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Finding No.: 2024-030 Reporting Responding Agency: Bureau of Budget and Management Research (BBMR) Responsible Personnel: Lester Carlson, Director BBMR will work with DOA to make sure reports are submitted on time. BBMR will also retain documentation of submitted reports.
Finding No.: 2024-030 Reporting Responding Agency: Bureau of Budget and Management Research (BBMR) Responsible Personnel: Lester Carlson, Director BBMR will work with DOA to make sure reports are submitted on time. BBMR will also retain documentation of submitted reports.
2024-001 Financial Reporting Material Weakness in Internal Control Material Noncompliance Condition: During our audit of the Authority’s financial statements, numerous adjustments were needed to properly report the financial statements in accordance with generally accepted accounting principles. Cer...
2024-001 Financial Reporting Material Weakness in Internal Control Material Noncompliance Condition: During our audit of the Authority’s financial statements, numerous adjustments were needed to properly report the financial statements in accordance with generally accepted accounting principles. Certain accounts had not been properly reconciled and corrective entries were not readily available. Significant audit adjustments were necessary for several audit areas and the audit was significantly delayed due to these adjustments. Auditor’s Recommendations: The Authority should continue to develop and implement internal controls over both internal and external reporting, and the year-end close process to ensure reporting remains accurate and timely, with any unexpected financial data being investigated and corrected before it is reported. The Authority should consider additional staff training on development activities. Action Taken: The Houston Housing Authority agrees with this finding and related recommendations. During this audit, as these issues arose, notes were taken, evaluation of what had happened was made so that we could make the necessary adjustments to our procedures to prevent the continuation of these issues. In addition, in the previous year we hired a firm to come in and undertake a review of the finance department. The purpose of this review was to review our existing staffing levels, workloads, experience, etc., for purposes of proposing a reorganization of the finance department to address any deficiencies. We have reviewed the recommendations from this consultant and are in the process of implementing many of the recommended changes. There have been a number of staffing changes made during the year with the intent of improving the overall performance of the finance department. We are in the process of evaluating if additional staff are needed to expand the capacity of the Finance department. In November of 2024 the Houston Housing authority converted to a new accounting system. The Yardi system was implemented and we began processing all transactions on this new system. Unfortunately, there have been a significant amount of post implementation corrections and modifications that have had to be made and continue to occur. We are still undergoing these implementation and modification processes and as a result of this we continue to have to make adjusting entries to correct errors as they are discovered. To further complicate this system conversion there were a number of changes made to the management companies that we utilize to do our primary property level accounting. They have also been converting portions of their accounting systems to Yardi. Many of the same problems that have been encountered during our system conversion have also been encountered by the management companies. It is anticipated that most of these system conversion related issues will be resolved within the 2025 calendar year. The VP Fiscal and Business Operations as well as the Director of Finance are responsible for implementing the necessary process and procedural changes to eliminate the need for this type of finding for the 2024 audit.
Eligibility Section 8 Project-Based Cluster Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 240 of tenants, 11 tenant files were tested and the following deficiencies were noted: Four files did not have annual recertifications performed dur...
Eligibility Section 8 Project-Based Cluster Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 240 of tenants, 11 tenant files were tested and the following deficiencies were noted: Four files did not have annual recertifications performed during the year, Two files did not have a 214 declaration form for all members of the household, Two files used incorrect income based on the support provided during the annual recertification, One file did not have documentation necessary to verify the reported income, and One files did not have utility allowance documentation. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Action Taken: The Houston Housing Authority agrees with this fining and related recommendations. During 2024 the voucher and public housing programs converted to a new software system. Yardi is not the principal operating system for both the voucher and public housing programs. This system conversion has required that work flows had to be modified. This modification and implementation of a new processing system did not allow staff to conduct the necessary reviews of existing files to make sure that the compliance related materials that should be found in each file were to be completed. This issue has been discussed and there will be an internal review conducted on file samples to determine what compliance deficiencies are prevalent. Corrective action steps will be implemented to address these issues designed to correct them. Additional training resources will be devoted to staff in these departments designed to improve quality control with these program areas.
Eligibility Housing Voucher Cluster Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 1,500 of Housing Voucher Cluster tenants we tested 11 tenants and the following deficiencies were noted: Five files did not have an annual recertification p...
Eligibility Housing Voucher Cluster Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 1,500 of Housing Voucher Cluster tenants we tested 11 tenants and the following deficiencies were noted: Five files did not have an annual recertification performed with 12 months of the previous certification Two files did not have inspection documentation during the period, One file did not have an annual recertification performed, One file did not have documentation to support HAP amount reported, One file used an incorrect payment standard, One file did not have dependency documentation for a dependent member of the household, One file was missing documentation to support income claimed during recertification, and One file will missing rent reasonableness documentation and approval. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Action Taken: The Houston Housing Authority agrees with this fining and related recommendations. During 2024 the voucher and public housing programs converted to a new software system. Yardi is not the principal operating system for both the voucher and public housing programs. This system conversion has required that work flows had to be modified. This modification and implementation of a new processing system did not allow staff to conduct the necessary reviews of existing files to make sure that the compliance related materials that should be found in each file were to be completed. This issue has been discussed and there will be an internal review conducted on file samples to determine what compliance deficiencies are prevalent. Corrective action steps will be implemented to address these issues designed to correct them. Additional training resources will be devoted to staff in these departments designed to improve quality control with these program areas.
Eligibility Moving to Work Demonstration Program AL No. 14.881 Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 17,500 of Section 8 Housing Choice Voucher and 2,200 Low Rent Public Housing tenants the following deficiencies were noted: Secti...
Eligibility Moving to Work Demonstration Program AL No. 14.881 Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 17,500 of Section 8 Housing Choice Voucher and 2,200 Low Rent Public Housing tenants the following deficiencies were noted: Section 8 Housing Choice Voucher (a total of 11 tenants selected for testing): One file did not have annual recertifications performed during the year, Two files did not have 9886 release of information forms within 15 months of annual recertification, Three files did not have an annual recertification performed with 12 months of the previous certification, Two files did not have a utility allowance calculation sheet during annual recertification, Three files did not have documentation necessary to verify the reported income, Two files did not have an inspection performed during the period, and Two files did not utilize the correct payment standard. Low Rent Public Housing (a total of 12 tenants selected for testing): Three files did not contain flat rent options forms, Four files did not have documentation necessary to verify the reported income, Six files did not have a 214 declaration for a member of the household, and One file did not have support necessary to verify income allowances. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Action Taken: The Houston Housing Authority agrees with this fining and related recommendations. During 2024 the voucher and public housing programs converted to a new software system. Yardi is not the principal operating system for both the voucher and public housing programs. This system conversion has required that work flows had to be modified. This modification and implementation of a new processing system did not allow staff to conduct the necessary reviews of existing files to make sure that the compliance related materials that should be found in each file were to be completed. This issue has been discussed and there will be an internal review conducted on file samples to determine what compliance deficiencies are prevalent. Corrective action steps will be implemented to address these issues designed to correct them. Additional training resources will be devoted to staff in these departments designed to improve quality control with these program areas. The Senior Vice President of Voucher Operations and the Senior Vice President of Asset Management will be focused on improving the quality of our files that support the voucher and public housing operations.
We concur with this finding. During the fiscal year 2025-2026, both reports for fiscal years 2022 and 2023 will be filed. Therefore, the conditions of the findings will be corrected.
We concur with this finding. During the fiscal year 2025-2026, both reports for fiscal years 2022 and 2023 will be filed. Therefore, the conditions of the findings will be corrected.
Finding 2024- 013: Terminated User Access Not Removed Timely Significant Deficiency In Internal Control Over Financial Reporting Criteria: Per 45 CFR 75.303(a), non-Federal entitles expendingHHS awards must establish and maintain effective internal controls over compliance with Federal states, regul...
Finding 2024- 013: Terminated User Access Not Removed Timely Significant Deficiency In Internal Control Over Financial Reporting Criteria: Per 45 CFR 75.303(a), non-Federal entitles expendingHHS awards must establish and maintain effective internal controls over compliance with Federal states, regulati ons, and the terms and conditions of the Federal award. Management must mainta in effective user access controls over financia l reporting systems. This Includes promptly removing or disabling access for terminated users and periodically reviewing user access to confirm it aligns with current employment status and job responsibilities. Condition: Testing of IT general controls identifiedinstances where terminated employees' user accounts or financial application access remained active beyond the termination date. MDCPS did not disable terminated user access or remove related application rights in a timely manner. Perspective: During our review of general IT controls, the auditor received a list of terminated employees. Of the 11 employees presented, 6 maintainedaccess to MACWIS after termination.Further, during the performance of a process walkthrough,it was noted that the former chief financial officer was still active in CapPlus and SPHARS. Personnel Responsiblefor Corrective Action: Nome: Shannon Rushton (Employee Seporotlon SOP) Title : Deputy Commissionerof Human Capitol Email: Shannon.Rushton@mdcps.ms.gov Phone Number: 601-359-2696 Name: Christopher Ray (CapPlus User Termination) Title: Deputy Director to the CFO Email: Christopher.Roy@mdcps.ms.gov Phone Number: 601-359-4043 Corrective Action Plan: MDCPS has reinforcedthe EmployeeSeparation St andard Operating Procedure(2.19.2.2) to ensure all system access is removed promptly upon employee separation. Human Resources will notify system administrators immedai tely upon employeetermination, and system administrators will disable all associated application access no later than th e employee's final day of employment. Human Resources will conduct periodic user access reviews to ensure procedures are properly Imp lemented. The Finance Division will ensure the cap Plus software's access and penn1ss1ons are monitored and maintained by the agency with assistance from Interactive Voice Application (IVA). Upon a Cap Plus user's termination , they will be removed from the Cap Plu s software upon their last day of employment or the removal of th eir dutie.s by the agency. These permissions do not require IT or Human Resource control as Cap Plus i s independent of all accounting, payroll, and HR software. Antldpated Completion Date: Empl oyee Separation SOP effectiveas of July 22, 2025. CapP lus user's termination procedures effective as of March 31, 2026.
Assistance listing numbers and program names: 21.023 COVID-19 Emergency Rental Assistance Program 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Agency: Department of Economic Security (DES) Name of contact person and title: Molly Bright, Community Services Division Assistant Dire...
Assistance listing numbers and program names: 21.023 COVID-19 Emergency Rental Assistance Program 21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Agency: Department of Economic Security (DES) Name of contact person and title: Molly Bright, Community Services Division Assistant Director Anticipated completion date: June 30, 2026 Agency’s Response: Concur The Department of Economic Security will address the audit recommendations as follows: 1. Ensure benefit payments are for allowable costs paid to or on behalf of eligible program applicants. The Division will review and confirm that benefits payments paid to or on behalf of eligible program applicants are allowable expenditures of the federal funding being disbursed. 2. Update existing policies and procedures to include a post-review of the benefits subsystem’s automated review of eligibility requirements, such as verifying the income thresholds and geographic location aligned with the Division’s written policies and procedures, and supported by required documentation. The Division should correct any inaccurate eligibility determinations identified during the post-review. Emergency Rental Assistance Program policies and procedures require validation of eligibility based upon substantiating applicant documentation, including household income and geographic location. The Division will update Division policy to include a post-review process to identify and correct any errors or discrepancies. 3. Allocate sufficient staffing resources to perform a thorough evaluation of program benefits applications and provide training on eligibility requirements and allowable benefit payments. The Division will allocate sufficient staffing resources to evaluate program benefits applications and provide training on eligibility requirements and allowable benefit payments. 4. Work with the federal agencies to resolve the $64,131 in program funds that were spent in violation of federal regulations, policies and procedures, and may need to be returned to the federal agencies. The Department of Economic Security will address the audit recommendations as follows: 1. Ensure benefit payments are for allowable costs paid to or on behalf of eligible program applicants. The Division will review and confirm that benefits payments paid to or on behalf of eligible program applicants are allowable expenditures of the federal funding being disbursed. 2. Update existing policies and procedures to include a post-review of the benefits subsystem’s automated review of eligibility requirements, such as verifying the income thresholds and geographic location aligned with the Division’s written policies and procedures, and supported by required documentation. The Division should correct any inaccurate eligibility determinations identified during the post-review. Emergency Rental Assistance Program policies and procedures require validation of eligibility based upon substantiating applicant documentation, including household income and geographic location. The Division will update Division policy to include a post-review process to identify and correct any errors or discrepancies. 3. Allocate sufficient staffing resources to perform a thorough evaluation of program benefits applications and provide training on eligibility requirements and allowable benefit payments. The Division will allocate sufficient staffing resources to evaluate program benefits applications and provide training on eligibility requirements and allowable benefit payments. 4. Work with the federal agencies to resolve the $64,131 in program funds that were spent in violation of federal regulations, policies and procedures, and may need to be returned to the federal agencies. The Division will coordinate with applicable federal agencies to resolve these unallowable costs.
Management acknowledges this repeat finding and recognizes that, while prior conditions contributed to the issue, corrective actions have been implemented and significant progress has been made to resolve the finding. Since the audit finding, required compliance reports have been submitted timely. M...
Management acknowledges this repeat finding and recognizes that, while prior conditions contributed to the issue, corrective actions have been implemented and significant progress has been made to resolve the finding. Since the audit finding, required compliance reports have been submitted timely. Management considers the issue resolved; however, monitoring procedures will remain in place as a precaution to ensure continued compliance. Chief Administrative Assistant Nicole Thompson and Community Development Director Stephanie Brumfield will continue to monitor the submission of timely reports in compliance with federal requirements.
Management will implement standardized procedures for determining and verifying patient eligibility for sliding fee discounts, including required documentation and supervisory review. System controls will be enhanced to reduce manual errors, and staff will receive training on proper application of t...
Management will implement standardized procedures for determining and verifying patient eligibility for sliding fee discounts, including required documentation and supervisory review. System controls will be enhanced to reduce manual errors, and staff will receive training on proper application of the sliding fee schedule. Routine audits will be conducted to verify compliance and ensure accuracy in patient fee assignments.
Management will establish a formal reconciliation process between the general ledger and all federal reports prior to submission. This will include documented review procedures, supervisory approval, and the use of standardized reconciliation templates. Staff will be trained on reporting accuracy re...
Management will establish a formal reconciliation process between the general ledger and all federal reports prior to submission. This will include documented review procedures, supervisory approval, and the use of standardized reconciliation templates. Staff will be trained on reporting accuracy requirements, and periodic internal reviews will be conducted to ensure financial data integrity and compliance.
Management will implement a centralized compliance tracking system that includes a reporting calendar with automated reminders for all federal reporting deadlines. Responsibility for report preparation and submission will be formally assigned, with supervisory review prior to submission. Compliance ...
Management will implement a centralized compliance tracking system that includes a reporting calendar with automated reminders for all federal reporting deadlines. Responsibility for report preparation and submission will be formally assigned, with supervisory review prior to submission. Compliance meetings will be established to monitor reporting status and ensure deadlines are met.
Effective March 1, 2026, the San Diego Workforce Partnership will incorporate the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) reporting deadline into the Month‑End Schedule. The activities outlined in this schedule help ensure that all required financ...
Effective March 1, 2026, the San Diego Workforce Partnership will incorporate the Federal Funding Accountability and Transparency Act (FFATA) Subaward Reporting System (FSRS) reporting deadline into the Month‑End Schedule. The activities outlined in this schedule help ensure that all required financial data is captured, reviewed, and reported in a timely and complete manner. The Accounting Manager will oversee the operational steps required to meet FSRS reporting deadlines, while the Chief Financial Officer (CFO) will provide overall oversight to ensure that these procedures are consistently followed and that internal control expectations are met. Effective March 1, 2026, to address the delay in submission of monthly reports for the ARPA grant to the pass-through agency, the San Diego Workforce Partnership is implementing strengthened internal controls and workflow procedures to ensure all required reports are submitted by the 15th day following the end of each month, as stipulated in the grant agreement.
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenant...
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenants should sign the recertification form. In addition, management should review all files and report any discrepancies to HUD in a timely manner. Action Taken: The management of Anderson Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will complete and document all annual recertifications, will maintain all documentation in tenant files to support the 50059 forms, will review all tenant files and report any discrepancies to HUD, and will make the necessary adjustments to tenant rent and rental subsidy calculations on the 50059 forms as soon as possible.
Recommendation: The design of the current controls should be reviewed to ensure adjustments made to the monthly PRAC billings are accurate before submission. Excess subsidy payments should be repaid to HUD. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments a...
Recommendation: The design of the current controls should be reviewed to ensure adjustments made to the monthly PRAC billings are accurate before submission. Excess subsidy payments should be repaid to HUD. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all adjustments to monthly billings are reviewed for accuracy before submission. Excess subsidy payments will be repaid to HUD through adjustments to monthly billing.
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenant...
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenants should sign the recertification form. In addition, management should review all files and report any discrepancies to HUD in a timely manner. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will complete and document all annual recertifications, will maintain all documentation in tenant files to support the 50059 forms, will review all tenant files and report any discrepancies to HUD, and will make the necessary adjustments to tenant rent and rental subsidy calculations on the 50059 forms as soon as possible.
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenants sho...
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenants should sign the recertification form. In addition, management should review all files and report any discrepancies to HUD in a timely manner. Action Taken: The management of Thompson-Woodlief Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will complete and document all annual recertifications, will maintain all documentation in tenant files to support the 50059 forms, will review all tenant files and report any discrepancies to HUD, and will make the necessary adjustments to tenant rent and rental subsidy calculations on the 50059 forms as soon as possible.
Recommendation: The design of the current controls should be reviewed to ensure proper vacancy dates are utilized in the event of a deceased tenant. The overpayment of subsidy received on behalf of the deceased tenant should be repaid to HUD. Action Taken: The management of Jude’s Place Apartments, ...
Recommendation: The design of the current controls should be reviewed to ensure proper vacancy dates are utilized in the event of a deceased tenant. The overpayment of subsidy received on behalf of the deceased tenant should be repaid to HUD. Action Taken: The management of Jude’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that moveouts as a result of a deceased tenant are processed in accordance with HUD guidelines. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billing.
Recommendation: The design of the current controls should be reviewed to ensure that all adjustments to monthly billings are reviewed before processing. The Organization should repay overpayment of subsidy to HUD. Action Taken:The management of Jude’s Place Apartments, Inc. accepts the recommendatio...
Recommendation: The design of the current controls should be reviewed to ensure that all adjustments to monthly billings are reviewed before processing. The Organization should repay overpayment of subsidy to HUD. Action Taken:The management of Jude’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all adjustments to monthly billing are reviewed to ensure they are processed correctly. Overpayment of subsidy will be repaid to HUD through adjustments to monthly billing.
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenant...
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenants should sign the recertification form. In addition, management should review all files and report any discrepancies to HUD in a timely manner. Action Taken: The management of Jude’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will complete and document all annual recertifications, will maintain all documentation in tenant files to support the 50059 forms, will review all tenant files and report any discrepancies to HUD, and will make the necessary adjustments to tenant rent and rental subsidy calculations on the 50059 forms as soon as possible.
Recommendation: The Organization should contact HUD to facilitate the remittance of excess residual receipts. Action Taken: The management of Edsil’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will contact HUD to ensure that al...
Recommendation: The Organization should contact HUD to facilitate the remittance of excess residual receipts. Action Taken: The management of Edsil’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will contact HUD to ensure that all excess residual receipts are remitted to HUD as soon as possible.
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenant...
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenants should sign the recertification form. In addition, management should review all files and report any discrepancies to HUD in a timely manner. Action Taken: The management of Edsil’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will complete and document all annual recertifications, will maintain all documentation in tenant files to support the 50059 forms, will review all tenant files and report any discrepancies to HUD, and will make the necessary adjustments to tenant rent and rental subsidy calculations on the 50059 forms as soon as possible.
Recommendation: The design of the current controls should be reviewed to ensure tenant assets are complete and accurate. The information in the files should support the tenant assets used in preparing the Form 50059 and calculating the corresponding tenant’s share of the rent. Action Taken:The manag...
Recommendation: The design of the current controls should be reviewed to ensure tenant assets are complete and accurate. The information in the files should support the tenant assets used in preparing the Form 50059 and calculating the corresponding tenant’s share of the rent. Action Taken:The management of Adams-Bodine Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will review all tenant assets and report any discrepancies to HUD and make the necessary adjustments to tenant rent and rental subsidy calculations on the 50059 forms as soon as possible.
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenant...
Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenants should sign the recertification form and also an updated Form 9887/9887-A. In addition, management should review all files and report and discrepancies to HUD in a timely manner. Action Taken: The management of Adams-Bodine Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will complete and document all annual recertifications, will maintain all documentation in tenant files to support the 50059 forms and 9887/9887- A forms, will review all tenant files and report any discrepancies to HUD, and will make the necessary adjustments to tenant rent and rental subsidy calculations on the 50059 forms as soon as possible.
Finding 2024-014: Material Weakness in Internal Control and Material Noncompliance – Reporting Condition: For the Community Development Block Grants (CDBG) Entitlement/Special Purpose Grants Cluster (14.218), For the entitlement funding allocated to the City, they were required to submit four quarte...
Finding 2024-014: Material Weakness in Internal Control and Material Noncompliance – Reporting Condition: For the Community Development Block Grants (CDBG) Entitlement/Special Purpose Grants Cluster (14.218), For the entitlement funding allocated to the City, they were required to submit four quarterly reports during the year and two annual reports. Of the three entitlement reports selected for testing, each one was submitted after the deadline. For the COVID-19 funding allocated to the City, they were required to submit quarterly reports duringthe year for two separate awards, for a total of eight quarterly reports, and one annual report. None of the required COVID-19 funding reports were submitted during the current year. Contact Person: Kara Prunty, Assistant Director of Finance – Grants, City of Danbury Corrective Actions Completed: We agree with the finding. The City has implemented a centralized reporting process under a designated grants/finance lead, including a recurring quarterly close schedule and a two-level review (preparer and approver) prior to submission. All submitted reports, supporting documentation, and submission confirmations are retained in a central repository.
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