Corrective Action Plans

Finding 1222207 (2025-002)

Material Weakness 2025

WA

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

Finding 2025-002: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: December 31, 2026 Recommendation: It was recommended Cheney Care Community implement internal control...

Finding 2025-002: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: December 31, 2026 Recommendation: It was recommended Cheney Care Community implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. Action Taken: On February 8, 2025, the audit was submitted to HUD through REAC. The Executive Director/Administrator and Accountant will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.

View Audit 406067

Finding 1222206 (2025-001)

Material Weakness 2025

Cheney Care Community

WA

HUD Housing Programs Reporting Subrecipient Monitoring

Finding 2025-001: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: September 30, 2026 Recommendation: It was recommended management of Cheney Care Community review thei...

Finding 2025-001: Section 232 Loan – Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities Loan, ALN 14.129 Anticipated Completion Date: September 30, 2026 Recommendation: It was recommended management of Cheney Care Community review their internal controls over the financial reporting and close processes to determine whether additional controls over the preparation of the final trial balances and related schedules can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Action Taken: Cheney Care Community will review their internal controls over the financial reporting and close processes to determine whether additional controls need to be implemented going forward.

View Audit 406067

Finding 1222205 (2025-001)

Material Weakness 2025

Housing Authority of the City of San Benito

TX

HUD Housing Programs Special Tests & Provisions

Compliance Requirement: Special Tests and Provisions – HQS Quality Control Inspections Management’s Response Management acknowledges the deficiency identified during the audit and has implemented corrective measures to strengthen internal controls over compliance. The Housing Authority is committed ...

Compliance Requirement: Special Tests and Provisions – HQS Quality Control Inspections Management’s Response Management acknowledges the deficiency identified during the audit and has implemented corrective measures to strengthen internal controls over compliance. The Housing Authority is committed to enhancing its quality control procedures, improving supervisory oversight, and ensuring compliance with HUD requirements. The following actions have been implemented or are in the process of being implemented: • Implement Enhanced Quality Control • Conduct monthly QC reviews of a sample of income determinations. • Document findings and corrective actions in a QC log. • Provide coaching or retraining for staff when errors are identified. • Ongoing Monitoring & Accountability • Supervisors will review income calculations for accuracy before final approval. • QC results will be discussed in monthly performance meetings. • Trends or recurring issues will be addressed through updated procedures or additional training. Responsible Officials: HCV Program Administrator and Executive Director Anticipated Completion Date: September 30, 2026

View Audit 406054

Finding 1222197 (2025-005)

Material Weakness 2025

Sessions Village 202 171-Ee015

WA

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Finding 2025-005: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: December 31, 2026 Recommendation: It was recommended Sessions Village 202 implement internal controls to ensure that the audited financial...

Finding 2025-005: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: December 31, 2026 Recommendation: It was recommended Sessions Village 202 implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement. Action Taken: On February 8, 2025, the audit was submitted to HUD through REAC. The Executive Director/Administrator and Accountant at the management agent will review the process and procedures in place for the audit, and implement internal controls to ensure that the audited financial statements are filed in accordance with the regulatory agreement going forward.

View Audit 406042

Finding 1222195 (2025-003)

Material Weakness 2025

Sessions Village 202 171-Ee015

WA

HUD Housing Programs Subrecipient Monitoring Reporting

Finding 2025-003: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: May 28, 2026 Recommendation: It was recommended Sessions Village 202 deposit the underfunded amount into the account. In addition, it was ...

Finding 2025-003: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: May 28, 2026 Recommendation: It was recommended Sessions Village 202 deposit the underfunded amount into the account. In addition, it was recommended management of Sessions Village 202 review their internal controls over the insurance escrow deposit process with the necessary individuals involved in the process to ensure the implementation of general ledger account coding on cash disbursements is consistently performed going forward. In addition, it was recommended management review their monitoring controls to ensure a secondary review is conducted at least quarterly to ensure the appropriate deposits were made. Action Taken: In May 2026, the amount was deposited into the account. The Executive Director/Administrator and Accountant at the management agent reviewed the process and procedures in place with the new accounts payable clerk, and implemented controls to ensure the appropriate deposits are made going forward.

View Audit 406042

Finding 1222194 (2025-002)

Material Weakness 2025

Sessions Village 202 171-Ee015

WA

Subrecipient Monitoring HUD Housing Programs Reporting

Finding 2025-002: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: November 13, 2025 Recommendation: It was recommended Sessions Village 202 deposit the underfunded amount into the account. In addition, it...

Finding 2025-002: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: November 13, 2025 Recommendation: It was recommended Sessions Village 202 deposit the underfunded amount into the account. In addition, it was recommended management of Sessions Village 202 review their internal controls over the reserve for replacements deposit process with the necessary individuals involved in the process to ensure the implementation of general ledger account coding on cash disbursements is consistently performed going forward. In addition, it was recommended management review their monitoring controls to ensure a secondary review is conducted at least quarterly to ensure the appropriate deposits were made. Action Taken: In November 13, 2025, the amount was deposited into the account. The Executive Director/Administrator and Accountant at the management agent reviewed the process and procedures in place with the new accounts payable clerk, and implemented controls to ensure the appropriate deposits are made going forward.

View Audit 406042

Finding 1222193 (2025-001)

Material Weakness 2025

Sessions Village 202 171-Ee015

WA

HUD Housing Programs

Finding 2025-001: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: September 30, 2026 Recommendation: It was recommended Sessions Village 202 obtain the missing signed documents if the tenant still resides...

Finding 2025-001: Section 202 Supportive Housing for the Elderly, Capital Advance and Project Rental Assistance Contract, ALN 14.157 Anticipated Completion Date: September 30, 2026 Recommendation: It was recommended Sessions Village 202 obtain the missing signed documents if the tenant still resides at the project. In addition, it was recommended Sessions Village 202 review all tenant files to ensure all other records are complete. Also, it was recommended staff involved in the tenant move-in process review the requirements and revise their current process and procedures as needed to ensure the appropriate forms are completed correctly and kept in the tenant files going forward. Additional controls could include completing a checklist of required signed forms obtained during the move-in process, or having a second individual check the file for completeness. Action Taken: In December 2025, the Property Manager obtained the missing signed documents for the tenants listed above. For one instance, the tenant had already moved out and no updated documentation could be obtained. The Property Manager will review the process and procedures in place, and implement controls to ensure the appropriate forms are completed correctly and kept in the tenant files going forward.

View Audit 406042

Finding 1221786 (2025-001)

Material Weakness 2025

W.s. Housing Development Fund Co., Inc. Seneca Woods Apts #014-Ee171

NY

Special Tests & Provisions Cash Management HUD Housing Programs

Corrective Action Plan – Single Audit Finding Entity Name: W.S. Housing Development Company, Inc. Audit Period: For the year Ended September 30, 2025 Finding Reference Number: 14.157 Federal Program: Supportive Housing for the Elderly (Section 202) 1. Audit Finding Summary Describe the audit finding...

Corrective Action Plan – Single Audit Finding Entity Name: W.S. Housing Development Company, Inc. Audit Period: For the year Ended September 30, 2025 Finding Reference Number: 14.157 Federal Program: Supportive Housing for the Elderly (Section 202) 1. Audit Finding Summary Describe the audit finding and the specific noncompliance identified by the auditor. In accordance with 24 CFR 891.400(e), a separate interest-bearing project fund account shall be maintained in a depository or depositories which are members of the Federal Deposit Insurance Corporation or National Credit Union Share Insurance Fund and all tenant payments, charges, income and revenues arising from project operation or ownership shall be deposited to this account. 2. Root Cause Explain the underlying reasons for the finding, such as process gaps, training issues, or lack of controls. Subsequent to the initial rental assistance contract, changes to HUD regulations resulted in the requirement that the project fund account be an interest-bearing account. This change was an oversight by the Company's management. 3. Corrective Actions Action Item: Use an interest-bearing account for project funds Responsible Person: Chief Financial Officer Completion Date: TBD Status: In process 4. Monitoring Plan Describe how the implementation of corrective actions will be monitored and evaluated. Management inquired with the bank and deemed the cost outweighs the benefit due to the fees charged for an interest bearing account exceeding the interest that would be earned. 5. Contact Information Name: Aaron Hejmowski Title: Chief Financial Officer Phone: 716-884-7791 Email: ahejmowski@belmonthousingwny.org

View Audit 406030

Finding 1221785 (2025-002)

Material Weakness 2025

Housing Authority of the City of Orange

TX

HUD Housing Programs Special Tests & Provisions

Finding 2025-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Federal Catalog Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – HQS Enforcement Non Compliance Material to the Financial Statements: Yes Mate...

Finding 2025-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Federal Catalog Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – HQS Enforcement Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Enforcement. 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. Condition: Based upon inspection of the Authority’s files and on discussions with management, the Authority did not properly abate (2) housing assistance payments. Context: Of a sample size of twenty-five (25) failed inspections, the Authority did not properly abate two (2) out of twenty-five (25) housing assistance payments. 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: $18,690 Finding 2025-002 (continued): Cause: There is a material weakness in internal controls over compliance for the special tests and provisions type of compliance related to HQS enforcement. Controls were not operating effectively to ensure housing assistance payments were properly abated. Effect: The Section 8 Housing Choice Vouchers program is 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 Section 8 Housing Choice Vouchers 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. Tracy Thomas is considered the responsible person and the corrective action will be completed by September 30, 2026.

View Audit 406028

Finding 1221784 (2025-001)

Material Weakness 2025

Housing Authority of the City of Orange

TX

HUD Housing Programs

Finding 2025-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Assistance Listing Numbers: 14.871 Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant deficiency...

Finding 2025-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Assistance Listing Numbers: 14.871 Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant deficiency in Internal Control over Compliance for Eligibility Finding 2025-001 (continued) 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 814 units. Of a sample size of twenty-one (21) tenant files, one (1) tenants' HUD-50058 form contained an income miscalculation during the tenant's annual reexamination process. Our sample size is statistically valid. Known Questioned Costs: $13,000 Cause: There is a significant deficiency in internal controls for the Section 8 Housing Choice Vouchers Program over the compliance for the eligibility type of compliance related to the maintenance of tenant files. Controls were not operating effectively to ensure tenant income calculations reported on the HUD-50056 form were properly reviewed for accuracy and compliance with HUD requirements. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the eligibility requirements of the program. Errors in tenant income calculations and recertification documentation could result in participants being determined eligible based on inaccurate information, which may lead to noncompliance with HUD eligibility requirements and improper housing assistance payments. Recommendation: We recommend that the Authority strengthen and consistently apply internal control procedures over tenant eligibility determinations and HUD-50058 recertification reviews to help ensure compliance with HUD requirements and the Uniform Guidance. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Section 8 Housing Choice Vouchers Program and will train staff on the proper maintenance of tenant files and implement internal control procedures that will ensure compliance with federal regulations. Tracy Thomas is considered the responsible person and the corrective action will be completed by September 30, 2026.

View Audit 406028

Finding 1221765 (2025-001)

Material Weakness 2025

Senior Citizens Housing Development Corporation of Ville Platte

FL

HUD Housing Programs Subrecipient Monitoring Reporting

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Ville Platte 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, Suit...

Oversight Agency for Audit, Senior Citizens Housing Development Corporation of Ville Platte 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 finding from the September 30, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2025-001:Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures for compliance with all HUD regulations and ensure that all supporting documents are appropriately retained. Action Taken: Management has implemented procedures to ensure compliance with HUD requirements related to utility allowances and document retention. The Project will perform and document an annual utility allowance review and analysis in accordance with HUD regulations. Supporting documentation used in the analysis, including utility rate information and calculation worksheets, will be maintained in the Project's compliance files and retained in accordance with HUD record-retention requirements. Management has also established procedures to ensure that all compliance-related documentation is properly organized, reviewed, and retained to support future audits and monitoring reviews. Responsibility for maintaining the utility allowance analysis and related supporting documentation has been assigned to designated management personnel, and periodic reviews will be performed to verify that required records are complete and accessible. These corrective actions are expected to be fully implemented by September 30, 2026. If the Oversight Agency for Audit has questions regarding this plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips CFO

View Audit 406018

Finding 1221764 (2025-001)

Material Weakness 2025

Pine Grove Housing Development Corporation, Dba Pine Grove Apts

FL

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

Oversight Agency for Audit, Pine Grove Housing Development Corporation 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,...

Oversight Agency for Audit, Pine Grove Housing Development Corporation 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 finding from the September 30, 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING NO. 2025-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: Management should enhance their procedures to ensure that all payroll disbursements are for work performed at the Project. Action Taken: Payroll procedures have been enhanced to ensure all employee changes are done timely. If the audit Oversight Agency has questions regarding this plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips CFO

View Audit 406015

Finding 1221724 (2025-001)

Material Weakness 2025

Sterling Heights Housing Commission

MI

Allowable Costs / Cost Principles HUD Housing Programs Internal Control / Segregation of Duties

2025-001 – ALN 14.850 – Public Housing Operating Fund – Activities Allowed or Unallowed Planned Corrective Action: The Executive Director acknowledges the finding and is following the auditor’s recommendation as presented in the Audit Report. The Authority is now drawing down its CFP and is not usin...

2025-001 – ALN 14.850 – Public Housing Operating Fund – Activities Allowed or Unallowed Planned Corrective Action: The Executive Director acknowledges the finding and is following the auditor’s recommendation as presented in the Audit Report. The Authority is now drawing down its CFP and is not using operating funds for CFP activities. Person Responsible for Correction of Finding: Wanda Allen, Executive Director Anticipated Completion Date: September 30, 2026

View Audit 405984

Finding 1221679 (2025-002)

Material Weakness 2025

Mid-East Regional Housing Authority

NC

HUD Housing Programs Reporting

We will implement proper internal control procedures for the Housing choice Voucher VMS reconciliation process.

View Audit 405955

Finding 1221678 (2025-001)

Material Weakness 2025

Mid-East Regional Housing Authority

NC

Eligibility HUD Housing Programs Reporting

We will implement proper internal control procedures for the Housing Choice Voucher program eligibility requirements

View Audit 405955

Finding 1221662 (2025-001)

Material Weakness 2025

Gardner Housing Authority

MA

HUD Housing Programs Eligibility Material Weakness

Planned Implementation Date of Corrective Action: July 2026 Person Responsible for Corrective Action: Krishonna Murray, Executive Director I. 2025-001 Eligibility Rent Calculation Other Matter/Significant Deficiency The Authority had instances of missing income verification. Gardner Housing Authorit...

Planned Implementation Date of Corrective Action: July 2026 Person Responsible for Corrective Action: Krishonna Murray, Executive Director I. 2025-001 Eligibility Rent Calculation Other Matter/Significant Deficiency The Authority had instances of missing income verification. Gardner Housing Authority has established a system of internal control over the participant recertification process that meets HUD's requirements. Seven (7) to ten (10) files will be reviewed fiscally for quality assurance.

View Audit 405948

Finding 1221658 (2025-002)

Material Weakness 2025

Housing Authority of the City of Poteet

TX

HUD Housing Programs Eligibility Special Tests & Provisions § 200.514

Finding No. 2025-002 Corrective Action: The Authority will implement the following corrective actions for the fiscal year ended September 30, 2025 (audit period October 1, 2024 through September 30, 2025): 1. Standardize rent reasonableness documentation. Implement a standardized rent reasonableness...

Finding No. 2025-002 Corrective Action: The Authority will implement the following corrective actions for the fiscal year ended September 30, 2025 (audit period October 1, 2024 through September 30, 2025): 1. Standardize rent reasonableness documentation. Implement a standardized rent reasonableness form (or system-generated report) required at initial lease-up, rent increases, and other required points, and retain it in the tenant file. 2. Pre-approval control for HAP initiation/changes. Require supervisory verification that rent reasonableness support and inspection/HQS documentation are present prior to (a) initial HAP execution, (b) annual recertification processing where applicable, and (c) approval of rent increases. 3. Inspection scheduling and follow-up procedures. Implement a scheduling log and follow-up protocol to ensure (a) initial inspections, (b) annual/biennial inspections (as applicable), and (c) re-inspections are performed and documented timely; rejected/failed inspections will be tracked until resolved. 4. Quality control reviews. Perform periodic internal quality control reviews (e.g., quarterly) of a sample of active tenant files to verify the presence of rent reasonableness and inspection documentation and to identify trends requiring corrective action. 5. Training and written procedures. Update written procedures and provide training to HCV staff and inspectors on documentation standards, retention requirements, and supervisory review expectations. 6. Corrective review of affected files. Review the tenant files identified during audit testing and any similar files from the audit period to obtain/prepare missing rent reasonableness support and ensure inspections were performed/documented; take corrective action for any issues identified. Implementation timeline: • Standard form/procedure updates: within [30] days of report issuance • Supervisory pre-approval control implemented: within 45 days of report issuance • Inspection log and follow-up protocol implemented: within 60 days of report issuance • Staff/inspector training completed: within 90 days of report issuance • First quarterly QC review completed: by September 30, 2026 • Corrective review of affected files completed: by September 30, 2026. Contact Information: Rosario Contero-Oropeza, Executive Director Housing Authority of the City of Poteet 120 Avenue E Poteet, TX 78065 (830)742-3589

View Audit 405939

Finding 1221657 (2025-001)

Material Weakness 2025

Housing Authority of the City of Poteet

TX

HUD Housing Programs § 200.514

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30, 2025 Finding No. 2025-001 Corrective Action: The Authority will implement the following corrective actions for the fiscal year ended September 30, 2025 (audit period October 1, 2024 through September 30, 2025): 1. PIC/HUD-50058 submission track...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30, 2025 Finding No. 2025-001 Corrective Action: The Authority will implement the following corrective actions for the fiscal year ended September 30, 2025 (audit period October 1, 2024 through September 30, 2025): 1. PIC/HUD-50058 submission tracking and accountability. Implement a tracking log (system report or spreadsheet) for all tenant actions requiring PIC/HUD-50058 reporting, including tenant name/ID, action type, effective date, due date, submission date, and evidence of HUD acceptance. 2. Supervisory review prior to file closeout. Require a supervisor to review and initial/approve each tenant action package to confirm PIC/HUD-50058 submission evidence and HUD acceptance confirmation are present before the file is closed, payments are continued, or the action is considered complete. 3. Monthly exception reporting and resolution. Run a monthly PIC exception report (or equivalent system query) to identify missing, rejected, or pending submissions. Assign exceptions to staff for corrective action, document resolution, and retain evidence of follow-up. 4. Tenant file checklist update. Update the tenant file checklist to include PIC/HUD-50058 submission evidence and HUD acceptance confirmation as required elements for applicable actions. 5. Staff training and written procedures. Update written procedures and provide refresher training to staff responsible for reexaminations, interim changes, move-ins, move-outs, and other actions that trigger PIC/HUD-50058 reporting, including documentation retention standards. 6. Lookback/corrective review of the audit-period exceptions. Perform a lookback review of tenant actions processed during the audit period to determine whether additional PIC/HUD-50058 submissions were missed and submit/correct outstanding items, as applicable. Retain documentation of the corrective submissions and acceptance. Monitoring procedures: Management will monitor ongoing compliance by (a) reviewing the monthly exception report and documenting sign-off, (b) performing quarterly quality control reviews of a sample of completed tenant actions to verify PIC/HUD-50058 submission evidence and acceptance confirmation are present, and (c) tracking aging of open exceptions to ensure timely resolution. Statement of ongoing compliance: The Authority will ensure timely and complete PIC/HUD-50058 submissions going forward by requiring each tenant action to be logged and reconciled to PIC submission/acceptance status, enforcing supervisory sign-off prior to action closeout, and promptly resolving any rejected or pending items identified through monthly exception reporting. Implementation timeline: • Tracking log/checklist updates and procedure revisions: within 30 days of report issuance • Supervisory review control implemented: within 45 days of report issuance • Monthly exception reporting and management sign-off begins: within 60 days of report issuance • Staff training completed: within 90 days of report issuance • Lookback review completed: by September 30, 2026. • First quarterly QC review completed: by September 30, 2026

View Audit 405939

Finding 1221654 (2025-002)

Material Weakness 2025

Housing Authority of the City of New Haven D/b/a Elm City Communities

CT

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

We agree that Elm City Communities should have a control environment that allows the books to be closed and regulatory reports filed on a timely basis. In August 2025 we completed a conversion from Elite to Yardi. This caused us to take longer than normal for our year end close process. Planned Impl...

We agree that Elm City Communities should have a control environment that allows the books to be closed and regulatory reports filed on a timely basis. In August 2025 we completed a conversion from Elite to Yardi. This caused us to take longer than normal for our year end close process. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Shenae Draughn, President.

View Audit 405932

Finding 1221537 (2025-001)

Material Weakness 2025

Housing Authority of South Bend

IN

HUD Housing Programs

Action Taken: The Management of the Authority agrees with the findings. We will implement improved internal controls to ensure that all annual recertifications are performed in a timely manner and that all required documents are kept in an organized manner. The Compliance Specialist will perform mon...

Action Taken: The Management of the Authority agrees with the findings. We will implement improved internal controls to ensure that all annual recertifications are performed in a timely manner and that all required documents are kept in an organized manner. The Compliance Specialist will perform monthly quality checks on the files and work with staff to eliminate errors. The HCV Director is the responsible party, and controls will be in place by the end of the September 30, 2026 fiscal year.

View Audit 405834

Finding 1221536 (2025-002)

Material Weakness 2025

Housing Authority of South Bend

IN

HUD Housing Programs Eligibility

Action Taken: The Management of the Authority agrees with the findings. We will implement improved internal controls to ensure that all annual recertifications are performed in a timely manner and that all required documents are kept in an organized manner. The Compliance Specialist will perform mon...

Action Taken: The Management of the Authority agrees with the findings. We will implement improved internal controls to ensure that all annual recertifications are performed in a timely manner and that all required documents are kept in an organized manner. The Compliance Specialist will perform monthly quality checks on the files and work with staff to eliminate errors. The Director of Asset Management is the responsible party, and controls will be in place by the end of the September 30, 2026 fiscal year.

View Audit 405834

Finding 1221494 (2025-001)

Material Weakness 2025

Housing Authority of Skagit County

WA

HUD Housing Programs Significant Deficiency

2025 – 001 Housing Choice Voucher Program – Assistance listing No. 14.871 Recommendation: We recommend the Authority review their process and internal controls for HQS annual inspections to ensure compliance with HUD requirements and their administrative plan. Explanation of disagreement with audit ...

2025 – 001 Housing Choice Voucher Program – Assistance listing No. 14.871 Recommendation: We recommend the Authority review their process and internal controls for HQS annual inspections to ensure compliance with HUD requirements and their administrative plan. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Institute developed internal controls and increase vigilance of scheduled dates for inspections in accordance with regulations. Name(s) of the contact person(s) responsible for corrective action: Joyce Skelton, Section 8 Program Manager. Planned completion date for corrective action plan: June 23, 2026

View Audit 405800

Finding 1221477 (2025-002)

Material Weakness 2025

Easter Seals United Cerebral Palsy Nc Housing, Inc.

NC

HUD Housing Programs

In response to the finding regarding low occupancy rate, management contends that the Project is doing all that is within its control to get the vacant units rented.

View Audit 405752

Finding 1221476 (2025-001)

Material Weakness 2025

Easter Seals United Cerebral Palsy Nc Housing, Inc.

NC

Subrecipient Monitoring Eligibility HUD Housing Programs

To address the noted deficiencies in tenant file documentation, staff and supervisors will continue to follow established processes. Supervisors continue to track and monitor productivity and progress. The current supervisor has implemented clear and concise instructions and rules for completing and...

To address the noted deficiencies in tenant file documentation, staff and supervisors will continue to follow established processes. Supervisors continue to track and monitor productivity and progress. The current supervisor has implemented clear and concise instructions and rules for completing and managing files. All forms are now saved in tenant files, and not on individual laptops as they were in the past. The supervisor has also implemented schedules and tracking systems for monthly voucher submissions, annual recertifications, quarterly income checks and other processes in the occupancy workflow. In addition, the supervisor and the lead staff for housing compliance perform regular checks on tenant application paperwork and random checks on tenant files to ensure accuracy and completeness and correct any mistakes. Ongoing staff training, support and mentoring continues.

View Audit 405752

Finding 1221475 (2025-001)

Material Weakness 2025

Community Apartments Corporation of Alamance County #2

NC

HUD Housing Programs

To address the noted deficiencies in tenant file documentation, staff and supervisors will continue to follow established processes. Supervisors continue to track and monitor productivity and progress. The current supervisor has implemented clear and concise instructions and rules for completing and...

To address the noted deficiencies in tenant file documentation, staff and supervisors will continue to follow established processes. Supervisors continue to track and monitor productivity and progress. The current supervisor has implemented clear and concise instructions and rules for completing and managing files. All forms are now saved in tenant files, and not on individual laptops as they were in the past. The supervisor has also implemented schedules and tracking systems for monthly voucher submissions, annual recertifications, quarterly income checks and other processes in the occupancy workflow. In addition, the supervisor and the lead staff for housing compliance perform regular checks on tenant application paperwork and random checks on tenant files to ensure accuracy and completeness and correct any mistakes. Ongoing staff training, support and mentoring continues.

View Audit 405750

Corrective Action Plans

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