Corrective Action Plans

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Replacement Reserves Funding Auditee agrees that twelve monthly payments were not made to the replacement reserve for the fiscal year ended December 31, 2025. Management will make an additional deposit funding the shortfall as soon as possible to fully fund the replacement reserve. Auditee has submi...
Replacement Reserves Funding Auditee agrees that twelve monthly payments were not made to the replacement reserve for the fiscal year ended December 31, 2025. Management will make an additional deposit funding the shortfall as soon as possible to fully fund the replacement reserve. Auditee has submitted a HUD-9250 request for the suspension of deposits to the replacement reserve account for 2026 and will fund the shortfall as soon as adequate funding from operations is available and will consult with HUD for future use on operations.
Environmental Quality Incentives Program – Assistance Listing No. 10.912 Recommendation: We recommend the Organization implement a formal control where someone other than the preparer documents their review of the financial and performance reports prior to submitting to the federal agency. This revi...
Environmental Quality Incentives Program – Assistance Listing No. 10.912 Recommendation: We recommend the Organization implement a formal control where someone other than the preparer documents their review of the financial and performance reports prior to submitting to the federal agency. This review would include comparing the amounts in the report to the general ledger or other supporting documents. This review should be supported by documenting the signature and date prior to submission Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Status of corrective action: This finding recurred because the controls below were implemented in October 2025 and were not in place for the full 2025 audit period. We expect it to be resolved in the 2026 audit Report review: Under the Federal Grant Report Review and Submission Protocol, implemented in October 2025, someone other than the preparer compares each financial and performance report to the general ledger and supporting documents. Both the preparer and reviewer sign and date the review form before the report is submitted, and the form is filed in the project folder. Name(s) of the contact person(s) responsible for corrective action: Jill Matchett, Grants Manager through June 2026, Lori Hall, Grants Manager June 2026 - present Planned completion date for corrective action plan: Implemented October 2025; expected to be resolved in the audit for the year ending December 31, 2026
Environmental Quality Incentives Program – Assistance Listing No. 10.912 Recommendation: We recommend the Organization implement a formal control where someone other than the preparer documents their review of the claim prior to submitting to the federal agency. This review would include comparing t...
Environmental Quality Incentives Program – Assistance Listing No. 10.912 Recommendation: We recommend the Organization implement a formal control where someone other than the preparer documents their review of the claim prior to submitting to the federal agency. This review would include comparing the amounts in the report to the general ledger or other supporting documents. This review should be supported by documenting the signature and date prior to submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Status of corrective action: This finding recurred because the controls below were implemented in October 2025 and were not in place for the full 2025 audit period. We expect it to be resolved in the 2026 audit. Claim preparation and independent review: For each claim, the Grants Manager or designee prepares a Claim/Billing Approval Form and routes it, with the supporting documentation, to the Project Manager. The Project Manager, who does not prepare the claim, compares the amounts on the claim to the general ledger and to supporting documentation such as payroll allocation reports and vendor invoices, and resolves any differences with the preparer before approving. Signature and date prior to submission: Both the preparer and the reviewer electronically sign and date the Claim/Billing Approval Form. The claim is not initiated in the funder portal until the form is fully approved, so the documented approval date will always precede the submission date. Documentation and monitoring: The approved form, supporting documentation, and portal submission confirmation are saved together in the Organization's grant files. A member of management will periodically review a sample of submitted claims to confirm that the review was completed, signed, and dated before submission. Name(s) of the contact person(s) responsible for corrective action: Jill Matchett, Grants Manager through June 2026, Lori Hall, Grants Manager June 2026 - present Planned completion date for corrective action plan: Implemented October 2025; expected to be resolved in the audit for the year ending December 31, 2026
Authority 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 are being followed on a timely basis. Jacqueline Lope...
Authority 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 are being followed on a timely basis. Jacqueline Lopez, Interim Executive Director, is responsible for implementing this corrective action by December 31, 2026.
Authority 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 are being followed on a timely basis. Jacqueline Lope...
Authority 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 are being followed on a timely basis. Jacqueline Lopez, Interim Executive Director, is responsible for implementing this corrective action by December 31, 2026.
2025-002. Special Tests and Provisions – Rent reasonableness United States Department of Housing and Urban Development Continuum of Care Program ALN: 14.267 Condition: Although the Organization strengthened its procedures during the current year and maintained rent reasonableness documentation withi...
2025-002. Special Tests and Provisions – Rent reasonableness United States Department of Housing and Urban Development Continuum of Care Program ALN: 14.267 Condition: Although the Organization strengthened its procedures during the current year and maintained rent reasonableness documentation within the tenant files selected for testing, there were instances in which the proposed gross rent exceeded the average gross rent of comparable units by more than the $100 limit established by the Organization. In addition, there were instances in which rental assistance paid with federal funds exceeded the applicable HUD Fair Market Rent after consideration of the applicable utility allowance, with no documentation supporting the amounts paid in excess of the applicable limit. Recommendation: The Organization should strengthen its review procedures to ensure that, prior to approval of federal rental assistance, proposed rents comply with the Organization's established rent reasonableness criteria and applicable HUD Fair Market Rent limitations. The review should be documented and evidence resolution of any identified exceptions prior to the payment of rental assistance with federal funds. Corrective Action: The Organization will strengthen its review procedures to ensure that rental assistance paid with federal funds complies with established rent reasonableness criteria and applicable HUD Fair Market Rent limitations. Responsible Contact Person(s): Louis Bamonte, Director of Finance Brighter Tomorrows, Inc. - P.O. Box 706 – Shirley, New York 11967 Anticipated Completion Date: December 31, 2026.
MEDA concurs with the recommendation. To ensure full compliance with internal control and federal award requirements, MEDA is implementing an updated review workflow for all financial and performance reports prior to submission. Under this process, designated reviewers will complete and sign a stand...
MEDA concurs with the recommendation. To ensure full compliance with internal control and federal award requirements, MEDA is implementing an updated review workflow for all financial and performance reports prior to submission. Under this process, designated reviewers will complete and sign a standardized digital approval checklist or retain documented email/system approvals accompanying each report and its supporting documentation. These record files will be systematically maintained in MEDA’s central repository in alignment with our record retention policy. Implementation is targeted for completion by December 31, 2026 under the direction of the Chief Financial Officer.
Response: Agree Planned Corrective Action: Audit responses/requests were provided sooner, in 2026, for the 2025 year end. Thus all open items and the audit overall can be completed before the nine months deadline. Anticipated Completion Date: 9-30-26 Contact Person: Lesilie Heredia, President
Response: Agree Planned Corrective Action: Audit responses/requests were provided sooner, in 2026, for the 2025 year end. Thus all open items and the audit overall can be completed before the nine months deadline. Anticipated Completion Date: 9-30-26 Contact Person: Lesilie Heredia, President
Response: Agree Planned Corrective Action: The entity will deposit the surplus cash amount from the 2024 calculation, $44,485, into the residual receipts account.Anticipated Completion Date: 12-31-26 Contact Person: Lesilie Heredia, President
Response: Agree Planned Corrective Action: The entity will deposit the surplus cash amount from the 2024 calculation, $44,485, into the residual receipts account.Anticipated Completion Date: 12-31-26 Contact Person: Lesilie Heredia, President
The FY 2025 audit identified continuing exceptions involving Housing Voucher participant files, including HUD Form 50058 reporting and income-calculation accuracy. The finding was identified as a repeat compliance matter. HACC agrees with the findings and has strengthened the Housing Choice Voucher ...
The FY 2025 audit identified continuing exceptions involving Housing Voucher participant files, including HUD Form 50058 reporting and income-calculation accuracy. The finding was identified as a repeat compliance matter. HACC agrees with the findings and has strengthened the Housing Choice Voucher Program's compliance controls. Management Response and Corrective Action 1. Dedicated HCV Compliance Function. HACC has established dedicated compliance oversight for the Housing Choice Voucher Program to provide an additional level of review independent of the staff responsible for processing the underlying transaction. 2. HUD Form 50058 Timeliness Monitoring. HACC will monitor HUD Form 50058 submissions and exception reports to identify late or rejected submissions and require timely correction. 3. Income and Rent Calculation Review. Quality-control reviews will specifically test income calculations, deductions, allowances, tenant rent, utility allowances where applicable, and supporting documentation. 4. File Completion Checklist. HACC will use a standardized HCV file checklist for annual and interim recertifications to verify required documentation is present before the action is considered complete. 5. Retroactive File Review and Correction. HACC will conduct targeted reviews of participant files to identify missing documentation, untimely HUD Form 50058 submissions, and income or rent calculation errors. HACC will correct identified deficiencies and process any required adjustments consistent with HUD requirements. 6. Recurring Quality-Control Reviews. HACC will conduct periodic sample reviews throughout the year. HACC will track results by error type, responsible function, corrective action, and resolution date so management can identify recurring trends. 7. Staff Training and Technical Assistance. HCV staff will receive continuing training regarding eligibility, income calculations, verification requirements, HUD Form 50058 reporting, and applicable HUD requirements. 8. Management Reporting and Accountability. HCV staff will periodically report compliance results to HCV leadership and executive management. Repeated deficiencies will result in targeted retraining, increased supervisory review, and appropriate performance-management measures. 9. Independent Third-Party Quality Control Review. During FY 2026, HACC is engaging an independent third-party quality-control and compliance firm to conduct comprehensive reviews of Housing Choice Voucher participant files. The firm will test file completeness, eligibility documentation, income and rent calculations, HUD Form 50058 accuracy and timeliness, required verifications, utility allowances where applicable, and other HUD compliance requirements. The firm will identify deficiencies and provide corrective recommendations to help HACC strengthen internal controls. Responsible Officials: Vice President of the Housing Choice Voucher Program and designated HCV Compliance staff, under the oversight of the Executive Director/CEO. Implementation Status/Timeline: Corrective actions are underway during FY 2026 and will remain part of HACC's ongoing compliance and quality-control process.
The FY 2025 audit identified continuing exceptions involving Public Housing tenant files, including HUD Form 50058 completion and income-calculation accuracy. The finding was identified as a repeat compliance matter. HACC agrees with the finding and is strengthening the controls used to prevent, ide...
The FY 2025 audit identified continuing exceptions involving Public Housing tenant files, including HUD Form 50058 completion and income-calculation accuracy. The finding was identified as a repeat compliance matter. HACC agrees with the finding and is strengthening the controls used to prevent, identify, and correct file deficiencies. Management Response and Corrective Action 1. Dedicated Compliance Oversight. HACC has added dedicated compliance capacity to review Public Housing tenant files and monitor adherence to HUD eligibility, income calculation, rent determination, recertification, and documentation requirements. Housing Authority of the County of Chester “On the Road to Excellence” Public Housing Housing Choice Vouchers Family Self Sufficiency Homeownership Board of Commissioners Patrick Bokovitz, Chair Theodore F. Claypoole, Treasurer Donnell Sheppard, Secretary Daniel Garcia, Resident Board Member Solicitor: Brian Leinhauser MacMain Law Executive Director/CEO Paul Diggs Housing Authority of the County of Chester 30 West Barnard Street, Suite 2 West Chester, PA 19382 Phone 610-436-9200 * Fax 610-436-9203 www.The HACCnet.org 2. Pre-Completion Quality Control. Annual and interim recertification files will undergo a standardized quality-control process. HACC will review required documents, including HUD Form 50058, income verification, deductions, allowances, and rent calculations, for completeness and accuracy. 3. Standardized File Checklists. HACC will use standardized file checklists to identify required eligibility, income, verification, consent, recertification, and rent-calculation documentation. The checklist will become part of the tenant file. 4. Corrective Review of Existing Files. Management will conduct targeted reviews of existing Public Housing tenant files to identify missing documents or calculation errors. Deficiencies identified during the review will be corrected and documented. 5. Staff Training. Public Housing staff responsible for eligibility, admissions, occupancy, rent calculations, and recertifications will receive periodic training addressing HUD requirements, income calculations, HUD Form 50058, and HACC policies and procedures. 6. Supervisory Accountability. Public Housing management will monitor compliance results and require corrective action when recurring deficiencies are identified. Management will address error patterns through additional training, coaching, procedural changes, and, when appropriate, employee performance management. 7. Ongoing Quality-Control Sampling. HACC will perform periodic random file reviews throughout the year rather than relying solely upon annual audit testing to identify deficiencies. HACC will document and report results to senior management. 8. Independent Third-Party Quality Control Review. During FY 2026, HACC is engaging an independent third-party quality-control and compliance firm to conduct comprehensive reviews of Public Housing tenant files. The review will evaluate file completeness, eligibility documentation, income and rent calculations, HUD Form 50058 accuracy and timeliness, required verifications, and other applicable HUD compliance requirements. The firm's work will supplement, not replace, HACC's internal compliance and supervisory review processes. Responsible Officials: Executive Vice President/Sr. Assent Manager and designated Compliance staff, under the oversight of the Executive Director/CEO. Implementation Status/Timeline: Corrective actions are underway during FY 2026 and will remain part of HACC's ongoing compliance and quality-control process.
Corrective Action Plan – Single Audit Finding Entity Name: Buffalo Mercy Housing Development Fund Company, Inc. Audit Period: For the year Ended December 31, 2025 Finding Reference Number: 2025-001 Federal Program: 14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOU...
Corrective Action Plan – Single Audit Finding Entity Name: Buffalo Mercy Housing Development Fund Company, Inc. Audit Period: For the year Ended December 31, 2025 Finding Reference Number: 2025-001 Federal Program: 14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS 1. Audit Finding Summary Describe the audit finding and the specific noncompliance identified by the auditor. In accordance with 24 CFR 891.400(e), a separate interest-bearing project fund account shall be maintained in a depository or depositories which are members of the Federal Deposit Insurance Corporation or National Credit Union Share Insurance Fund and all tenant payments, charges, income and revenues arising from project operation or ownership shall be deposited to this account. 2. Root Cause Explain the underlying reasons for the finding, such as process gaps, training issues, or lack of controls. Subsequent to the initial rental assistance contract, changes to HUD regulations resulted in the requirement that the project fund account be an interest-bearing account. This change was an oversight by the Company's management. 3. Corrective Actions Action Item: Use an interest-bearing account for project funds Responsible Person: Chief Financial Officer Completion Date: TBD Status: In process 4. Monitoring Plan Describe how the implementation of corrective actions will be monitored and evaluated. Management inquired with the bank and deemed the cost outweighs the benefit due to the fees charged for an interest-bearing account exceeding the interest that would be earned. 5. Contact Information Name: Aaron Hejmowski Title: Chief Financial Officer Phone: 716-884-7791 Email: ahejmowski@belmonthousingwny.org
Corrective Action Plan Finding: 2025-004-Reporting Deadline Not Met-Reporting Condition: The audit report is being filed beyond the due date. Corrective Action Planned: We will comply with the auditor’s recommendation. Person responsible for corrective action: Louie Alfaro, Executive Director Teleph...
Corrective Action Plan Finding: 2025-004-Reporting Deadline Not Met-Reporting Condition: The audit report is being filed beyond the due date. Corrective Action Planned: We will comply with the auditor’s recommendation. Person responsible for corrective action: Louie Alfaro, Executive Director Telephone: (915) 886-4650 Housing Authority of the Town of Anthony, Texas Fax: (915) 886-2296 1007 Franklin Anthony, TX 79821 Anticipated Completion Date: September 30, 2026
Corrective Action Plan Finding: 2025-003-Lack of quality control and SEMAP-Eligibility and Special Tests Condition: The tenant files and waiting list were much improved over the prior year, for which numerous exceptions were noted. However, we did note the following: (a)-SEMAP was apparently not pre...
Corrective Action Plan Finding: 2025-003-Lack of quality control and SEMAP-Eligibility and Special Tests Condition: The tenant files and waiting list were much improved over the prior year, for which numerous exceptions were noted. However, we did note the following: (a)-SEMAP was apparently not prepared by prior management. SEMAP is required by HUD regulations. This is a documentation that quality control was performed, broken down into subsets. Even if SEMAP was not required by HUD, at least similar documented quality control should be done and available for third party review. Statement of Auditing Standard #115, which auditors must follow, states “absent or inadequate segregation of duties within a significant account or process” is defined by the Standard as at least a significant deficiency or material weakness. Either require an audit finding. (b)-It appears that quality control inspections were not done. (c)-It appears that the last utility allowance review was done in August 2023. Federal regulations require that utility allowances be done annually. At least when any one category changes more than 10% since the last review, the allowances must be revised. Corrective Action Planned: We will comply with the auditor’s recommendation. Person responsible for corrective action: Louie Alfaro, Executive Director Telephone: (915) 886-4650 Housing Authority of the Town of Anthony, Texas Fax: (915) 886-2296 1007 Franklin Anthony, TX 79821 Anticipated Completion Date: September 30, 2026
Corrective Action Plan Finding: 2025-002-Administration of the Homeownership Program and FSS Programs-Need Improvement-Special Tests Condition: FSS For years, an audit finding noted that this program was not adequately monitored. Beginning in mid -2024, after the new E.D. and a new employee was hire...
Corrective Action Plan Finding: 2025-002-Administration of the Homeownership Program and FSS Programs-Need Improvement-Special Tests Condition: FSS For years, an audit finding noted that this program was not adequately monitored. Beginning in mid -2024, after the new E.D. and a new employee was hired, the authority improved administration of the program. However, there is no established liability of the authority at year-end. Homeownership For years, an audit finding has noted that this program is not adequately monitored. Old paperwork suggests that approximately ten tenants may have at one time been enlisted. However, with multiple E.D.s and employees, plus the port-out of all but one of the potential enrollees, the paperwork is not available for the one-time enrollees. Corrective Action Planned: As noted in Finding 2025-001, I have agreed to this recommendation. Person responsible for corrective action: Louie Alfaro, Executive Director Telephone: (915) 886-4650 Housing Authority of the Town of Anthony, Texas Fax: (915) 886-2296 1007 Franklin Anthony, TX 79821 Anticipated Completion Date: September 30, 2026
ANTHONY HOUSING AUTHORITY PHONE: 915-886-4650 ·FAX:915-886-2296 1007 FRANKLIN ANTHONY, TEXAS 79821 HOUSING AUTHORITY OF ANTHONY, TEXAS CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2025 Corrective Action Plan Finding: 2025-001-Financial Distress, Interfund Balances and Management’s Plans-Allowable...
ANTHONY HOUSING AUTHORITY PHONE: 915-886-4650 ·FAX:915-886-2296 1007 FRANKLIN ANTHONY, TEXAS 79821 HOUSING AUTHORITY OF ANTHONY, TEXAS CORRECTIVE ACTION PLAN YEAR ENDED SEPTEMBER 30, 2025 Corrective Action Plan Finding: 2025-001-Financial Distress, Interfund Balances and Management’s Plans-Allowable Costs Condition: (a)-The General Fund, which includes the Low Rent Program, owes the Housing Choice Voucher Program $265,569. As the Statement of Financial Position discloses, if this interfund balance was paid in full at year-end, the General Fund would only have current assets of $26,200. Conversely, the Housing Choice Voucher has an interfund receivable of $265,569 for which the collection of the majority of this balance is doubtful. (b)-At year-end, the Housing Choice Voucher Fund has a restricted HAP equity of $251,034. This balance is calculated by the cumulative portion of the HAP federal advances designated to pay HAP payments, less the actual HAP payments made. The fund should have a minimum of $251,034 of cash on hand to pay HAP payments. Instead, the Housing Choice Voucher Fund shows an overdraft of $141,044. (c)-The Housing Choice Voucher Fund includes an accounts payable to HUD for $126,982 of CARES Act funds. The authority received $66,018 and $60,964 on August 13 and September 1, respectively in 2020. The authority’s fee accountant repeatedly asked the Executive Director serving then to identify the 2020 and 2021 Admin or other costs that these CARES Act funds paid for. She would not do it. Consequently, HUD considers these funds to be due to HUD. (d)-The Housing Choice Voucher Program includes a separate program that was established with left over pre 2004 Section Admin fees. This was permissible prior to 2004. With part of the funds, the Program purchased a rent house. The occupant owed the authority $44,723 on a mortgage note that is continually in arrears. If this house was sold, the authority would receive a cash influx of a minimum of $100,000. (e)-Both the Low Rent and the Housing Choice Voucher Programs have an FSS program. Audit findings have been made for years that management has not properly administered this program. At year end, the HCV Program shows a liability of $53,650 with a corresponding cash account of $53,671. If the actual FSS liability verified by audit was materially correct of, for example, $10,000, the liability account would be substantially reduced. The resulting cash could be transferred to operating. (f)-The Housing Choice Voucher Program also has a Homeownership program. Audit findings have also been made for years that management has not properly administered this program. At year-end, the HCV Program shows a liability of $59,234 with a corresponding cash account of $59,234. If the actual Homeownership liability verified by audit was materially correct of, for example, $10,000, the liability account would be substantially reduced. The resulting cash could be transferred to operating. Corrective Action Planned: I am Louie Alfaro, Executive Director and Designated Person to answer these findings. As noted above, I did not become E.D. until December 4, 2024. I will take the following proposed steps to the board of commissioners for approval. The steps coincide with (a) through (f) noted in Condition Found. (a) and (b)-We will continue minimize expenses when possible, to eliminate the deficits and reduce the interfund balances noted above. (c)-I understand the auditor has talked with and communicated in writing with REAC and the HUD Albuquerque Field Office regarding the CARES Act liability of $126,982 noted in (c) above. It appears HUD regulations permit a report to be filed after the deadline for expenditures. If HUD will accept and approve this report, I will request the fee accountant or other third party to determine which 2020 and 2021 Admin and Other Costs should have been timely identified with the CARES Act funds. I understand this may result in an additional fee, due to the difficulty of obtaining and reviewing the old records. Then, after review upon audit, I understand that the liability would be eliminated. (d)-I will review whether the note receivable on the rent house noted in (d) above is current. If past-due, I will consult with our attorney about avenues to foreclosure. (e)-As of mid-September 2026, we feel we have the FSS program administered properly for the Low Rent program. Principally due to lack of available man hours, we are still behind in bringing the FSS program for Housing Choice Vouchers up to date. We are working on it as time permits. (f)-As of mid-September 2026, we believe we have determined the estimate amounts owed to 8 FSS participants. However, how to bring this to resolution has not been resolved, since all 8 were ported out to El Paso Homes (El Paso Housing Authority) over a year ago. Presently, we are considering three alternatives: (a)-pay the participants in full or in part, but here are legal issues with that, (b)-establish parameters for items we will reimburse the participants-new stoves, etc., (c)-agree to a Memorandum of Understanding with El Paso Homes. We have requested a meeting with El Paso Homes to discuss the issues and a possible MOU, but they have yet to agree to a meeting. Person responsible for corrective action: Louie Alfaro, Executive Director Telephone: (915) 886-4650 Housing Authority of the Town of Anthony, Texas Fax: (915) 886-2296 1007 Franklin Anthony, TX 79821 Anticipated Completion Date: September 30, 2026
Corrective Action Plan – Single Audit Finding Entity Name: Lancaster Housing Development Co., Inc. Audit Period: For the year Ended December 31, 2025 Finding Reference Number: 14.157 Federal Program: Supportive Housing for the Elderly (Section 202) 1. Audit Finding Summary Describe the audit finding...
Corrective Action Plan – Single Audit Finding Entity Name: Lancaster Housing Development Co., Inc. Audit Period: For the year Ended December 31, 2025 Finding Reference Number: 14.157 Federal Program: Supportive Housing for the Elderly (Section 202) 1. Audit Finding Summary Describe the audit finding and the specific noncompliance identified by the auditor. In accordance with 24 CFR 891.400(e), a separate interest-bearing project fund account shall be maintained in a depository or depositories which are members of the Federal Deposit Insurance Corporation or National Credit Union Share Insurance Fund and all tenant payments, charges, income and revenues arising from project operation or ownership shall be deposited to this account. 2. Root Cause Explain the underlying reasons for the finding, such as process gaps, training issues, or lack of controls. Subsequent to the initial rental assistance contract, changes to HUD regulations resulted in the requirement that the project fund account be an interest-bearing account. This change was an oversight by the Company's management. 3. Corrective Actions Action Item: Use an interest-bearing account for project funds Responsible Person: Chief Financial Officer Completion Date: TBD Status: In process 4. Monitoring Plan Describe how the implementation of corrective actions will be monitored and evaluated. Management inquired with the bank and deemed the cost outweighs the benefit due to the fees charged for an interest bearing account exceeding the interest that would be earned. 5. Contact Information Name: Aaron Hejmowski Title: Chief Financial Officer Phone: 716-884-7791 Email: ahejmowski@belmonthousingwny.org
Finding #2025-001 Comments on the Finding and Each Recommendation: During the year ended December 31, 2025, Villagebrook Apartments did not recertify all residents timely as required by HUD Handbook 4350.3. Action(s) taken or planned on the finding: The Agent reported this concern and agrees with th...
Finding #2025-001 Comments on the Finding and Each Recommendation: During the year ended December 31, 2025, Villagebrook Apartments did not recertify all residents timely as required by HUD Handbook 4350.3. Action(s) taken or planned on the finding: The Agent reported this concern and agrees with the finding and recommendation. The Agent is working to address the staffing issues at Villagebrook Apartments and to provide additional training to the employees regarding recertification requirements. As of December 31, 2025, the Agent has implemented the use of a third-party service to aid in the recertification process. Management intends to correct all noncompliance in 2026.
Corrective Action Plan Section III - Federal Award Findings and Questioned Costs Finding 2025-001 Name of Contact Person: Annette Ange, Executive Director Corrective Action: We will implement proper internal control procedures for the Public and Indian Housing program elegibility requirements. Mange...
Corrective Action Plan Section III - Federal Award Findings and Questioned Costs Finding 2025-001 Name of Contact Person: Annette Ange, Executive Director Corrective Action: We will implement proper internal control procedures for the Public and Indian Housing program elegibility requirements. Mangement has established a checklist for applications and will establish checklists for move-ins and move-outs. Proposed Completion Date: Immediately
Contact Person Derek Johnson, Executive Director Corrective Action Plan The Authority will review its policies and procedures over program compliance requirements and continue to provide occupancy training to staff to prevent future exceptions. Planned Completion Date for CAP December 31, 2026
Contact Person Derek Johnson, Executive Director Corrective Action Plan The Authority will review its policies and procedures over program compliance requirements and continue to provide occupancy training to staff to prevent future exceptions. Planned Completion Date for CAP December 31, 2026
Contact Person Derek Johnson, Executive Director Corrective Action Plan The Authority will review its policies and procedures over program compliance requirements and continue to provide occupancy training to staff to prevent future exceptions. Planned Completion Date for CAP December 31, 2026
Contact Person Derek Johnson, Executive Director Corrective Action Plan The Authority will review its policies and procedures over program compliance requirements and continue to provide occupancy training to staff to prevent future exceptions. Planned Completion Date for CAP December 31, 2026
Plan of Compliance As discussed in Note 1 regarding the Corporation’s instance of noncompliance with its regulatory agreement with HUD, the Corporation agreed to a HUD proposal for repayment of the funds and adopted a resolution by the board indicating such acceptance and includes the following: An ...
Plan of Compliance As discussed in Note 1 regarding the Corporation’s instance of noncompliance with its regulatory agreement with HUD, the Corporation agreed to a HUD proposal for repayment of the funds and adopted a resolution by the board indicating such acceptance and includes the following: An acknowledgement of the obligations set forth in the regulatory agreement with HUD dated April 11, 1984, and the intention to fully comply with the provisions therein going forward. NCC’s and NCHC’s intention to make full restitution of the outstanding balances due to the Corporation. Annual payments will not be less than $150,000 for the next 10 years beginning in 2015 through 2024. The Company is currently in communication with HUD regarding the new repayment proposal. Until such time as the parties agree to new terms, the Corporation's intention is to continue making payments of not less than $150,000. One year prior to the expiration of the 10-year repayment period (2023), a new repayment proposal will be provided to HUD, requiring payments not less than $250,000 per year. The Company has been in communication with HUD regarding the new repayment proposal. Until such time as the parties agree to new terms, the Corporation's intention is to continue making payments of not less than $150,000. No Project funds or other HUD funds will be used as a source for repayment. An accounting system must be maintained to track restitution payments acceptable to HUD. Management is required to provide to HUD responses to any management letters received in connection with the annual audits. Certain monthly financial reports and other program-specific reports are required to be submitted to HUD. The boards of NCC / the Corporation are required to conduct quarterly compliance briefings with the minutes of such meetings sent to HUD.
Memorandum To: Christopher McDonald, Director, Assurance Services Aprio, LLP | Aprio Advisory Group, LLC From: Housing Authority of the City of Asheville Date: August 25, 2026 Subject: Corrective Action – Missing Eligibility Documentation HACA acknowledges the repeat finding regarding missing eligib...
Memorandum To: Christopher McDonald, Director, Assurance Services Aprio, LLP | Aprio Advisory Group, LLC From: Housing Authority of the City of Asheville Date: August 25, 2026 Subject: Corrective Action – Missing Eligibility Documentation HACA acknowledges the repeat finding regarding missing eligibility-related documentation in certain tenant files. While the number of missing documents has decreased since the prior audit period, additional monitoring is needed to ensure continued compliance. The Authority has implemented RentCafe for new files, standardized file checklists, and enhanced quality control procedures. The Authority will also increase QC staffing hours to expand tenant-file reviews and track missing or incomplete documentation through documented follow-up and resolution. QC results will be periodically reviewed to identify recurring deficiencies and determine whether additional staff guidance or training is needed. The Authority will continue supervisory and QC reviews to ensure required tenant-file documentation is complete, accurate, properly maintained, and available for examination.
Statement of Condition and Criteria The Authority did not consistently perform required participant recertifications and certification updates within the Housing Choice Voucher (HGV) and Moving to Work (MTW) programs. During testing, we identified instances where participant files and Forms HUD-5005...
Statement of Condition and Criteria The Authority did not consistently perform required participant recertifications and certification updates within the Housing Choice Voucher (HGV) and Moving to Work (MTW) programs. During testing, we identified instances where participant files and Forms HUD-50058 were not updated to reflect current household information when certification actions were required. Recommendation We recommend the Authority strengthen monitoring controls over recertification and eligibility processing within both the HGV and MTW programs to ensure participant information is updated timely and eligibility determinations are supported by current household information. Corrective Action - Quality Control & Monitoring Enhancements To strengthen internal controls and ensure consistent file compliance within the Housing Choice Voucher (HCV) and Moving to Work (MTW) programs, The Greenville Housing Authority (TGHA) is executing a structural reorganization of department staff. • Dedicated Compliance Personnel: Final restructuring of the current HGV department will be completed by October 31, 2026. This includes the onboarding of a dedicated Compliance Specialist by January 2027. This role will strictly focus on quality control, preventing overlooked regulatory procedures, verifying income calculations, and ensuring complete file documentation. • Real-Time Quality Control Reviews: The Compliance Specialist will implement a proactive file-checking system, auditing annual and interim recertifications, and any other occurrences, e.g., moves, that a new certification is required in real time prior to final Form HUD-50058 transmission. This allows immediate correction of deficiencies and prevents recurring systemic errors. • Management Oversight & Target Training: Compliance reporting will be reviewed at least monthly by the Director of HCV and the HCV Lead Specialists. These monthly reviews will track error rates, identify chronic deficiencies, and directly inform the department's ongoing staff training needs. TGHA anticipates fully executing these new compliance review processes and workflows by April 30, 2027.
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