Corrective Action Plans

Finding 544389 (2024-001)

Material Weakness 2024

North General Aids Housing Development Fund Corporation

NY

Questioned Costs HUD Housing Programs

Management will request for a retroactive approval of the withdrawal; management should put a system in place to avoid such withdrawals in the future. Management will review and revise the protocols to avoid withdraws without prior HUD approval.

View Audit 351045 Questioned Costs: $1

Finding 544370 (2024-001)

None 2024

Haley's Park, Inc. 086-Hd033

TN

HUD Housing Programs Cash Management

2024-001 – Nonmaterial Noncompliance Over Cash Management Recommendation: Haley’s Park put procedures in place to ensure HAP Vouchers are submitted to HUD within the prescribed timeframe above. Corrective Action: We have already implemented procedures to ensure HAP Vouchers are submitted to HUD with...

2024-001 – Nonmaterial Noncompliance Over Cash Management Recommendation: Haley’s Park put procedures in place to ensure HAP Vouchers are submitted to HUD within the prescribed timeframe above. Corrective Action: We have already implemented procedures to ensure HAP Vouchers are submitted to HUD within the prescribed timeframe. Personnel Responsible for Corrective Action: David Langgle-Martin, Chief Housing Officer and Kyle Wilson, Property Manager Anticipated Completion Date for Corrective Action: The Corrective Action has already been implemented as of the date of this report.

View Audit 351017

Finding 544360 (2024-001)

Significant Deficiency 2024

Housing Authority of the City of West Point

GA

Cash Management HUD Housing Programs

2024-001 ALN 14.872 – Public Housing Capital Fund Program – Cash Management The CEO agrees with the finding and will follow the Auditor's recommendations as listed on the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. Robert Dull, CEO Projected Completio...

2024-001 ALN 14.872 – Public Housing Capital Fund Program – Cash Management The CEO agrees with the finding and will follow the Auditor's recommendations as listed on the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Mr. Robert Dull, CEO Projected Completion Date: June 30, 2025

View Audit 351001

Finding 544345 (2024-001)

Significant Deficiency 2024

Jellico Housing Authority

TN

HUD Housing Programs Eligibility

Jellico Housing Authority respectfully submits the following corrective action plan for the year ended June 30, 2024. Responsible Official: Crystal Creekmore, Executive Director Name and address of independent public accounting firm: Miller & Rose, PA 1309 East Race Searcy, AR 72143 Audit per...

Jellico Housing Authority respectfully submits the following corrective action plan for the year ended June 30, 2024. Responsible Official: Crystal Creekmore, Executive Director Name and address of independent public accounting firm: Miller & Rose, PA 1309 East Race Searcy, AR 72143 Audit period: Year ended June 30, 2024 Oversight Agency: U.S. Department of Housing and Urban Development The findings from the June 30, 2024, audit are discussed below. The findings are numbered to correspond to the auditing findings disclosed in the Schedule of Findings and Questioned Costs. Significant Deficiency 2024-001 Eligibility Federal Program: Public and Indian Housing, Federal Assistance Listing Number 14.850 Condition and Criteria: The Authority’s purpose for existence is to provide decent, safe, and affordable housing for low-income families. As such, the Authority prepares a file for each admitted family, which contains information necessary to determine eligibility for assistance and calculations of rent to be paid by the family. HUD regulations prescribe the content of these family files. These requirements consist of the following: a. As a condition of admission or continued occupancy, the tenant and other family members are required to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of: (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent. c. Determine income eligibility and calculate the tenant’s rent payment in accordance with HUD regulations. d. Select tenants from the public housing waiting list in accordance with the PHA’s tenant selection policies. e. Re-examine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary. Population and Items Tested: We selected thirteen public housing tenant files for testing. One file did not contain an annual re-examination. The tenant did not provide the information required to complete the re-examination and was ultimately evicted. One file did not contain tenant signatures on the annual re-examination documents including the required authorizations for the release of information. Auditor’s Recommendation: All re-examinations should be completed on an annual basis and the required documents should be signed by the tenant. Planned corrective actions: We will comply with the auditor’s recommendation. Estimated Date of Completion: June 30, 2024

View Audit 350961

Finding 544132 (2024-001)

Significant Deficiency 2024

City of Orange

CA

HUD Housing Programs Reporting Significant Deficiency

Name of Contact Person: Trang Nguyen Corrective Action: The Community Development Department has implemented the following steps for FY 2025. 1. Updated the City’s policy to iden􀆟fy the Housing Manager or designee as the responsible repor􀆟ng party to submit the reports by the submission deadline. 2....

Name of Contact Person: Trang Nguyen Corrective Action: The Community Development Department has implemented the following steps for FY 2025. 1. Updated the City’s policy to iden􀆟fy the Housing Manager or designee as the responsible repor􀆟ng party to submit the reports by the submission deadline. 2. Added to the policy administra􀆟ve support staff to set calendar reminders in outlook for follow up. 3. Finance will add to the quarterly and year-end checklist to ensure 􀆟mely repor􀆟ng. Proposed Completion Date: June 30, 2025

View Audit 350915

Finding 544074 (2024-001)

Significant Deficiency 2024

Housing Authority of the City of Reno

NV

HUD Housing Programs Eligibility Significant Deficiency

Moving to Work Demonstration Program – Assistance Listing No. 14.881 Recommendation: We recommend that the Authority reviews the controls in place to ensure that income reported within the HUD-50058 is supported through 3rd party verification. Explanation of disagreement with audit finding: There is...

Moving to Work Demonstration Program – Assistance Listing No. 14.881 Recommendation: We recommend that the Authority reviews the controls in place to ensure that income reported within the HUD-50058 is supported through 3rd party verification. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Since the audit findings were noted, the RHA immediately implemented a 3rd party approval process for all 50058 transactions. For 60 days, the Senior Property Manager and the Compliance Specialist will review all completed recertifications performed by Property Managers to ensure compliance with all HUD regulations prior to approving the 50058 in our software system. Upon approval, the Senior Property Manager or the Compliance Specialist will sign off on the recertification packet prior to it being scanned to the tenant’s file. If errors are found, the Property Manager will be advised to make the necessary corrections/changes. Once the corrections are made it will be resubmitted to the Senior Property Manager or Compliance Specialist for approval. After 60 days, an assessment of all errors noted will be completed to determine if there are consistent errors occurring which warrant additional training or if specific Property Managers require additional support with continued review of all recertifications. If a Property Manager’s work was free of errors after the initial 60 days, then a random selection of 25% of their work product will be reviewed monthly and signed off on the recertification packet prior to being scanned to the tenant’s file. The Asset Management Administrator or Director of Asset Management will pull a random selection of 10% of the approved recertifications that the Senior Property Manager and Compliance Specialist approved to also verify their accuracy in approving files. RHA is also sending all Property Managers through the Nan McKay HCV and Public Housing Rent Calculation training which will take place in person from February 18, 2025, through February 20, 2025. This will be at least the second time each Property Manager will complete this training since their hire date. Name(s) of the contact person(s) responsible for corrective action: Kristin Scott Planned completion date for corrective action plan: May 1, 2025 (ongoing for regular quality control efforts).

View Audit 350875

Finding 542019 (2024-002)

Significant Deficiency 2024

Urban League of Portland

OR

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

Contact Person NAME: Julia Delgado PHONE: (503) 280-2600 E-Mail: jdelgado@ulpdx.org Explanation and Specific Reasons for Disagreement with the Audit Finding or That Corrective Action is not Required (if Applicable) No disagreement. Corrective Action Planned Urban League of Portland shall review an...

Contact Person NAME: Julia Delgado PHONE: (503) 280-2600 E-Mail: jdelgado@ulpdx.org Explanation and Specific Reasons for Disagreement with the Audit Finding or That Corrective Action is not Required (if Applicable) No disagreement. Corrective Action Planned Urban League of Portland shall review and revise the current policy to enhance recommendations that assure rent reasonableness procedures are instituted. Further training shall be provided to Program Managers to support a due diligent interim review of Master Leases. Anticipated Complete Date: 05/01/2024

View Audit 350845 Questioned Costs: $1

Finding 541997 (2024-001)

Significant Deficiency 2024

Grand Street Settlement Senior

NY

HUD Housing Programs Period of Performance Reporting

2024-001: Financial Reporting Management agrees with the finding and has taken immediate steps to address the issue and ensure timely submissions. Grand Street Settlement and BTQ Financial, Inc. will jointly oversee and ensure the timely submission of all progress reports. All agreements will be re...

2024-001: Financial Reporting Management agrees with the finding and has taken immediate steps to address the issue and ensure timely submissions. Grand Street Settlement and BTQ Financial, Inc. will jointly oversee and ensure the timely submission of all progress reports. All agreements will be reviewed in detail to fully understand compliance and reporting requirements, ensuring that all conditions are met, and submissions are made on time. A detailed timeline will be established for each reporting period, with regular check-ins to ensure that progress reports are completed and submitted on schedule. All deadlines will be closely monitored to prevent any future delays. Status of Finding: Management is expected to resolve the finding during fiscal year 2025 and will continue to work on resolving the finding. Managements Response: Management agrees with the finding. The issue will be corrected and resolved by the Grand Street Settlement Director of Administration, Program Director, and BTQ Financial during the fiscal year 2025.

View Audit 350812

Finding 541986 (2024-001)

Significant Deficiency 2024

Lake Wales Housing Authority

FL

Questioned Costs HUD Housing Programs Subrecipient Monitoring

U.S. Department of Housing and Urban Development Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: The Authority should designate an individual to review tenant files to ensure that rent reasonableness is properly performed before the effective date and maintained in the file...

U.S. Department of Housing and Urban Development Housing Voucher Cluster – Assistance Listing No. 14.871 Recommendation: The Authority should designate an individual to review tenant files to ensure that rent reasonableness is properly performed before the effective date and maintained in the file. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Tenant files will be reviewed prior to effective date to ensure rent reasonableness are done timely. Name of the contact person(s) responsible for corrective action: Albert Kirland Jr. Planned completion date for corrective action plan: April 1, 2025 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Albert Kirland Jr. at 863 676-7414x12

View Audit 350795 Questioned Costs: $1

Finding 541970 (2024-001)

Significant Deficiency 2024

Housing Authority of the City of Galveston, Texas

TX

Eligibility HUD Housing Programs Significant Deficiency

2024-001 Eligibility Housing Voucher Cluster Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance Condition: Out of a population of approximately 1,700 for Housing Voucher Cluster, 41 tenant files were tested and 4 files had the following deficiencies: ...

2024-001 Eligibility Housing Voucher Cluster Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance Condition: Out of a population of approximately 1,700 for Housing Voucher Cluster, 41 tenant files were tested and 4 files had the following deficiencies: • Two files had incorrect payment standard; • One file had incorrect income calculation standard; and • One file was missing an EIV report for the annual recertification. Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor's sample. Action Taken; GHA is currently updating its Standards Operating Procedures and will continue to provide training and guidance to all staff to ensure that all transactions are implemented correctly, including payment standards, income calculations and to ensure all necessary documentation including EIV is placed in the participant's files. Name(s) of the contact person(s) responsible for corrective action: Maria Godwin Planned completion date for corrective action plan: GHA staff has been reminded to double check their work to avoid human errors. Additionally all training will be completed by August 2025.

View Audit 350765

Finding 541969 (2024-002)

Significant Deficiency 2024

Housing Authority of the City of Galveston, Texas

TX

HUD Housing Programs Subrecipient Monitoring Eligibility

2024-002 Eligibility Public and Indian Housing Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance Condition: Out of a total tenant population of approximately 430 for Public and Indian Housing, 44 tenant files were tested and 8 files had the following d...

2024-002 Eligibility Public and Indian Housing Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance Condition: Out of a total tenant population of approximately 430 for Public and Indian Housing, 44 tenant files were tested and 8 files had the following deficiencies: • Six files had incorrect or missing flat rent option sheets ; • One file was missing a custody information; and • One file had incorrect income calculation. Auditor Recommendations: The Authority should correct the deficiencies noted in the tested files and perform reviews of the remaining universe, for consideration of similar errors. In addition, the Authority should establish quality control review procedures to ensure proper monitoring of compliance with the requirements related to tenant eligibility. Action Taken: Updates were made to the flat rent option sheet and they have been placed in all files. The missing custody information has been obtained and placed in the folder. GHA will continue to provide training and guidance to all staff to ensure that all transactions are implemented correctly, including income calculation standard, and to ensure that all necessary documentation is placed in the participant's files. Name(s} of the contact person(s) responsible for corrective action: Odelia Williams, Director of Public Housing Planned completion date for corrective action plan: GHA staff completed the corrections and has been reminded to double check their work to avoid human error. Additionally, all training will be completed by August 2025.

View Audit 350765

Finding 541843 (2024-001)

None 2024

Rss Scattered Homes

NC

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan: The Project made the required deposits on March 7, 2025. Management will implement procedures to ensure that the effective date of the 9250 is adhered to when there are changes in the amount of funding required for the reserve for replacement account. Auditee Contact: Lori ...

Corrective Action Plan: The Project made the required deposits on March 7, 2025. Management will implement procedures to ensure that the effective date of the 9250 is adhered to when there are changes in the amount of funding required for the reserve for replacement account. Auditee Contact: Lori Gougeon (InReach), Management Agent

View Audit 350750

Finding 541821 (2024-005)

Significant Deficiency 2024

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs HUD Housing Programs Special Tests & Provisions

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Compliance Requirement: Special Tests and Provisions – Rolling Forward Equity Balances Recommendation: We recommend the Authority review the equity roll forward of programs to identify and correct errors in the correct reporting p...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Compliance Requirement: Special Tests and Provisions – Rolling Forward Equity Balances Recommendation: We recommend the Authority review the equity roll forward of programs to identify and correct errors in the correct reporting period. Views of responsible officials: There is no disagreement with the audit finding. Action planned/taken in response to finding: After the end of the Audit period, HCV and Finance staff worked together to correct equity roll forward concerns. All reporting to HUD has been corrected and a process is in place to reconcile the accounts monthly so that adjustments can be timely made. Name(s) of the contact person(s) responsible for corrective action: Elaine Bouse, Accounting Manager Tyeshia Brunson, HCVP Lead Admin Corrie Temples, Regulatory Analyst (support) Planned completion date for corrective action plan: Currently implemented and ongoing.

View Audit 350735 Questioned Costs: $1

Finding 541818 (2024-004)

Significant Deficiency 2024

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Eligibility HUD Housing Programs

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Compliance Requirement: Eligibility Recommendation: We recommend the Authority implements controls to ensure that tenant files contain all required documentation. Views of responsible officials: There is no disagreement with the a...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Compliance Requirement: Eligibility Recommendation: We recommend the Authority implements controls to ensure that tenant files contain all required documentation. Views of responsible officials: There is no disagreement with the audit finding. Action planned/taken in response to finding: No later than May 2025, SC Housing is restructuring the HCV department. This realignment will reassign the staff member responsible for oversight of the HCV Administrative staff. In addition, all staff will receive additional training for all administrative functions, in order to minimize the number of errors moving forward. Regarding these specific exceptions, staff is working to collect necessary documentation to correct the records, one exception was previously corrected on 11/1/24. Name(s) of the contact person(s) responsible for corrective action: Lisa Wilkerson, Director of Rental Assistance and Compliance Director of HCVP Administration and Services Planned completion date for corrective action plan: Restructure in planned for late April, initial training will begin immediately and continue as needed.

View Audit 350735 Questioned Costs: $1

Finding 541815 (2024-003)

Material Weakness 2024

South Carolina State Housing Finance and Development Authority

SC

Questioned Costs Special Tests & Provisions HUD Housing Programs

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Compliance Requirement: Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be correcte...

Housing Voucher Cluster – Assistance Listing Numbers 14.871/14.879 Compliance Requirement: Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding. Action planned/taken in response to finding: Management commits to re-review applicable CFR and Admin Polices to assure we are starting from a good foundation and adjust HQS and Abatement processes as needed to assure compliance. Management to provide refresher process training on HQS Re-Inspection and Abatement timelines and documentation required to be in OnBase. No later than May 2025, SC Housing is restructuring the HCV department. This realignment will result in a dedicated inspection team that is not burdened with ancillary administrative tasks that have contributed to their inability to meet critical deadlines. Additionally, inspectors will have the flexibility to inspect 4-5 days per week as necessary. One of the key inspectors is physically located in the Low Country area which will minimize the travel time required to inspect in this region. Additionally, two of the employees associated with these errors are scheduled to be reassigned and will not be conducting on-site inspections in the future. Name(s) of the contact person(s) responsible for corrective action: Lisa Wilkerson, Director of Rental Assistance and Compliance Lenzy Morris, Director of HCVP Operations Planned completion date for corrective action plan: Restructure in planned for late April, initial training will begin immediately and continue as needed.

View Audit 350735 Questioned Costs: $1

Finding 541116 (2024-003)

Significant Deficiency 2024

Housing Authority of the County of Lebanon

PA

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Authority's Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies included within the Plan are being followed. Karen...

Authority's Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies included within the Plan are being followed. Karen Raugh, Executive Director, is responsible for implementing this corrective action by June 30, 2025.

View Audit 350689

Finding 541115 (2024-002)

Material Weakness 2024

Housing Authority of the County of Lebanon

PA

Questioned Costs HUD Housing Programs Eligibility

Authority's Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies included within the Plan are being followed. Kare...

Authority's Response and Planned Corrective Action: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies included within the Plan are being followed. Karen Raugh, Executive Director, is responsible for implementing this corrective action by June 30, 2025.

View Audit 350689 Questioned Costs: $1

Finding 541039 (2024-001)

Significant Deficiency 2024

Wildberry Apartments, INC

RI

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan United States Department of Housing and Urban Development Wildberry Apartments, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 028...

Corrective Action Plan United States Department of Housing and Urban Development Wildberry Apartments, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Audit period covered: 7/1/2023-6/30/2024 The findings from the June 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: Section 202 Project Rental Assistance—Assistance Listing # 14.157 Recommendation: The Corporation should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Action Taken: Management is in agreement with the auditor’s findings. Management has instructed all accounting personnel to complete monthly checks of the tenant secuirty deposit listing and security deposit cash account. If the United States Department of Housing and Urban Development has questions regarding this plan, please call Frank Shea at (401) 296-3761.

View Audit 350642

Finding 541036 (2024-001)

Significant Deficiency 2024

Saugatucket Spring INC

RI

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan June 30, 2024 United States Department of Housing and Urban Development Saugatucket Springs, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 L...

Corrective Action Plan June 30, 2024 United States Department of Housing and Urban Development Saugatucket Springs, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Audit period covered: 7/1/2023-6/30/2024 The findings from the June 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: Section 202 Project Rental Assistance—Assistance Listing # 14.157 Recommendation: The Corporation should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Action Taken: Management is in agreement with the auditor’s findings. Management has implemented internal controls to ensure monthly inspections of the security deposit bank statement and liability are performed. If the United States Department of Housing and Urban Development has questions regarding this plan, please call Frank Shea at (401) 296-3761.

View Audit 350639

Finding 541031 (2024-001)

Significant Deficiency 2024

Rodman Commons INC

RI

Cash Management HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan United States Department of Housing and Urban Development Rodman Commons, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Aud...

Corrective Action Plan United States Department of Housing and Urban Development Rodman Commons, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Audit period covered: 7/1/2023-6/30/2024 The findings from the June 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: Section 202 Project Rental Assistance—Assistance Listing # 14.157 Recommendation: The Corporation should design and implement internal controls to ensure that all replacement reserve deposits are deposited in a timely manner. Action Taken: Management has implemented internal controls to ensure that monthly replacement reserve deposits are made in a timely fashion. An individual at the office has been assigned oversight responsibility to ensure these deposits are made each month. If the United States Department of Housing and Urban Development has questions regarding this plan, please call Frank Shea at (401) 296-3761.

View Audit 350637

Finding 541028 (2024-001)

Significant Deficiency 2024

Plaza Esperanza INC

RI

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan United States Department of Housing and Urban Development Plaza Esperanza, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Au...

Corrective Action Plan United States Department of Housing and Urban Development Plaza Esperanza, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Audit period covered: 7/1/2023-6/30/2024 The findings from the June 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: Section 202 Project Rental Assistance—Assistance Listing # 14.157 Recommendation: The Corporation should design and implement internal controls to ensure that all security deposits are transferred in the required time period. Management should also conduct a monthly inspection of the security deposit listing. Action Taken: Management is in agreement with the auditor’s findings. Management has instructed all accounting personnel to review all matters related to tenant compliance. If the United States Department of Housing and Urban Development has questions regarding this plan, please call Frank Shea at (401) 296-3761.

View Audit 350635

Finding 540990 (2024-002)

Significant Deficiency 2024

Integrated Living, Inc.

KS

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

March 21, 2025 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 Audit period: Year ended June 30, 2024 The findings ...

March 21, 2025 HUD Service Audit Director Kansas City, Kansas Integrated Living, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. SSC CPAs, P.A. 58525 SW 29th St, Suite 100 Topeka, Kansas 66614 Audit period: Year ended June 30, 2024 The findings from the June 30, 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section I of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS-FINANCIAL STATEMENT AUDIT 2024‐001 Internal Controls over Financial Statement Presentation (Material Weakness) Recommendation: The Board of Directors and management should review the impact of the current year adjustments on the financial reporting process. Once this review is complete, the Organization should then perform a risk assessment to determine the best way to implement appropriate internal controls over financial reporting to ensure conformity with U.S. GAAP. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over financial reporting to ensure conformity with U.S. GAAP. John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2025. FINDINGS-FEDERAL AWARD PROGRAMS AUDITS 2024‐002 Written Procedures of Internal Control over Compliance (Significant Deficiency) Department of Housing and Urban Development Section 811 Supportive Housing for Person with Disabilities, Assistance Listing Number 14.181 Recommendation: The Organization should develop written policies for the internal control over compliance of federal awards. Action Taken (Unaudited): Management is in the process of updating its control procedures to include proper written policies for the internal control over compliance of federal awards John Griffin, CFO of COF Training Services, Inc. (Management Agent of Integrated Living, Inc.) is responsible for this corrective action. Anticipated completion date is June 30, 2025. If HUD has questions regarding this plan, please call Patrick Gardner at 785-242-5035. Sincerely yours, Patrick Gardner CEO, COF Training Services, Inc. (Management Agent of Integrated Living, Inc.)

View Audit 350594

Finding 540921 (2024-006)

Significant Deficiency 2024

Delaware State Housing Authority

DE

Questioned Costs Matching / Level of Effort / Earmarking Eligibility

The program has corrected the calculation error in its income calculations form. Additionally, increased weekly training and case review have been implemented to detect and prevent such errors.

View Audit 350549 Questioned Costs: $1

Finding 540830 (2024-002)

None 2024

Newbern Housing Authority

TN

HUD Housing Programs

2024-002 FINDING: Budget Line Item Improper Expenditures (Public Housing Capital Fund - ALN 14.872) – Noncompliance Person responsible for Implementing the Corrective Action: The Board of Commissioners and David Jones Anticipated Completion Date of Corrective Action: June 30, 2025 Planned Correct...

2024-002 FINDING: Budget Line Item Improper Expenditures (Public Housing Capital Fund - ALN 14.872) – Noncompliance Person responsible for Implementing the Corrective Action: The Board of Commissioners and David Jones Anticipated Completion Date of Corrective Action: June 30, 2025 Planned Corrective Action: The Authority will work on ensuring all changes in which Capital Fund monies are spent are approved by HUD in the budget amendment process

View Audit 350466

Finding 540829 (2024-001)

Significant Deficiency 2024

Newbern Housing Authority

TN

Questioned Costs Cash Management HUD Housing Programs

2024-001 FINDING: Excess Reimbursement Requested (Public Housing Capital Fund - ALN 14.872) – Significant Deficiency and Noncompliance Person responsible for Implementing the Corrective Action: The Board of Commissioners and David Jones Anticipated Completion Date of Corrective Action: June 30, ...

2024-001 FINDING: Excess Reimbursement Requested (Public Housing Capital Fund - ALN 14.872) – Significant Deficiency and Noncompliance Person responsible for Implementing the Corrective Action: The Board of Commissioners and David Jones Anticipated Completion Date of Corrective Action: June 30, 2025 Planned Corrective Action: The Authority will work on ensuring requests for reimbursement of capital funds will have supporting documentation and management will take measures to ensure duplicate requests aren't made for a single invoice.

View Audit 350466 Questioned Costs: $1

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