow and payo􀆯 sta􀆯 on the updated process and system cha...

Corrective Action Plan: 1. System Remediation: Our servicing software payo􀆯 logic has been corrected to ensure no excess escrow mortgage insurance funds are held back at payo􀆯. Fix date: August 12, 2025 2. Sta􀆯 Training: Provide training to escrow and payo􀆯 sta􀆯 on the updated process and system changes, emphasizing regulatory requirements for escrow refund timeliness. 3. Monitoring: The existing control report used to identify escrow surpluses postpayo 􀆯 will now be run on a bi-monthly basis instead of monthly. 4. Accountability: The Servicing Coordinator will oversee corrective actions and provide periodic reporting to compliance and senior management. Target Completion Date: October 30, 2025 Responsible Party: Austin Ketterling, Servicing Coordinator

View Audit 374600

Finding 1164790 (2025-001)

Material Weakness 2025

Winnebago County Housing Authority

IL

HUD Housing Programs Internal Control / Segregation of Duties

Finding 2025-001 - Moving To Work Demonstration Tenant Files - Eligibility - Internal Control over Tenant Files - Noncompliance and Significant Deficiency Moving To Work Demonstration - subsidy ALN 14.881 Corrective Action Plan: The finding appeared to be related to staff turnover at a specific prog...

Finding 2025-001 - Moving To Work Demonstration Tenant Files - Eligibility - Internal Control over Tenant Files - Noncompliance and Significant Deficiency Moving To Work Demonstration - subsidy ALN 14.881 Corrective Action Plan: The finding appeared to be related to staff turnover at a specific program. WCHA will follow the auditor's recommendation that the random sampling of files be commensurate to such areas that may benefit from increased quality control scrutiny. Ongoing comprehensive training of HUD regulations is provided to staff. Person Responsible: This internal control hasbeen assigned to the Business Executive Assistant, Marnie Buttacavoli. This person reports to the Finance Director and Deputy Director and is independent of all other staff. Anticipated Completion Date: This has been implemented as of 10/23/25.

View Audit 374593

Finding 1164705 (2025-005)

Material Weakness 2025

Housing Authority of the City of Lumberton

NC

Questioned Costs HUD Housing Programs

The Authority agrees with the finding. For the file in question, the utility reimbursement payment was rolled over from the prior software. During the recertification process, the new software reflected the information reported in the prior system. The Authority is working with the new software to a...

The Authority agrees with the finding. For the file in question, the utility reimbursement payment was rolled over from the prior software. During the recertification process, the new software reflected the information reported in the prior system. The Authority is working with the new software to address and resolve this issue.

View Audit 374404 Questioned Costs: $1

Finding 1164704 (2025-004)

Material Weakness 2025

Housing Authority of the City of Lumberton

NC

Questioned Costs HUD Housing Programs

The Authority agrees with the finding. The Authority has implemented procedures to properly budget all expenditures. The Finance team will monitor and recommend updates to the budget monthly as spending needs arise.

View Audit 374404 Questioned Costs: $1

Finding 1164703 (2025-003)

Material Weakness 2025

Housing Authority of the City of Lumberton

NC

Questioned Costs HUD Housing Programs

The Authority agrees with the finding. This error was corrected in July, 2025. The Authority has conducted refresher training with staff members to emphasize the requirements to use gross wages when determining annual income. Supervisors will continue to review income verifications and have been dir...

The Authority agrees with the finding. This error was corrected in July, 2025. The Authority has conducted refresher training with staff members to emphasize the requirements to use gross wages when determining annual income. Supervisors will continue to review income verifications and have been directed to place additional focus on wage calculations during quality control checks. Updated internal checklists have been distributed to guide staff in verifying income amounts consistently.

View Audit 374404 Questioned Costs: $1

Finding 1164702 (2025-002)

Material Weakness 2025

Housing Authority of the City of Lumberton

NC

Questioned Costs HUD Housing Programs

The Authority agrees with the finding. This error was corrected in July, 2025. The Authority has conducted refresher training with staff members to emphasize the requirements to use current Social Security benefit verification when determining annual income. Supervisors will continue to review incom...

The Authority agrees with the finding. This error was corrected in July, 2025. The Authority has conducted refresher training with staff members to emphasize the requirements to use current Social Security benefit verification when determining annual income. Supervisors will continue to review income verifications and have been directed to place additional focus on verifying that Social Security documentation is current and accurately applied during quality control checks.

View Audit 374404 Questioned Costs: $1

Finding 1164697 (2025-003)

Material Weakness 2025

Housing Authority of Meridian

MS

Questioned Costs Eligibility HUD Housing Programs

Income Eligibility Audit Finding Response: Over-Income Eligibility Determination Finding: During the audit review, it was identified that the Authority erroneously assigned a unit to a potential tenant whose initial income exceeded the program's income eligibility threshold. Although the applicant's...

Income Eligibility Audit Finding Response: Over-Income Eligibility Determination Finding: During the audit review, it was identified that the Authority erroneously assigned a unit to a potential tenant whose initial income exceeded the program's income eligibility threshold. Although the applicant's income subsequently decreased prior to move-in, the Authority acknowledges that eligibility should have been confirmed and properly documented before final unit assignment. The tenant vacated the unit within six (6) months of occupancy. Authority Response: The Meridian Housing Authority (MHA) acknowledges the error in processing the applicant's income eligibility determination and recognizes that the assignment did not fully comply with HUD's established income verification and eligibility requirements. The Authority has reviewed the circumstances surrounding this incident and has determined that the error resulted from a timing and documentation oversight during the final verification phase. Corrective Action Taken: I. Immediate Case Review: The applicant's file was reviewed to verify all documentation and identify procedural gaps that led to the incorrect eligibility determination. 2. Staff Retraining: All occupancy and eligibility staff have been retrained on HUD income eligibility requirements, verification standards, and documentation retention procedures. 3. Revised Verification Protocol: The Authority has implemented an additional pre-move-in eligibility verification checkpoint to confirm applicant income status immediately prior to lease execution, and integration of a final income eligibility checklist into all applicant files. 4. Supervisory Review Requirement: A management-level review and approval is now required for all move-in certifications where an applicant's income falls near the program threshold. 5. Monitoring and Compliance Audit: Internal quality control reviews will be conducted quarterly to ensure continued compliance with HUD eligibility and verification standards. Anticipated Completion Date: Cunently in progress and will be completed by 3/31/2026 and ongomg. Contact Person: Ronald J. Turner, Sr. 2425 E Street, Meridian, MS 39301 601-693-4285

View Audit 374385 Questioned Costs: $1

Finding 1164683 (2025-002)

Material Weakness 2025

Warren County School District R3

MO

Allowable Costs / Cost Principles HUD Housing Programs Reporting § 200.333

The District agrees with this finding and will implement the following:  Data Integrity Verification: o Implement a data review process to ensure data completeness and accuracy prior to sampling.  Staff Training: o Conduct training sessions for staff involved to ensure the accuracy of the populati...

The District agrees with this finding and will implement the following:  Data Integrity Verification: o Implement a data review process to ensure data completeness and accuracy prior to sampling.  Staff Training: o Conduct training sessions for staff involved to ensure the accuracy of the population used to calculate and select samples.  Internal Review Process o Establish manual review process to confirm all required documentation and applications are retained and accurately represent the population.

View Audit 374324

Finding 1164656 (2025-001)

Material Weakness 2025

Stoneboro Development Corporation 033-11048

PA

Questioned Costs HUD Housing Programs Procurement, Suspension & Debarment

Stoneboro Development Corporation Stoneboro, Pennsylvania CORRECTIVE ACTION PLAN December 2, 2025 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Correct...

Stoneboro Development Corporation Stoneboro, Pennsylvania CORRECTIVE ACTION PLAN December 2, 2025 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2025. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2025 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2025-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors continue to work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Action Taken: We agree with Finding 2025-001 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, in July 2025, the Corporation executed a reinstatement agreement with the lender to make additional monthly mortgage payments of $1,000 through May 2026 to bring the mortgage to current. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent

View Audit 374286 Questioned Costs: $1

Finding 1164561 (2025-002)

Material Weakness 2025

Ginseng Board of Wisconsin, Inc.

WI

HUD Housing Programs Internal Control / Segregation of Duties

This finding will not completely resolve itself given the cost/benefits basis the Organization continues to base this decision on.

View Audit 374129

Finding 1164525 (2025-001)

Material Weakness 2025

Bourne Housing Authority

MA

HUD Housing Programs Reporting Significant Deficiency

CORRECTIVE ACTION PLAN 2025-001 – REPORTING AND SPECIAL TESTS: Auditee’s Response and Planned Corrective Action Planned Implementation In Response to our 2025 Audit, it was noted that Bourne Housing Authority’s SEMAP report was not sent in a timely manner. The new Executive Director at that time was...

CORRECTIVE ACTION PLAN 2025-001 – REPORTING AND SPECIAL TESTS: Auditee’s Response and Planned Corrective Action Planned Implementation In Response to our 2025 Audit, it was noted that Bourne Housing Authority’s SEMAP report was not sent in a timely manner. The new Executive Director at that time was not aware it was due to be done due to the recent turnover and staffing. We have already started putting together our next SEMAP so that we are ahead of the game and will work with the HCVP administrator on this reporting. Bourne Housing Authority plans to be on time with reporting moving forward Person Responsible for Corrective Action: Kara Galasso Garcia, Executive Director and the Admin for HCVP

View Audit 374098

Finding 1164510 (2025-001)

Material Weakness 2025

Middletown Housing Authority

CT

Questioned Costs HUD Housing Programs Eligibility

Corrective Action MHA is now fully staffed with a current recertification reporting rate of over 96%. New staff members have been hired, trained and fully onboarded. An outside consultant was retained prior to staff hiring and processed all delinquent recertifications in the spring of 2025. Addition...

Corrective Action MHA is now fully staffed with a current recertification reporting rate of over 96%. New staff members have been hired, trained and fully onboarded. An outside consultant was retained prior to staff hiring and processed all delinquent recertifications in the spring of 2025. Additional staff training is being scheduled. Increased quality control procedures are being designed and implemented in coordination with a consultant to ensure ongoing activities meet Authority standards as well as Federal requirements.

View Audit 374083 Questioned Costs: $1

Corrective Action Plans

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