Corrective Action Plans

Finding 569618 (2024-002)

None 2024

Spring Meadow Association of Responsible Tenants, Inc. 023-44087

MA

HUD Housing Programs Subrecipient Monitoring

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-002: Major Programs: Capital Advance Program, Federal Assistance Listing Number 14.U01 and Section 8 New Construction and Substantial Rehabilitation, Federal Assistance Listing Number 14.182 REC...

FINDINGS - MAJOR FEDERAL AWARD PROGRAM AUDIT Department of Housing and Urban Development Finding, 2024-002: Major Programs: Capital Advance Program, Federal Assistance Listing Number 14.U01 and Section 8 New Construction and Substantial Rehabilitation, Federal Assistance Listing Number 14.182 RECOMMENDATION The auditor recommends moving some of the Project’s funds to other banks to ensure all bank account balances at each bank remain below the FDIC limit. ACTION TAKEN Carrasquillo Management LLC acknowledges the finding regarding the Project’s bank balances exceeding the Federal Deposit Insurance Corporation (FDIC) insured limit of $250,000. Carrasquillo Management LLC assumed management of the Project on March 9, 2024. At the time of transition, all existing bank accounts were already established with Westfield Bank. Management has since reviewed the account structure and balances to assess compliance with FDIC coverage requirements. Corrective Actions: 1. Risk Mitigation Plan Carrasquillo Management LLC is in the process of restructuring the Project’s banking arrangements to ensure that no single institution holds more than the FDIC-insured limit of $250,000 per ownership category. 2. Diversification of Funds The Project will open additional accounts with other FDIC-insured financial institutions and transfer excess funds accordingly. This will help safeguard assets and reduce exposure in the unlikely event of bank failure. 3. Ongoing Monitoring Management has implemented a monthly monitoring protocol to review account balances and ensure ongoing compliance with FDIC limits. This process includes scheduled reviews by the finance team to confirm that no account exceeds the insured threshold. 4. Policy Update Internal financial policies are being updated to include FDIC compliance requirements, ensuring that any future account openings or large fund deposits are properly reviewed and managed. Carrasquillo Management LLC is committed to protecting the financial assets of the Project and ensuring full compliance with HUD requirements and FDIC insurance guidelines.

View Audit 361007

Finding 569598 (2024-006)

Material Weakness 2024

Wayne Metropolitan Community Action Agency and Affiliates

MI

Questioned Costs Special Tests & Provisions HUD Housing Programs

2024-006: Special Tests and Provisions - Reasonable Rental Rates A compliance analyst has been hired to review client files and ensure that appropriate documentation is present in client files to meet funder needs and support federal expenditures.

View Audit 360986 Questioned Costs: $1

Finding 569477 (2024-005)

None 2024

North East Community Action Corporation and Subsidiaries

MO

HUD Housing Programs

2024-005 U.S. Department of Housing and Urban Development Housing Voucher Cluster - 14.871 Section 8 Housing Choice Vouchers and 14.879 Mainstream Vouchers Condition and Criteria: The Agency must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality ...

2024-005 U.S. Department of Housing and Urban Development Housing Voucher Cluster - 14.871 Section 8 Housing Choice Vouchers and 14.879 Mainstream Vouchers Condition and Criteria: The Agency must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS). The Agency did not perform inspections for one unit in our sample. Cause: Procedures are in place for performing inspections, but due to inspector turnover, the inspections were not performed during the fiscal year. Effect: There is a possibility that sanctions could be imposed if they do not perform inspections as required by the program. Context: The Agency is aware of the requirement and has promoted an Inspector to oversee the processes and ensure the Agency is complying with the requirements. CORRECTIVE ACTION PLAN RESPONSE: As stated above, we have promoted someone to a supervisory position to oversee the inspectors and their processes. Also, the housing counselors have been asked to check and make sure an inspection has been done in the previous 24 months before finalizing their annual certifications, to help ensure none are overlooked. Anticipated completion date: 9/30/25 Responsible party: Michelle Worthington, Section 8 Housing Director Please contact Vicky Pritchett, Finance Director at 573-213-4811 extension #10102 with questions regarding this plan.

View Audit 360960

Finding 569476 (2024-004)

Material Weakness 2024

North East Community Action Corporation and Subsidiaries

MO

Questioned Costs HUD Housing Programs Subrecipient Monitoring

2024-004 U.S. Department of Housing and Urban Development Housing Voucher Cluster - 14.871 Section 8 Housing Choice Vouchers and 14.879 Mainstream Vouchers - Material Weakness Condition and Criteria: An assistance payment was calculated incorrectly due to errors in data entry. Eligibility for the p...

2024-004 U.S. Department of Housing and Urban Development Housing Voucher Cluster - 14.871 Section 8 Housing Choice Vouchers and 14.879 Mainstream Vouchers - Material Weakness Condition and Criteria: An assistance payment was calculated incorrectly due to errors in data entry. Eligibility for the program requires payment based on substantiated income and expense of the applicants. Cause: Human error in the calculation of income allowance which affected the assistance payment. Effect: The cost of the assistance may be disallowed. Context: A sample of grants totaling $33,038 was selected for audit from a population of $6,470,217. The test found questioned costs totaling $36. Our sample was a statistically valid sample. CORRECTIVE ACTION PLAN RESPONSE: Housing counselors are instructed to document their math on the proof of income they are figuring, and double check their figures. A spreadsheet has also been created so that they can choose how often a client is paid and enter the amounts of pay and it figures the totals for them. If they use the spreadsheet, they are asked to print it out and scan it in with the transaction documents. Anticipated completion date: 9/30/25 Responsible party: Michelle Worthington, Section 8 Housing Director Please contact Vicky Pritchett, Finance Director at 573-213-4811 extension #10102 with questions regarding this plan.

View Audit 360960 Questioned Costs: $1

Finding 569475 (2024-003)

Material Weakness 2024

North East Community Action Corporation and Subsidiaries

MO

Questioned Costs HUD Housing Programs Material Weakness

2024-003 U.S. Department of Housing and Urban Development Housing Voucher Cluster - 14.871 Section 8 Housing Choice Vouchers and 14.879 Mainstream Vouchers Condition and Criteria: The Agency is to retain supporting documentation for individuals served by the program to support assistance payments m...

2024-003 U.S. Department of Housing and Urban Development Housing Voucher Cluster - 14.871 Section 8 Housing Choice Vouchers and 14.879 Mainstream Vouchers Condition and Criteria: The Agency is to retain supporting documentation for individuals served by the program to support assistance payments made to these individuals. The Agency was unable to retrieve some of their scanned documentation for part of the year audited (four tenants in the sample). Cause: The Agency relies solely on an outside vendor to back-up their data. The Agency switched vendors for part of the year audited and upon terminating the agreement with that vendor, some scanned documentation was lost and is irretrievable. The Agency did not maintain paper files. Effect: There is a possibility rental assistance payments could be considered disallowed expenditures due to lack of supporting documentation identified. Context: The Agency identified the issue and recreated lost documentation to the best of their ability. A sample of grants totaling $33,038 was selected for audit from a population of $6,470,217. The test found questioned costs totaling $1,962. Our sample was a statistically valid sample. CORRECTIVE ACTION PLAN RESPONSE: The agency recreated what we could and uploaded to the current housing software. Housing counselors are instructed to keep the paper versions of household transactions for two years and verify that the electronic copy is clear before shredding. Anticipated completion date: 9/30/25 Responsible party: Michelle Worthington, Section 8 Housing Director Please contact Vicky Pritchett, Finance Director at 573-213-4811 extension #10102 with questions regarding this plan.

View Audit 360960 Questioned Costs: $1

Finding 569474 (2024-002)

Material Weakness 2024

North East Community Action Corporation and Subsidiaries

MO

Questioned Costs HUD Housing Programs Material Weakness

2024-002 U.S. Department of Housing and Urban Development Housing Voucher Cluster - 14.871 Section 8 Housing Choice Vouchers and 14.879 Mainstream Vouchers - Material Weakness Condition and Criteria: The Agency is to retain supporting documentation for individuals served by the program to support a...

2024-002 U.S. Department of Housing and Urban Development Housing Voucher Cluster - 14.871 Section 8 Housing Choice Vouchers and 14.879 Mainstream Vouchers - Material Weakness Condition and Criteria: The Agency is to retain supporting documentation for individuals served by the program to support assistance payments made to these individuals. The Agency was unable to retrieve some of their scanned documentation for part of the year audited (four tenants in the sample). Cause: The Agency relies solely on an outside vendor to back-up their data. The Agency switched vendors for part of the year audited and upon terminating the agreement with that vendor, some scanned documentation was lost and is irretrievable. The Agency did not maintain paper files. Effect: There is a possibility rental assistance payments could be considered disallowed expenditures due to lack of supporting documentation identified. Context: The Agency identified the issue and recreated lost documentation to the best of their ability. A sample of grants totaling $33,038 was selected for audit from a population of $6,470,217. The test found questioned costs totaling $1,962. Our sample was a statistically valid sample. CORRECTIVE ACTION PLAN RESPONSE: The agency recreated what we could and uploaded to the current housing software. Housing counselors are instructed to keep the paper versions of household transactions for two years and verify that the electronic copy is clear before shredding. Anticipated completion date: 9/30/25 Responsible party: Michelle Worthington, Section 8 Housing Director Please contact Vicky Pritchett, Finance Director at 573-213-4811 extension #10102 with questions regarding this plan.

View Audit 360960 Questioned Costs: $1

Finding 569473 (2024-003)

Material Weakness 2024

Rock Island Housing Authority

IL

Eligibility HUD Housing Programs

We have implemented a plan for proper training to make sure everyone is aware of HUD rules regarding family eligibility. We will complete a quarterly audit of randomly selected files to ensure we are adhering to HUD rules. We will ensure staff monitors eligibility for each resident within the requ...

We have implemented a plan for proper training to make sure everyone is aware of HUD rules regarding family eligibility. We will complete a quarterly audit of randomly selected files to ensure we are adhering to HUD rules. We will ensure staff monitors eligibility for each resident within the required time frame.

View Audit 360951

Finding 569472 (2024-002)

Material Weakness 2024

Rock Island Housing Authority

IL

HUD Housing Programs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

In order to keep cash as accurate as possible, we will clear interfunds monthly. In order to prevent co-mingling of cash, we will begin a plan to break apart the funds for each program – Spencer, COCC, 3rd and 11th. We also adjusted allocations to better reflect employees’ use of time and actual c...

In order to keep cash as accurate as possible, we will clear interfunds monthly. In order to prevent co-mingling of cash, we will begin a plan to break apart the funds for each program – Spencer, COCC, 3rd and 11th. We also adjusted allocations to better reflect employees’ use of time and actual costs incurred by program and by LITC property. Public Housing and COCC training is planned that all finance staff will attend to make sure proper HUD procedures, rules, and guidelines are followed. By June 2025, we have already reduced the receivable by 200,000. The plan is to reduce the receivable down to $0 in 3-5 years.

View Audit 360951

Finding 569454 (2024-001)

None 2024

McKee Manor Apartments, Inc.

KY

HUD Housing Programs Matching / Level of Effort / Earmarking

Corrective Action Plan June 27, 2025 McKee Manor Apartments, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2024. Hicks & Associates CPAs 1795 Alysheba Way, Ste 6206 Lexington, KY 40509 Audit Period: Year Ended September 30, 2024 The finding fr...

Corrective Action Plan June 27, 2025 McKee Manor Apartments, Inc. respectfully submits the following corrective action plan for the year ended September 30, 2024. Hicks & Associates CPAs 1795 Alysheba Way, Ste 6206 Lexington, KY 40509 Audit Period: Year Ended September 30, 2024 The finding from the September 30, 2024 Schedule of Findings and Questioned Costs is discussed below: FINDING – MAJOR FEDERAL AWARD PROGRAM 2024-001 Replacement Reserve Loans Payback Recommendation: We recommend that the Project adhere to the payback terms of the HUD approved loans from the Replacement Reserve or negotiate different terms with HUD and obtain approval from HUD. Action Taken: Management acknowledges the finding, and the Project is working with X-Caliber Capital to get the repayment payments current and will be working on paying extra to get the repayments paid off sooner. If you have any questions regarding this plan, please call Jean Peyton at (859)255-3334. Sincerely, Jean Peyton ______________________________________ Jean Peyton, Regional Property Manager Kirkpatrick Management Company

View Audit 360940

Finding 569423 (2024-025)

Material Weakness 2024

District of Columbia Housing Authority

MD

HUD Housing Programs Special Tests & Provisions Material Weakness

Finding: 2024-025 U.S. Department of Housing and Urban Development AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance/ Material Noncompliance for Special Tests and Provisions – Rent Reasonableness Repeat Finding: Yes 2023-007 Auditee’s Corrective Actio...

Finding: 2024-025 U.S. Department of Housing and Urban Development AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance/ Material Noncompliance for Special Tests and Provisions – Rent Reasonableness Repeat Finding: Yes 2023-007 Auditee’s Corrective Action Plan: DCHA has implemented controls to ensure rent to the owner is reasonable and in accordance to our admin plan. All rent reasonableness files are housed in the rent reasonableness software- AffordableHousing.com. DCHA has a policy in place for rent reasonableness, and all rent reasonable comparability studies are housed in the software system. Contact Person:Anton Shaw, Director, Housing Choice Voucher Program Completion Date: September 30, 2026

View Audit 360910

Finding 569422 (2024-024)

Material Weakness 2024

District of Columbia Housing Authority

MD

HUD Housing Programs Special Tests & Provisions Material Weakness

Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Auditee’s Corrective Action Plan: DCHA reviewed the eight te...

Finding 2024-024 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Special Tests and Provisions - HQS Repeat Finding: Yes; 2023-005 Auditee’s Corrective Action Plan: DCHA reviewed the eight tested, and they will be completed in accordance to the DCHA Admin plan which will be completed in FY 2025. Contact Person: Anton Shaw, Director, Housing Choice Voucher Program Completion Date: September 30, 2025

View Audit 360910

Finding 569421 (2024-023)

Material Weakness 2024

District of Columbia Housing Authority

MD

HUD Housing Programs Special Tests & Provisions Material Weakness

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Auditee’s Corrective Action Plan: The HCVP Inspe...

Finding 2024-023 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Special Tests and Provisions – HQS Enforcement Repeat Finding: Yes; 2023-004 Auditee’s Corrective Action Plan: The HCVP Inspections department has begun a department reorganization which includes updating Standard Operating Procedures (SOPs), enhancement to the Yardi inspections module, and training. The reorganization will allow oversight of DCHA inspection team and contracted inspection staff that was brought on to assist the backlog of annual inspections. Quality control measures have also been put into place to monitor the Yardi system of timely inspections, reinspections, and/or abatements. Contact Person: Anton Shaw, Director, Housing Choice Voucher Program Completion Date: September 30, 2026

View Audit 360910

Finding 569420 (2024-022)

Material Weakness 2024

District of Columbia Housing Authority

MD

HUD Housing Programs Eligibility Material Weakness

Finding 2024-022 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Eligibility Repeat Finding: Yes; 2023-003 Auditee’s Corrective Action Plan: DCHA has increased their quality control departme...

Finding 2024-022 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Control over Compliance for Eligibility Repeat Finding: Yes; 2023-003 Auditee’s Corrective Action Plan: DCHA has increased their quality control department to ensure that file reviews are completed and stored electronically in the Yardi system. In addition, DCHA has engaged with several consulting groups to assist in the backlog of recertifications while the current staff works on the current recertifications so they do not become past due like in the past. Third party vendors have been brought onboard to assist with processing all past due biennial recertifications. Contact Person: Anton Shaw, Director, Housing Choice Voucher Program Completion Date: September 30, 2026

View Audit 360910

Finding 569417 (2024-021)

Material Weakness 2024

District of Columbia Housing Authority

MD

Eligibility HUD Housing Programs Material Weakness

Finding 2024-021 U.S. Department of Housing and Urban Development (HUD) AL No. 14.881 Moving to Work Demonstration Material Weakness in Internal Control over Compliance for Eligibility Repeat Finding: Yes; 2023-002 Auditee’s Corrective Action Plan: DCHA has increased their quality control department...

Finding 2024-021 U.S. Department of Housing and Urban Development (HUD) AL No. 14.881 Moving to Work Demonstration Material Weakness in Internal Control over Compliance for Eligibility Repeat Finding: Yes; 2023-002 Auditee’s Corrective Action Plan: DCHA has increased their quality control department to ensure that file reviews are completed and stored electronically in the Yardi system. In addition, DCHA has engaged with several consulting groups to assist in the backlog of recertifications while the current staff works on the current recertifications so they do not become past due like in the past. Contact Person: Anton Shaw, Director, Housing Choice Voucher Program Completion Date: September 30, 2026

View Audit 360910

Finding 569415 (2024-003)

Material Weakness 2024

First Financial Credit Union

NM

Allowable Costs / Cost Principles HUD Housing Programs Material Weakness

3. Finding 2024-003 Section 5.1 of the grant agreement incorporates 2 CFR Part 200, which establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards, Uniform Guidance (UG) Administrative Requirements. UG administrative requirements puts emphasis on wr...

3. Finding 2024-003 Section 5.1 of the grant agreement incorporates 2 CFR Part 200, which establishes uniform administrative requirements, cost principles, and audit requirements for Federal awards, Uniform Guidance (UG) Administrative Requirements. UG administrative requirements puts emphasis on written policies and procedures as central in its objective to maintain effective internal controls over federal awards. a. Action(s) Taken or Planned on the Finding Management has is in the process of developing policies and procedures to comply with the grant agreement and 2 CFR 200. b. Implementation Date: Estimated completion date is August 31, 2025.

View Audit 360908

Finding 569391 (2024-003)

Significant Deficiency 2024

Woodbend Housing Corporation

OH

Questioned Costs HUD Housing Programs Reporting

Management acknowledges the auditor’s observation and deposit will be made.

View Audit 360895 Questioned Costs: $1

Finding 569390 (2024-002)

Significant Deficiency 2024

Woodbend Housing Corporation

OH

Questioned Costs HUD Housing Programs Allowable Costs / Cost Principles

Management is currently conducting a comprehensive review of the process to ensure alignment with compliance requirements and identify areas for improvement.

View Audit 360895 Questioned Costs: $1

Finding 569389 (2024-001)

Significant Deficiency 2024

Woodbend Housing Corporation

OH

Questioned Costs HUD Housing Programs Reporting

Management is currently conducting a comprehensive review of the process to ensure alignment with compliance requirements and identify areas for improvement.

View Audit 360895 Questioned Costs: $1

Finding 569388 (2024-003)

Material Weakness 2024

Bridgeton Housing Authority

NJ

Questioned Costs Special Tests & Provisions Eligibility

Finding 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Assistance Listing Numbers: 14.850 Noncompliance – N. Special Tests and Provisions – Selections from the Waiting List Non Compliance Material to the Fi...

Finding 2024-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Assistance Listing Numbers: 14.850 Noncompliance – N. Special Tests and Provisions – Selections from the Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Admissions and Continued Occupancy Policy for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203(Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with certainty that new move-ins were selected from the wait list in an order that is in accordance with the Authority’s policy. Context: Two (2) names were selected from the new move-in list and those names were to be traced to the waiting list to verify new move-ins were chosen in an order that was in accordance with the Authority’s policy. It was determined that two (2) out of two (2) new move-ins selected could not be traced with certainty back to the Authority's waiting list Known Questioned Costs: $8,691 Findings – Federal Award Program Audit (continued) Finding 2024-003 (continued) Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to selections from the waiting list. 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 Public and Indian Housing Program is in material non-compliance with the special tests and provisions type of compliance related to selections from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures related to selections from the waiting list that will reasonably 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 Public and Indian Housing Program and will implement internal control procedures related to selections from the waiting list that will ensure compliance with federal regulations. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.

View Audit 360890 Questioned Costs: $1

Finding 569386 (2024-001)

Significant Deficiency 2024

Bridgeton Housing Authority

NJ

HUD Housing Programs Significant Deficiency Special Tests & Provisions

Finding 2024-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Assistance Listing Numbers 14.850 Noncompliance – N. Special Tests and Provisions - Recording of Declarations of Trust/Declaration of Restrictive Coven...

Finding 2024-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Assistance Listing Numbers 14.850 Noncompliance – N. Special Tests and Provisions - Recording of Declarations of Trust/Declaration of Restrictive Covenants Against Public Housing Property Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Findings – Federal Award Program Audit (continued) Finding 2024-001 (continued) Criteria: A current Declaration of Trust ("DOT"), in a form acceptable to HUD, must be recorded against all public housing property owned by PHAs (or private entities for public housing developed under 24 CFR Part 905, Subpart F) that has been acquired, developed, maintained, or assisted with funds from the US Housing Act of 1937. A DOT is a legal instrument that grants HUD an interest in public housing property. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were properties that the Authority owns and insures that did not have DOTs on file during the time of audit. Context: The Authority owns three (3) public housing properties. During the audit, it was noted that three (3) out of three (3) public housing properties did not have DOTs on file. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to the recording of DOTs against public housing property. The Authority has not properly filed DOTs in compliance with program requirements. Effect: The Public and Indian Housing Program is in non-compliance with the special tests and provisions type of compliance related to the recording of DOTs against public housing property. Recommendation: We recommend that the Authority files proper DOTs on the public housing properties. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor and will ensure all necessary DOTs are recorded. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.

View Audit 360890

Finding 569385 (2024-006)

Significant Deficiency 2024

Bridgeton Housing Authority

NJ

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Finding 2024-006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – Utility Allowance Schedule Non Compliance Material to the ...

Finding 2024-006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – Utility Allowance Schedule Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Utility Allowance Schedule. The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition: Based on inspection of files and discussions with management, it was determined that the Authority did not have up-to-date utility allowance schedules on file. Context: The utility allowance schedules that the Authority has on file have not been updated since 2018. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to the utility allowance schedules. 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 Section 8 Housing Choice Voucher Program is in non-compliance with the special tests and provisions type of compliance related to the utility allowance schedules. Recommendation: We recommend that the Authority updates the utility allowance schedules annually 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 significant deficiency in the Section 8 Housing Choice Voucher Program and will update the utility allowance schedules annually in accordance with HUD guidelines. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.

View Audit 360890

Finding 569384 (2024-005)

Material Weakness 2024

Bridgeton Housing Authority

NJ

Questioned Costs HUD Housing Programs Material Weakness

Finding 2024-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Non Compliance ...

Finding 2024-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Enforcement. For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct all life threatening HQS deficiencies within 24 hours after the inspections and all other deficiencies within 30 days or within a specified PHA-approved extension. Condition: Based upon inspection of the Authority’s files and on discussion with management, the Authority did not properly abate or provide proper extension documentation for failed inspections selected for testing. Context: The Authority did not provide proper extension documentation or properly abate four (4) out of nine (9) failed inspections selected for testing. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: $9,282 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS enforcement. 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 Section 8 Housing Choice Voucher Program is in material non-compliance with the special tests and provisions type of compliance related to HQS enforcement. Findings – Federal Award Program Audit (continued) Finding 2024-005 (continued) Recommendation: We recommend the Authority design and implement internal control procedures related to HQS enforcement that will reasonably 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 Section 8 Housing Choice Voucher Program and will implement internal control procedures related to HQS enforcement that will ensure compliance with federal regulations. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.

View Audit 360890 Questioned Costs: $1

Finding 569383 (2024-004)

Material Weakness 2024

Bridgeton Housing Authority

NJ

Questioned Costs HUD Housing Programs Special Tests & Provisions

Finding 2024-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions - Reasonable Rent Non Compliance Material to the Financial S...

Finding 2024-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.871 Noncompliance – N. Special Tests and Provisions - Reasonable Rent Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Reasonable Rent. The Authority must do the following: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: Based upon inspection of the Authority’s files and discussion with management, there were newly leased units for which the evaluation of rent reasonableness was not performed. Context: There were approximately 6 newly leased units. Of a sample size of one (1) newly leased unit, one (1) unit's documentation of reasonable rent was not available for examination. Our sample size is statistically valid. Known Questioned Costs: $8,661 Findings – Federal Award Program Audit (continued) Finding 2024-004 (continued) Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers program is in material non-compliance with the special tests and provisions type of compliance related to reasonable rent. Recommendation: We recommend the Authority design and implement internal control procedures related to reasonable rent that will reasonably 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 Section 8 Housing Choice Vouchers Program and will implement internal control procedures related to reasonable rent that will ensure compliance with federal regulations. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.

View Audit 360890 Questioned Costs: $1

Finding 569382 (2024-002)

Significant Deficiency 2024

Bridgeton Housing Authority

NJ

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Finding 2024-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program, Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.850, 14.871 Noncompliance – N. Special Tests and Provisions – Depository ...

Finding 2024-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program, Section 8 Housing Choice Vouchers Program Federal Assistance Listing Numbers: 14.850, 14.871 Noncompliance – N. Special Tests and Provisions – Depository Agreements Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: PHAs are required to enter into depository agreements with their financial institution using the HUD-51999 (OMB No. 2577-0075) or a form required by HUD in the ACC. The agreements serve as safe guards for Federal funds and provide third-party rights to HUD (Section 9 of the ACC). Condition: Based on inspection of files and discussions with management, it was determined that depository agreements were not on file during the time of audit. Context: The Authority did not have depository agreements with their financial institutions on file during the time of audit. We were unable to verify the existence of depository agreements and unable to determine if the Authority met the terms of the agreements. Findings – Federal Award Program Audit (continued) Finding 2024-002 (continued) Cause: There is a significant deficiency in internal controls over compliance for the special tests and provision type of compliance related to depository agreements. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls for their partnered management company that assures the program is in compliance. Effect: The Public and Indian Housing Program is in non-compliance with the special tests and provisions type of compliance related to depository agreements. Recommendation: We recommend that the Authority properly file HUD-51999 forms in accordance with HUD guidelines. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor and will properly file HUD-51999 forms in accordance with HUD guidelines. Ivy Melendez, Executive Director, will be responsible to implement this corrective action by September 30, 2025.

View Audit 360890

Finding 569374 (2024-003)

None 2024

Homes for Good Housing Agency

OR

Questioned Costs HUD Housing Programs Cash Management § 200.302 § 200.305

Action: Set Fridays as a standard recurring day to pay invoices. Date completed: May 2025 Responsible Person: Accounting Technician, Kary Smith Action: Set Monday as the day to make capital grant drawdowns. HUD deposits the draws via ACH on Wednesdays. The PHA releases the payment on Friday Date co...

Action: Set Fridays as a standard recurring day to pay invoices. Date completed: May 2025 Responsible Person: Accounting Technician, Kary Smith Action: Set Monday as the day to make capital grant drawdowns. HUD deposits the draws via ACH on Wednesdays. The PHA releases the payment on Friday Date completed: May 2025 Responsible Person: Senior Accounting Technician, Stacy Verrinder Action: At the time of the request for capital grant transfers from the Moving to Work account to the operating account, include the Accounts Payable tech in the email distribution and include information about which invoice A/P must pay by Friday Date completed: May 2025 Responsible Person: Senior Accounting Technician, Stacy Verrinder

View Audit 360862 Questioned Costs: $1

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