Corrective Action Plans

Finding 1214777 (2025-001)

Material Weakness 2025

MO

HUD Housing Programs Special Tests & Provisions Procurement, Suspension & Debarment

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2025 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee t...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2025 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended December 31, 2025. Finding 2025-001 Responsible Party Name: Fred Gibbs Position: President – Management Agent Telephone Number: 913-709-1811 Federal Agency U.S. Department of Housing and Urban Development Federal Program Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing (Section 207/223(F)) Compliance Requirements N – Special Tests and Provisions Finding Type Financial Statement and Federal Awards Auditee’s Comment on Finding We agree with the auditor’s finding. Corrective Action We will follow our policies and procedures to ensure that accounting records are kept accurate and complete, and a responsible official will review and sign off on the monthly financial statements. Anticipated Completion Date July 31, 2026

View Audit 401516

Finding 1214770 (2025-001)

Material Weakness 2025

Parallel Senior Villas, INC

KS

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2025 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee t...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED DECEMBER 31, 2025 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended December 31, 2025. Responsible Party Name: Fred Arreguin Position: Chief Financial Officer Telephone Number: 816-561-4240 Finding 2025-001 (Material Weakness) Federal Agency U.S. Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements N – Special Tests and Provisions Finding Type Federal Awards Auditee’s Comments on Finding We agree with the auditor’s finding. Corrective Action We performed the required repair and maintenance on the elevator issue identified during the February 23, 2026 inspection. The elevator company reinspected the elevator on April 1, 2026, and noted the issue was resolved. On April 3, 2026, we received a Certificate of Inspection that expires on February 23, 2027. Anticipated Completion Date April 3, 2026

View Audit 401507

Finding 1214700 (2025-002)

Material Weakness 2025

Housing Authority of the City of Eunice

LA

HUD Housing Programs

Recommendation: The family income and composition of all tenants should be reexamined at least once every 12 months and adjustments made to tenant rent and housing assistance payments as necessary using documentation from third-party verification. Client Response and Corrective Action: The PHA will ...

Recommendation: The family income and composition of all tenants should be reexamined at least once every 12 months and adjustments made to tenant rent and housing assistance payments as necessary using documentation from third-party verification. Client Response and Corrective Action: The PHA will reexamine all tenants within a 12-month period.

View Audit 401449

Finding 1214699 (2025-001)

Material Weakness 2025

Shawl II Senior Housing of Montague

MI

HUD Housing Programs Cash Management

Shawl II, Senior Housing of Montague, respectfully submits the following corrective action plan for the year ended December31, 2025. Name and address of independent public accounting firm: Maner Costerisan, P.C. 2425 E. Grand River Ave, Ste 1 Lansing, MI 48912 Audit period: January 1, 2025 to Decemb...

Shawl II, Senior Housing of Montague, respectfully submits the following corrective action plan for the year ended December31, 2025. Name and address of independent public accounting firm: Maner Costerisan, P.C. 2425 E. Grand River Ave, Ste 1 Lansing, MI 48912 Audit period: January 1, 2025 to December 31, 2025 The findings from the December 31, 2025 schedule of findings, questioned costs, and recommendations are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings - Considered to be immaterial noncompliance Finding 2025-001 Recommendation: We recommend that management implement procedures to review the residual receipt account on a regular basis and ensure that residual receipt deposits are in accordance with HUD requirements. Management Comments: We agree with the facts and circumstances described above. Subsequent to year end, the Organization funded the residual receipt account for the amount of the deficiency of $10,582, and the account is now fully funded in accordance with HUD requirements. No underfunding existed as of the report date. Management has implemented procedures to make sure required residual receipt deposits from surplus cash are made to ensure ongoing compliance with HUD requirements.

View Audit 401445

Finding 1214654 (2025-002)

Material Weakness 2025

La Maison Acadienne, Inc.

FL

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

FINDING No. 2025-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155 Recommendation: The Project should implement procedures to monitor the expiration of HUD required documents to ensure timely preparation and approval. Action Ta...

FINDING No. 2025-002: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155 Recommendation: The Project should implement procedures to monitor the expiration of HUD required documents to ensure timely preparation and approval. Action Taken: Management is in the process of renewing all management certifications and will provide accountants with extra training to monitor. 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 401384

Finding 1214653 (2025-001)

Material Weakness 2025

La Maison Acadienne, Inc.

FL

HUD Housing Programs Reporting

Oversight Agency for Audit, La Maison Acadienne, Inc., respectfully submits the following corrective action plan for the year ended September 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, La Maison Acadienne, Inc., respectfully submits the following corrective action plan for the year ended September 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: October 1, 2024 through September 30, 2025 The findings from the September 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Rental Housing Projects, ALN 14.155 Recommendation: Management should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month and that deficiencies noted in prior audit findings are adequately addressed. Action Taken: The verification of the correct funding amounts is now confirmed against approved 9250s on a monthly basis, and is a step that has been added on the month-end close checklist.

View Audit 401384

Finding 1214645 (2025-001)

Material Weakness 2025

Brompton Community Iii, LLC

TX

Subrecipient Monitoring HUD Housing Programs Reporting § 200.512

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely...

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely submission of the Single Audit reporting package to the FAC. Reporting Views of Responsible Officials Management acknowledges the late submission and has implemented procedures to assign responsibility for FAC submission and track required deadlines. Management believes these actions will prevent recurrence. Auditee concurs with this finding. Auditee agrees with auditor recommendations. Completion Date or Proposed Completion Date: May 31, 2026 by Rebecca Copeland, Controller - Property Accounts Action(s) Taken or Planned on the Finding The electronic submissions will be entered into the online FAC system.

View Audit 401357

Finding 1214644 (2025-001)

Material Weakness 2025

One Oaklake Vii, LLC

TX

Subrecipient Monitoring HUD Housing Programs Reporting § 200.512

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely...

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely submission of the Single Audit reporting package to the FAC. Reporting Views of Responsible Officials Management acknowledges the late submission and has implemented procedures to assign responsibility for FAC submission and track required deadlines. Management believes these actions will prevent recurrence. Auditee concurs with this finding. Auditee agrees with auditor recommendations. Completion Date or Proposed Completion Date: May 31, 2026 by Rebecca Copeland, Controller - Property Accounts Action(s) Taken or Planned on the Finding The electronic submissions will be entered into the online FAC system.

View Audit 401356

Finding 1214643 (2025-001)

Material Weakness 2025

One Oaklake Vi, LLC

TX

Subrecipient Monitoring HUD Housing Programs Reporting § 200.512

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely...

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely submission of the Single Audit reporting package to the FAC. Reporting Views of Responsible Officials Management acknowledges the late submission and has implemented procedures to assign responsibility for FAC submission and track required deadlines. Management believes these actions will prevent recurrence. Auditee concurs with this finding. Auditee agrees with auditor recommendations. Completion Date or Proposed Completion Date: May 31, 2026 by Rebecca Copeland, Controller - Property Accounts Action(s) Taken or Planned on the Finding The electronic submissions will be entered into the online FAC system.

View Audit 401355

Finding 1214642 (2025-001)

Material Weakness 2025

One Oaklake X, LLC

TX

Subrecipient Monitoring HUD Housing Programs Reporting § 200.512

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely...

Comments on the Finding and Each Recommendation The auditee did not submit the Single Audit reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. We recommend that the auditee implement procedures to monitor reporting deadlines and ensure timely submission of the Single Audit reporting package to the FAC. Reporting Views of Responsible Officials Management acknowledges the late submission and has implemented procedures to assign responsibility for FAC submission and track required deadlines. Management believes these actions will prevent recurrence. Auditee concurs with this finding. Auditee agrees with auditor recommendations. Completion Date or Proposed Completion Date: May 31, 2026 by Rebecca Copeland, Controller - Property Accounts Action(s) Taken or Planned on the Finding The electronic submissions will be entered into the online FAC system.

View Audit 401354

Finding 1214578 (2025-001)

Material Weakness 2025

Metzger Park Apartments Inc.

OR

HUD Housing Programs Internal Control / Segregation of Duties

Finding # 2025-001 Type: Noncompliance Assisting Listing Number: 14.186 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Name of Federal Program: Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA) Corrective Action: Management will update the monthly repla...

Finding # 2025-001 Type: Noncompliance Assisting Listing Number: 14.186 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Name of Federal Program: Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA) Corrective Action: Management will update the monthly replacement reserve deposit to $2,367 in accordance with the HUD Regulatory Agreement and make the remaining catch‑up deposit of $2,249 as soon as feasible. Anticipated Completion Date: June 30, 2026

View Audit 401241

Finding 1214571 (2025-001)

Material Weakness 2025

Jackson Housing Authority

TN

HUD Housing Programs Internal Control / Segregation of Duties

To assure program compliance with Housing Quality Standards (HQS), the Jackson Housing Authority's (JHA) Housing Choice Voucher (HCV) program will conduct a comprehensive review of all units to identify any that are overdue for HQS inspections. This will be done by utilizing the adhoc report in HUD'...

To assure program compliance with Housing Quality Standards (HQS), the Jackson Housing Authority's (JHA) Housing Choice Voucher (HCV) program will conduct a comprehensive review of all units to identify any that are overdue for HQS inspections. This will be done by utilizing the adhoc report in HUD's PIC Secure Systems, along with the Past Due Inspections report in Emphasys Elite, JHA's current software. Any past due inspections will be scheduled and completed within 30 days. Fourteen of the fifteen inspections that were cited in the 2025 financial audit, all now have a passed inspection for the 2025 fiscal year. The one remaining inspection has been sent to JHA's third party inspection company, McCright and Associates, and has been imported and will be scheduled for inspection before current month's end. JHA currently has one staff member who is HQS certified and will work closely with the Director or Rental Assistance, as well as with McCright and Associates, to monitor and track the inspection processes, via daily correspondence and tracking log sent from McCright and Associates. We will also work with Emphasys Elite (software provider) to assure that automated reminders are in place to give 60-90 days' notice of upcoming inspection deadlines. Monthly internal reviews will be conducted to verify that all units follow HQS inspection schedules and rent abatements will be enforced according to federal regulations. The Director of Rental Assistnce, Sheronda Watson, remains responsible for program oversight and compliance. If you have questions or need anything further, please feel free to contact me at 731-422-1671 ext.103 or mreid@jacksonha.com.

View Audit 401231

Finding 1214553 (2025-003)

Material Weakness 2025

Sioux Falls Housing and Redevelopment Commission

SD

HUD Housing Programs

Contact Person Larissa Deedrich, Executive Director Corrective Action Plan Management has reviewed control processes and assigned staff to perform necessary controls over the reconciliation of HAP expenses. Planned Completion Date for CAP September 30, 2026

View Audit 401229

Finding 1214441 (2025-002)

Material Weakness 2025

Michigan Rural Water Association

MI

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Finding – Title 2 CFR Part 200 and the terms of the federal award require recipients to comply with program reporting requirements, including the timely submission of required financial reports. Timely reporting is a key internal control over compliance designed to ensure appropriate monitoring of f...

Finding – Title 2 CFR Part 200 and the terms of the federal award require recipients to comply with program reporting requirements, including the timely submission of required financial reports. Timely reporting is a key internal control over compliance designed to ensure appropriate monitoring of federal expenditures and program activity. Under the Technical Assistance and Training Grants - Circuit Rider Services program, the National Rural Water Association requires recipients to submit monthly financial reports no later than 10 working days after the month following the reported activity. For the period January through May 2025, all required monthly financial reports were submitted timely. However, for the period June through December 2025, all monthly financial reports were submitted after the required deadline, in some cases significantly late. Recommendation – The auditor recommends that management strengthen internal control over compliance by: • Establishing documented procedures and internal deadlines to ensure monthly financial reports are prepared and submitted in accordance with program requirements. • Implementing management-level review and monitoring controls to verify that required reports are submitted timely, particularly during periods of staff transition. • Ensuring that personnel responsible for federal reporting possess the appropriate experience and training related to federal grant compliance requirements. • Developing contingency plans or cross-training procedures to ensure continuity of compliance functions in the event of future personnel turnover. Action to be taken – Documented policies and procedures were left for the succeeding financial manager. The Finance Director who left the Organization was also available as a consultant during the rest of 2025. Help was made available to the new financial personnel through both executive management and the consultant. More in-depth training and screening will be prepared in succession planning by the current Finance Director during the summer of 2026. Emphasis will be given to timeliness and accuracy. New programs are also being screened for payroll and expense reporting, allowing for direct import as opposed to manual entry, allowing for better accuracy and timing of financial reports. The new Standard Operating Procedures will be shared with Executive management so they might step in in the event that there is a gap in the financial management position. Executive management is also evaluating the use of an independent accounting firm in the event of a vacancy in the future. Estimated completion date – December 31, 2026 Responsible person – Jennifer Lewis, CPA, Finance Director

View Audit 401144

Finding 1214414 (2025-004)

Material Weakness 2025

The Housing and Redevelopment Commission of the City of Aberdeen, Sd

SD

HUD Housing Programs

Finding 2025-004 Federal Agency Name – Department of Housing and Urban Development Assistance Listing Number – 14.871 & 14.879 Program Name – Housing Voucher Cluster Finding Summary: The Commission’s control in place for review of the tenant’s rent payment used for tenant files on annual reviews was...

Finding 2025-004 Federal Agency Name – Department of Housing and Urban Development Assistance Listing Number – 14.871 & 14.879 Program Name – Housing Voucher Cluster Finding Summary: The Commission’s control in place for review of the tenant’s rent payment used for tenant files on annual reviews was not operating effectively. In seven of the 60 tenant files tested, the tenant’s payment amounts were calculated incorrectly. Five of the seven files with errors would have been de minimis errors which the compliance supplement notes as an error of less than $30 per month. Also, two tenants’ social security number documentation in the tenant files did not match Form 50058. Responsible Individuals: Brett Bill, Executive Director Corrective Action Plan: The Commission has had recent turnover in the Section 8 Program. Additional training will be provided to new staff to ensure that they are aware of program requirements. Anticipated Completion Date: 5/1/2026

View Audit 401098

Finding 1214412 (2025-003)

Material Weakness 2025

The Housing and Redevelopment Commission of the City of Aberdeen, Sd

SD

Allowable Costs / Cost Principles HUD Housing Programs Reporting

Finding 2025-003 Federal Agency Name – Department of Housing and Urban Development Assistance Listing Number – 14.871 & 14.879 Program Name – Housing Voucher Cluster Finding Summary: The Commission has a process in place for employees to track hours worked to federal and non-federal programs but pay...

Finding 2025-003 Federal Agency Name – Department of Housing and Urban Development Assistance Listing Number – 14.871 & 14.879 Program Name – Housing Voucher Cluster Finding Summary: The Commission has a process in place for employees to track hours worked to federal and non-federal programs but payroll allocations are made based on budgets expectations, not actual, and review is not occurring to determine if allocations need to be updated throughout the Responsible Individuals: Brett Bill, Executive Director Corrective Action Plan: Processes will be updated to ensure that payroll allocations are being compared to allocations to ensure they are correctly allocated. Anticipated Completion Date: 5/1/2026

View Audit 401098

Finding 1214404 (2025-001)

Material Weakness 2025

Housing Opportunities Team, INC

OR

HUD Housing Programs

Name of contact person: Matthew Wrigley, Accounting Financial and Audit Manager Plan: The 2025 reserve deficit was resolved 4/30/26. The monthly internal reserve transfers are tracked for each site and included in a monthly csv transfer import when cashflow proves viable. There are monthly reminders...

Name of contact person: Matthew Wrigley, Accounting Financial and Audit Manager Plan: The 2025 reserve deficit was resolved 4/30/26. The monthly internal reserve transfers are tracked for each site and included in a monthly csv transfer import when cashflow proves viable. There are monthly reminders and a schedule in place to review cash and initiate for all sites. In the event the transfer fails to occur, the liability is either accrued or independently tracked. From there, we continue to monitor the cashflow for feasibility and attempt to resolve any overdue transfers. To ensure compliance, non-essential payables will be withheld from processing. Mortgages, utilities, and insurance will be considered as essential to mitigate critical fees, cancellations, or shut-offs. These procedures are already in place as of 2026. Date of planned corrective action: April 30, 2026

View Audit 401063

Finding 1214234 (2025-009)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 and 14.EHV Noncompliance – N. Special Tests and Provisions - Reasonable Rent Non Compliance Material to the Financial Statements: No Significant Deficiency...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 and 14.EHV Noncompliance – N. Special Tests and Provisions - Reasonable Rent Non Compliance Material to the Financial Statements: No Significant Deficiency 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, the Authority did not have procedures or software in place to perform the required evaluation of rent reasonableness. Context: There were approximately fifteen(15) newly leased units in the Emergency Housing Vouchers Program. Of a sample size of two (2) newly leased units in the Emergency Housing Vouchers Program, two (2) unit's documentation of reasonable rent was not available for examination. Our sample size is statistically valid. Known Questioned Costs: Unknown Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority experienced high turnover and did not properly train employees in the HCV department, which resulted in the Authority having a limited capacity to perform rent reasonableness calculations and properly maintain and monitor a system of internal controls that reasonably assures the program is in compliance with program requirements. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to reasonable rent. Recommendation: We recommend that the Authority establish a software and implement a process whereby Authority personnel are hired and trained on performing the appropriate rent reasonableness procedures 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 deficiencies in the Section 8 Housing Voucher Cluster Programs and will train staff on rent reasonableness and implement internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

Finding 1214233 (2025-007)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Finding 2025-007: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 and 14.EHV Noncompliance – N. Special Tests and Provisions – HQS Enforcement Non Compliance Material to the Financial Statements: Yes Sig...

Finding 2025-007: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 and 14.EHV Noncompliance – N. Special Tests and Provisions – HQS Enforcement Non Compliance Material to the Financial Statements: Yes Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Enforcement. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the Authority must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. If deficiencies are not correcting in the required time period, the Authority must abate housing assistance payments in accordance with their admin plan. Condition: Based upon inspection of the Authority’s files and on discussions with management, the Authority did not provide support for two (2) failed inspections. Context: Of a sample size of two (2) failed inspections, the Authority did not provide support for two (2) failed inspections selected for testing, and did not abate housing assistance payments for the two (2) units selected. 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: $31,548 Cause: There is a significant deficiency in internal controls over compliance for the special tests and provisions type of compliance related to HQS enforcement due to high turnover. Effect: The Housing Voucher Cluster Programs are in material non-compliance with the special tests and provisions type of compliance related to HQS enforcement. Recommendation: We recommend that the Authority implement a process whereby Authority personnel are hired and trained on 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 deficiencies in the Housing Voucher Cluster Programs and has implemented a process to prevent the same issues from occurring. The Authority will also continue to train staff on HQS enforcement and enhance it's internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

Finding 1214232 (2025-006)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

Special Tests & Provisions HUD Housing Programs Material Weakness

Finding 2025-006: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 & 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements:...

Finding 2025-006: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 & 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family at least annually to determine if the unit meets HQS standards and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management there were inspection reports that were unavailable for examination at the time of audit. Context: Of a sample size of twenty-four (24) units, thirteen (13) units did not have annual HQS inspections performed timely. Our sample size is statistically valid. Known Questioned Costs: $131,112 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. 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 Housing Voucher Cluster is in material non-compliance with the with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance related to HQS inspections in accordance 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 Housing Voucher Cluster Programs and will implement internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

Finding 1214231 (2025-005)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

HUD Housing Programs Eligibility Material Weakness

Finding 2025-005: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.EHV Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness i...

Finding 2025-005: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.EHV Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 1,056 units. Of a sample size of twenty-four (24) tenant files, the following was noted:  HUD form 9886 was unable to be provided in 6 files - Verification of income was unable to be provided in 2 files - HUD-50058 form was unavailable for review in 4 files - Citizen Declaration Section 214 form was unable to be provided in 9 files - Signed leases were unable to be provided in 8 files - Original application was missing in 2 files - Lead based paint forms were missing 2 files - The Authority was unable to provide 1 tenant file during the time of audit. Known Questioned Costs: $ 149,640 Cause: There is a material weakness in the Housing Voucher Cluster in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority experienced high turnover and did not properly train employees in the HCV department, which resulted in the Authority having a limited capacity to perform the required maintenance of tenant files, and properly maintain and monitor a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Voucher Cluster Programs are in material non-compliance with the eligibility requirements of the programs. Recommendation: We recommend that the Authority implement a process whereby Authority personnel are hired and trained on tenant file maintenance so that documents are accumulated, stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Housing Voucher Cluster Programs and will train staff on the proper maintenance of tenant files and implement internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

Finding 1214230 (2025-008)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

HUD Housing Programs Eligibility Material Weakness

Finding 2025-008: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Material Noncompliance Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Comp...

Finding 2025-008: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Material Noncompliance Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 1,086 units. Of a sample size of twenty-four (24) tenant files, the following was noted: - Citizenship declaration was missing in 1 file - HUD-9886 form was missing in 5 files - Signed lease was missing in 1 file. Our sample size is statistically valid. Known Questioned Costs: $48,870 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority experienced high turnover and did not properly train employees in the Public and Indian Housing department, which resulted in the Authority having a limited capacity to perform the required maintenance of tenant files, and properly maintain and monitor a system of internal controls that reasonably assures the program is in compliance. Effect: The Public and Indian Housing Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend that the Authority implement a process whereby Authority personnel are hired and trained on tenant file maintenance so that documents are accumulated, stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Public Housing Program and will train staff on the proper maintenance of tenant files and implement internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

Finding 1214224 (2025-002)

Material Weakness 2025

Community Housing Iii, Inc. Fir Grove Apartments

OR

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures a...

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to insure that move out inspections are performed timely, security deposits are returned timely and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to return security deposits in a timely manner but was delayed in issuing the security deposit refund for this unit due to staffing issues. In 2026 property management will be outsourced to a third-party management company to address any outstanding compliance issues.

View Audit 400934

Finding 1214222 (2025-001)

Material Weakness 2025

Community Housing Iii, Inc. Fir Grove Apartments

OR

Eligibility HUD Housing Programs Subrecipient Monitoring

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures a...

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to insure that EIVs and recertifications are performed timely, inspections are completed, waitlists are being completed and followed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to complete certifications in a timely manner but due to staffing shortages at the property continued to have issues with timely completion of income certifications in 2025. In 2026 property management will be outsourced to a third-party management company to address outstanding compliance issues.

View Audit 400934

Finding 1214220 (2025-003)

Material Weakness 2025

Community Housing Ii, Inc. the Maples II Apartments

OR

Eligibility HUD Housing Programs Special Tests & Provisions

Federal Award Findings and Questioned Costs Item 2025-003 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor com...

Federal Award Findings and Questioned Costs Item 2025-003 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Action Taken: REACH has policies in place to complete move in inspections but due to tenant noncompliance and staffing issues this inspection was missed. Management scheduled training with staff in March 2026.

View Audit 400933

Corrective Action Plans

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