Corrective Action Plans

Finding 529127 (2024-001)

Significant Deficiency 2024

IN

Procurement, Suspension & Debarment HUD Housing Programs Reporting § 200.512

The Data Collection Form was submitted to the Federal Audit Clearinghouse on May 22, 2024, and management will submit the Data Collection Form timely going forward.

View Audit 347054

Finding 529023 (2024-015)

Significant Deficiency 2024

State of North Dakota

ND

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles § 200.303

Department of Public Instruction Response/Corrective Action Plan: We agree with the finding. The issue has already been corrected as stated in the finding. Contact Person: Jamie Mertz, CFO Anticipated Completion Date: The issue has already been corrected.

View Audit 346994 Questioned Costs: $1

Finding 528969 (2024-001)

Material Weakness 2024

Housing Authority of the City of Waterbury

CT

Questioned Costs HUD Housing Programs Procurement, Suspension & Debarment

2024-001 Eligibility Material Weakness/Material Noncompliance CFDA#:14.850 – Public Housing Operating Fund This finding was corrected as of June 30, 2024. Tenants were reimbursed for their excess rental payments during the fiscal year ending June 30, 2024. In addition, a policy was established to re...

2024-001 Eligibility Material Weakness/Material Noncompliance CFDA#:14.850 – Public Housing Operating Fund This finding was corrected as of June 30, 2024. Tenants were reimbursed for their excess rental payments during the fiscal year ending June 30, 2024. In addition, a policy was established to review the utility allowances for the Public Housing program every January and to review the Section 8 program every October. The Comptroller, Jennifer Yager, confirms that this new policy was in place effective June 30, 2024 and that tenants were reimbursed for the excess rental payments as of June 30, 2024. Jennifer can be reached at 203-596-2640.

View Audit 346975 Questioned Costs: $1

Finding 528956 (2024-002)

Significant Deficiency 2024

City of Lynwood

CA

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Gabriel Linares, Director of Community Development, will enhance the department’s HOME assistance rules to ensure the value of the HOME-assisted property after rehabilitation will not exceed 95 percent of the median purchase price for the area starting Quarter 4, FY2024 -25. Personnel Responsible ...

Gabriel Linares, Director of Community Development, will enhance the department’s HOME assistance rules to ensure the value of the HOME-assisted property after rehabilitation will not exceed 95 percent of the median purchase price for the area starting Quarter 4, FY2024 -25. Personnel Responsible for Implementation: Gabriel Linares Position of Responsible Personnel: Director of Community Development Expected Date of Implementation: June 30, 2025

View Audit 346949 Questioned Costs: $1

Finding 528943 (2024-007)

Significant Deficiency 2024

City of Southfield, Michigan

MI

HUD Housing Programs Eligibility Significant Deficiency

Condition: The City had insufficient controls in place that resulted in the City releasing HAP payments on behalf of a participant, despite a failed HQS inspection, which was not rectified within the 30-day cure period or the months that followed. Questioned Costs $1,542 Planned Corrective Action:...

Condition: The City had insufficient controls in place that resulted in the City releasing HAP payments on behalf of a participant, despite a failed HQS inspection, which was not rectified within the 30-day cure period or the months that followed. Questioned Costs $1,542 Planned Corrective Action: The City has implemented controls with our inspection vendors to ensure reinspection is completed within the necessary 30 days and communicated to the PHA. If the owner fails to make the necessary corrections within the 30-day cure period, the PHA will withhold housing assistance payments in accordance with 24 CFR Chapter IX, Part 982 until the PHA verifies the corrections have been made. The City has also implemented a process to ensure reinspection documentation, when applicable, is included in the participant file. We expect this finding to be corrected by June 30, 2025. Contact person responsible for corrective action: Austen Michaels, Director of Fiscal Services and Sherry Veal, Executive Director Section 8 Program Anticipated Completion Date: June 30, 2025

View Audit 346929

Finding 528814 (2024-002)

Material Weakness 2024

Housing Authority of the County of Dauphin

PA

Questioned Costs HUD Housing Programs Eligibility

Finding Number: 2024-002 Planned Corrective Action: Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all clients complete an annual family income reeaxaminat...

Finding Number: 2024-002 Planned Corrective Action: Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure all clients complete an annual family income reeaxamination in accordance with Eligibility, Reporting and Housing Assistance Payment Requirements. Anticipated Completion Date: 6/30/2025 Responsible Contact Person: Kristen Runion, HCV Supervisor

View Audit 346866 Questioned Costs: $1

Finding 528811 (2024-001)

Material Weakness 2024

Housing Authority of the County of Dauphin

PA

Questioned Costs Special Tests & Provisions HUD Housing Programs

Finding Number: 2024-001 Planned Corrective Action: Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure the completion and accuracy of the inspection protocol. ...

Finding Number: 2024-001 Planned Corrective Action: Applicable staff will be briefed on the finding and training will be provided on both written policy and procedure. The Housing Authority has a quality assurance program to monitor and ensure the completion and accuracy of the inspection protocol. The Housing Authority will continue to implement its 30-day review system for the HCV Inspection Program. Although the system cannot ensure 100% compliance, its effectiveness is demonstrated in the high percentage of compliance. Anticipated Completion Date: 6/30/2025 Responsible Contact Person: Kristen Runion, HCV Supervisor

View Audit 346866 Questioned Costs: $1

Finding 528727 (2024-005)

Material Weakness 2024

Evansdale Municipal Housing Authority

IA

HUD Housing Programs Material Weakness Reporting

2024-005 Financial Data Schedule - Management Agrees with Finding. EMHA is aware of the importance of timely submissions and has discussed the late submission from FY24 with the fee accountant. The director will work closely with the accountant to make sure future submissions are submitted by manda...

2024-005 Financial Data Schedule - Management Agrees with Finding. EMHA is aware of the importance of timely submissions and has discussed the late submission from FY24 with the fee accountant. The director will work closely with the accountant to make sure future submissions are submitted by mandated deadlines.

View Audit 346789

Finding 528726 (2024-004)

Material Weakness 2024

Evansdale Municipal Housing Authority

IA

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

2024-004 Activities Allowed - Management Agrees with Finding. EHMA will formally adopt an entity wide budget for the Fiscal Year beginning July 1, 2025 to include the Housing Choice Voucher (HCV) Program and revenue for reimbursement for shared expenses with Green Roof Properties. Additionally, the...

2024-004 Activities Allowed - Management Agrees with Finding. EHMA will formally adopt an entity wide budget for the Fiscal Year beginning July 1, 2025 to include the Housing Choice Voucher (HCV) Program and revenue for reimbursement for shared expenses with Green Roof Properties. Additionally, the Board of Directors for Green Roof Properties will adopt a budget for the upcoming FY. EMHA will also work with the fee accountant to incorporate the adopted budget and report on variances into the monthly financial reports they produce. Furthermore, the Board will be provided a breakdown of the allocation of expenses to each program when presenting disbursements for their approval monthly.

View Audit 346789

Finding 528712 (2024-001)

Significant Deficiency 2024

City of Glendale, Arizona

AZ

Procurement, Suspension & Debarment Allowable Costs / Cost Principles HUD Housing Programs

COVID-19 Coronavirus State and Local Fiscal Recovery Fund– Assistance Listing No. 21.027 Recommendation: The City should enhance or modify its internal controls over suspension and debarment, as necessary, to ensure compliance with suspension and debarment provisions. Explanation of disagreement wi...

COVID-19 Coronavirus State and Local Fiscal Recovery Fund– Assistance Listing No. 21.027 Recommendation: The City should enhance or modify its internal controls over suspension and debarment, as necessary, to ensure compliance with suspension and debarment provisions. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We provided training to procurement staff about the suspension and debarment requirements of 2 CFR 200.214. Further, we expanded language in the City’s formal soliciation template regarding suspension and debarment and added a specifc step on our solitication timeline checklist to perform SAM checks. Name(s) of the contact person(s) responsible for corrective action Levi Gibson, Budget and Finance Director Planned completion date for corrective action plan: December 2024

View Audit 346727

Finding 528701 (2024-002)

Significant Deficiency 2024

County of Kent, Michigan

MI

Questioned Costs HUD Housing Programs Eligibility

2024-002 – Documentation of Tenant Eligibility Auditor Description of Condition and Effect: For 1 of 40 tenants tested, there was no evidence of income verification included in the tenant file. Because of this condition there was an increased risk that this tenant's Housing Assistance Payment (HAP...

2024-002 – Documentation of Tenant Eligibility Auditor Description of Condition and Effect: For 1 of 40 tenants tested, there was no evidence of income verification included in the tenant file. Because of this condition there was an increased risk that this tenant's Housing Assistance Payment (HAP) could be assessed inaccurately. Auditor Recommendation: The County should implement a policy requiring all tenants have a documented income verification prior to calculating or disbursing HAP. Management Assessment. Management concurs with the audit assessment regarding this matter. Planned Corrective Action. Management has reviewed its existing policy and will ensure income verification documentation is included in the tenant file. Please note this program ended December 31, 2024. No further HAP payments are being processed at this point in time. Responsible Party. Gustavo Perez, Community Action Director Date of Planned Corrective Action. March 2025

View Audit 346706 Questioned Costs: $1

Finding 528693 (2024-001)

Significant Deficiency 2024

County of Kent, Michigan

MI

HUD Housing Programs Significant Deficiency Special Tests & Provisions

2024-001 – Review and Approval of Housing Quality Standards (HQS) Inspections Auditor Description of Condition and Effect: HQS inspection reports reviewed during testing did not bear evidence of independent review and approval. Because of this condition there was an increased risk that inspection ...

2024-001 – Review and Approval of Housing Quality Standards (HQS) Inspections Auditor Description of Condition and Effect: HQS inspection reports reviewed during testing did not bear evidence of independent review and approval. Because of this condition there was an increased risk that inspection reports could be incomplete or contain inaccuracies. Auditor Recommendation: The County should implement a policy requiring all HQS inspection reports to have an independent review and that such review be sufficiently documented. Management Assessment. Management concurs with the audit assessment regarding this matter. Planned Corrective Action. Management has reviewed its existing policy and will ensure HQS inspection reports have independent reviews which are sufficiently documented. Please note this program ended December 31, 2024. Responsible Party. Gustavo Perez, Community Action Director Date of Planned Corrective Action. March 2025

View Audit 346706

Finding 528656 (2024-001)

Significant Deficiency 2024

Housing Authority of the City of Livermore

CA

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

MANAGEMENT RESPONSE AND CORRECTIVE ACTION Management agrees with this finding. Corrective Actions: LHA has taken immediate action to correct this issue. LHA has reviewed the requirements with the third-party vendor and has implemented improved reporting requirements on the inspections reports for th...

MANAGEMENT RESPONSE AND CORRECTIVE ACTION Management agrees with this finding. Corrective Actions: LHA has taken immediate action to correct this issue. LHA has reviewed the requirements with the third-party vendor and has implemented improved reporting requirements on the inspections reports for their staff. LHA is conducting a retro-active QC effort to identify potential failures by the vendor and their reporting or adherence with LHA policy. LHA is implementing and drafting a QA process to ensure there are additional checks to inspection reports as they are provided to LHA. In addition, the LHA has posted a draft for public comment of the Administrative Plan that we anticipate will be implemented on 7/1/2025. The plan removes reference to adherence to state or local code as the LHA and its vendors are not the appropriate enforcement agency to address those requirements. We anticipate that there will be diminished issues effective immediately and full compliance with the current Administrative by 3/1/2025 and a new Administrative Plan implemented on 7/1/2025 removing the language related to local code enforcement. The responsible staff are the Administrative Clerk, Management Analyst and Executive Director.

View Audit 346653

Finding 528610 (2024-001)

Material Weakness 2024

Montgomery County Housing Authority

TX

HUD Housing Programs Reporting

MONTGOMERY COUNTY HOUSING AUTHORITY 1500 N. Frazier, Ste 101 Conroe, TX 77301 Phone No. (936) 539-4984 Fax No. (936) 539-4758 HOUSING AUTHORITY OF MONTGOMERY COUNTY, TEXAS CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2024 Corrective Action Plan Finding: Finding 2024-001-Non current Valuati...

MONTGOMERY COUNTY HOUSING AUTHORITY 1500 N. Frazier, Ste 101 Conroe, TX 77301 Phone No. (936) 539-4984 Fax No. (936) 539-4758 HOUSING AUTHORITY OF MONTGOMERY COUNTY, TEXAS CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2024 Corrective Action Plan Finding: Finding 2024-001-Non current Valuations and Inadequate Disclosure for Defined Benefit Pension Plan Condition: All material amounts included in the financial statements should have valuations as of the last day of the audit year. In addition, the footnotes should include all of the disclosures that are required. Both of these elements are required by accounting principles generally accepted in the United States. Corrective Action Planned I am Roxanne Albizuri, Executive Director and Designated Person to answer this finding. We will comply with the auditor’s recommendation. Person responsible for corrective action: Roxanne Albizuri, Executive Director Telephone: (936) 539-4984 Housing Authority of Montgomery County, Texas Fax: (936) 539-4758 1500 N Frazier, Ste 101 Conroe, TX 77301 Anticipated Completion Date: June 30, 2025

View Audit 346591

Finding 528511 (2024-001)

Significant Deficiency 2024

City of Meriden, Connecticut

CT

HUD Housing Programs Period of Performance Significant Deficiency

SINGLE AUDIT CORRECTIVE ACTION PLAN For the Fiscal Year Ended June 30, 2024 To Government Officials: SINGLE AUDIT FINDINGS: Finding 2024-001 Period of Performance Description of Finding Community Development Block Grant – Entitlement (ALN 14.218) funds must be expended by the end of the eighth fi...

SINGLE AUDIT CORRECTIVE ACTION PLAN For the Fiscal Year Ended June 30, 2024 To Government Officials: SINGLE AUDIT FINDINGS: Finding 2024-001 Period of Performance Description of Finding Community Development Block Grant – Entitlement (ALN 14.218) funds must be expended by the end of the eighth fiscal year after the fiscal year of appropriation the combined effect is to provide an expenditure period of eight fiscal years from the fiscal year of appropriation. For award B-17-MC-09-0007 (CDBG 2017), the eighth year after the year of appropriation ended on June 30, 2024. On this date, amount left unexpended after the end of the period of performance was $17,814. Statement of Concurrence or Nonconcurrence Management agrees with this finding. Corrective Action We recommend that the City review processes and controls related to timeliness of CDBG expenditures to ensure they comply with federal award requirements. Projected Completion Date June 30, 2025 Name of Contact Person Joseph Feest, Economic Development Director

View Audit 346513

Finding 528489 (2024-005)

Significant Deficiency 2024

Orange County, North Carolina

NC

HUD Housing Programs Subrecipient Monitoring Material Weakness

The 2023 FASS-PH report is now completed, and the 2024 FASS-PH is in progress of being completed. These reports have been added to our year-end checklist.  Include FASS-PH report to closing year-end reports schedule Financial reconciliations.  FASS-PH report preparation.  Management review & appr...

The 2023 FASS-PH report is now completed, and the 2024 FASS-PH is in progress of being completed. These reports have been added to our year-end checklist.  Include FASS-PH report to closing year-end reports schedule Financial reconciliations.  FASS-PH report preparation.  Management review & approval.  Assign responsible parties for each step in the process.  Conduct weekly check-ins during reporting periods to track progress. Name of contact person: Gary Donaldson 206

View Audit 346492

Finding 528446 (2024-003)

Significant Deficiency 2024

Village of Spring Valley Housing Authority

NY

HUD Housing Programs Eligibility Significant Deficiency

Auditee’s Response and Planned Corrective Action The Authority has had staff and consultant turnover during the period under audit. Additionally, the eviction moratorium and lasting effects from the COVID-19 pandemic has resulted in delaying or receiving no responses from tenants regarding obtaining...

Auditee’s Response and Planned Corrective Action The Authority has had staff and consultant turnover during the period under audit. Additionally, the eviction moratorium and lasting effects from the COVID-19 pandemic has resulted in delaying or receiving no responses from tenants regarding obtaining the necessary documentation for eligibility requirements. The Authority has evidentiary documentation supporting their attempts to obtain the required documents from the tenants, such as certified letters, and courts suspension of evictions during the eviction process. Other documentation related to the moratorium that resulted from the COVID-19 pandemic, is available which includes evictions for nonpayment and noncompliance. The Authority has been working with legal counsel on these matters and continues to pursue this vigorously. The Authority has also hired new staff and consultants who has been diligently working to implement improvements. In most of the files the checklist cover pages were included but in some files reviewed the oversite cover page checklist was missing, however the required documentations were in place. A greater effort will be made immediately that all files will have completed the control check list cover pages in place with all appropriate signatures noted. Planned Implementation Date of Corrective Action: March 4, 2025 Person Responsible for Corrective Action: Keith Burrell, Executive Director

View Audit 346459

Finding 528341 (2024-001)

None 2024

Spectrum Ringwood Apartments, Inc.

NJ

HUD Housing Programs

The three remaining monthly deposits for 2024 were made in January 2025. Management will perform a review of monthly deposits at mid-year and before year-end to ensure that all twelve deposits are made within the calendar year.

View Audit 346377

Finding 528340 (2024-001)

None 2024

Spectrum Closter Apartments, INC

NJ

HUD Housing Programs

The three remaining monthly deposits for 2024 were made in January 2025. Management will perform a review of monthly deposits at mid-year and before year-end to ensure that all twelve deposits are made within the calendar year.

View Audit 346376

Finding 528339 (2024-001)

None 2024

Spectrum River Vale Apartments, INC

NJ

HUD Housing Programs

The three remaining monthly deposits for 2024 were made in January 2025. Management will perform a review of monthly deposits at mid-year and before year-end to ensure that all twelve deposits are made within the calendar year.

View Audit 346375

Finding 528264 (2024-005)

Material Weakness 2024

Housing Authority of the City of Newton, Kansas

KS

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Finding 2024 – 005: Deposit Collateralization We agree with the finding as Union State Bank had bonds, they had listed which did qualify meet HUDs requirements. We will work with the Union State Bank to make sure all collateral pledged meets HUD requirements.

View Audit 346293

Finding 528263 (2024-004)

Material Weakness 2024

Housing Authority of the City of Newton, Kansas

KS

Special Tests & Provisions Eligibility HUD Housing Programs

Finding 2024 – 2004: Internal Control Structure While I reviewed files and rent collections throughout the year, I did not take the time to make a list of the files. Going forward, any file I conduct a review of will be listed in a excel spread.

View Audit 346293

Finding 528262 (2024-003)

Material Weakness 2024

Housing Authority of the City of Newton, Kansas

KS

Questioned Costs HUD Housing Programs Material Weakness

Finding 2024-003: Voucher Management System Reporting NHA Corrective Action: Due to the timing of the agency receiving the Financial Statements after the due date of the VMS, it wasn’t possible to reconcile the VMS to finial numbers, therefore some estimations were made during that time. Newt...

Finding 2024-003: Voucher Management System Reporting NHA Corrective Action: Due to the timing of the agency receiving the Financial Statements after the due date of the VMS, it wasn’t possible to reconcile the VMS to finial numbers, therefore some estimations were made during that time. Newton Housing Authority had the full intention of contracting the fee accounting firm to complete the reports. There were some complications with granting the firm access to our WASS system. Since the roles were removed from the Executive Director, then assigned to the board chair the task at hand complicated the process further. The board chair couldn’t assign the roles as she didn’t have the right roles for her to assign. The assignment of the roles to board chair has been completed, the fee accountant has corrected the remaining reports and is completing them as needed with someone reviewing the report including the Executive Director prior to submission.

View Audit 346293 Questioned Costs: $1

Finding 528261 (2024-002)

None 2024

Housing Authority of the City of Newton, Kansas

KS

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

Finding 2024-002: Allowable Activities NHA Corrective Action: A new study has been completed by the administrative staff then reviewed by the fee accounting staff. The percentage of allocation has been adjusted according to the time spent on each program. With those results the percentages of t...

Finding 2024-002: Allowable Activities NHA Corrective Action: A new study has been completed by the administrative staff then reviewed by the fee accounting staff. The percentage of allocation has been adjusted according to the time spent on each program. With those results the percentages of the time allocation increased. The agency was transferring funds on a regular basis by the old percentage estimation which was less than the new time study percentage. The percentage of allocation was more than the estimation which then created a larger deficit of repayment. Now that the percentage has been determined the estimated amount will be more accurate percentages. It has been difficult to get financial statements in time to make a transfer of percentages for the exact amount. Going forward, the fee accounting firm will complete the monthly financial reports and will add a transmittal letter. Voucher program’s reimbursement of Public Housing Funds will be based on each month’s transmittal letter which will allow for exact reimbursement of prior month along with estimate of the current month. Allocated expenses once the financials are received from the fee accountant.

View Audit 346293

Finding 528190 (2024-001)

Significant Deficiency 2024

Housing Authority of the City of Brownsville

TX

Questioned Costs HUD Housing Programs Eligibility

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor on the inspection of tenant files and has made arrangements to comply with the Section 8 Housing Choice Vouchers program. Leticia Gonzalez, Director of Client Services, will be respo...

Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor on the inspection of tenant files and has made arrangements to comply with the Section 8 Housing Choice Vouchers program. Leticia Gonzalez, Director of Client Services, will be responsible to implement this corrective action by June 30, 2025.

View Audit 346245 Questioned Costs: $1

Corrective Action Plans

Filters