Corrective Action Plans

Finding 547590 (2024-002)

Material Weakness 2024

Housing Authority of the County of Monterey

CA

Questioned Costs HUD Housing Programs Eligibility

Finding 2024-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Mat...

Finding 2024-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member 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 3,785 units. Of a sample size of fifty-eight (58) tenant files, the following was noted: • Seven tenant files were missing entirely • Original application was missing in 1 file • Declaration of Section 214 Status form was missing in 1 file • HUD-9887 form was missing in 1 file • Lead based paint form was missing in seven files • Signed lease was missing in 8 files • HUD-50058 form was missing in 1 file • Verification of income and assets was missing in 2 files Our sample size is statistically valid. Known Questioned Costs: $297,971 Cause: There is a material weakness in the Housing Voucher Cluster in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the material weakness in the Housing Voucher Cluster and will implement internal control procedures that will ensure compliance with federal regulations. Gabriela Rivero, Executive Assistant, will be responsible to implement this corrective action by June 30, 2025.

View Audit 351761 Questioned Costs: $1

Finding 547522 (2024-007)

Significant Deficiency 2024

Municipality of Coamo

PR

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

MUNICIPALITY OF COAMO CORRECTIVE ACTION PLAN SINGLE AUDIT REQUIREMENTS AS OF JUNE 30, 2024 Corrective Action Plan: We concur with the audit finding. Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the execution of supervisory quality con...

MUNICIPALITY OF COAMO CORRECTIVE ACTION PLAN SINGLE AUDIT REQUIREMENTS AS OF JUNE 30, 2024 Corrective Action Plan: We concur with the audit finding. Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the execution of supervisory quality control HQS inspections, as required by the program regulations. Implementation Date: March 31, 2025 Responsible Person: Mr. Hector R. Sanjurjo Rodríguez Federal Programs Director

View Audit 351725

Finding 547513 (2024-002)

None 2024

City of Ashland

KY

HUD Housing Programs Eligibility Special Tests & Provisions

Our agency has implemented a scanning system which prints bar codes on each document that automatically goes to the correct tenant file. After documents have been signed they are scanned in. This will help alleviate misplaced documents/files. Staff has also been instructed to always put any type o...

Our agency has implemented a scanning system which prints bar codes on each document that automatically goes to the correct tenant file. After documents have been signed they are scanned in. This will help alleviate misplaced documents/files. Staff has also been instructed to always put any type of correspondence with tenants in the electronic tenant file.

View Audit 351721

Finding 547512 (2024-001)

None 2024

City of Ashland

KY

HUD Housing Programs Special Tests & Provisions Allowable Costs / Cost Principles

Administrator will review with staff agency Administrative Plan in accordance to CFR 982.2(b) in regards to policies and procedures for application documentation of preferences.

View Audit 351721

Finding 547497 (2024-001)

Material Weakness 2024

Deerbrook, Inc.

MO

Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2024 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to pr...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2024 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended June 30, 2024. Finding 2024-001 Responsible Party Name: Myra Cerna Position: Project Accountant Telephone Number: (816) 608-1799 x 259 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for Persons with Disabilities (Sec 811) Compliance Requirements N – Special Tests and Provisions Finding Type Federal Awards Auditee’s Comment on Finding We agree with the auditor’s finding. Corrective Action Management reported that the failure(s) involved records related to the period managed by the predecessor management company. We will request and keep all required documentation from HUD and establish processes and procedures to ensure compliance with the Regulatory Agreement or Capital Advance Use Agreement. Anticipated Completion Date October 31, 2024

View Audit 351695

Finding 547375 (2024-003)

Significant Deficiency 2024

Baltimore County, Maryland

MD

HUD Housing Programs Eligibility Significant Deficiency

Housing Choice Voucher Cluster – Assistance Listing Numbers 14.871, 14.879 Recommendation: We recommend that the County reviews its processes over housing quality standards inspections to ensure that they are completed timely and in compliance with HUD’s requirements. Explanation of disagreement w...

Housing Choice Voucher Cluster – Assistance Listing Numbers 14.871, 14.879 Recommendation: We recommend that the County reviews its processes over housing quality standards inspections to ensure that they are completed timely and in compliance with HUD’s requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Office of Housing is in the process of restructuring some of its departments, including the Inspections Department, which will eliminate the missed or late inspections due to staffing issues. Name(s) of the contact person(s) responsible for corrective action: Kenneth Stratemeyer Planned completion date for corrective action plan: June 30, 2025

View Audit 351628

Finding 547255 (2024-005)

Significant Deficiency 2024

Johnson C. Smith University

NC

Student Financial Aid Internal Control / Segregation of Duties Special Tests & Provisions

Corrective Action Plan: The University acknowledges shortcomings in our institutional processes for managing and communicating the details of Tier One and Tier Two financial arrangements. This has been due to a combination of factors, including outdated website management practices, a lack of clear ...

Corrective Action Plan: The University acknowledges shortcomings in our institutional processes for managing and communicating the details of Tier One and Tier Two financial arrangements. This has been due to a combination of factors, including outdated website management practices, a lack of clear guidelines on compliance responsibilities for web content, and insufficient inter-departmental communication regarding changes in federal regulations and their implications for our disclosure practices. The University is establishing a continuous feedback loop between Financial Aid, the Business Office, and University Communications and Marketing departments to ensure that our contractual disclosures are not only compliant but also clear and accessible to our stakeholders. Enhanced communication and collaboration across these departments are pivotal for maintaining ongoing compliance and ensuring that all disclosures are managed efficiently and transparently. This proactive approach is aimed at fostering a culture of compliance and transparency throughout the University. The University will improve the accessibility and visibility of contractual disclosures on its website to ensure compliance with federal requirements. The updated URLs will be provided to the Department of Education for publication of the contract in a centralized, accessible database. In addition, in partnership with Financial Aid Services (FAS), the University will conduct comprehensive interdepartmental training sessions by August 2025 for all relevant staff, emphasizing the critical nature of compliance with federal disclosure requirements. Anticipated Completion Date: August 31, 2025

View Audit 351580

Finding 547175 (2024-001)

None 2024

Housing Authority of Seymour

TX

Eligibility HUD Housing Programs

Corrective Action Plan - Tenant file re-certifications and documentation. Contact person - Sue Harney, Executive Director, Housing Authority of Seymour, 205 E. Idaho St., Seymour, TX 76380-1765, telephone number (940) 889-3637. Corrective action planned - The PHA will ensure that all tenants are re...

Corrective Action Plan - Tenant file re-certifications and documentation. Contact person - Sue Harney, Executive Director, Housing Authority of Seymour, 205 E. Idaho St., Seymour, TX 76380-1765, telephone number (940) 889-3637. Corrective action planned - The PHA will ensure that all tenants are re-certified timely and that tenant files are properly documented. Anticipated completion date - Within the next fiscal year.

View Audit 351531

Finding 547099 (2024-004)

Significant Deficiency 2024

Housing Authority of the City of Long Beach

NY

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Finding 2024-004 – HCV Administrative Plan / Waiting List Procedures / Utility Allowance Schedule Auditee’s Response and Planned Corrective Action AUDITEE’S RESPONSE: The Housing Authority recognizes the need to update and consistently apply policies related to the HCV Administrative Plan, Waiting L...

Finding 2024-004 – HCV Administrative Plan / Waiting List Procedures / Utility Allowance Schedule Auditee’s Response and Planned Corrective Action AUDITEE’S RESPONSE: The Housing Authority recognizes the need to update and consistently apply policies related to the HCV Administrative Plan, Waiting List Procedures, and Utility Allowance Schedule. The Housing Authority will conduct a comprehensive review of these policies, implement necessary revisions, draft new policies as needed, and ensure that staff receive training in proper procedures. Additionally, we will establish a system for periodic reviews to ensure continued compliance. Planned Implementation Date of Corrective Action: March 2025 Person Responsible for Corrective Action: Myrnissa Stone, Executive Director

View Audit 351450

Finding 547098 (2024-003)

Significant Deficiency 2024

Housing Authority of the City of Long Beach

NY

HUD Housing Programs Eligibility Significant Deficiency

Finding 2024-003 – Documentation of Controls Auditee’s Response and Planned Corrective Action AUDITEE’S RESPONSE: The Housing Authority acknowledges the need for improved documentation of internal controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. To address this, we...

Finding 2024-003 – Documentation of Controls Auditee’s Response and Planned Corrective Action AUDITEE’S RESPONSE: The Housing Authority acknowledges the need for improved documentation of internal controls over Eligibility, Reasonable Rent, Utility Allowance, and HQS Inspections. To address this, we will review and update all policies and procedures to ensure they clearly define control measures and responsibilities; and draft new policies as needed. We will also implement a centralized system for maintaining control documentation and conduct periodic assessments to ensure compliance. The checklist used during the recertification process will ensure that all compliance requirements are met. Planned Implementation Date of Corrective Action: March 2025 Person Responsible for Corrective Action: Myrnissa Stone, Executive Director

View Audit 351450

Finding 547085 (2024-002)

Significant Deficiency 2024

Alverno College

WI

Questioned Costs Internal Control / Segregation of Duties Student Financial Aid

Condition The College’s internal controls over compliance requirements over the return of Title IV funds (R2T4) were not operating effectively in 2024 as the College did not comply with the federal requirements as it relates to issuing a credit to a student. Corrective Action Plan Corrective Action ...

Condition The College’s internal controls over compliance requirements over the return of Title IV funds (R2T4) were not operating effectively in 2024 as the College did not comply with the federal requirements as it relates to issuing a credit to a student. Corrective Action Plan Corrective Action Planned: The College will review processes and data collection related to students’ withdrawal or leave of absence. The result of this review will be a full operational and procedural detail of responsibilities, roles, timelines and documentation associated with the accurate processing of all withdrawals. To include Student Records, Student Accounts, Financial Aid and Return to Title IV. Name(s) of Contact Person(s) Responsible for Corrective Action: Naomi Coe, Financial Aid Director; Mariana Sanabria, VP for Enrollment Services; Marlene Neises, Executive Director for Institutional Effectiveness and Sponsored Programs; David Brzeczkowski, Controller; and Amanda Hodgson, CIO. Anticipated Completion Date: A preliminary meeting is scheduled for March 31, 2025 to discuss the implementation of the processes and responsibilities pertaining to a student withdraw and leave of absence. This meeting will provide an outline of the internal controls and processes to be implemented by July 31, 2025.

View Audit 351446 Questioned Costs: $1

Finding 546921 (2024-002)

Material Weakness 2024

Puerto Rico Department of Economic Development and Commerce

PR

Questioned Costs Eligibility Internal Control / Segregation of Duties

Findings and Questioned Costs Relating to Federal Awards: Energy Incentive Program Disbursement to Ineligible Providers and Beneficiaries. Similar to prior year finding 2023-003, the program “Apoyo Energético”, funded by the American Rescue Plan Act (ARPA), that resulted in this finding concluded ea...

Findings and Questioned Costs Relating to Federal Awards: Energy Incentive Program Disbursement to Ineligible Providers and Beneficiaries. Similar to prior year finding 2023-003, the program “Apoyo Energético”, funded by the American Rescue Plan Act (ARPA), that resulted in this finding concluded early 2023, which lack of a complete and robust operational guidance. The guidance used to manage the process were simple, not quite restrictive, and with little internal controls for both suppliers and beneficiaries. DDEC has adopted guidelines for both suppliers and beneficiaries that are more restrictive, and specific with internal regulations that ensure data retention and storage. A second initiative of this program, being “Apoyo Energético 2.0” commenced April 2024, which is funded by a CDBG-DR funds, for registration of potential suppliers and are following the guidelines issued. No findings were noted related to this program for which controls were enhanced, as a result corrective actions related to the 2023 finding.

View Audit 351279 Questioned Costs: $1

Finding 544700 (2024-001)

Significant Deficiency 2024

Arch Court, Inc.

PA

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties

Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2024-001: An unauthorized withdrawal of $2,000 was transferred from the reserve for replacement to the operating cash account on November 25, 2024. Comments on the Finding and Each Recommendation The funds we...

Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2024-001: An unauthorized withdrawal of $2,000 was transferred from the reserve for replacement to the operating cash account on November 25, 2024. Comments on the Finding and Each Recommendation The funds were withdrawn from the account due to the delay in the project receiving the HAP payment. The amount was deposited back into the reserve for replacement account on December 2, 2024. All other withdrawals from the reserve for replacement during the year were properly approved. The project had a rent increase effective September 1, 2024 of which they are still waiting to receive rents owed from HUD. Management has received email approval for borrowing money from the reserve in 2025. Actions Taken on the Finding Management will transfer from the reserve for replacement account into operating cash account only when they receive proper approval from HUD. CAP prepared by: Trisha Jester Director of Multifamily Housing Arbors Management, Inc. 724-733-5733 Anticipated completion date: March 31, 2025

View Audit 351207 Questioned Costs: $1

Finding 544675 (2024-002)

Significant Deficiency 2024

Carroll County Commissioners

MD

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Housing Choice Voucher Program– Assistance Listing No. 14.871 & 14.879 Recommendation: We recommend the County establish procedures to ensure compliance with HUD requirements, including entering into a general depository agreement in the form required by HUD. Action taken in response to finding: To ...

Housing Choice Voucher Program– Assistance Listing No. 14.871 & 14.879 Recommendation: We recommend the County establish procedures to ensure compliance with HUD requirements, including entering into a general depository agreement in the form required by HUD. Action taken in response to finding: To address the finding, the County will establish a depository agreement with the financial institution. Written confirmation of the agreement will be obtained. The Policy and Procedures Manager will update the County's financial management policies to include the depository agreement requirement. Name of the contact person(s) responsible for corrective action: Jennifer D. Hobbs, Comptroller Bobbi-Jo Fout, Bureau Chief of Accounting Danielle Yates, Bureau Chief of Housing and Community Connections Planned completion date for corrective action plan: April 2025

View Audit 351183

Finding 544468 (2024-006)

Significant Deficiency 2024

Housing Authority of the City of Greensboro

NC

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

2024-006 ALN 14.850 – Public Housing Operating Fund – Special Test – Depository Agreements The Executive Director agrees with the finding as listed in the Schedule of Findings and Responses and will follow the Auditor's recommendations. Person Responsible for Correction of Finding: Ms. Khristian All...

2024-006 ALN 14.850 – Public Housing Operating Fund – Special Test – Depository Agreements The Executive Director agrees with the finding as listed in the Schedule of Findings and Responses and will follow the Auditor's recommendations. Person Responsible for Correction of Finding: Ms. Khristian Allen, Executive Director Projected Completion Date: June 30, 2025

View Audit 351142

Finding 544467 (2024-005)

Significant Deficiency 2024

Housing Authority of the City of Greensboro

NC

HUD Housing Programs Subrecipient Monitoring Internal Control / Segregation of Duties

2024-005 ALN 14.850 – Public Housing Operating Fund – Special Test - Waiting List The Executive Director agrees with the finding as listed in the Schedule of Findings and Responses and will follow the Auditor's recommendations. Person Responsible for Correction of Finding: Ms. Khristian Allen, Execu...

2024-005 ALN 14.850 – Public Housing Operating Fund – Special Test - Waiting List The Executive Director agrees with the finding as listed in the Schedule of Findings and Responses and will follow the Auditor's recommendations. Person Responsible for Correction of Finding: Ms. Khristian Allen, Executive Director Projected Completion Date: June 30, 2025

View Audit 351142

Finding 544465 (2024-002)

Significant Deficiency 2024

Housing Authority of the City of Greensboro

NC

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

2024-002 ALN 14.850 – Public Housing Operating Fund – Allowable Costs – Bonus/Incentive Payments The Executive Director agrees with the finding as listed in the Schedule of Findings and Responses and will follow the Auditor's recommendations. Person Responsible for Correction of Finding: Ms. Khristi...

2024-002 ALN 14.850 – Public Housing Operating Fund – Allowable Costs – Bonus/Incentive Payments The Executive Director agrees with the finding as listed in the Schedule of Findings and Responses and will follow the Auditor's recommendations. Person Responsible for Correction of Finding: Ms. Khristian Allen, Executive Director Projected Completion Date: June 30, 2025

View Audit 351142

Finding 544464 (2024-001)

Significant Deficiency 2024

Housing Authority of the City of Greensboro

NC

HUD Housing Programs Subrecipient Monitoring Eligibility

2024-001 ALN 14.850 – Public Housing Operating Fund - Eligibility The Executive Director agrees with the finding as listed in the Schedule of Findings and Responses and will follow the Auditor's recommendations. Person Responsible for Correction of Finding: Ms. Khristian Allen, Executive Director Pr...

2024-001 ALN 14.850 – Public Housing Operating Fund - Eligibility The Executive Director agrees with the finding as listed in the Schedule of Findings and Responses and will follow the Auditor's recommendations. Person Responsible for Correction of Finding: Ms. Khristian Allen, Executive Director Projected Completion Date: June 30, 2025

View Audit 351142

Finding 544445 (2024-002)

Significant Deficiency 2024

Rice Lake Housing Authority

WI

Subrecipient Monitoring HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Planned: The Authority will closely monitor all deposits to make sure that the amount of funds on deposit are protected by federal deposit insurance, corporate surety bond, or collateral. Completion Date: June 30, 2025

View Audit 351122

Finding 544437 (2024-005)

Significant Deficiency 2024

City of Portsmouth

OH

Questioned Costs Period of Performance Subrecipient Monitoring § 200.303 § 200.344

Period of Performance Recommendation: We recommend that the City of Portsmouth review its procedures to ensure that expenditures charged to the program are incurred within the grant’s period of performance. Explanation of disagreement with audit finding: NO Action taken in response to finding: Rev...

Period of Performance Recommendation: We recommend that the City of Portsmouth review its procedures to ensure that expenditures charged to the program are incurred within the grant’s period of performance. Explanation of disagreement with audit finding: NO Action taken in response to finding: Review grant related procedures to ensure all expenditures take place during the grant period. Name(s) of the contact person(s) responsible for corrective action: Jeffrey Crimer, Patrick Fletcher, & Kyera Pope. Planned completion date for corrective action plan: 6/30/25

View Audit 351108 Questioned Costs: $1

Finding 544424 (2024-002)

Material Weakness 2024

City of Portsmouth

OH

Subrecipient Monitoring Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties § 200.303

FFATA Reporting Prior Year Finding: 2023-004 Recommendation: We recommend the City establish procedures and internal controls to ensure that all required sub awards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each sub award. Exp...

FFATA Reporting Prior Year Finding: 2023-004 Recommendation: We recommend the City establish procedures and internal controls to ensure that all required sub awards are reported timely and accurately to FSRS no later than the end of the month following the month of issuance of each sub award. Explanation of disagreement with audit finding: NO Action taken in response to finding: Review City’s policy, procedures, and internal controls to ensure the required sub awards and reported timely and accurately to FSRS. Name(s) of the contact person(s) responsible for corrective action: Jeffrey Crimer, Patrick Fletcher, & Kyera Pope. Planned completion date for corrective action plan: 06/30/25

View Audit 351108

Finding 544418 (2024-001)

Significant Deficiency 2024

City of Oxnard

CA

Questioned Costs Program Income Allowable Costs / Cost Principles § 200.307

The City will improve its internal controls by implementing a new policy and procedures that will require staff training and outline detailed procedures for complying with program income regulations. The policy will: (1) require staff to annually participate in HUD trainings related to program incom...

The City will improve its internal controls by implementing a new policy and procedures that will require staff training and outline detailed procedures for complying with program income regulations. The policy will: (1) require staff to annually participate in HUD trainings related to program income, (2) require staff to immediately deposit and reconcile program income upon receipt, (3) require staff to prepare a monthly program income report and (4) require management to review the program income report to ensure program income is applied to eligible expenses prior to drawing down grant funds.

View Audit 351106 Questioned Costs: $1

Finding 544417 (2024-002)

None 2024

Stoneboro Development Corporation 033-11048

PA

HUD Housing Programs Procurement, Suspension & Debarment Reporting

Stoneboro Development Corporation Stoneboro, Pennsylvania CORRECTIVE ACTION PLAN March 25, 2025 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporatio...

Stoneboro Development Corporation Stoneboro, Pennsylvania CORRECTIVE ACTION PLAN March 25, 2025 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2024 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2024-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Action Taken: We agree with Finding 2024-002 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company will ensure the annual financial reports to HUD are submitted once the audits are back on track with the scheduled due dates. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent

View Audit 351103

Finding 544416 (2024-001)

None 2024

Stoneboro Development Corporation 033-11048

PA

Questioned Costs HUD Housing Programs Procurement, Suspension & Debarment

Stoneboro Development Corporation Stoneboro, Pennsylvania CORRECTIVE ACTION PLAN March 25, 2025 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporatio...

Stoneboro Development Corporation Stoneboro, Pennsylvania CORRECTIVE ACTION PLAN March 25, 2025 U.S. Department of Housing and Urban Development City Crescent Building 10 South Howard Street Baltimore, Maryland 21201-2505 Stoneboro Development Corporation respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings from the year ended June 30, 2024 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding 2024-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Market Interest Rate, Assistance Listing #14.155 Recommendation: We recommend that management and the board of directors continue to work to improve occupancy and submit special claims requests to HUD for vacant units to improve cash flow to ensure timely payment of the mortgage payments and escrow deposits. Action Taken: We agree with Finding 2024-001 described in the accompanying schedule of findings and questioned costs. Effective June 1, 2023, the board of directors contracted with a new management company. The new management company is increasing advertising to fill vacancies and submitting special claims requests to improve the cash flow. Additionally, the new management company is working with the lender to make additional mortgage payments and escrow deposits as cash flow permits. If HUD has questions regarding this corrective action plan, please call (412) 246-9213. Sincerely yours, Trisha Jester Director of Multifamily Housing Arbors Management, Inc. Managing Agent

View Audit 351103 Questioned Costs: $1

Finding 544390 (2024-002)

Material Weakness 2024

North General Aids Housing Development Fund Corporation

NY

Questioned Costs HUD Housing Programs Allowable Costs / Cost Principles

As of March 26, 2025, these amounts have been credited back to the company through the central disbursement accounting system. Management will implement reviews on a quarterly basis to ensure that only expenses related to the Corporation are included in expenses and will review indirect allocation...

As of March 26, 2025, these amounts have been credited back to the company through the central disbursement accounting system. Management will implement reviews on a quarterly basis to ensure that only expenses related to the Corporation are included in expenses and will review indirect allocations to ensure only appropriate expenses approved in the HUD budget will be included in expenses.

View Audit 351045 Questioned Costs: $1

Corrective Action Plans

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