Corrective Action Plans

Finding 1173038 (2024-003)

Material Weakness 2024

LA

Reporting Subrecipient Monitoring HUD Housing Programs

Management concurs with the finding. The Authority has developed a Compliance Reporting Schedule listing all required federal reporting submissions, their due dates, and the responsible staff. Calendar reminders and verification checkpoints have been implemented to ensure timely submissions. In addi...

Management concurs with the finding. The Authority has developed a Compliance Reporting Schedule listing all required federal reporting submissions, their due dates, and the responsible staff. Calendar reminders and verification checkpoints have been implemented to ensure timely submissions. In addition, the Authority will conduct quarterly internal audits to confirm adherence to HUD reporting requirements. Management anticipates full corrective action by December 2025.

View Audit 386466

Finding 1173037 (2024-002)

Material Weakness 2024

Louisiana Housing Corporation

LA

HUD Housing Programs Reporting Internal Control / Segregation of Duties § 200.328

Management concurs with the finding. The Authority has developed a Compliance Reporting Schedule listing all required HUD submissions, their due dates, and the responsible staff. Calendar reminders and verification checkpoints have been implemented to ensure timely submissions. In addition, the Auth...

Management concurs with the finding. The Authority has developed a Compliance Reporting Schedule listing all required HUD submissions, their due dates, and the responsible staff. Calendar reminders and verification checkpoints have been implemented to ensure timely submissions. In addition, the Authority will conduct quarterly internal audits to confirm adherence to HUD reporting requirements. Management anticipates full corrective action by December 2025.

View Audit 386466

Finding 1172400 (2024-002)

Material Weakness 2024

South Seven Senior Village

WA

Subrecipient Monitoring HUD Housing Programs Reporting

Management Response: To enhance compliance and operational efficiency, OLYCAP engaged a contract manager to support timely fulfillment of reporting obligations and contractual requirements. This role also includes onboarding new management personnel by ensuring they are informed of all relevant cont...

Management Response: To enhance compliance and operational efficiency, OLYCAP engaged a contract manager to support timely fulfillment of reporting obligations and contractual requirements. This role also includes onboarding new management personnel by ensuring they are informed of all relevant contracts and associated reporting protocols. Anticipated Completion Date: April, 2025 and ongoing. Responsible officials: Erin Smith Holly Morgan

View Audit 385457

Finding 1172398 (2024-001)

Material Weakness 2024

South Seven Senior Village

WA

HUD Housing Programs

Management Response: To ensure ongoing compliance with HUD guidelines and regulations, Olycap has implemented automatic and recurring monthly transfers of $575.17 from the South 7 operating account to the Replacement Reserves account, in accordance with HUD requirements. This measure is designed to ...

Management Response: To ensure ongoing compliance with HUD guidelines and regulations, Olycap has implemented automatic and recurring monthly transfers of $575.17 from the South 7 operating account to the Replacement Reserves account, in accordance with HUD requirements. This measure is designed to prevent missing deposits and maintain financial integrity. Regarding prior withdrawals, these were discussed with Olycap’s HUD representative, who verbally acknowledged and approved the expenditures post-factum. The withdrawals were made to fund critical repairs, including sidewalk restoration and roof replacements across the property. Moving forward, Olycap will obtain formal HUD approval prior to initiating any future Reserve account withdrawals. Additionally, Olycap has reinforced its internal control framework and conducted targeted training for new personnel to support compliance and operational consistency. Anticipated Completion Date: Ongoing and complete. Responsible officials: Karen Bondurant Holly Morgan

View Audit 385457

Finding 1172381 (2024-001)

Material Weakness 2024

HOUSING AUTHORITY OF THE CITY OF STERLING, COLORADO

CO

Cash Management HUD Housing Programs Subrecipient Monitoring

In accordance with HUD requirements, the Authority plans to begin drawing down operating-subsidy funds on a monthly basis. The Executive Director and Board will continue to review monthly financial statements prepared by the accountants and will research and evaluate potential investment options to ...

In accordance with HUD requirements, the Authority plans to begin drawing down operating-subsidy funds on a monthly basis. The Executive Director and Board will continue to review monthly financial statements prepared by the accountants and will research and evaluate potential investment options to increase the return on available funds. The Authority intends to develop and adopt formal written procedures for cash management and investment monitoring during the next fiscal year.

View Audit 385431

Finding 1172089 (2024-002)

Material Weakness 2024

Housing Authority of the City of Conway

AR

HUD Housing Programs Allowable Costs / Cost Principles

Action Taken: Management acknowledges the findings and the significant deficiency in internal control. We accept responsibility for the deficiencies in internal control over payroll reporting and are committed to implementing corrective actions as follows to ensure a robust control environment that ...

Action Taken: Management acknowledges the findings and the significant deficiency in internal control. We accept responsibility for the deficiencies in internal control over payroll reporting and are committed to implementing corrective actions as follows to ensure a robust control environment that ensures payroll transactions are verified against authorized documentation. • Comprehensive File Reviews: We have immediately begun reviewing all current employee payroll files to confirm that they are complete. • Verify Documentation: We have immediately begun ensuring each employee file contains proper documentation for initial pay rates, compensation changes, and job descriptions and offer letters, where applicable. The Authority has implemented a checks and balances review process to ensure that time is entered accurately, reviewed and signed on by the employee and the employee's supervisor, and then Authority leadership also conducts a pre-payroll audit. • Internal Controls: The Authority currently uses a third-party, Paycom, to manage its payroll functions and for recordkeeping purposes. Timesheets are entered and approved electronically in the system. Pre-payroll audits are conducted by the CEO and COO, prior to payroll being approved for payment. With the current electronic record keeping system, payroll documents are securely stored, easily searchable, and traceable. • Ongoing Compliance: The HR Directorwill conduct semi-annual internal audits of a sample of employee files to confirm and document ongoing compliance. In addition, staff who input and review payroll will receive ongoing compliance training and file documentation. Name of Responsible Person: Catherine Lamberg, CEO and Jackie Otto COO, and Natalie Hawks. HR Director Projected Completion Date: Some of the corrective activities are underway. We anticipate completing these activities by March 1, 2026.

View Audit 385225

Finding 1172088 (2024-003)

Material Weakness 2024

Housing Authority of the City of Conway

AR

Procurement, Suspension & Debarment HUD Housing Programs § 200.318

Action Taken: Management acknowledges the findings and the material weakness in internal control and material noncompliance in procurement. We accept responsibility for the deficiencies in internal control over procurement and are committed to implementing corrective actions that address missing doc...

Action Taken: Management acknowledges the findings and the material weakness in internal control and material noncompliance in procurement. We accept responsibility for the deficiencies in internal control over procurement and are committed to implementing corrective actions that address missing documentation and lack of verifiable procurement procedures to ensure compliance. • Implement Standardized Procurement Procedures: Update and implement a forma', written procurement policy that clearly outlines the procedures for sealed bids, proposals, and small purchases. • Mandatory Documentation Checklist: Create a procurement file checklist for every contract to ensure all required documents—such as the independent cost estimate, advertisement, bidder list, evaluations, and justification for award—are included in the procurement file. • Supervisory Review Process: A supervisor will review and sign off on the procurement file checklist before a contract is executed. • Staff Training: Provide comprehensive training to all staff involved in procurement to ensure they understand H U D's procurement standards, including requirements forf ull and open competition and proper record-keeping. • Maintain Records: Ensure that all documentation for the full procurement cycle is maintained, including evidence that contractors are not debarred or suspended. Name of Responsible Person: Catherine Lamberg, CEO and Jackie Otto, COO, and Natalie Hawks, Procurement Director Projected Completion Date: Some of the corrective activities are underway. We anticipate completing these activities by May 1, 2026.

View Audit 385225

Finding 1172086 (2024-006)

Material Weakness 2024

Housing Authority of the City of Conway

AR

Subrecipient Monitoring HUD Housing Programs Reporting

Action Taken: Management acknowledges the findings and the material weakness in internal control and material noncompliance in SEMAP reporting. We accept responsibility for the deficiencies in internal control over SEMAP reporting and are committed to implementing corrective actions that address mis...

Action Taken: Management acknowledges the findings and the material weakness in internal control and material noncompliance in SEMAP reporting. We accept responsibility for the deficiencies in internal control over SEMAP reporting and are committed to implementing corrective actions that address missing self-certification documentalion to ensure compliance. The Authority must take immediate steps to remediate these deficiencies by establishing a robust, auditable documentation process: • Strengthen Internal Controls: Develop procedures to ensure complete and accurate documentation is maintained for all 14 SEMAP indicators, including detailed sampling methodologies. • Pre-Certification Review: Implement a mandatory management review process for all SEMAP documentation before final certification is submitted to HUD. • Ensure Proper Retention: Enforce document retention policies that align with HUD regulations, ensuring records are accessible for audit purposes. • Staff Training: Provide training to staff regarding SEMAP indicator requirements and the necessity of maintaining supporting evidence. • Utilize PIG Reports: Ensure all tenant data is properly reported in PlC, as this is the basis for several indicators. Name of Responsible Person: Catherine Lamberg, CEO, and Jackie Otto, COO, and Daporsha Abernathy, HCVP Director Projected Completion Date: Most of the corrective activities are completed. We anticipate completing the balance of activities by May 1, 2026.

View Audit 385225

Finding 1172085 (2024-005)

Material Weakness 2024

Housing Authority of the City of Conway

AR

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Action Taken: Management acknowledges the findings and the material weakness in internal control and material noncompliance in its waiting list management. We accept responsibility for the deficiencies in internal control over the waiting list and are committed to implementing corrective actions tha...

Action Taken: Management acknowledges the findings and the material weakness in internal control and material noncompliance in its waiting list management. We accept responsibility for the deficiencies in internal control over the waiting list and are committed to implementing corrective actions that address missing documentation and lack of transparency in following the Authority's Administrative Plan and HUD guidelines when selecting applicants from its waiting list. Immediate corrective actions include: • Only using the electronic records of applicants from the Authority's housing software and not creating external waiting lists. • Reconcile and Reconstruct: Immediately reconcile the waiting list and reconstruct missing documentation for voucher issuance. • Cleanup Waiting List: The Authority's waiting list is closed, and staff are currently working to purge it. • Update Procedures: Ensure staff know and are trained on waiting list procedures to ensure compliance with HUD regulations and the Authority's Administrative Plan. • Implement Controls: Establish a periodic supervisory review to verify document completeness during the voucher issuance process. • Training: Provide staff with ongoing training on proper, consistent, and compliant wailing list administration. • Retention: Ensure all records are maintained according to federal retention requirements. Name of Responsible Person: Catherine Lamberg, CEO, and Jackie Otto, COO, and Daporsha Abernathy, HCVP Director Projected Completion Date: Some of the corrective activities are underway. We anticipate completing these activities by June 1, 2026.

View Audit 385225

Finding 1172084 (2024-004)

Material Weakness 2024

Housing Authority of the City of Conway

AR

HUD Housing Programs

Action Taken: Management acknowledges the findings and the material weakness in internal control and material noncompliance in allowability and eligibility. We accept responsibility for the deficiencies in internal control over allowability and eligibility and are committed to implementing correctiv...

Action Taken: Management acknowledges the findings and the material weakness in internal control and material noncompliance in allowability and eligibility. We accept responsibility for the deficiencies in internal control over allowability and eligibility and are committed to implementing corrective actions that address missing documentation and lack of verifiable procurement procedures to ensure compliance. • Immediate File Correction & Review: Correct all identified deficiencies in the sampled files. Furthermore, a 100% review of the remaining -335 files must be conducted to identify if these errors are systematic [1.1]. • Repayment and Re-calculation: For files with incorrect income, utility allowance, or payment standards, the Authority must recalculate the Housing Assistance Payments (HAP) and determine if repayments to HUD are necessary. • Strengthen Internal Controls: • Implement a File Checklist: Require a mandatory, signed checklist for all new admissions and annual recertifications to ensure all 214 forms, 9886 forms, income verifications, and ID documentation are present. • Supervisory Review: Implement a mandatory, independent supervisory review of a percentage of files before HAP payments are authorized. • Inspection Tracking System: Utilize automated tools to track HQS inspection dates to prevent late or missed inspections. • Training: Provide staff training on HUD eligibility, income verification, and rent calculation procedures, specifically focusing on the requirements in 24 CFR Part 5. Name of Responsible Person: Catherine Lamberg, CEO, and Jackie Otto, COO, and Daporsha Abernathy, HCVP Director Projected Completion Date: Some of the corrective activities are underway. We anticipate completing these activities by June 1, 2026.

View Audit 385225

Finding 1171336 (2024-005)

Material Weakness 2024

Casita Park Housing Development Fund Corporation

NY

Eligibility HUD Housing Programs

Concord’s Compliance Dept has implemented procedures to ensure the tenant security deposits are correctly recorded, tenant eligibility is correctly determined and that the tenant lease files are properly maintained in accordance with HUD’s requirements.

View Audit 384624

Finding 1171333 (2024-002)

Material Weakness 2024

Casita Park Housing Development Fund Corporation

NY

HUD Housing Programs

Concord is making “unauthorized” loans only as it pertains to insurance payments. Until the rental increases are large enough to cover the ongoing increasing costs of insurance premiums, management has no choice but to allow the entity with the most stable cashflow to make the monthly insurance paym...

Concord is making “unauthorized” loans only as it pertains to insurance payments. Until the rental increases are large enough to cover the ongoing increasing costs of insurance premiums, management has no choice but to allow the entity with the most stable cashflow to make the monthly insurance payments on behalf of the entities that are unable to cover their portion. The only available insurance coverage is via a policy that covers all three entities as the cost to cover the entities individually is astronomical. The only way to ensure the entities are insured and there is no lapse in coverage is to allow the entity with the stable cashflow to make the payments and for the other entities to reimburse for their portion. That is until the rental increases are substantial enough to actually cover the rising costs of insurance premiums.

View Audit 384624

Finding 1170825 (2024-004)

Material Weakness 2024

The City of Oklahoma City

OK

Cash Management HUD Housing Programs Reporting § 200.303

Finding 2024-004: (Significant Deficiency) AL# 14.218: CDBG - Entitlement Grants Cluster, U.S. Department of Housing and Urban Development, all open grants and years Condition: During testing of the PR26 – CDBG Financial Summary report, it was identified that one payroll cycle was reported twice, re...

Finding 2024-004: (Significant Deficiency) AL# 14.218: CDBG - Entitlement Grants Cluster, U.S. Department of Housing and Urban Development, all open grants and years Condition: During testing of the PR26 – CDBG Financial Summary report, it was identified that one payroll cycle was reported twice, resulting in a duplication of payroll costs and an overstated reimbursement request. Criteria or Specific Requirement: 2 CFR 200.303(a) states that the City is required to establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Cause: The The ERP system conversion presented challenges to the City related to report development and in particular accuracy of the project management system. Effect: The reimbursement request was overstated, resulting in an excess draw of funds. This creates a risk of noncompliance with the grant requirements and potential repayment of funds. Corrective Plan: To address the underlying issues identified in the audit finding, the City will implement the following steps: 1.Coordinate with HUDResolve the duplicated payroll amount, including reimbursement or offset of the excess draw,in accordance with HUD guidance. 2.Reconcile Payroll Expenditures and DrawsPerform reconciliation of payroll-related expenditures and reimbursement draws for all HUDgrants for January 1–June 30, 2024, to ensure amounts claimed agree to general ledgeractivity. 3.Strengthen Recordkeeping and Reimbursement PracticesIn addition, the City will ensure that recordkeeping and reimbursement preparationpractices related to payroll expenses included in grant draw requests are sufficient tosupport amounts claimed and agree to general ledger activity.The Accounting Services Division will review existing departmental documentation practicesand communicate consistent expectations and best practices to promote accurate, complete,and supportable payroll draw requests.The City anticipates working with the department and having this process fully in place within3–4 months. These actions will be implemented and monitored to ensure compliance with grant requirements. Benjamin E Davis 1/7/26 Date Principal Planner Alex E Fedak 1/7/26 Date Controller

View Audit 384102

Finding 1169703 (2024-010)

Material Weakness 2024

Integrated Community Solutions, Inc.

WI

HUD Housing Programs

Internal Controls Over HQS Failed Inspections Special Tests – HQS Failed Inspections – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a proc...

Internal Controls Over HQS Failed Inspections Special Tests – HQS Failed Inspections – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. We recommend that additional training occur over the HQS process to ensure that all housing specialists and housing inspectors are following the administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is reviewing work completed by the Housing Inspectors more frequently. Housing Inspectors are required to send management a monthly list of all failed inspections. Management reviews the list to ensure the proper follow-up is being taken and has established more check-ins with staff who are producing frequent errors. If frequent errors persist after consistent coaching, Corrective Action Plans will be put in place for those staff members. Termination of employees unable to produce accurate work will be enforced if coaching and Corrective Action Plans prove unsuccessful. Names of the contact persons responsible for corrective action: April Clark and Nicole Thompson Planned completion date for corrective action plan: Currently Implemented & Ongoing

View Audit 382709

Finding 1169698 (2024-009)

Material Weakness 2024

Integrated Community Solutions, Inc.

WI

HUD Housing Programs Subrecipient Monitoring Significant Deficiency

Rent Reasonableness Special Tests – Rent Reasonableness – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or ...

Rent Reasonableness Special Tests – Rent Reasonableness – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is reviewing work completed by the Housing Specialists more frequently, by performing more Quality Control evaluations, reviewing software-flagged errors, and establishing more check-ins with staff who are producing frequent errors. If frequent errors persist after consistent coaching, Corrective Action Plans will be put in place for those staff members. Termination of employees unable to produce accurate work will be enforced if coaching and Corrective Action Plans prove unsuccessful. Names of the contact persons responsible for corrective action: April Clark and Nicole Thompson Planned completion date for corrective action plan: Currently Implemented & Ongoing

View Audit 382709

Finding 1169693 (2024-008)

Material Weakness 2024

Integrated Community Solutions, Inc.

WI

HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles

Supporting Documentation for Family Size Allowable Costs, Eligibility – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should create an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Ex...

Supporting Documentation for Family Size Allowable Costs, Eligibility – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should create an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is reviewing work completed by the Housing Specialists more frequently, by performing more Quality Control evaluations, reviewing software-flagged errors, and establishing more check-ins with staff who are producing frequent errors. If frequent errors persist after consistent coaching, Corrective Action Plans will be put in place for those staff members. Termination of employees unable to produce accurate work will be enforced if coaching and Corrective Action Plans prove unsuccessful. Names of the contact persons responsible for corrective action: April Clark and Nicole Thompson Planned completion date for corrective action plan: Currently Implemented & Ongoing

View Audit 382709

Finding 1169688 (2024-007)

Material Weakness 2024

Integrated Community Solutions, Inc.

WI

HUD Housing Programs

HAP Payments Allowable Costs, Special Tests – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP...

HAP Payments Allowable Costs, Special Tests – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is reviewing work completed by the Housing Specialists more frequently, by performing more Quality Control evaluations, reviewing software-flagged errors, and establishing more check-ins with staff who are producing frequent errors. If frequent errors persist after consistent coaching, Corrective Action Plans will be put in place for those staff members. Termination of employees unable to produce accurate work will be enforced if coaching and Corrective Action Plans prove unsuccessful. Names of the contact persons responsible for corrective action: April Clark and Nicole Thompson Planned completion date for corrective action plan: Currently Implemented & Ongoing

View Audit 382709

Finding 1169683 (2024-006)

Material Weakness 2024

Integrated Community Solutions, Inc.

WI

HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles

Calculating Expenses for Family Income Examinations Allowable Costs, Eligibility – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should review their current processes and create an internal monitoring system to ensure the expenses are appropriately calculated in the future and...

Calculating Expenses for Family Income Examinations Allowable Costs, Eligibility – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should review their current processes and create an internal monitoring system to ensure the expenses are appropriately calculated in the future and/or consider additional training for housing specialists to ensure HAP is appropriately calculated. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is reviewing work completed by the Housing Specialists more frequently, by performing more Quality Control evaluations, reviewing software-flagged errors, and establishing more check-ins with staff who are producing frequent errors. If frequent errors persist after consistent coaching, Corrective Action Plans will be put in place for those staff members. Termination of employees unable to produce accurate work will be enforced if coaching and Corrective Action Plans prove unsuccessful. Names of the contact persons responsible for corrective action: April Clark and Nicole Thompson Planned completion date for corrective action plan: Currently Implemented & Ongoing

View Audit 382709

Finding 1169678 (2024-005)

Material Weakness 2024

Integrated Community Solutions, Inc.

WI

HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles

Calculating Income / Retaining Supporting Documentation for Family Income Examinations Allowable Costs, Eligibility – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should create an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the ...

Calculating Income / Retaining Supporting Documentation for Family Income Examinations Allowable Costs, Eligibility – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should create an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management is reviewing work completed by the Housing Specialists more frequently, by performing more Quality Control evaluations, reviewing software-flagged errors, and establishing more check-ins with staff who are producing frequent errors. If frequent errors persist after consistent coaching, Corrective Action Plans will be put in place for those staff members. Termination of employees unable to produce accurate work will be enforced if coaching and Corrective Action Plans prove unsuccessful. Names of the contact persons responsible for corrective action: April Clark and Nicole Thompson Planned completion date for corrective action plan: Currently Implemented & Ongoing

View Audit 382709

Finding 1169673 (2024-004)

Material Weakness 2024

Integrated Community Solutions, Inc.

WI

HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles

Missing Tenant Files Allowable Costs, Eligibility – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consid...

Missing Tenant Files Allowable Costs, Eligibility – Housing Choice Vouchers – CFDA No. 14.871 Recommendation: Management should review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialists to ensure tenant files are retained and scanned into the online system in a timely manner. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will implement that part of the document retention process is to not only upload the documents, but then verify within the tenant file that documents are present and fully legible. Names of the contact persons responsible for corrective action: April Clark and Nicole Thompson Planned completion date for corrective action plan: November 1, 2025

View Audit 382709

Finding 1169563 (2024-001)

Material Weakness 2024

Astoria Gardens Tenant Association

CA

HUD Housing Programs Subrecipient Monitoring Cash Management

The findings have been resolved as of 4/2/2025. A $21,073 deposit was made to the residual receipt bank account on this date.

View Audit 382548

Finding 1169413 (2024-004)

Material Weakness 2024

1712 and 1715 Housing Development Fund Company, Inc.

NY

HUD Housing Programs

Management has acknowledged the delay and will modify the internal controls to ensure a control is in place to ensure all Reserve for Replacement Deposits are paid within the proper period.

View Audit 382347

Finding 1168949 (2024-010)

Material Weakness 2024

City of Redondo Beach

CA

HUD Housing Programs Subrecipient Monitoring Material Weakness § 200.303

Recommendation: We recommend that the City review and update internal controls over the completion and submission of monthly program reports to ensure the accuracy of the information being reported and to ensure that supporting underlying documentation is properly retained. As part of this process, ...

Recommendation: We recommend that the City review and update internal controls over the completion and submission of monthly program reports to ensure the accuracy of the information being reported and to ensure that supporting underlying documentation is properly retained. As part of this process, the City should consider utilizing members of the Finance Department as the monthly reports contain certain financial information. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: RBHA has established a process by which Housing will copy Finance on monthly VMS reports provided to the financial consultant for the VMS submissions; this will both document timing and ensure additional review. In addition, RBHA and Finance are coordinating to revise the City’s account structure for Housing-related expenses. Better aligning the City’s account setup with VMS reporting requirements will help ensure that VMS submissions are adequately supported and tie cleanly to the City’s General Ledger. Names of the contact persons responsible for corrective action: Imelda Delgado (Housing Manager), Grace Liang (Senior Accountant) Planned completion date for corrective action plan: January 2026.

View Audit 381471

Finding 1168948 (2024-009)

Material Weakness 2024

City of Redondo Beach

CA

HUD Housing Programs Eligibility Special Tests & Provisions § 200.303

Recommendation: We recommend the City establish procedures to ensure that the review and approval processes are clearly documented within each tenant file. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The RBHA w...

Recommendation: We recommend the City establish procedures to ensure that the review and approval processes are clearly documented within each tenant file. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The RBHA will establish procedures to monitor and ensure proper file review. RBHA has created a new checklist for a supervising team member to review intake files for accuracy, to document approval, and to release the Housing Assistance Payment. RBHA will maintain records of the signed checklist for each tenant file. Name of the contact person responsible for corrective action: Imelda Delgado, Housing Manager Planned completion date for corrective action plan: January 2026.

View Audit 381471

Finding 1168947 (2024-008)

Material Weakness 2024

City of Redondo Beach

CA

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency § 200.430

Recommendation: We recommend that the City review and update internal controls to ensure that supporting documentation for allowable time charges to grant programs is properly maintained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in...

Recommendation: We recommend that the City review and update internal controls to ensure that supporting documentation for allowable time charges to grant programs is properly maintained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Staff has updated timekeeping for individuals charging partial time to the Housing Section 8 program to track actual hours spent rather than through budget allocation. Staff has in addition identified a method by which the City can produce supervisor approval documentation through the financial system’s electronic workflow. Names of the contact persons responsible for corrective action: Stephanie Meyer (Finance Director), Elizabeth Hause (Community Services Director) Planned completion date for corrective action plan: December 30, 2025

View Audit 381471

Corrective Action Plans

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