Corrective Action Plans

Finding 569454 (2024-001)

None 2024

KY

HUD Housing Programs Matching / Level of Effort / Earmarking

Corrective Action Plan June 27, 2025 McKee Manor Apartments, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2024. Hicks & Associates CPAs 1795 Alysheba Way, Ste 6206 Lexington, KY 40509 Audit Period: Year Ended September 30, 2024 The finding fr...

Corrective Action Plan June 27, 2025 McKee Manor Apartments, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2024. Hicks & Associates CPAs 1795 Alysheba Way, Ste 6206 Lexington, KY 40509 Audit Period: Year Ended September 30, 2024 The finding from the September 30, 2024 Schedule of Findings and Questioned Costs is discussed below: FINDING – MAJOR FEDERAL AWARD PROGRAM 2024-001 Replacement Reserve Loans Payback Recommendation: We recommend that the Project adhere to the payback terms of the HUD approved loans from the Replacement Reserve or negotiate different terms with HUD and obtain approval from HUD. Action Taken: Management acknowledges the finding, and the Project is working with X-Caliber Capital to get the repayment payments current and will be working on paying extra to get the repayments paid off sooner. If you have any questions regarding this plan, please call Jean Peyton at (859)255-3334. Sincerely, Jean Peyton ______________________________________ Jean Peyton, Regional Property Manager Kirkpatrick Management Company

View Audit 360940

Finding 569423 (2024-025)

Material Weakness 2024

District of Columbia Housing Authority

MD

HUD Housing Programs Special Tests & Provisions Material Weakness

Finding: 2024-025 U.S. Department of Housing and Urban Development AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance/ Material Noncompliance for Special Tests and Provisions – Rent Reasonableness Repeat Finding: Yes 2023-007 Auditee’s Corrective Actio...

Finding: 2024-025 U.S. Department of Housing and Urban Development AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance/ Material Noncompliance for Special Tests and Provisions – Rent Reasonableness Repeat Finding: Yes 2023-007 Auditee’s Corrective Action Plan: DCHA has implemented controls to ensure rent to the owner is reasonable and in accordance to our admin plan. All rent reasonableness files are housed in the rent reasonableness software- AffordableHousing.com. DCHA has a policy in place for rent reasonableness, and all rent reasonable comparability studies are housed in the software system. Contact Person:Anton Shaw, Director, Housing Choice Voucher Program Completion Date: September 30, 2026

View Audit 360910

Finding 569422 (2024-024)

Material Weakness 2024

District of Columbia Housing Authority

MD

HUD Housing Programs Special Tests & Provisions Material Weakness

Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Auditee’s Corrective Action Plan: DCHA reviewed the eight te...

Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Auditee’s Corrective Action Plan: DCHA reviewed the eight tested, and they will be completed in accordance to the DCHA Admin plan which will be completed in FY 2025. Contact Person: Anton Shaw, Director, Housing Choice Voucher Program Completion Date: September 30, 2025

View Audit 360910

Finding 569421 (2024-023)

Material Weakness 2024

District of Columbia Housing Authority

MD

HUD Housing Programs Special Tests & Provisions Material Weakness

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Auditee’s Corrective Action Plan: The HCVP Inspe...

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Auditee’s Corrective Action Plan: The HCVP Inspections department has begun a department reorganization which includes updating Standard Operating Procedures (SOPs), enhancement to the Yardi inspections module, and training. The reorganization will allow oversight of DCHA inspection team and contracted inspection staff that was brought on to assist the backlog of annual inspections. Quality control measures have also been put into place to monitor the Yardi system of timely inspections, reinspections, and/or abatements. Contact Person: Anton Shaw, Director, Housing Choice Voucher Program Completion Date: September 30, 2026

View Audit 360910

Finding 569420 (2024-022)

Material Weakness 2024

District of Columbia Housing Authority

MD

HUD Housing Programs Eligibility Material Weakness

Finding 2024-022 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Eligibility Repeat Finding: Yes; 2023-003 Auditee’s Corrective Action Plan: DCHA has increased their quality control departme...

Finding 2024-022 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Eligibility Repeat Finding: Yes; 2023-003 Auditee’s Corrective Action Plan: DCHA has increased their quality control department to ensure that file reviews are completed and stored electronically in the Yardi system. In addition, DCHA has engaged with several consulting groups to assist in the backlog of recertifications while the current staff works on the current recertifications so they do not become past due like in the past. Third party vendors have been brought onboard to assist with processing all past due biennial recertifications. Contact Person: Anton Shaw, Director, Housing Choice Voucher Program Completion Date: September 30, 2026

View Audit 360910

Finding 569417 (2024-021)

Material Weakness 2024

District of Columbia Housing Authority

MD

Eligibility HUD Housing Programs Material Weakness

Finding 2024-021 U.S. Department of Housing and Urban Development (HUD) AL No. 14.881 Moving to Work Demonstration Material Weakness in Internal Control over Compliance for Eligibility Repeat Finding: Yes; 2023-002 Auditee’s Corrective Action Plan: DCHA has increased their quality control department...

Finding 2024-021 U.S. Department of Housing and Urban Development (HUD) AL No. 14.881 Moving to Work Demonstration Material Weakness in Internal Control over Compliance for Eligibility Repeat Finding: Yes; 2023-002 Auditee’s Corrective Action Plan: DCHA has increased their quality control department to ensure that file reviews are completed and stored electronically in the Yardi system. In addition, DCHA has engaged with several consulting groups to assist in the backlog of recertifications while the current staff works on the current recertifications so they do not become past due like in the past. Contact Person: Anton Shaw, Director, Housing Choice Voucher Program Completion Date: September 30, 2026

View Audit 360910

Finding 569415 (2024-003)

Material Weakness 2024

First Financial Credit Union

NM

Allowable Costs / Cost Principles HUD Housing Programs Material Weakness

3. Finding 2024-003 Section 5.1 of the grant agreement incorporates 2 CFR Part 200, which establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards, Uniform Guidance (UG) Administrative Requirements. UG administrative requirements puts emphasis on wr...

3. Finding 2024-003 Section 5.1 of the grant agreement incorporates 2 CFR Part 200, which establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards, Uniform Guidance (UG) Administrative Requirements. UG administrative requirements puts emphasis on written policies and procedures as central in its objective to maintain effective internal controls over federal awards. a. Action(s) Taken or Planned on the Finding Management has is in the process of developing policies and procedures to comply with the grant agreement and 2 CFR 200. b. Implementation Date: Estimated completion date is August 31, 2025.

View Audit 360908

Finding 569391 (2024-003)

Significant Deficiency 2024

Woodbend Housing Corporation

OH

Questioned Costs HUD Housing Programs Reporting

Management acknowledges the auditor’s observation and deposit will be made.

View Audit 360895 Questioned Costs: $1

Finding 569390 (2024-002)

Significant Deficiency 2024

Woodbend Housing Corporation

OH

Questioned Costs HUD Housing Programs Allowable Costs / Cost Principles

Management is currently conducting a comprehensive review of the process to ensure alignment with compliance requirements and identify areas for improvement.

View Audit 360895 Questioned Costs: $1

Finding 569389 (2024-001)

Significant Deficiency 2024

Woodbend Housing Corporation

OH

Questioned Costs HUD Housing Programs Reporting

Management is currently conducting a comprehensive review of the process to ensure alignment with compliance requirements and identify areas for improvement.

View Audit 360895 Questioned Costs: $1

Finding 569388 (2024-003)

Material Weakness 2024

Bridgeton Housing Authority

NJ

Questioned Costs Special Tests & Provisions Eligibility

Finding 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Assistance Listing Numbers: 14.850 Noncompliance – N. Special Tests and Provisions – Selections from the Waiting List Non Compliance Material to the Fi...

Finding 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Assistance Listing Numbers: 14.850 Noncompliance – N. Special Tests and Provisions – Selections from the Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Admissions and Continued Occupancy Policy for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203(Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with certainty that new move-ins were selected from the wait list in an order that is in accordance with the Authority’s policy. Context: Two (2) names were selected from the new move-in list and those names were to be traced to the waiting list to verify new move-ins were chosen in an order that was in accordance with the Authority’s policy. It was determined that two (2) out of two (2) new move-ins selected could not be traced with certainty back to the Authority's waiting list Known Questioned Costs: $8,691 Findings – Federal Award Program Audit (continued) Finding 2024-003 (continued) Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to selections from the waiting list. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Public and Indian Housing Program is in material non-compliance with the special tests and provisions type of compliance related to selections from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures related to selections from the waiting list that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Public and Indian Housing Program and will implement internal control procedures related to selections from the waiting list that will ensure compliance with federal regulations. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.

View Audit 360890 Questioned Costs: $1

Finding 569386 (2024-001)

Significant Deficiency 2024

Bridgeton Housing Authority

NJ

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Finding 2024-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Assistance Listing Numbers 14.850 Noncompliance – N. Special Tests and Provisions - Recording of Declarations of Trust/Declaration of Restrictive Coven...

Finding 2024-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Assistance Listing Numbers 14.850 Noncompliance – N. Special Tests and Provisions - Recording of Declarations of Trust/Declaration of Restrictive Covenants Against Public Housing Property Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Findings – Federal Award Program Audit (continued) Finding 2024-001 (continued) Criteria: A current Declaration of Trust ("DOT"), in a form acceptable to HUD, must be recorded against all public housing property owned by PHAs (or private entities for public housing developed under 24 CFR Part 905, Subpart F) that has been acquired, developed, maintained, or assisted with funds from the US Housing Act of 1937. A DOT is a legal instrument that grants HUD an interest in public housing property. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were properties that the Authority owns and insures that did not have DOTs on file during the time of audit. Context: The Authority owns three (3) public housing properties. During the audit, it was noted that three (3) out of three (3) public housing properties did not have DOTs on file. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to the recording of DOTs against public housing property. The Authority has not properly filed DOTs in compliance with program requirements. Effect: The Public and Indian Housing Program is in non-compliance with the special tests and provisions type of compliance related to the recording of DOTs against public housing property. Recommendation: We recommend that the Authority files proper DOTs on the public housing properties. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor and will ensure all necessary DOTs are recorded. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.

View Audit 360890

Finding 569385 (2024-006)

Significant Deficiency 2024

Bridgeton Housing Authority

NJ

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Finding 2024-006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – Utility Allowance Schedule Non Compliance Material to the ...

Finding 2024-006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – Utility Allowance Schedule Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Utility Allowance Schedule. The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition: Based on inspection of files and discussions with management, it was determined that the Authority did not have up-to-date utility allowance schedules on file. Context: The utility allowance schedules that the Authority has on file have not been updated since 2018. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to the utility allowance schedules. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Voucher Program is in non-compliance with the special tests and provisions type of compliance related to the utility allowance schedules. Recommendation: We recommend that the Authority updates the utility allowance schedules annually that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the significant deficiency in the Section 8 Housing Choice Voucher Program and will update the utility allowance schedules annually in accordance with HUD guidelines. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.

View Audit 360890

Finding 569384 (2024-005)

Material Weakness 2024

Bridgeton Housing Authority

NJ

Questioned Costs HUD Housing Programs Material Weakness

Finding 2024-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Non Compliance ...

Finding 2024-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Enforcement. For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct all life threatening HQS deficiencies within 24 hours after the inspections and all other deficiencies within 30 days or within a specified PHA-approved extension. Condition: Based upon inspection of the Authority’s files and on discussion with management, the Authority did not properly abate or provide proper extension documentation for failed inspections selected for testing. Context: The Authority did not provide proper extension documentation or properly abate four (4) out of nine (9) failed inspections selected for testing. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: $9,282 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS enforcement. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Section 8 Housing Choice Voucher Program is in material non-compliance with the special tests and provisions type of compliance related to HQS enforcement. Findings – Federal Award Program Audit (continued) Finding 2024-005 (continued) Recommendation: We recommend the Authority design and implement internal control procedures related to HQS enforcement that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Section 8 Housing Choice Voucher Program and will implement internal control procedures related to HQS enforcement that will ensure compliance with federal regulations. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.

View Audit 360890 Questioned Costs: $1

Finding 569383 (2024-004)

Material Weakness 2024

Bridgeton Housing Authority

NJ

Questioned Costs HUD Housing Programs Special Tests & Provisions

Finding 2024-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions - Reasonable Rent Non Compliance Material to the Financial S...

Finding 2024-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions - Reasonable Rent Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Reasonable Rent. The Authority must do the following: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: Based upon inspection of the Authority’s files and discussion with management, there were newly leased units for which the evaluation of rent reasonableness was not performed. Context: There were approximately 6 newly leased units. Of a sample size of one (1) newly leased unit, one (1) unit's documentation of reasonable rent was not available for examination. Our sample size is statistically valid. Known Questioned Costs: $8,661 Findings – Federal Award Program Audit (continued) Finding 2024-004 (continued) Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers program is in material non-compliance with the special tests and provisions type of compliance related to reasonable rent. Recommendation: We recommend the Authority design and implement internal control procedures related to reasonable rent that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Section 8 Housing Choice Vouchers Program and will implement internal control procedures related to reasonable rent that will ensure compliance with federal regulations. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.

View Audit 360890 Questioned Costs: $1

Finding 569382 (2024-002)

Significant Deficiency 2024

Bridgeton Housing Authority

NJ

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Finding 2024-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program, Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.850, 14.871 Noncompliance – N. Special Tests and Provisions – Depository ...

Finding 2024-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program, Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.850, 14.871 Noncompliance – N. Special Tests and Provisions – Depository Agreements Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: PHAs are required to enter into depository agreements with their financial institution using the HUD-51999 (OMB No. 2577-0075) or a form required by HUD in the ACC. The agreements serve as safe guards for Federal funds and provide third-party rights to HUD (Section 9 of the ACC). Condition: Based on inspection of files and discussions with management, it was determined that depository agreements were not on file during the time of audit. Context: The Authority did not have depository agreements with their financial institutions on file during the time of audit. We were unable to verify the existence of depository agreements and unable to determine if the Authority met the terms of the agreements. Findings – Federal Award Program Audit (continued) Finding 2024-002 (continued) Cause: There is a significant deficiency in internal controls over compliance for the special tests and provision type of compliance related to depository agreements. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls for their partnered management company that assures the program is in compliance. Effect: The Public and Indian Housing Program is in non-compliance with the special tests and provisions type of compliance related to depository agreements. Recommendation: We recommend that the Authority properly file HUD-51999 forms in accordance with HUD guidelines. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor and will properly file HUD-51999 forms in accordance with HUD guidelines. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.

View Audit 360890

Finding 569374 (2024-003)

None 2024

Homes for Good Housing Agency

OR

Questioned Costs HUD Housing Programs Cash Management § 200.302 § 200.305

Action: Set Fridays as a standard recurring day to pay invoices. Date completed: May 2025 Responsible Person: Accounting Technician, Kary Smith Action: Set Monday as the day to make capital grant drawdowns. HUD deposits the draws via ACH on Wednesdays. The PHA releases the payment on Friday Date co...

Action: Set Fridays as a standard recurring day to pay invoices. Date completed: May 2025 Responsible Person: Accounting Technician, Kary Smith Action: Set Monday as the day to make capital grant drawdowns. HUD deposits the draws via ACH on Wednesdays. The PHA releases the payment on Friday Date completed: May 2025 Responsible Person: Senior Accounting Technician, Stacy Verrinder Action: At the time of the request for capital grant transfers from the Moving to Work account to the operating account, include the Accounts Payable tech in the email distribution and include information about which invoice A/P must pay by Friday Date completed: May 2025 Responsible Person: Senior Accounting Technician, Stacy Verrinder

View Audit 360862 Questioned Costs: $1

Finding 569373 (2024-002)

None 2024

Homes for Good Housing Agency

OR

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

Action: Checklists for eligibility functions were implemented 07.31.24 with the FY23 Audit Findings. The deficiencies for the FY24 Audit occurred prior to the implementation of the checklists. 01.26.24 for use of the incorrect UA and 01.18.23 for incorrect calculation of income. Due Date:...

Action: Checklists for eligibility functions were implemented 07.31.24 with the FY23 Audit Findings. The deficiencies for the FY24 Audit occurred prior to the implementation of the checklists. 01.26.24 for use of the incorrect UA and 01.18.23 for incorrect calculation of income. Due Date: July 31, 2024 Responsible Person: Program Manager, Christi Champ Action: Overdue Inspections Completed. The full portfolio of required HQS inspections were vetted following the FY23 audit, and any overdue inspections were completed. Due Date: March 31, 2025 Responsible Person: Program Manager, Nat Dybens

View Audit 360862

Finding 569372 (2024-003)

Significant Deficiency 2024

Housing Authority of the City of Deerfield Beach

FL

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Management’s Corrective Action Plan Program Name: Name of Federal Program or Cluster CFDA Number:14.871 2024-003: FSS Liability and Insufficient Cash Criteria: FSS Program Regulations (24 CFR 984.305): Specifically for the FSS program, this regulation governs the management of FSS escrow ac...

Management’s Corrective Action Plan Program Name: Name of Federal Program or Cluster CFDA Number:14.871 2024-003: FSS Liability and Insufficient Cash Criteria: FSS Program Regulations (24 CFR 984.305): Specifically for the FSS program, this regulation governs the management of FSS escrow accounts, which are funded using HAP funds for HCV participants. These escrow funds are restricted to deposits for participants’ savings accounts based on increased rent due to earned income. Using these funds for other purposes, such as covering unrelated HA expenses, is unallowable. Condition: During our audit we noted that the Authority’s HCV program did have sufficient cash to cover the FSS liability Context: Per the authority’s FSS escrow liability listing, there should be $168,708 in escrow account. The Authority only has $156,715 in this account, leaving it short by $11,990. The Authority only has $585 in unrestricted HCV cause the program to insufficient cash to cover liability. Management Response: Due to the HCV program being in shortfall and awaiting set-aside funding during this period, it was significantly challenging to consistently fund the Family Self-Sufficiency (FSS) liability on a monthly basis. However, once sufficient funding was received, the issue was fully resolved.

View Audit 360859 Questioned Costs: $1

Finding 569371 (2024-002)

Significant Deficiency 2024

Housing Authority of the City of Deerfield Beach

FL

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

Management’s Corrective Action Plan Program Name: Name of Federal Program or Cluster CFDA Number:14.871 2023-002: Interprogram Due To/Due From Activities Criteria: According to PHA Accounting Brief #14, Due To/Due From relationships should not be reported under accrual accounting simply from...

Management’s Corrective Action Plan Program Name: Name of Federal Program or Cluster CFDA Number:14.871 2023-002: Interprogram Due To/Due From Activities Criteria: According to PHA Accounting Brief #14, Due To/Due From relationships should not be reported under accrual accounting simply from the result of a PHA using a common checking or working capital account. Because of the basic nature of most Federal and state programs, resources from one program cannot be used to support the cost of another program. HUD views Due To’s and Due From’s reported in a PHA ‘s Federal programs as possible indicators of noncompliance. Condition: The Authority has inter-fund receivables and payables that have not been repaid as of fiscal year-end. This results in certain programs having a negative cash balance as of the fiscal year end. Context: The Authority’s reported a ($33,461 in HCV program and $154,268 Mainstream) interfund payable due to Business Skill Center (nonfederal program ) which is a significant red flag for HUD reviewers. Management Response: The $33,461 due from the Housing Choice Voucher (HCV) program to Business Skill Center represents the use of non-federal funds to cover HCV’s monthly payroll and benefit expenses, which typically range from $30,000 to $35,000. These expenses are temporarily paid by Business Skill Center and reimbursed within 30 days upon receipt of HCV Administrative Fee funding from HUD. The $154,268 due from the Mainstream program to Business Skill Center non-federal funds resulted from a funding shortfall that occurred during the transition of Mainstream Vouchers from the Dania Housing Authority to the Deerfield Beach Housing Authority. During this period, the Deerfield Beach Housing Authority had to apply for and await the disbursement of Mainstream Shortfall funds from HUD. As these funds were received over a period of 3 to 4 months, the Business Skill Center covered costs using non-federal funds, which were later reimbursed.

View Audit 360859

Finding 569370 (2024-001)

Significant Deficiency 2024

Housing Authority of the City of Deerfield Beach

FL

HUD Housing Programs Reporting Significant Deficiency

Management’s Corrective Action Plan Program Name: Name of Federal Program or Cluster CFDA Number:14.871 2024-001: Unaudited Submission Criteria: Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end (24 CFR section 5.801) Conditio...

Management’s Corrective Action Plan Program Name: Name of Federal Program or Cluster CFDA Number:14.871 2024-001: Unaudited Submission Criteria: Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end (24 CFR section 5.801) Condition: Management missed the deadline for its unaudited REAC FDS submission. Context: The Authority’s unaudited FDS submission was due on December 15th 2024. The Authority did not submit the submission until February 2025. Management Response: A compliance calendar has been implemented and is maintained by both the Finance Director and Executive Director to track HUD and REAC deadlines. The unaudited FDS will be finalized and submitted no later than 5 business days prior to the formal due date, allowing sufficient buffer time. Oversight and reminders are issued monthly by the Chief Financial Officer to ensure proper tracking and timely filing. As well, additional staff is being crossed train so that the agency will not dependent one person for FDS Submission.

View Audit 360859

Finding 569338 (2024-005)

Material Weakness 2024

The Housing Authority of Cheraw

SC

Questioned Costs HUD Housing Programs Eligibility § 200.302

Finding Number: 2024-005 Title: Missing Receipt Support for MTW Public Housing Tenant Transactions Program Name: Moving to Work Demonstration Program ALN: 14.881 Description: A review of tenant files under the Moving to Work (MTW) Public Housing program found that while the tenant files themselves ...

Finding Number: 2024-005 Title: Missing Receipt Support for MTW Public Housing Tenant Transactions Program Name: Moving to Work Demonstration Program ALN: 14.881 Description: A review of tenant files under the Moving to Work (MTW) Public Housing program found that while the tenant files themselves were complete, the Authority did not provide supporting documentation for certain rent receipts. In several instances, the rent amounts recorded in the receipt or rent register did not agree with the amounts reported on HUD Form 50058, and no receipt documentation was available to reconcile the difference. Planned Corrective Action: Fiscal Year 2024 was a year marked by personnel turnover in key administrative, accounting, and human resources positions. The Authority will work to implement a process to improve tenant file management, ensure complete supporting documentation, and address disbursement variances.

View Audit 360844 Questioned Costs: $1

Finding 569337 (2024-004)

Material Weakness 2024

The Housing Authority of Cheraw

SC

Questioned Costs HUD Housing Programs Subrecipient Monitoring § 200.302

Finding Number: 2024-004 Title: Incomplete Tenant File Documentation and Disbursement Variances for MTW Housing Assistance Payments Program Name: Moving to Work Demonstration Program ALN: 14.881 Description: A review of tenant files and disbursement activity under the Moving to Work (MTW) Housing ...

Finding Number: 2024-004 Title: Incomplete Tenant File Documentation and Disbursement Variances for MTW Housing Assistance Payments Program Name: Moving to Work Demonstration Program ALN: 14.881 Description: A review of tenant files and disbursement activity under the Moving to Work (MTW) Housing Assistance Payments (HAP) program identified multiple deficiencies in documentation and compliance. For six out of the sixteen tenants tested, the Authority was unable to provide the tenant file for review. Among the files that were available, several lacked required documentations for the required period to support continued occupancy, rent adjustments, reexaminations, income verification, and inspections. Additionally, variances were noted between the amounts reported on HUD Form 50058 and the actual HAP/UAP disbursements made. Planned Corrective Action: Fiscal Year 2024 was a year marked by personnel turnover in key administrative, accounting, and human resources positions. The Authority will work to implement a process to improve tenant file management, ensure complete documentation, and address disbursement variances.

View Audit 360844 Questioned Costs: $1

Finding 569336 (2024-003)

Material Weakness 2024

The Housing Authority of Cheraw

SC

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring § 200.302 § 200.334

Title: Missing Required Moving to Work (MTW) Demonstration Program Documentation Program Name: Moving to Work Program ALN: 14.881 Description: During our review of the Authority's administration of the MTW Program, the Authority was unable to provide several critical documents required to support ...

Title: Missing Required Moving to Work (MTW) Demonstration Program Documentation Program Name: Moving to Work Program ALN: 14.881 Description: During our review of the Authority's administration of the MTW Program, the Authority was unable to provide several critical documents required to support its eligibility and compliance under the MTW framework: 1. The Authority did not provide a copy of its Annual Contributions Contract (ACC), which serves as the foundational agreement between the Authority and HUD for the receipt and use of federal funds. 2. The Authority failed to provide a signed MTW Certification of Compliance for the most recent fiscal year, which affirms board approval of the MTW Plan and Report and verifies the Authority's adherence to MTW statutory objectives and HUD program requirements. 3. The Authority did not provide the required supplement to the annual MTW Plan, which outlines planned uses of MTW funds and activities for the fiscal year. 4. The Authority also failed to provide the HUD-issued approval letter for the supplement to the annual MTW Plan, which is necessary to validate HU D's acceptance of the Authority's proposed activities.Planned Corrective Action: Fiscal Year 2024 was a year marked by personnel turnover in key administrative, accounting, and human resources positions. The Authority will work to locate and archive the ACC, required supplement to the annual MTW Plan, the HUD issued approval letter for the supplement to the annual MTW Plan, and to complete the MTW Certification of Compliance.

View Audit 360844

Finding 569335 (2024-002)

Material Weakness 2024

The Housing Authority of Cheraw

SC

Questioned Costs Cash Management Eligibility § 200.302 § 200.305

Mov ing to Work Demonstra tion Program - Capital Fund ProgramALN: 14.881 Description: During testing of the Mov ing to Work Demonstration Program - Capital Fund Progra m, we selected a sample of eight elOCCS drawdown vouchers for rev iew. Of these, the Authority was unable to provide sufficient supp...

Mov ing to Work Demonstra tion Program - Capital Fund ProgramALN: 14.881 Description: During testing of the Mov ing to Work Demonstration Program - Capital Fund Progra m, we selected a sample of eight elOCCS drawdown vouchers for rev iew. Of these, the Authority was unable to provide sufficient supporting documentation to substantia te the eligibility, timing, or purpose of the draw d owns for four v ouchers. For another v oucher, the Authority could only partially support the a mount dra wn. These issues reflect a lack of a dequate documentation necessary to substantiate the allowability and propriety of the expenditure charged to the CFP grants. Planned Corrective Action: Fiscal Year 2024 was a year marked by personnel turnover in key administrative, accounting, and human resources positions. The Authority will work to implement a process to ensure that every drawdown request is accompanied by the required supporting documentation. In addition, the supporting documentation will be reviewed to ensure that it meets eligibility and "just-in-time" requirements prior to the Executive Director signing the request.

View Audit 360844 Questioned Costs: $1

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