Corrective Action Plans

Finding 566031 (2025-001)

None 2025

B.l. Trevathan/hatler E. Morgan Elderly Housing, Inc.

KY

Questioned Costs HUD Housing Programs

Management deposited $619.17 on April 3, 2025 and $619.17 on April 10, 2025 to fully fund the reserve for replacement account.

View Audit 359677 Questioned Costs: $1

Finding 565373 (2025-001)

Significant Deficiency 2025

Snhs Elderly Housing Ii, Inc.

NH

HUD Housing Programs

Action: Current Property manager and supervisor completed corrections and new HUD 50059A's for certifications corrected for March 31, 2025. Ongoing Action: Additional file reviews for all certifications, prior to and after completion, requiring the signatures of the reviewing Property manager and t...

Action: Current Property manager and supervisor completed corrections and new HUD 50059A's for certifications corrected for March 31, 2025. Ongoing Action: Additional file reviews for all certifications, prior to and after completion, requiring the signatures of the reviewing Property manager and the area support manager. Additional training reviews for specific compliance findings with all management staff.

View Audit 359221

Finding 564660 (2025-001)

Significant Deficiency 2025

Snhs Elderly Housing Xi, Inc.

NH

HUD Housing Programs

Action: Current Property manager and supervisor completed corrections and new HUD 50059A's for certifications corrected for March 31, 2025. Ongoing Action: Additional file reviews for all certifications, prior to and after completion, requiring the signatures of the reviewing Property manager and t...

Action: Current Property manager and supervisor completed corrections and new HUD 50059A's for certifications corrected for March 31, 2025. Ongoing Action: Additional file reviews for all certifications, prior to and after completion, requiring the signatures of the reviewing Property manager and the area support manager. Additional training reviews for specific compliance findings with all management staff.

View Audit 358787

Finding 562237 (2025-002)

Significant Deficiency 2025

Desert Willow Apartments

CA

HUD Housing Programs

2025-002 Reportable Condition — Compliance: Condition: The Organization did not receive HUD authorization for two withdrawals from the Reserves for Replacement account totaling $2,500 during the year. Action taken: $2,000 has been returned to the Reserves for Replacement account. Contact person: Nan...

2025-002 Reportable Condition — Compliance: Condition: The Organization did not receive HUD authorization for two withdrawals from the Reserves for Replacement account totaling $2,500 during the year. Action taken: $2,000 has been returned to the Reserves for Replacement account. Contact person: Nancy Jordan Completion date: May 15, 2025 Explanation of Disagreement: Not applicable Repeat finding: No

View Audit 357832

Finding 562236 (2025-001)

Significant Deficiency 2025

Desert Willow Apartments

CA

HUD Housing Programs Cash Management

2025-001 Reportable Condition — Compliance: Condition: The Organization did not receive HUD authorization for three withdrawals from the Residual Receipts account totaling $18,354 during the year. Action taken: $5,000 has been returned to the Residual Receipts account. Contact person: Nancy Jordan C...

2025-001 Reportable Condition — Compliance: Condition: The Organization did not receive HUD authorization for three withdrawals from the Residual Receipts account totaling $18,354 during the year. Action taken: $5,000 has been returned to the Residual Receipts account. Contact person: Nancy Jordan Completion date: May 15, 2025 Explanation of Disagreement: Not applicable Repeat finding: No

View Audit 357832

Finding 559914 (2025-002)

Significant Deficiency 2025

Houston Rhf Housing, Inc. Dba Creekbend Gardens 114-Ee52

IN

HUD Housing Programs Subrecipient Monitoring

Statement of Condition 2025-002 (Assistance Listing 14.157): During the year ended January 31, 2025, 1 move-out resident file selected for testing under the compliance supplement were missing necessary documents required by the PRAC and HUD Handbook 4350.3. Recommendation: Management should ensure ...

Statement of Condition 2025-002 (Assistance Listing 14.157): During the year ended January 31, 2025, 1 move-out resident file selected for testing under the compliance supplement were missing necessary documents required by the PRAC and HUD Handbook 4350.3. Recommendation: Management should ensure that all resident files are maintained at the site for each resident of the Property in accordance with the HUD Handbook 4350.3. Management Response: Management agrees with the recommendation and will ensure that resident files are retained in accordance with the HUD Handbook 4350.3. The resident moved-out on June 13, 2024. No further action is required.

View Audit 355850

Finding 559913 (2025-001)

Significant Deficiency 2025

Houston Rhf Housing, Inc. Dba Creekbend Gardens 114-Ee52

IN

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Statement of Condition 2025-001 (Assistance Listing 14.157): During the year ended January 31, 2025, HUD approved $83,950 of withdrawals as a pre-release to pay for HVAC replacements and boilers at the Property. The Corporation used $24,300 of the pre-release to fund operations, instead of paying th...

Statement of Condition 2025-001 (Assistance Listing 14.157): During the year ended January 31, 2025, HUD approved $83,950 of withdrawals as a pre-release to pay for HVAC replacements and boilers at the Property. The Corporation used $24,300 of the pre-release to fund operations, instead of paying the invoices approved by HUD and had not paid as of January 31, 2025. Recommendation: Management should ensure that HUD approved reserve for replacement withdrawals are used for the approved purposes. Management Response: Agree. The Corporation paid the remaining costs included in the HUD approved withdrawal on March 3, 2025. There is no further action required.

View Audit 355850 Questioned Costs: $1

Finding 559068 (2025-001)

Significant Deficiency 2025

Harlem Tenants Association, Inc.

FL

HUD Housing Programs

The responsible official for the corrective action plan is Valerie Vallee, Vice President. The anticipated completion date is April 9, 2025. Response: Unpaid replacement reserve escrow from August 2024 was paid in April 2025.

View Audit 355338

Finding 1241318 (2024-001)

Material Weakness 2024

Northeast Washington County Community Health, Inc.

VT

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Management will approve and implement a procedure covering journal entries, including revenue, payroll allocations, grant billings, receivables, and account reconciliations. Each entry will identiry its preparer, purpose, accounts, amounts, and supporting records. We will implement documented approv...

Management will approve and implement a procedure covering journal entries, including revenue, payroll allocations, grant billings, receivables, and account reconciliations. Each entry will identiry its preparer, purpose, accounts, amounts, and supporting records. We will implement documented approval by an authorized person other than the preparer. The reviewer will verify support, coding, period, and calculations and record the review date and approval. The policy will prohibit self-approval.

View Audit 415475

Finding 1241197 (2024-001)

Material Weakness 2024

Senior Housing Corporation III

NJ

HUD Housing Programs Internal Control / Segregation of Duties

Finding 2024-001 Criteria The Project must make the required monthly reserve for replacements deposits according to the Regulatory Agreement with HUD. Statement of Condition The reserve for replacements account was under funded by $14,759 as of December 31, 2024, due to deposits not being made in a ...

Finding 2024-001 Criteria The Project must make the required monthly reserve for replacements deposits according to the Regulatory Agreement with HUD. Statement of Condition The reserve for replacements account was under funded by $14,759 as of December 31, 2024, due to deposits not being made in a timely manner. Effect or Potential Effect The Project is in non-compliance with the reserve for replacements compliance requirement of the Section 202 Capital Advance Program. Cause Internal controls are not in place to ensure that reserve for replacements deposits are funded in the appropriate amount and in a timely manner. Recommendation We recommend that the Project establish internal controls to ensure reserve for replacements deposits are made in the appropriate amounts and in a timely manner. Views of Responsible Officials and Planned Corrective Action The Auditee has recognized the deficiency and made an additional deposit to the reserve for replacements. Proper controls were put in place to ensure that reserve for replacements deposits are funded in the appropriate amount and in a timely manner. If the U.S. Department of Housing and Urban Development has any questions regarding this plan, please call Darryl Yorkman, Controller at 856-486-1990.

View Audit 415287

Finding 1240846 (2024-011)

Material Weakness 2024

State of Kosrae

FM

Allowable Costs / Cost Principles Subrecipient Monitoring HUD Housing Programs § 200.302 § 200.403 § 200.430

Pohnpei has agreed to the findings and is committed to implementing the recommendations. Ongoing Director of Treasury and Administration Sihna N. Lawrence sihna.lawrence@pohnpeidota.fm

View Audit 415176

Finding 1240688 (2024-005)

Material Weakness 2024

353-365 Housing Development Fund Company, Inc.

NY

HUD Housing Programs Internal Control / Segregation of Duties

Corrective Action Plan: Management acknowledges the deficiency regarding the timely return of tenant security deposits and will strengthen its internal controls to ensure that security deposits are processed and returned within the required timeframe. The following corrective actions will be impleme...

Corrective Action Plan: Management acknowledges the deficiency regarding the timely return of tenant security deposits and will strengthen its internal controls to ensure that security deposits are processed and returned within the required timeframe. The following corrective actions will be implemented: 1. Move-Out Tracking: Management will maintain a tracking process for all tenant move-outs, including the move-out date, security deposit balance, applicable deductions, and required refund date. 2. Timely Processing of Security Deposits: Upon notification of a tenant move-out, responsible staff will promptly review the tenant account, determine any allowable deductions, and process the remaining security deposit for return within the applicable required timeframe. 3. Management Review and Monitoring: A designated supervisory employee will periodically review outstanding tenant security deposits and the move-out tracking report to identify deposits approaching their required return date and ensure timely processing. 4. Documentation and Record Retention: Documentation supporting the calculation, deductions, refund, and date of return of each security deposit will be maintained in the tenant's records to demonstrate compliance with applicable requirements.

View Audit 415076

Finding 1240435 (2024-002)

Material Weakness 2024

Housing Authority of the City of Santa Barbara

CA

HUD Housing Programs Special Tests & Provisions

Management has implemented additional oversight and control to ensure that failed HQS inspections are followed up properly and timely including, when necessary, rent abatement.

View Audit 414942

Finding 1238734 (2024-002)

Material Weakness 2024

Schertz Housing Authority

TX

HUD Housing Programs Material Weakness Reporting § 200.303

We are working with our HUD field office to correct our VMS reporting.

View Audit 413657

Finding 1238471 (2024-005)

Material Weakness 2024

Peoria Housing Authority

IL

Special Tests & Provisions Procurement, Suspension & Debarment Cash Management § 200.302 § 200.303

• The Compliance Director will be responsible for maintaining updated records and ensuring accessibility during audits. • Implement checklists for each compliance area (reporting, Eligibility, Procurement) to confirm all documents are gathered before deadlines. • Schedule quarterly internal mini aud...

• The Compliance Director will be responsible for maintaining updated records and ensuring accessibility during audits. • Implement checklists for each compliance area (reporting, Eligibility, Procurement) to confirm all documents are gathered before deadlines. • Schedule quarterly internal mini audits to test readiness and correct gaps before the annual audit. • Maintain written standard operating procedures for how documentation should be completed, stored and updated. • Assign responsibility for each compliance area (waiting lists, who oversees procurement, who handles reporting) • Implement the use of audit readiness templates that outline exactly what needs to be prepared for each compliance requirement. Name of Responsible Person: Housing Director, Compliance Director Projected Completion Date: By the end of the current fiscal year.

View Audit 413338

Finding 1238470 (2024-001)

Material Weakness 2024

Peoria Housing Authority

IL

HUD Housing Programs Internal Control / Segregation of Duties Material Weakness

The lack of uniformity in the financial reporting process has been due to a lapse in staffing, as well as time required to deal with immediate neglected financial reporting needs. PHA understands the imperative nature of timely financial reporting from a posting, as well as a reconciling standpoint....

The lack of uniformity in the financial reporting process has been due to a lapse in staffing, as well as time required to deal with immediate neglected financial reporting needs. PHA understands the imperative nature of timely financial reporting from a posting, as well as a reconciling standpoint. In response to the identified deficiency, we are taking the following immediate steps to address the situation: • Account reconciliations will be done on a monthly basis. These reconciliations will not be limited to the normal short-term accounts such as Cash, Accounts Receivable and Accounts Payable. The proceeding reconciliation process will not only consider the aforementioned permanent accounts but will also consider the temporary accounts found within the Statement of Financial Activities. • Audit support will be compiled and sustained for all accounts. This support will be in the form of documentation comprising the account's audit trail. • PHA's Director of Finance will sign off on a reconciled full detail G/L for all entities monthly-by the 15th day following each monthly period. Name of Responsible Person: Finance Director, Staff Accountants Projected Completion Date: December 31, 2025

View Audit 413338

Finding 1238468 (2024-004)

Material Weakness 2024

Peoria Housing Authority

IL

HUD Housing Programs Eligibility Significant Deficiency

• Implement a new review process, 2 nd review of files and quarterly internal audit of tenant files. • Improvement of the tenant file checklist to ensure all required documents are consistently filed. • Corrections will be made to the tenant ledgers and HAP payments will be adjusted retroactively if...

• Implement a new review process, 2 nd review of files and quarterly internal audit of tenant files. • Improvement of the tenant file checklist to ensure all required documents are consistently filed. • Corrections will be made to the tenant ledgers and HAP payments will be adjusted retroactively if necessary. • Revise the operations procedures for rent calculations, payment processing, and ledger reconciliations • Conduct refresher training for the HCV staff • Conduct refresher training for inspection staff on timely inspection requirements • Implement an automated tracking system with alerts for upcoming and overdue inspections. • Increase staff and adjust workload to meet inspection timelines. Name of Responsible Person: Inspections Coordinator, Housing Director and Compliance Director. Projected Completion Date: By the end of the current fiscal year.

View Audit 413338

Finding 1237566 (2024-014)

Material Weakness 2024

Housing Authority of the City of Daytona Beach, Florida

FL

Cash Management HUD Housing Programs Significant Deficiency

Use of Excess Cash Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend that the Authority should also implement a year-end review process requiring management to document that each AMP has sufficient excess cash after meeting all reasonable operating needs befo...

Use of Excess Cash Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend that the Authority should also implement a year-end review process requiring management to document that each AMP has sufficient excess cash after meeting all reasonable operating needs before an asset management fee is charged or paid. Any unpaid or accrued asset management fees should also be reviewed and adjusted when the applicable AMP does not have sufficient excess cash. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In April 2025, the HA hired the financial consulting firm of Kubas Keller and Associates. They have vast experience with HA’s all around the country and will work with staff and possibly a new CFO to ensure that all program expenditures are recorded and allocated in an appropriate manner based on actual work performed. Name(s) of the contact person(s) responsible for corrective action: Tony Palmer, CPA Kubas Keller and Associates Planned completion date for corrective action plan: June 2025 If the U.S Department of Housing and Urban Development has questions regarding this plan, please call Charles Woodyard, CEO at 386-253-5653

View Audit 412496

Finding 1237565 (2024-013)

Material Weakness 2024

Housing Authority of the City of Daytona Beach, Florida

FL

HUD Housing Programs § 200.302 § 200.303

Depository Agreement Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend that the Authority designate an individual to obtain and execute a General Depository Agreement (HUD-51999) with each fin...

Depository Agreement Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend that the Authority designate an individual to obtain and execute a General Depository Agreement (HUD-51999) with each financial institution holding HCVP and Public Housing program funds, ensure that collateral is pledged for amounts on deposit in excess of FDIC insurance limits, and maintain the executed agreements in a centralized file for ongoing monitoring. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In April 2025, the HA hired the financial consulting firm of Kubas Keller and Associates. They have vast experience with HA’s all around the country and will work with staff to ensure that the HA obtains and executes a General Depository Agreement with each financial institution holding HCVP and Public Housing program funds. Name(s) of the contact person(s) responsible for corrective action: Tony Palmer, CPA Kubas Keller and Associates Planned completion date for corrective action plan: June 2025

View Audit 412496

Finding 1237561 (2024-012)

Material Weakness 2024

Housing Authority of the City of Daytona Beach, Florida

FL

Procurement, Suspension & Debarment HUD Housing Programs § 200.318 § 200.319 § 200.324

Procurement and Suspension and Debarment Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend that the Authority designate an individual to maintain and retain all procurement documentation (including RFPs, addenda, contracts, cost analyses, and SAM exclusion se...

Procurement and Suspension and Debarment Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend that the Authority designate an individual to maintain and retain all procurement documentation (including RFPs, addenda, contracts, cost analyses, and SAM exclusion searches) in a centralized file for each vendor, and to review each covered transaction prior to contract execution to confirm that suspension and debarment verification has been performed and documented in accordance with 2 CFR Part 200, Subpart D and 2 CFR Part 180. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In April 2025, the HA hired the financial consulting firm of Kubas Keller and Associates. They have vast experience with HA’s all around the country and will work with the Mod Dev Coordinator and the Purchasing Manager to ensure that all vendor documentation regarding procurement is in a centralized file for each vendor and to properly review each file prior to awarding the work. Name(s) of the contact person(s) responsible for corrective action: Tony Palmer, CPA Kubas Keller and Associates Planned completion date for corrective action plan: April 2025.

View Audit 412496

Finding 1237560 (2024-011)

Material Weakness 2024

Housing Authority of the City of Daytona Beach, Florida

FL

HUD Housing Programs

Allowable Costs – Public Housing Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend that the Authority designate an individual to review both cash disbursements and payroll disbursements for all program expenditures. Explanation of disagreement with audit find...

Allowable Costs – Public Housing Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend that the Authority designate an individual to review both cash disbursements and payroll disbursements for all program expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In April 2025, the HA hired the financial consulting firm of Kubas Keller and Associates. They have vast experience with HA’s all around the country and will work with staff and possibly a new CFO to ensure that all program expenditures are recorded and allocated in an appropriate manner based on actual work performed. Name(s) of the contact person(s) responsible for corrective action: Tony Palmer, CPA Kubas Keller and Associates Planned completion date for corrective action plan: April 2025.

View Audit 412496

Finding 1237559 (2024-010)

Material Weakness 2024

Housing Authority of the City of Daytona Beach, Florida

FL

Allowable Costs / Cost Principles HUD Housing Programs § 200.302 § 200.303 § 200.430

Allowable Costs - HCVP Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority designate an individual to review both cash disbursements and payroll disbursements for all program expenditures. Explanation of disagreement with audit finding: ...

Allowable Costs - HCVP Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority designate an individual to review both cash disbursements and payroll disbursements for all program expenditures. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In April 2025, the HA hired the financial consulting firm of Kubas Keller and Associates. They have vast experience with HA’s all around the country and will work with staff and possibly a new CFO to ensure that all program expenditures are recorded and allocated in an appropriate manner based on actual work performed. Name(s) of the contact person(s) responsible for corrective action: Tony Palmer, CPA Kubas Keller and Associates Planned completion date for corrective action plan: April 2025.

View Audit 412496

Finding 1237556 (2024-009)

Material Weakness 2024

Housing Authority of the City of Daytona Beach, Florida

FL

HUD Housing Programs Internal Control / Segregation of Duties

Reporting REAC Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend that the Authority designate an individual to provide oversight of the REAC submission. Explanation of disagreement with audit ...

Reporting REAC Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend that the Authority designate an individual to provide oversight of the REAC submission. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: For the last twelve months, all submissions have been completed by the Compliance Manager. The Compliance Manager was hired April 2025. Name(s) of the contact person(s) responsible for corrective action: Vanessa L. Dunn Planned completion date for corrective action plan: Action has been completed.

View Audit 412496

Finding 1237552 (2024-008)

Material Weakness 2024

Housing Authority of the City of Daytona Beach, Florida

FL

HUD Housing Programs Internal Control / Segregation of Duties

Eligibility Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and...

Eligibility Public Housing Operating Fund – Assistance Listing No. 14.850 Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and until the compliance deficiencies have been corrected. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Compliance Manager will review a sample monthly of Public Housing files to determine if the tenant files were prepared in accordance with internal policies and until the compliance deficiencies has been resolved. Name(s) of the contact person(s) responsible for corrective action: Lawrence Strawder Planned completion date for corrective action plan: July 1, 2026

View Audit 412496

Finding 1237551 (2024-007)

Material Weakness 2024

Housing Authority of the City of Daytona Beach, Florida

FL

HUD Housing Programs Material Weakness

Inspections Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority designate an individual to review the third-party inspection reports and track inspections and their timing. Explanation of disagreement with audit finding: There is no disa...

Inspections Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 Recommendation: We recommend that the Authority designate an individual to review the third-party inspection reports and track inspections and their timing. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HDB has adopted a method to perform an additional quality control review of the quality control that has been completed by the third-party inspector. Name(s) of the contact person(s) responsible for corrective action: VenKisha Haynes Planned completion date for corrective action plan: June 27, 2026

View Audit 412496

Corrective Action Plans

Filters