Corrective Action Plans

Finding 1228059 (2025-003)

Material Weakness 2025

NJ

HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 – PIC Submissions Recommendation: We recommend that the Authority designate an individual to ensure accurate HUD-50058 information is input into the PIC system timely. Explanation of disagreement with audit finding: There is no disag...

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 – PIC Submissions Recommendation: We recommend that the Authority designate an individual to ensure accurate HUD-50058 information is input into the PIC system timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will designate an individual responsible for monitoring HUD-50058 submissions and ensuring information is entered into the PIC system accurately and within required timeframes. Management will review the submission process and implement follow-up procedures to reduce the risk of untimely or unsupported PIC submissions. Name of the contact person responsible for corrective action: Philisa Smith, HCV Director Planned completion date for corrective action plan: December 31, 2026

View Audit 409902

Finding 1228056 (2025-002)

Material Weakness 2025

Housing Authority of the City of Omaha

NJ

HUD Housing Programs Special Tests & Provisions

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 - Eligibility Recommendation: We recommend the Authority: - Review and revise its eligibility determination procedures to ensure full compliance with HUD regulations; - Maintain a schedule of tenants and housing specialists to ensure...

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 - Eligibility Recommendation: We recommend the Authority: - Review and revise its eligibility determination procedures to ensure full compliance with HUD regulations; - Maintain a schedule of tenants and housing specialists to ensure that recertifications are performed annually - Train staff on proper documentation and verification protocols for items listed in the HUD-50058 form - Update its Administrative Plan to reflect accurate and timely eligibility screening procedures Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will review and revise eligibility determination procedures to ensure compliance with HUD requirements and will provide staff training on required documentation and verification protocols. The Authority will also perform a file review to identify and correct documentation deficiencies and update its Administrative Plan as needed to reflect current eligibility screening procedures. Name of the contact person responsible for corrective action: Philisa Smith, HCV Director Planned completion date for corrective action plan: December 31, 2026

View Audit 409902

Finding 1228010 (2025-004)

Material Weakness 2025

Arirang Housing,inc.

CA

Cash Management HUD Housing Programs Subrecipient Monitoring

Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 23...

Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-004: The Corporation made payments on entity expenses in the amount of $21,398 and did not obtain the required HUD approval. Comments on the Finding and Each Recommendation: The Corporation should request retroactive HUD approval to make the payments or request reimbursement from the Board of Directors. Action(s) taken or planned on the finding: Management has requested approval from HUD. As of the report date, no response has been received.

View Audit 409856

Finding 1228009 (2025-003)

Material Weakness 2025

Arirang Housing,inc.

CA

Subrecipient Monitoring HUD Housing Programs

Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 23...

Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-003: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days or 9 months if owner certified following the year ended June 30, 2025. Comments on the Finding and Each Recommendation: The Corporation should ensure the annual financial report is filed within 90 days of year end. Action(s) taken or planned on the finding: The audited financial statements have been submitted to HUD. No further action is required.

View Audit 409856

Finding 1228007 (2025-001)

Material Weakness 2025

Arirang Housing,inc.

CA

Procurement, Suspension & Debarment Subrecipient Monitoring HUD Housing Programs

Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 23...

Name of auditee: Arirang Housing, Inc. HUD auditee identification number: 122-EH518-WAH-NP Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended June 30, 2025 CAP prepared by Name: Noel Sweitzer Position: President, HDSI Management, Inc. Telephone number: (323) 231-1104 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Statement of condition 2025-001: During the year ended June 30, 2025, the Corporation did not make the require deposits to the reserve for replacements. Comments on the Finding and Each Recommendation: Management should make a deposit to the reserve for replacements for $2,423 for the delinquent deposits. In future periods, management should fund the reserve for replacements on an annual basis as required by the HUD regulatory agreement or request HUD approval for a suspension of deposits Action(s) taken or planned on the finding: Management made a deposit of $2,423 in July 2025 for the delinquent deposits.

View Audit 409856

Finding 1228002 (2025-002)

Material Weakness 2025

Sunrise Residential, Inc.

IL

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking § 200.303

View of Responsible Officials and Corrective Actions: Management agrees with the findings. Management will establish procedures and monitor compliance with those procedures to ensure that monthly replacement reserve deposits are made in accordance with the HAP contract. Contact Persons Responsible:...

View of Responsible Officials and Corrective Actions: Management agrees with the findings. Management will establish procedures and monitor compliance with those procedures to ensure that monthly replacement reserve deposits are made in accordance with the HAP contract. Contact Persons Responsible: Dr. Sharrone Ward, President and Chief Executive Officer Kim Shelton-Mamon, Vice President of Finance Billie Williams, President of Active Real Estate Management Completion Date: Open

View Audit 409854

Finding 1227939 (2025-001)

Material Weakness 2025

St. Luke Hsg Dev Fund Company (st. Luke Apts) 014-11157

NY

HUD Housing Programs

U.S. Department of Housing and Urban Development St. Luke Housing Development Fund Company, Inc. (St. Luke Apartments), FHA Project No. 014-11157 respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: B...

U.S. Department of Housing and Urban Development St. Luke Housing Development Fund Company, Inc. (St. Luke Apartments), FHA Project No. 014-11157 respectfully submits the following corrective action plan for the year ended September 30, 2025. Name and address of independent public accounting firm: Bonadio & Co., LLP, 432 North Franklin Street #60, Syracuse, New York 13204 Audit period: October 1, 2024 – September 30, 2025 The finding from the 2025 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2025-001: Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Federal Assistance Listing Number 14.155 Condition: The required deposit of $19,309 for the year ended September 30, 2024 was made after the 90 day deadline. Recommendation: St. Luke Apartments should ensure residual receipts are made within 90 days of year-end in accordance with the HUD Regulatory Agreement. Action Taken: The required deposit was made on January 8, 2025. Completion Date: January 8, 2025 Name of Contact Person Responsible for Corrective Action: John Lutz, Vice President of Finance, (315) 424-1821.

View Audit 409851

Finding 1227930 (2025-002)

Material Weakness 2025

Trinity Community Housing CORP

IL

HUD Housing Programs

On 5/27/2026, a check payable to Midland Loan Service for $3,084.66 was submitted for the unfunded replacement reserve. This finding has been resolved.

View Audit 409848

Finding 1227926 (2025-001)

Material Weakness 2025

Purdy R-II School District

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN November 18, 2025 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF HEALTH AND HUMAN SERVICES Purdy School District R-II respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective a...

CORRECTIVE ACTION PLAN November 18, 2025 U.S. DEPARTMENT OF EDUCATION U.S. DEPT. OF HEALTH AND HUMAN SERVICES Purdy School District R-II respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Dr Travis Graham, Superintendent Purdy School District R-II 201 Gabby Gibbons Dr Purdy, MO 65734 (417) 442-3215 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2025 The findings from the June 30, 2025, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2025-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr Travis Graham, Superintendent Purdy School District R-II

View Audit 409841

Finding 1227908 (2025-001)

Material Weakness 2025

Preservation of Affordable Housing, INC

MA

HUD Housing Programs Program Income

Temple Landing II was funded with PRI with a completion deadline of March 2024. The project applied several times for LIHTC from the Massachusetts EOHLC. With the project unfunded, Management notified CDFI of the delays in the project and the missed completion deadline in April 2025 and again in Mar...

Temple Landing II was funded with PRI with a completion deadline of March 2024. The project applied several times for LIHTC from the Massachusetts EOHLC. With the project unfunded, Management notified CDFI of the delays in the project and the missed completion deadline in April 2025 and again in March 2026. The project has since been awarded 9% LIHTC and is scheduled to close in August 2026. Columbia Crossing was funded with PRI with a completion deadline of April 2025. The project applied several times for LIHTC from the Massachusetts EOHLC. Management notified CDFI of the delays in the project and the missed completion deadline in March 2026. The project was awarded 9% LIHTC and gap financing from MA EOHLC and closed in April 2026. Terri Manor was funded with PRI with a completion deadline of April 2025. The project applied several times for gap financing from the Ohio state HFA. Management notified CDFI of the delays in the project and the missed completion deadline in March 2026. The project won a funding award from HUD’s GRRP program and after delays in program funding is scheduled to close in December 2026. On April 20, 2026, CDFI Fund provided a one-year cure period to March 31, 2027 for all three projects. While it is expected that all three projects will have closings in 2026, construction will not be completed on Temple Landing II and Columbia Crossing until 2027 and Terri Manor until 2028.

View Audit 409837

Finding 1227800 (2025-001)

Material Weakness 2025

Village of Blanchardville

WI

Internal Control / Segregation of Duties HUD Housing Programs

Finding #2025-001- Segregation of Duties Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional error...

Finding #2025-001- Segregation of Duties Condition: The available office staff precludes a proper segregation of duties in the control areas reviewed. Criteria: Segregation of duties is an aspect of internal control intended to prevent or decrease opportunities of intentional and unintentional errors and fraud. Duties and responsibilities are properly segregated if no single individual either has control over all phases of a transaction or can both make and conceal an error, whether such error is intentional or unintentional. Cause: Limited number of personnel. Effect: Errors or intentional fraud could occur and not be detected timely by other employees in the normal course of their responsibilities because of the lack of segregation of duties. Recommendation: We recommend that the Village consider the benefits of implementing additional policies and procedures to address key controls related to its significant transaction cycles as noted. Response: We agree with the finding but do not believe it is cost-effective to increase the office staff in an attempt to bring about a more effective segregation of duties. Contact Person: Katherine Drake, Village Clerk/Treasurer, 608-523-4521, clerk@blanchardvillewi.gov Anticipated Completion: Not Applicable

View Audit 409774

Finding 1227757 (2025-101)

Material Weakness 2025

Pancare of Florida, INC

FL

Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs § 200.303

2025-101 Lack of Effective Internal Controls over the Application of the Sliding Fee Scale Condition: The Organization lacks consistently applied processes and procedures related to the application of the sliding fee scale. The Organization’s current review process related to the sliding fee scale t...

2025-101 Lack of Effective Internal Controls over the Application of the Sliding Fee Scale Condition: The Organization lacks consistently applied processes and procedures related to the application of the sliding fee scale. The Organization’s current review process related to the sliding fee scale to identify errors quickly to allow for corrections to be made in a timely manner does not always detect all errors. We also noted: • Sliding fee scales were not used for the agreement that the Organization has in place with the local school district in which they provide services to students. The agreement specifically does not allow the Organization to obtain information related to household size and income as needed to appropriately place the family on the sliding fee scale. The agreement also indicates no amounts can be collected from the students, except when that student has insurance which allows the Organization to bill the insurance company for a portion of the fees. • Sliding fee scales are not used in the disaster recovery bus program that does not charge the patients for services. Corrective Action Planned: The Organization has hired a new Chief Financial Officer and a new Revenue Cycle Manager. Sliding fee discount program training has been incorporated into onboarding for all new front desk employees. The billing department is adding a Patient Accounts Specialist who will monitor and review individual sliding fee determinations for accuracy and completeness and will conduct ongoing training with front desk staff as needed. Additionally, management will perform quarterly random sample testing of sliding fee determinations to verify that household size, income documentation, and discount tier were applied in accordance with the Organization's sliding fee discount policy. With respect to the school district agreement and the bus program, management will contact HRSA to request written guidance or a waiver confirming that the sliding fee discount schedule is not required to be applied to these programs. Management will also amend the Organization's sliding fee discount policies and procedures accordingly and will remove the word "disaster" from references to the bus program, as the program is not limited to disaster-related services. Person Responsible for Corrective Action: Tonya Nicholson, Chief Financial Officer Anticipated Completion Date: October 2026

View Audit 409740

Finding 1227742 (2025-001)

Material Weakness 2025

Pierce City School District R-Vi

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN September 10, 2025 U.S. DEPT. OF AGRICULTURE Pierce City School District R-VI respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Matthew Street, Superintenden...

CORRECTIVE ACTION PLAN September 10, 2025 U.S. DEPT. OF AGRICULTURE Pierce City School District R-VI respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Matthew Street, Superintendent Pierce City School District R-VI 300 N Myrtle Street Pierce City, MO 65723 (417) 476-2555 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2025 The findings from the June 30, 2025, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2025-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Matthew Street, Superintendent Pierce City School District R-VI

View Audit 409713

Finding 1227709 (2025-001)

Material Weakness 2025

Southwest R-V School District

MO

Internal Control / Segregation of Duties HUD Housing Programs

CORRECTIVE ACTION PLAN August 12, 2025 UNITED STATES DEPARTMENT OF EDUCATION UNITED STATES DEPARTMENT OF AGRICULTURE Southwest R-V School District respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the co...

CORRECTIVE ACTION PLAN August 12, 2025 UNITED STATES DEPARTMENT OF EDUCATION UNITED STATES DEPARTMENT OF AGRICULTURE Southwest R-V School District respectfully submits the following corrective action plan for the year ended June 30, 2025. Contact information for the individual responsible for the corrective action: Dr. Tosha Tilford, Superintendent Southwest R-V School District 529 Pineville Road Washburn, MO 65772 (417) 826-5410 Independent Public Accounting Firm: The CPA Group, PC, 217 4th Street, Monett, MO 65708 Audit Period: Year ended June 30, 2025 The findings from the June 30, 2025, Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT Material Weakness – Internal Control over Financial Reporting - Segregation of duties Finding 2025-001 Recommendation: We realize Because of limited resources and personnel, management may not be able to achieve a proper segregation of duties; however, our professional standards require that we bring this lack of segregation of duties to your attention in this report. Action Taken: The limited number of available personnel prohibits segregation of incompatible duties and the District does not have the resources to hire additional accounting personnel. Completion Date: Not applicable Sincerely, Dr. Tosha Tilford, Superintendent Southwest R-V School District

View Audit 409660

Finding 1227618 (2025-002)

Material Weakness 2025

reStart Accessible Housing, Inc.

MO

HUD Housing Programs

Criteria The compliance supplement states “Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing accou...

Criteria The compliance supplement states “Owners shall establish and maintain a replacement reserve to aid in funding extraordinary maintenance and repair and replacement of capital items. The replacement reserve funds must be deposited in a federally insured depository in an interest-bearing account. All earnings including interest on the reserve must be added to the reserve. An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 (a)). All disbursements from the reserve must be approved by HUD (24 CFR section 891.405).” Condition The monthly required deposit into the replacement reserve account was increased from $428 to $513 effective September 1, 2025. The deposits into the replacement reserve account were not increased as approved by HUD resulting in deficiency of $340. Cause The management agents did not implement the HUD approved required monthly increase in the replacement reserve deposits. Effect or potential effect The Organization is not in compliance with the requirements set forth by HUD related to its reserve for replacement account. Questioned Costs None Identification as a repeat finding Repeat finding Recommendation We recommend that the Organization deposit the deficient funds of $340 for the year ended December 31, 2025 as well as any deficiencies for the year ending December 31, 2026. Person Responsible for Implementation: Brian Watson, Chief Accounting Officer. Telephone (816) 463-0112 ext. 3016, Email bwatson@luinc.org Anticipated Completion Date: Late July or early August, 2026

View Audit 409635

Finding 1227613 (2025-004)

Material Weakness 2025

Chattanooga Housing Authority

TN

Eligibility HUD Housing Programs Significant Deficiency

Finding Reference: 2025-004 Description of Finding: The Authority was unable to provide documentation to show income had been verified during reexamination for 3 tenants out of a sample of 40 tenants. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Actio...

Finding Reference: 2025-004 Description of Finding: The Authority was unable to provide documentation to show income had been verified during reexamination for 3 tenants out of a sample of 40 tenants. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: Staff will attend annual file compliance training and upcoming rent calculation training to reinforce documentation requirements and ensure accurate income determinations going forward. We have also updated our file checklists, staff are reviewing all tenant files and we have an internal file review process, as noted in Finding 2025-002, to help ensure staff obtain and maintain all required third-party documentation for income reexaminations Name of Contact Person: Curtis Lokey, Director of Finance, 423-752-4893, clokey@chahousing.org

View Audit 409622

Finding 1227612 (2025-003)

Material Weakness 2025

Chattanooga Housing Authority

TN

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Finding Reference: 2025-003 Description of Finding: Contract rent adjustments were not applied to the calculation of rent for 4 tenants out of a sample of 40. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: Due to staffing challenges, some contra...

Finding Reference: 2025-003 Description of Finding: Contract rent adjustments were not applied to the calculation of rent for 4 tenants out of a sample of 40. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: Due to staffing challenges, some contract rent adjustments were implemented later than they should have been. We have since implemented a process to ensure contract rent adjustments are reviewed and applied timely. This process includes internal review procedures, and staff will receive annual training to reinforce contract rent requirements and help ensure adjustments are processed accurately and on time going forward.

View Audit 409622

Finding 1227611 (2025-002)

Material Weakness 2025

Chattanooga Housing Authority

TN

Eligibility HUD Housing Programs Significant Deficiency

Finding Reference: 2025-002 Description of Finding: The Authority was unable to provide all documents required to be maintained to determine eligibility. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: We have updated our file checklists to bette...

Finding Reference: 2025-002 Description of Finding: The Authority was unable to provide all documents required to be maintained to determine eligibility. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: We have updated our file checklists to better ensure that staff collect all required supporting documentation needed to determine eligibility during each reexamination. Staff received training on the new checklist format in late 2025 and have begun using the updated checklists. We are also reviewing all participant files to verify they are complete and compliant. In addition, we have an internal file review process that includes quality control reviews of a percentage of files at each site to help ensure required documentation is present and program requirements are being met. Staff will also attend annual file compliance training to reinforce documentation requirements and support continued compliance going forward.

View Audit 409622

Finding 1227610 (2025-001)

Material Weakness 2025

Chattanooga Housing Authority

TN

HUD Housing Programs Material Weakness Special Tests & Provisions

Finding Reference: 2025-001 Description of Finding: The Authority did not perform timely repairs on 18 units in accordance with housing quality inspection requirements. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: We currently have a process t...

Finding Reference: 2025-001 Description of Finding: The Authority did not perform timely repairs on 18 units in accordance with housing quality inspection requirements. Statement of Concurrence or Nonconcurrence: The Authority agrees with the finding. Corrective Action: We currently have a process to respond to all life-threatening and health and safety inspection deficiencies in a timely manner. To improve the process for all other inspection deficiencies, we are working on a way to use technology to automatically import inspection findings into our system instead of manually entering each work order. This will reduce the time it takes to create work orders, allowing repairs to be completed more quickly. The system will also provide documentation of completed repairs, helping ensure records are maintained.

View Audit 409622

Finding 1227585 (2025-008)

Material Weakness 2025

Humboldt Park Health, Inc.

IL

HUD Housing Programs Subrecipient Monitoring Material Weakness § 200.303

Condition: Controls were not designed or implemented effectively to ensure: 1. Mortgage and escrow payments were made in accordance with the due dates and amounts specified in the executed mortgage note agreement. 2. Earnings are retained in the replacement reserve account 3. The Organization comple...

Condition: Controls were not designed or implemented effectively to ensure: 1. Mortgage and escrow payments were made in accordance with the due dates and amounts specified in the executed mortgage note agreement. 2. Earnings are retained in the replacement reserve account 3. The Organization completes the required financial reports in accordance with the applicable accounting basis, supported by underlying records representing the activity for the period reported. Planned Corrective Action: Management will design and implement internal controls to ensure compliance with mortgage escrow payments, reserve account funding, and quarterly financial reporting requirements, including a process to ensure that documentation of reviews is retained. Contact person responsible for corrective action: Louise Arzu, Vice President, Finance Anticipated Completion Date: 9/30/2026

View Audit 409598

Finding 1227584 (2025-007)

Material Weakness 2025

Humboldt Park Health, Inc.

IL

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Condition: The Organization did not submit the budget to HUD within 30 days of the start of its fiscal year. Planned Corrective Action: Management has implemented a new review and oversight process related to the process for the budget submissions in question to ensure timely submission on a go-forw...

Condition: The Organization did not submit the budget to HUD within 30 days of the start of its fiscal year. Planned Corrective Action: Management has implemented a new review and oversight process related to the process for the budget submissions in question to ensure timely submission on a go-forward basis. Contact person responsible for corrective action: Louise Arzu, Vice President, Finance Anticipated Completion Date: 9/30/2026

View Audit 409598

Finding 1227555 (2025-001)

Material Weakness 2025

Faith Village Non-Profit Housing Corporation D/b/a E. Rayford Senior Housing

MI

HUD Housing Programs

The Organization agrees with the finding. The Organization discussed with HUD how to become current on replacement reserve amounts owed and made the payments. This finding has been closed. Contact: Shelley Evankovich, Management Agent Actual Completion Date: April 3, 2026

View Audit 409560

Finding 1227530 (2025-001)

Material Weakness 2025

Watertown Housing Authority

NY

HUD Housing Programs Allowable Costs / Cost Principles Reporting

Name of Auditee: Watertown Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: December 31, 2025 CAP Prepared by: Shawn VanBrocklin, Assistant Executive Director Phone: (315) 782-1251 (A) Current Finding on the Schedule of Findings and Questioned Costs (1) Findi...

Name of Auditee: Watertown Housing Authority Name of Audit Firm: EFPR Group, CPAs, PLLC Period Covered by the Audit: December 31, 2025 CAP Prepared by: Shawn VanBrocklin, Assistant Executive Director Phone: (315) 782-1251 (A) Current Finding on the Schedule of Findings and Questioned Costs (1) Finding 2025-001 (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendations, please see below for action taken. (b) Action taken - The Authority will monitor all relevant dates and reporting timelines to ensure compliance with reporting guidelines. (c) Planned implementation date of corrective action - Completed by December 31, 2026.

View Audit 409557

Finding 1227522 (2025-003)

Material Weakness 2025

Regional School Unit #54 - Msad #54

ME

Reporting Internal Control / Segregation of Duties HUD Housing Programs

Management Response/Corrective Action Plan: The School Nutrition Department has implemented strengthened procedures by adding a separate count of meals served in the accounting department. These measures are intended to improve the accuracy claims submitted.

View Audit 409539

Finding 1227448 (2025-003)

Material Weakness 2025

Housing and Redevelopment Authority of the City of Worthington

MN

HUD Housing Programs

Signatures on Checks CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The HRA will make sure that all checks have the proper signatures that are required Official Responsible for Ens...

Signatures on Checks CORRECTIVE ACTION PLAN (CAP): Explanation of Disagreement with Audit Finding: There is no disagreement with the audit finding. Actions Planned in Response to Finding: The HRA will make sure that all checks have the proper signatures that are required Official Responsible for Ensuring CAP: Tanner Rogers, Executive Director, is the official responsible for ensuring corrective action. Planned Completion Date for CAP: The planned completion date is December 31, 2026. Plan to Monitor Completion of CAP: The Board will be monitoring this corrective action plan and believes the Executive Director will remedy this finding.

View Audit 409486

Corrective Action Plans

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