Corrective Action Plans

Finding 1171943 (2025-001)

Material Weakness 2025

Grange Acres Nonprofit Housing Corporation (phase Ii)

MI

Special Tests & Provisions HUD Housing Programs Significant Deficiency

U.S. Department of Housing and Urban Development Grange Acres Nonprofit (Phase II) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Maner Costerisan, P.C. 2425 E. Grand River Ave, Suite 1 Lansing, MI 4...

U.S. Department of Housing and Urban Development Grange Acres Nonprofit (Phase II) respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Maner Costerisan, P.C. 2425 E. Grand River Ave, Suite 1 Lansing, MI 48912 Audit period: July 1, 2024 – June 30, 2025 The finding from the June 30, 2025 schedule of findings and questions costs is discussed below. The finding is numbered consistent with the number assigned in the schedule. Finding Number 2025-001 – Significant Deficiency in Internal Control over Major Federal Program Compliance: Special Tests and Provisions: - Replacement Reserve Requirements Recommendation: The Project should deposit $429 into the replacement reserve account. Additionally, procedures should be followed to ensure management identifies the need for required deposits. Action Taken: The Project has deposited the underfunded amount and will review future HUD communications to identify replacement reserve funding requirements.

View Audit 385022

Finding 1171892 (2025-001)

Material Weakness 2025

Housing Authority of the City of College Park

GA

HUD Housing Programs § 200.05

Finding 2025-001: Capital Fund Program – Cash Management Reference to Audit Report: Auditors noted that the Authority did not comply with HUD’s 3‑day rule for expenditure of drawdowns. Cause: Invoices were not fully verified before requesting drawdowns. Effect: Funds were drawn down before being pay...

Finding 2025-001: Capital Fund Program – Cash Management Reference to Audit Report: Auditors noted that the Authority did not comply with HUD’s 3‑day rule for expenditure of drawdowns. Cause: Invoices were not fully verified before requesting drawdowns. Effect: Funds were drawn down before being payable, resulting in noncompliance with HUD cash management rules. Corrective Action Plan: -Implement an invoice verification checklist prior to drawdowns. -Require dual sign‑off by the Executive Director and Director of Administration/Finance. -Adopt a drawdown timing policy to ensure funds are requisitioned only when invoices are ready for payment. -Maintain a drawdown log and conduct quarterly compliance reviews. Responsible Parties: -Executive Director – oversight and approval. -Director of Administration/Finance – verification and processing. Timeline: -30 days: Checklist and dual sign‑off implemented. -60 days: Staff training completed. -Ongoing: Quarterly reviews. Questioned Costs: None. Management Views: Management agrees.

View Audit 384909

Finding 1171891 (2025-002)

Material Weakness 2025

Housing Authority of the City of College Park

GA

HUD Housing Programs

Finding 2025-002: Housing Choice Voucher Program – Utility Allowance Reference to Audit Report: Auditors found that utility allowances on HUD Form 50058 were not consistently calculated in accordance with Section 242 of the 2014 Appropriations Act. Cause: Software errors and inconsistent application...

Finding 2025-002: Housing Choice Voucher Program – Utility Allowance Reference to Audit Report: Auditors found that utility allowances on HUD Form 50058 were not consistently calculated in accordance with Section 242 of the 2014 Appropriations Act. Cause: Software errors and inconsistent application of procedures. Effect: Tenant payments and Housing Assistance Payments (HAP) were incorrectly calculated. Corrective Action Plan: -Work with software vendor to correct calculation errors. -Conduct a review of tenant files and make adjustments where necessary. -Update internal procedures to require verification of utility allowance at annual reexaminations. -Provide refresher training to program staff. -Perform quarterly spot checks of HUD Form 50058 entries. Responsible Parties: -Executive Director – oversight and compliance. -Program Manager – staff training, file review, and monitoring. Timeline: -30 days: Correct software issue and begin file review. -60 days: Complete file review and training. -Ongoing: Quarterly monitoring. Questioned Costs: None. Management Views: Management agrees. Conclusion The College Park Authority acknowledges both findings and has established corrective action plans with clear responsibilities, timelines, and monitoring procedures to ensure compliance with HUD regulations and prevent recurrence.

View Audit 384909

Finding 1171885 (2025-001)

Material Weakness 2025

Hope Network and Affiliates

MI

Allowable Costs / Cost Principles Cash Management HUD Housing Programs § 200.328 § 200.329

Hope Network acknowledges receipt of the Schedule of Findings and Questioned Costs included in the Single Audit Report dated January 21, 2026, identifying Finding #2025-001: Major Federal Award Finding- Reporting. Hope Network agrees with this finding and the recommended actions to be taken. Correct...

Hope Network acknowledges receipt of the Schedule of Findings and Questioned Costs included in the Single Audit Report dated January 21, 2026, identifying Finding #2025-001: Major Federal Award Finding- Reporting. Hope Network agrees with this finding and the recommended actions to be taken. Corrective Action Plan: Specific Corrective Action: Completion Date File all overdue semiannual performance reports. Completed Submit overdue required written request due upon final funds draw and project completion. Completed Finance department will review all grant agreements to ensure all required reporting, not just financial reports, are tracked and filed in timely within the terms of the grant agreement. 03/31/2026 Finance in conjunction with Hope Network Foundation will review existing grant procedures to develop a uniform process to be utilized across all Hope Network Affiliates. 06/30/2026 We are committed to resolving this issue.

View Audit 384872

Finding 1171710 (2025-002)

Material Weakness 2025

Vista Prairie at Garnette Gardens

MN

Special Tests & Provisions Procurement, Suspension & Debarment Cash Management

A transfer back of $23,000 for the excess surplus cash was made on 8/27/25. It was our first time taking out surplus cash and now have a better process in place to correct this going forward.

View Audit 384739

Finding 1171472 (2025-009)

Material Weakness 2025

City of Baltimore, Maryland

MD

Reporting Matching / Level of Effort / Earmarking Subrecipient Monitoring § 200.303

Finding 2025-009 U.S. Department of Housing and Urban Development (HUD) AL No. 14.241 Housing Opportunity for Persons with AIDS Material Weakness in Internal Controls and Noncompliance over Reporting Repeat Finding: Yes; 2024-013 Auditee’s Corrective Action Plan: MOHS will strengthen internal contro...

Finding 2025-009 U.S. Department of Housing and Urban Development (HUD) AL No. 14.241 Housing Opportunity for Persons with AIDS Material Weakness in Internal Controls and Noncompliance over Reporting Repeat Finding: Yes; 2024-013 Auditee’s Corrective Action Plan: MOHS will strengthen internal controls over federal reporting to ensure accuracy, completeness, and compliance with HUD and Uniform Guidance requirements. Specifically, MOHS will implement a documented reconciliation process requiring all HOPWA expenditures reported in the Federal Financial Report (FFR) to be reconciled to the general ledger prior to regular submission, with supervisory review and approval documented. MOHS will establish a formal reporting calendar and standardized checklist to ensure timely preparation, review, and submission of all required HUD reports, including the FFR, Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting (FSRS), and the Consolidated Annual Performance and Evaluation Report (CAPER). • Written procedures will be developed to clearly define staff roles and responsibilities for federal reporting and FFATA compliance, including identification of reportable first-tier subawards and documentation of FSRS submissions. MOHS will also provide targeted training to program and fiscal staff responsible for federal reporting and will conduct periodic internal monitoring to verify compliance with 2 CFR §200.303 and 2 CFR Part 170. MOHS will require grant staff to attend GMO monthly training sessions and review GMO provided training materials pertaining to grant management, grant reporting, and subrecipient monitoring and will require grant staff to review and comply with Administrative Manual policies 413-00 through 413-70 pertaining to all aspects of City-wide grant management. • Per the GMO’s guidance, MOHS will add award reporting tasks to all grant awards in Workday, the City’s financial system of record, to ensure timely completion of all grant reporting as well as upload regular reports into Workday. Contact Person: Sade Creighton-Wade, Chief of Fiscal Services Completion Date: June 30, 2026

View Audit 384683

Finding 1171413 (2025-008)

Material Weakness 2025

City of Baltimore, Maryland

MD

Matching / Level of Effort / Earmarking HUD Housing Programs Reporting § 200.303

Finding 2025-008 U.S. Department of Housing and Urban Development (HUD) AL No. 14.218 Community Development Block Grants/Entitlement Grants Significant Deficiency in Internal Controls and Noncompliance over Reporting Repeat Finding: No Auditee’s Corrective Action Plan: Over the past several years, t...

Finding 2025-008 U.S. Department of Housing and Urban Development (HUD) AL No. 14.218 Community Development Block Grants/Entitlement Grants Significant Deficiency in Internal Controls and Noncompliance over Reporting Repeat Finding: No Auditee’s Corrective Action Plan: Over the past several years, the Consolidated Planning Division has been conducting a widespread effort to ensure programmatic compliance with all City and Federal requirements. To date, it has prioritized: • Reducing the grant’s at-risk financial exposure from approximately $28M in FY23 to $1.03M in FY25. • Implemented moving all NPO operating contracts to the same Period of Performance (July 1 – June 30 of the grant year) to ensure timely expenditure of funds and reduce compliance burden on staff. • Implemented the use of a form agreement approval process for the Board of Estimates (BOE) which reduced the lag time for contract execution and subsequent reimbursement from over 12 months, to approximately 2 months once the executed grant agreement has been received from HUD and approved by the BOE. • Standardized required subrecipient activity reporting and requests for reimbursement in Neighborly (the City’s reporting system of record for the CDBG grant program) to a quarterly basis. • Required all supporting documentation be submitted and reviewed quarterly to eliminate the possibility of overpayment or reimbursement for ineligible activities. • Hired a Director of CDBG finance to improve fiduciary and compliance oversight of federal funds. • Ensured the HUD-required Cash-on-Hand report is entered into a new screen in HUD’s system of record - Integrated Disbursement and Information System (IDIS) - (reporting that was previously collected through Federal Financial Report (FFR)/Standard Form 425 (SF-425) on a timely basis. Corrective Action Plan: • A new Director of CDBG Finance will be hired before the end of FY26. • The new Director of CDBG Finance will be provided training to complete the Cash on Hand Report and will cross-train additional staff on the completion of this report to ensure redundancy. • Supporting documents will be kept on the divisional shared drive in a clearly named subfolder. Contact Person: Mary Correia, Deputy Commissioner David Fielder, Assistant Commissioner Completion Date: June 30, 2026

View Audit 384683

Finding 1171387 (2025-001)

Material Weakness 2025

The Arc of Cape May County, INC and Affiliate

NJ

HUD Housing Programs

CFO concurs with the finding and agrees with the auditors' recommendation. We are working on implementing policies and procedures to ensure compliance requirements are being met in a timely manner. Management made a deposit of $3,168 on September 29, 2025. No further action is required.

View Audit 384668

Finding 1171375 (2025-001)

Material Weakness 2025

Ehdoc Teamsters Residences, Inc.

FL

HUD Housing Programs

Oversight Agency for Audit, EHDOC Teamsters Residences, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 ...

Oversight Agency for Audit, EHDOC Teamsters Residences, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 Audit period: July 1, 2024 through June 30, 2025 The finding from the June 30, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AND FINANCIAL STATEMENT AUDITS FINDING No. 2025-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: Management should implement procedures to ensure that HUD required tenant eligibility procedures are adhered to, and that all documentation is retained in the tenant files. Action Taken: Staff training has been provided with additional HUD training inclusive of recertification deadlines and background check documentation. Tenant file maintenance is stressed and included in monthly reporting procedures. If the audit Oversight Agency has questions regarding these plans, please call Irene Phillips at 954-835- 9200. Sincerely yours, Irene Phillips CFO

View Audit 384665

Finding 1171339 (2025-001)

Material Weakness 2025

Senior Citizens Housing Dev CORP of Chicago Dba Senate Apartments

FL

HUD Housing Programs Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Chicago respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Cor...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Chicago respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067 Audit period: July 1, 2024 through June 30, 2025 The finding from the June 30, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: Management should implement procedures to ensure the correct amount is deposited into the replacement reserve account each month. Action Taken: We will ensure that RR is fully funded on a monthly basis. New procedures have been implemented to review the deposits each month to ensure proper amounts. If the Oversight Agency for Audit has questions regarding the plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO Irene Phillips CFO

View Audit 384633

Finding 1171041 (2025-001)

Material Weakness 2025

Louisville Metro Housing Authority

KY

HUD Housing Programs Subrecipient Monitoring Cash Management

Finding Reference: 2025-001 Description of Finding: HUD regulations require certifications to be completed and entered timely to ensure accurate calculation of Housing Assistance Payments (HAP), Total Tenant Payment (TTP) and utility reimbursements. Per 24 CFR section 982.516, the Authority must ree...

Finding Reference: 2025-001 Description of Finding: HUD regulations require certifications to be completed and entered timely to ensure accurate calculation of Housing Assistance Payments (HAP), Total Tenant Payment (TTP) and utility reimbursements. Per 24 CFR section 982.516, the Authority must reexamine family income and composition at least once every two years and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Of the 60 Moving to Work files tested, the following items were noted: • 40 instances of certifications not completed timely • 6 instances where the file did not contain income support • 3 instances where housing quality standards inspections were not completed within the last 2 years • 1 instance in which a rent comparison was not completed for a new move in Statement of Concurrence or Nonconcurrence: Louisville Metro Housing Authority agrees with Cherry Bekaert in reference to audit finding 2025-001. Corrective Action: LMHA continues to work through issues around the proper and timely processing of program certifications to support accurate Housing Assistance Payments, Total Tenant Payments and utility reimbursements. Currently, recertifications are processed on a biennial basis schedule, through a three-tiered system outlined in our updated MTW plan. This will address timeliness of recertification while also ensuring compliance and review of supporting documentation. Please note the following rules tied to LMHA’s three-tiered recertification system: 1) When the family is zero income, they will go to an annual recertification. 2) When family is working, (enrolling in KTAP (Kentucky Transitional Assistance Program), receiving Child Support, and other similar sources of income) they will go to a biennial recertification. 3) When a family has fixed income, (receiving Social Security, Supplemental Security Income, and/or Pension payments), they will go to a triennial recertification. The HCV Team is also working with Yardi (ERP system) to maximize the reporting and monitoring of the recertification schedule. The manager initiates the tracking for needed processing and possible termination of participants. With the three-tiered system, staff will be able to review all tenant information closely during recertifications to ensure proper housing assistance payments. Additionally, to improve sufficient controls and internal monitoring, the HCV Team is partnering with the Compliance Team to review tenant files for errors and improper supporting documentation.

View Audit 384423

Finding 1171038 (2025-002)

Material Weakness 2025

Louisville Metro Housing Authority

KY

HUD Housing Programs

Finding Reference: 2025-002 Description of Finding: HUD regulations require certifications to be completed and entered timely to ensure accurate calculation of Housing Assistance Payments (HAP), Total Tenant Payment (TTP) and utility reimbursements. Per 24 CFR section 982.516, the Authority must ree...

Finding Reference: 2025-002 Description of Finding: HUD regulations require certifications to be completed and entered timely to ensure accurate calculation of Housing Assistance Payments (HAP), Total Tenant Payment (TTP) and utility reimbursements. Per 24 CFR section 982.516, the Authority must reexamine family income and composition at least once every two years and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Of the 40 Housing Choice Voucher tenant files tested, the following items were noted: • 32 instances of certifications not completed timely • 3 instances where the file did not contain income support or the support in the file did not agree to the amount used on the certification (the file was later updated with the correct income for one of these tenants) • 7 instances where housing quality standards inspections were not completed within the last 2 years • 1 instances where a rent comparison was completed, the rent requested by the landlord was determined to not be reasonable, but the rent was still used in the payment calculation Statement of Concurrence or Nonconcurrence: Louisville Metro Housing Authority agrees with Cherry Bekaert in reference to audit finding 2025-001. Corrective Action: LMHA continues to work through issues around the proper and timely processing of program certifications to support accurate Housing Assistance Payments, Total Tenant Payments and utility reimbursements. Currently, recertifications are processed on a biennial basis schedule, through a three-tiered system outlined in our updated MTW plan. This will address timeliness of recertification while also ensuring compliance and review of supporting documentation. Please note the following rules tied to LMHA’s three-tiered recertification system: 1) When the family is zero income, they will go to an annual recertification. 2) When family is working, (enrolling in KTAP (Kentucky Transitional Assistance Program), receiving Child Support, and other similar sources of income) they will go to a biennial recertification. 3) When a family has fixed income, (receiving Social Security, Supplemental Security Income, and/or Pension payments), they will go to a triennial recertification. The HCV Team is also working with Yardi (ERP system) to maximize the reporting and monitoring of the recertification schedule. The manager initiates the tracking for needed processing and possible termination of participants. With the three-tiered system, staff will be able to review all tenant information closely during recertifications to ensure proper housing assistance payments. Additionally, to improve sufficient controls and internal monitoring, the HCV Team is partnering with the Compliance Team to review tenant files for errors and improper supporting documentation. Name of Contact Person: Sarah Galloway, Chief Policy Officer, 502-569-3422, galloway@lmha1.org and Camille Robinson, Deputy Executive Director of Leased Housing, 502-569-6245, crobinson@lmha1.org

View Audit 384423

Finding 1171035 (2025-001)

Material Weakness 2025

School District of Belleville

WI

Internal Control / Segregation of Duties HUD Housing Programs

2025-001: Segregation of Duties Condition: Management is responsible for the design, implementation and maintenance of an appropriate system of internal control. Proper segregation of duties is an important aspect of any control system. The following duties lack adequate segregation of duties: • The...

2025-001: Segregation of Duties Condition: Management is responsible for the design, implementation and maintenance of an appropriate system of internal control. Proper segregation of duties is an important aspect of any control system. The following duties lack adequate segregation of duties: • The same individual that reconciles the bank accounts also approves and codes invoices, creates deposits and processes and initiates debt payments. • This individual is also the primary staff who compiles and reviews grant claims. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the nomrnl course of their responsibilities as a result of the lack of segregation of duties. Cause: Limited number of personnel. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or has the ability to both make and conceal an error, whether sucherror is intentional or unintentional. Recommendation: We recommend that the Board of Education and the Superintendent continue to monitor the transactions and the financial records of the District. We also encourage the District to continue to identify cost effective opportunities to improve the design of the internal control structure. Response: We agree with this finding but do not believe it is cost effective to increase the office duties. The Board of Education approves monthly accounts payable checks and the Superintendent reviews payroll timesheets prior to processing payroll. The Superintendent also approves journal entries before they are posted to the accounting ledger. The Board of Education and Superintendent will continue to monitor transactions of the District. Contact Person: Jessie Backes Anticipated Completion: Ongoing

View Audit 384411

Finding 1170981 (2025-001)

Material Weakness 2025

Watkins Glen Central School District

NY

Cash Management Eligibility HUD Housing Programs

Corrective Action Plan: The School District is committed and will be diligent in preparing meals with high quality products. Regular cooked meals and expanded menu choices will be prepared which will result in an increase in expenses. There has been unpredictability with the increase of certain good...

Corrective Action Plan: The School District is committed and will be diligent in preparing meals with high quality products. Regular cooked meals and expanded menu choices will be prepared which will result in an increase in expenses. There has been unpredictability with the increase of certain goods, and we expect this to continue into the 2025-2026 fiscal year as well. The School District also participates in the Community Eligibility Provision (CEP) which provides free breakfast and lunch to every student within the School District. Salaries for School Lunch employees have also been increasing year after year due to the increase of minimum wage in New York State. The minimum wage is expected to increase to $16.00 per hour and entry level wages have increased per contract. The School District does have a practice of transferring BOCES aid gained from the cost of the BOCES management contract to the School Lunch Fund; the aid will not be transferred in upcoming years. The School District has devised a NYSED approved plan to expend the excess funds in the School Lunch Fund through appropriating a substantial amount of fund balance to be planned for and used for the cafeteria and kitchen within the next planned capital project. We are currently in the planning phase of our next capital project with a vote anticipated during the 2025-2026 fiscal year. If needed, we will examine other avenues to ensure we do not exceed the allowable limit of cash at year end.

View Audit 384367

Finding 1170971 (2025-001)

Material Weakness 2025

Talbot Bernard Senior Housing Corporation

MA

HUD Housing Programs

Responsible Official Jeffrey Caputi Plan Detail A calculation was made of the underfunding through December 2025, which amounted to 130,132. The funds were transferred from the operating account to the replacement reserve account making the reserve fully funded as of December 19, 2025. Anticipated C...

Responsible Official Jeffrey Caputi Plan Detail A calculation was made of the underfunding through December 2025, which amounted to 130,132. The funds were transferred from the operating account to the replacement reserve account making the reserve fully funded as of December 19, 2025. Anticipated Completion Date: December 19, 2025.

View Audit 384349

Finding 1170859 (2025-001)

Material Weakness 2025

University of Wyoming

WY

Student Financial Aid Subrecipient Monitoring HUD Housing Programs

Views of Responsible Officials and Planned Corrective Actions - The University’s Office of Student Financial Services agrees with the recommendation and will ensure that Return of Title IV (R2T4) calculations and applicable returns of funds for all students who officially or unofficially withdraw ar...

Views of Responsible Officials and Planned Corrective Actions - The University’s Office of Student Financial Services agrees with the recommendation and will ensure that Return of Title IV (R2T4) calculations and applicable returns of funds for all students who officially or unofficially withdraw are completed within required regulatory time frames. To strengthen internal controls related to R2T4 processing, the Office of Student Financial Services under the direction of the Director of Student Financial Services has taken and will continue the following actions: • Reinforce and update R2T4 procedures to clearly document regulatory timelines, roles, and responsibilities, and to include defined ongoing monitoring practices. These updated procedures incorporate periodic review of R2T4 activity to ensure continued compliance. • Enhance the existing internal tracking mechanism to support timely completion of R2T4 calculations and fund returns. This enhancement includes the ability to generate reports that identify upcoming deadlines, completed actions, and any items requiring follow-up. • Provide refresher training to staff within the Office of Student Financial Services and partner offices involved in R2T4 processing, with emphasis on compliance requirements, timelines, documentation standards, and shared accountability across offices. • Incorporate a secondary review process as part of the existing R2T4 procedure. A designated secondary reviewer within the Office of Student Financial Services will confirm the accuracy and timeliness of each R2T4 calculation and associated fund return, with completion of the review documented within the tracking system. These corrective actions will be implemented upon review and approval and will be effective beginning Spring 2026.

View Audit 384150

Finding 1170833 (2025-001)

Material Weakness 2025

Laceleaf Corporation

OR

Eligibility HUD Housing Programs Reporting

Management will monitor tenant recertifications to ensure that they are being completed in a timely manner. The following measures will be implemented: • Centralized tracking by the Housing Manager on a monthly basis to monitor the recertification timeline for each unit. This will include tracking t...

Management will monitor tenant recertifications to ensure that they are being completed in a timely manner. The following measures will be implemented: • Centralized tracking by the Housing Manager on a monthly basis to monitor the recertification timeline for each unit. This will include tracking the 120, 90, 60, and 30 day reminders to be sent to tenants in advance of the recertification effective dates. • Automated reminders will be provided on a monthly basis by the third party vendor that processes HAP billings to the Housing Manager and site managers, in order to ensure that they are aware of any recertification deadlines. • Additional training will be provided for all staff members involved in the recertification process.

View Audit 384123

Finding 1170763 (2025-001)

Material Weakness 2025

Housing Authority of the City of West Point

GA

Cash Management HUD Housing Programs

2025-001 ALN 14.872 – Public Housing Capital Fund Program – Cash Management The CEO agrees with the finding and will follow the Auditor's recommendations as listed on the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. Robert Dull, CEO Projected Completio...

2025-001 ALN 14.872 – Public Housing Capital Fund Program – Cash Management The CEO agrees with the finding and will follow the Auditor's recommendations as listed on the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. Robert Dull, CEO Projected Completion Date: June 30, 2026

View Audit 383996

Finding 1170658 (2025-003)

Material Weakness 2025

Detroit Housing Commission

MI

HUD Housing Programs Subrecipient Monitoring Material Weakness

Condition: The Commission did not submit the required financial and performance reports promptly. Planned Corrective Action: The Capital Team Project Manager continues to reconcile HUD’s EPIC and ELOCC systems with Yardi monthly to ensure timely filing of capital projects' closeouts. This tracking c...

Condition: The Commission did not submit the required financial and performance reports promptly. Planned Corrective Action: The Capital Team Project Manager continues to reconcile HUD’s EPIC and ELOCC systems with Yardi monthly to ensure timely filing of capital projects' closeouts. This tracking critical spreadsheet, created by the Lead Performance Officer, will trigger key reporting dates for the DHC Capital Fund Program to remain in compliance with HUD reporting deadlines. At a minimum, monthly, this critical spreadsheet is distributed to the Supervisor of Capital and the Lead Performance Officer to ensure compliance. However, this was on the radar and continues the process of cleaning older items for corporate hygiene. As of December 2025, this was closed out and approved in EPIC by HUD. Contact person responsible for corrective action: Michael Edwards, Capital Asset & Skilled Trades Supervisor Anticipated Completion Date: 12/31/2025

View Audit 383877

Finding 1170657 (2025-002)

Material Weakness 2025

Detroit Housing Commission

MI

Subrecipient Monitoring HUD Housing Programs Reporting

Condition: The Commission did not complete fiscal year 2025 recertifications. Planned Corrective Action: Staff have been retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupancy Superviso...

Condition: The Commission did not complete fiscal year 2025 recertifications. Planned Corrective Action: Staff have been retrained on the compliance requirements under the standards of the HCV Program through the oversight of the Rental Assistance Department Manager and Continued Occupancy Supervisor. The Department Manager and Supervisor continue to utilize all Yardi monitoring reports to ensure the Department is operating in accordance with industry standards. Reporting is be done and monitored monthly to meet set goals. Weekly, Department Manager has review the certification pipeline to ensure compliance and follow up with the Housing Specialist to ensure compliance and meeting set weekly and monthly goals and metrics. We continue to work in accordance with HUD rules and regulations where Annual Recertification processes are concerned. Per HUD communication provided to us, as of June 30, 2025, HCV is 100% compliant with HUD recertification requirements. Contact person responsible for corrective action: Felicia Burris, HCV Program Manager Anticipated Completion Date: 7/1/2025

View Audit 383877

Finding 1170481 (2025-001)

Material Weakness 2025

Millennium-Oakwood Apartments, LLC

IL

Cash Management HUD Housing Programs Matching / Level of Effort / Earmarking

Finding 2025-001: During the year ended September 30, 2025, the Company loaned funds totaling $10,850 to two other Communities under common management and affiliated with the Sole Member of the Company to help fund operating shortfalls of the other Communities. Comments on the Finding and Each Recom...

Finding 2025-001: During the year ended September 30, 2025, the Company loaned funds totaling $10,850 to two other Communities under common management and affiliated with the Sole Member of the Company to help fund operating shortfalls of the other Communities. Comments on the Finding and Each Recommendation: Management and/or the Sole Member should reimburse the Company for the funds that were loaned to the two other Communities. If there are further operating shortfalls in the future, these should be funded by Management and/or the Sole Member and not borrowed from other Communities. Action(s) taken or planned on the finding: Management concurs with the finding and agrees with the recommendation. On November 7, 2025, Management deposited $10,850 into the Community's operating account. No further action is required.

View Audit 383664

Finding 1170480 (2025-001)

Material Weakness 2025

Millennium-Janesville II Inc.

IL

Subrecipient Monitoring HUD Housing Programs

Finding #2025-001: During the year ended September 30, 2025, the Corporation did not make the HUD required number of deposits to the reserve for replacements. Recommendation: Management should transfer $5,119 from the operating account to the reserve for replacements account when there is cash avail...

Finding #2025-001: During the year ended September 30, 2025, the Corporation did not make the HUD required number of deposits to the reserve for replacements. Recommendation: Management should transfer $5,119 from the operating account to the reserve for replacements account when there is cash available. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. Management deposited $5,119 into the replacement reserve on November 18, 2025, and will continue to make monthly deposits to the reserve as cash flow allows to ensure compliance.

View Audit 383659

Finding 1170478 (2025-001)

Material Weakness 2025

Millennium - Janesville I, Inc.

IL

Subrecipient Monitoring HUD Housing Programs

Finding #2025-001: During the year ended September 30, 2025, the Corporation did not make the HUD required number of deposits to the reserve for replacements. Recommendation: Management should transfer $3,535 from the operating account to the reserve for replacements account when there is cash avail...

Finding #2025-001: During the year ended September 30, 2025, the Corporation did not make the HUD required number of deposits to the reserve for replacements. Recommendation: Management should transfer $3,535 from the operating account to the reserve for replacements account when there is cash available. Action(s) taken or planned on the finding: Management concurs with the finding and recommendation. Management deposited $3,535 into the replacement reserve on November 7, 2025, and will continue to make monthly deposits to the reserve as cash flow allows to ensure compliance.

View Audit 383657

Finding 1170394 (2025-001)

Material Weakness 2025

Voami Independence House of Detroit, Inc. (oak Village)

LA

Cash Management HUD Housing Programs

MANAGEMENT AGREES WITH THE FINDING. THE RESIDUAL RECEIPTS ACCOUNT DEFICIENCY WAS FUNDED ON NOVEMBER 18, 2024 IN THE AMOUNT OF $575. MANAGEMENT WILL ENSURE THAT THE RESIDUAL RECEIPTS ACCOUNT IS PROPERLY FUNDED IN THE FUTURE.

View Audit 383561

Finding 1170372 (2025-001)

Material Weakness 2025

Federation Homes, Inc. 017-Eh041

CT

HUD Housing Programs Internal Control / Segregation of Duties

Views of Responsible Officials: Management concurs with the recommendations and will provide instruction and policy to all individuals in the reserve for replacement funding activities of the Project. Since it was discovered prior to September 30, 2025, management worked with the bank and made depos...

Views of Responsible Officials: Management concurs with the recommendations and will provide instruction and policy to all individuals in the reserve for replacement funding activities of the Project. Since it was discovered prior to September 30, 2025, management worked with the bank and made deposits into the reserve for replacement to make up the shortfall. Management will work with the Bank and HUD to ensure the accuracy of the “true-up” payments made.

View Audit 383508

Corrective Action Plans

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