Corrective Action Plans

Finding 514058 (2024-002)

Material Weakness 2024

FL

HUD Housing Programs Material Weakness Special Tests & Provisions

2024-002 Special Tests and Provisions – Selection from the Waiting List Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2023-003 from March 31, 2023 (i...

2024-002 Special Tests and Provisions – Selection from the Waiting List Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding of 2023-003 from March 31, 2023 (initially occurred as Finding 2022-004 from March 31, 2022) Condition: 25 out of 250 new admissions were selected for testing. Exceptions were noted as follows: • 15 new admissions where the selection from the waiting list was not in compliance with the Authority’s administrative plan. The administrative plan states that that the waiting list should be organized by preference point and then by date and time of application (first come first serve basis). However, the applicants tested were ranked randomly through a lottery. Due to this issue, there were many applicants that were not ranked properly on the waiting list and were thus not admitted in proper sequence into the Section 8 program. • 4 new admissions where the Authority was unable to provide support that the applicants were properly selected from the waiting list (as the waiting list for the new admissions that were selected from was not retained). • 1 new admission where the Authority did not sign the lease agreement and the unit address and rent amount on the lease agreement did not agree to the Form 50058. • 1 new admission where the Authority could not provide the tenant’s voucher. Recommendation: The Authority should correct the deficiencies and ensure staff is aware of acceptable procedures as outlined in the Authority’s Administrative plan. In addition, the Authority should review staffing levels, skill sets and case load. Furthermore, the Authority should utilize an ongoing quality control review process to ensure proper procedures are being followed. Action Taken: We concur with the recommendation. Due to the COVID-19 pandemic and related staff absences and turnover, we were unable to provide an ongoing quality control review process and provide ongoing staff training and timely management reviews. We are focused on implementing such procedures and will review staffing levels, skill sets, and case load for each employee.

View Audit 332251

Finding 514055 (2024-001)

Material Weakness 2024

Housing Authority of Brevard County

FL

HUD Housing Programs Eligibility Material Weakness

2024-001 Eligibility – Tenant Files Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream – Vouchers CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding (the prior year finding was a significant deficiency) of 2023-002 from...

2024-001 Eligibility – Tenant Files Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream – Vouchers CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance This is a repeat finding (the prior year finding was a significant deficiency) of 2023-002 from March 31, 2023 (initially occurred as Finding 2021-003, Significant Deficiency) Condition: Out of a total tenant population of approximately 1,775 tenants, 25 files were selected for testing. Exceptions were noted as follows: • 1 tenant file had the following errors: o Miscalculation of social security income reported on the form 50058 (used a prior year SSI instead of the current year). Correcting this error would decrease the HAP rent from $1,610 to $1,567. o One missing 214-affidavit form for a member of the household. However, based on the birth certificate, the member of the household is a U.S. citizen. • 1 tenant file had the following errors: o Two members of the household did not check the checkbox on the 214-affidavit form indicating their immigration status. However, based on the birth certificates, the two household members are U.S. citizens. o The 9886 form was not dated. Thus, we do not know if the 9886 form was signed within 15 month required timeframe. • 1 tenant file had the following errors: o Missing 214-affidavit form for a member of the household. However, based on the birth certificate, the member of the household is a U.S. citizen. o The tenant did not sign and date the Form 9886. • 1 tenant file had the following errors and correcting the errors would increase the HAP rent from $1,130 to $1,159: o Miscalculation of social security income reported on the 50058. o Miscalculation of medical expense reported on the 50058. • 1 tenant file error where a member of the household over the age of 18 did not sign the Form 9886. • 1 tenant file error where social security income was calculated incorrectly. Correcting the income would decrease the HAP rent from $1,155 to $1,153. • 1 tenant file error where a member of the household over the age of 18 did not sign the 9886. • 1 tenant file error where the tenant dated the year on the 9886 form 2013 when it should be 2023. • 1 tenant file error where a member of the household over 18 years old did not sign Form 9886. • 1 tenant file error where the tenant’s wage income was miscalculated. However, correcting the error would have no effect on the HAP rent amount. • 1 tenant file error where there was no EIV form for the recertification period. • 1 tenant file error where tenant wage income was calculated incorrectly. Correcting these income issues would decrease the HAP rent from $1,207 to $896. • 1 tenant file had the following errors and correcting the errors would decrease the HAP rent from $1,378 to $1,030: o An incorrect utility allowance was reported on the Form 50058. o Income support was not reported correctly on the Form 50058. • 1 tenant file had the following errors: o A member of the household did not check the checkbox on the 214-affidavit form indicating their immigration status. However, based on the birth certificate, the household member is a U.S. citizen. o Support for tenant’s pension income was over 12 months old. • 1 tenant file error where child support income was calculated incorrectly. However, correcting the error would have no effect on the HAP rent amount. Recommendation: The Authority should correct the deficiencies noted in the tested files and utilize an ongoing quality control review process on the entire tenant population to ensure proper compliance with the requirements related to tenant eligibility. Ongoing staff training and timely management reviews should be utilized to ensure staff is aware of acceptable procedures. In addition, the Authority should review staffing levels, skill sets and case load. Action Taken: We concur with the recommendation. Due to the COVID-19 pandemic and related staff absences and turnover, we were unable to provide an ongoing quality control review processes and provide ongoing staff training and timely management reviews. We are focused on implementing such procedures and will review staffing levels, skill sets, and case load for each employee.1 tenant file error where the Form 50058 reported an incorrect utility allowance, but correcting the allowance would not change the HAP rent amount.

View Audit 332251

Finding 514042 (2024-002)

Significant Deficiency 2024

City of Greenville

SC

HUD Housing Programs Reporting Internal Control / Segregation of Duties

CONTACT PERSON: James Kennedy, Comptroller, jkennedy@greenvillesc.gov CORRECTIVE ACTION: The Office of Management and Budget has established regular meetings with Community Development departments to ensure collaboration and provide quick resolution of any reporting issues. Office of Management and...

CONTACT PERSON: James Kennedy, Comptroller, jkennedy@greenvillesc.gov CORRECTIVE ACTION: The Office of Management and Budget has established regular meetings with Community Development departments to ensure collaboration and provide quick resolution of any reporting issues. Office of Management and Budget will increase oversight by instituting a mandatory review and approval process for each financial report. This process will ensure that all financial reports are reconciled to supporting documentation and prior submissions before being finalized. PROPOSED COMPLETION DATE: Prior to December 31, 2024.

View Audit 332240

Finding 513883 (2024-001)

None 2024

Mayfield Manor II

FL

HUD Housing Programs Reporting

Oversight Agency for Audit, National Steelworkers Oldtimers Community Urban Development Company of Canton Two, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2024. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N Un...

Oversight Agency for Audit, National Steelworkers Oldtimers Community Urban Development Company of Canton Two, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2024. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audit period: April 1, 2023 through March 31, 2024 The finding from the March 31, 2024 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING NO. 2024-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should perform annual unit inspections and maintain the information in the tenant files. Action Taken: Staff training has been provided with additional HUD training inclusive of EIV reporting and tenant file maintenance and included in monthly reporting procedures. If the Oversight Agency for Audit has questions regarding these plans, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips Irene Phillips CFO

View Audit 332027

Finding 513880 (2024-001)

Significant Deficiency 2024

Housing Authority of Kansas City Kansas

RI

HUD Housing Programs Special Tests & Provisions Significant Deficiency

2024-001 - Public Housing Waiting List Auditee’s Response and Planned Corrective Action We acknowledge that this issue arose due to a software problem. To enhance our document management, we are taking the following steps: implementing regular system maintenance and updates, providing enhanced sta...

2024-001 - Public Housing Waiting List Auditee’s Response and Planned Corrective Action We acknowledge that this issue arose due to a software problem. To enhance our document management, we are taking the following steps: implementing regular system maintenance and updates, providing enhanced staff training, and establishing a backup procedure for critical documents. Planned Implementation Date of Corrective Action: April 1, 2024 Person Responsible for Corrective Action: Johnella Miller, Resident Selector

View Audit 331937

Finding 513876 (2024-001)

None 2024

Topeka Supportive Housing, Inc.

MN

HUD Housing Programs

Topeka Supportive Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024: Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: June 30, 2024 The fin...

Topeka Supportive Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024: Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: June 30, 2024 The findings from the June 30, 2024 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT - None; FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: For one of the tenant files tested, the Project was late with the tenant recertification. Recommendation: Project personnel should be reminded that timely recertification is an important step in tenant management. Action Taken: The Project agrees with the finding. Recertification staff have been reminded to be aware of deadlines and perform recertification procedures in a timely manner. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-757-3038.

View Audit 331894

Finding 513875 (2024-001)

None 2024

Shakopee Supportive Housing, Inc.

MN

Questioned Costs HUD Housing Programs

Shakopee Supportive Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024: Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: June 30, 2024 The f...

Shakopee Supportive Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024: Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: June 30, 2024 The findings from the June 30, 2024 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT - None; FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant share of monthly rent. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant and adjust a future monthly billing. Project managers should be aware of the importance of computing the tenant's household income correctly. Action taken: The Project agrees with the finding. Tenant rent was recomputed in August 2024 and management adjusted the September 2024 HUD billing. If the Department of Housing and Urban Development has questions regarding these plans, please call Ling Han at 651-757-3038.

View Audit 331892 Questioned Costs: $1

Finding 513872 (2024-001)

None 2024

Asi - Bozeman, Inc.

MN

Questioned Costs HUD Housing Programs

ASI Bozeman, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024: Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: June 30, 2024 The findings from the...

ASI Bozeman, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024: Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: June 30, 2024 The findings from the June 30, 2024 schedule of findings and questioned costs is discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT - None; FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 Condition: One of the tenant files tested contained a mathematical error in computing household income in the process of computing the tenant share of monthly rent. Recommendation: The Project should recompute the HUD subsidy and tenant rent for this tenant and adjust a future monthly billing. Project managers should be aware of the importance of computing the tenant's household income correctly. Action taken: The Project agrees with the finding. Tenant rent was recomputed in August 2024 and will be corrected on the October 2024 HAP voucher. If the Department of Housing and Urban Development has questions regarding these plans, please call Ling Han at 651-757-3038.

View Audit 331888 Questioned Costs: $1

Finding 513871 (2024-001)

None 2024

Asi - Anoka County, Inc.

MN

Questioned Costs HUD Housing Programs

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI Anoka County, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 ...

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ASI Anoka County, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit period: June 30, 2024 The finding from the June 30, 2024 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT - None, FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 The Project overpaid management fees to the management company. Recommendation: The management company should repay the $246 to the Project. Action Taken: The Project agrees with the finding. The management company will repay the overpaid management fees as soon as possible. If the Department of Housing and Urban Development has questions regarding this plan, please call Ling Han at 651-757-3038.

View Audit 331887 Questioned Costs: $1

Finding 513865 (2024-001)

None 2024

Albert Lea Senior Housing, Inc.

MN

HUD Housing Programs

Albert Lea Senior Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024: Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: June 30, 2024 The fin...

Albert Lea Senior Housing, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2024: Name and address of independent public accounting firm: Baker Meinz & Associates, Ltd. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: June 30, 2024 The finding from the June 30, 2024 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT - None, FINDINGS - FEDERAL AWARD PROGRAMS AUDIT- DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2024-001: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: In one of the two months tested, the report for establishing net income was not submitted to HUD. Recommendation: The Project should ensure all monthly net income reports are being filed. Action taken: The Project agrees with the finding. The affiliate accountants will be reminded that the report for establishing net income needs to be filed monthly. If the Department of Housing and Urban Development has questions regarding these plans, please call Ling Han at 651-757-3038.

View Audit 331884

Finding 513845 (2024-001)

None 2024

Mills Center Apartments, Inc.

AR

HUD Housing Programs Reporting

Corrective Action Plan September 20, 2024 Intrepid Management, Inc. 212 S Main Street Malvern, AR 72104 INTREPID MANAGEMENT Mills Center Apartments, Inc., HUD Projed No. 082-HD040-NP-L8 respectfully submits the following corrective action plan for the year ended June 30, 2024. Auditing Firm: Fleet F...

Corrective Action Plan September 20, 2024 Intrepid Management, Inc. 212 S Main Street Malvern, AR 72104 INTREPID MANAGEMENT Mills Center Apartments, Inc., HUD Projed No. 082-HD040-NP-L8 respectfully submits the following corrective action plan for the year ended June 30, 2024. Auditing Firm: Fleet Firm 759 Tealwood Lane Cordova, TN 38018 Audit Period: 07/01/2023 Through 06130/2024 The findings from the 06/30/2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Findings and Questioned Costs - Financial Statement Audit None Findings and Questioned Costs - Major Federal Award Programs AuditU.S. Department of Housing & Urban Development Finding 2024-001 - Reserve for Replacements, Federal Asset Listing Number 14.181 Finding Resolution Status - Unresolved Information on Universe Population Size - NIA Sample Size Information - NIA Identification of Repeat Finding and Finding Reference Number - NIA Criteria - HUD requires monthly deposits to be made to the replacement reserve account on a timely basis. Statement of Condition - The replacement reserve account is underfunded in the amount of $23,525 for the year ended June 30, 2024. Cause - In November 2023, the required Reserve for Replacement deposit was changed to be $4,705. The present cash flow of the property does not support this increase. Effed or Potential Effect - The Organization's replacement reserve account is underfunded $23,525 at year end. Auditor Non-Compliance Code - N - Reserve for Replacements Deposits Questioned Costs - Zero Reporting views of Responsible Officials - Agrees with finding. Management expeds an additional rent increase in November 2024 that will allow the property to catch up on the required deposits. Recommendation - Deposit shortage should be funded as soon as possible. Auditor's Summary of the Auditee's Comments on the findings and Recommendations - The auditee's comments appear to be accurate and consistent with the auditor finding. Response indicator -Agree Completion date - June 30, 2025 Response - Shortage will be funded prior to June 30, 2025. If you have any questions or concerns, please do not hesitate to contad our office.

View Audit 331844

Finding 513838 (2024-001)

None 2024

Kay Goss Apartments, Inc.

AR

HUD Housing Programs Reporting

Reporting views of Responsible Officials – agrees with finding. Recommendation - Deposit shortage should be funded as soon as possible. Auditor’s Summary of the Auditee’s Comments on the findings and Recommendations – The auditee’s comments appear to be accurate and consistent with the auditor findi...

Reporting views of Responsible Officials – agrees with finding. Recommendation - Deposit shortage should be funded as soon as possible. Auditor’s Summary of the Auditee’s Comments on the findings and Recommendations – The auditee’s comments appear to be accurate and consistent with the auditor finding. Response indicator – Agree Completion date - 6/30/2025 Response - Shortage will be funded prior to June 30, 2025.

View Audit 331842

Finding 513819 (2024-003)

Significant Deficiency 2024

Owen-Withee School District

WI

Internal Control / Segregation of Duties HUD Housing Programs Reporting

Recommendation: We recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is distinct from the individual responsible for preparing. Explanation of disagreement with audit finding: There is no ...

Recommendation: We recommend that the District review its internal controls and implement a procedure to ensure all reports required under the grant have a designated reviewer that is distinct from the individual responsible for preparing. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action planned/taken in response to finding: The preparer is the bookkeeper and when she submits the claim she then needs to have approval from the superintendent to approve the claim to DPI. This way there are two eyes on the claim to see if the items that are claimed are accurate with the grants qualifications. Name(s) of the contact person(s) responsible for corrective action: Stacy Rasmussen Planned completion date for corrective action plan: 11/30/2024

View Audit 331785

Finding 513486 (2024-001)

Significant Deficiency 2024

Somerville Housing Authority

MA

HUD Housing Programs Eligibility Significant Deficiency

Finding 2024-001- Housing Choice Voucher Tenant Files - Eligibility- Rent Calculations Noncompliance & Significant Deficiency Section 8 Housing Choice Voucher Cluster-ALNs 14.871 and 14.879 Corrective Action Plan: Finding: Somerville Housing Authority (SHA) received the authority's Single Audit for ...

Finding 2024-001- Housing Choice Voucher Tenant Files - Eligibility- Rent Calculations Noncompliance & Significant Deficiency Section 8 Housing Choice Voucher Cluster-ALNs 14.871 and 14.879 Corrective Action Plan: Finding: Somerville Housing Authority (SHA) received the authority's Single Audit for the year ended March 31, 2024, indicating that SHA received a finding of Significant Deficiencies. Auditors noted two files missing proper income verification, five containing miscalculation of income, and one missing deduction verification. Extrapolation of errors to the population found the potential misstatement to be immaterial to program HAP expense. Auditors recommend that SHA conduct a file audit to determine the extent of deficiencies. They also recommend that SHA implement a quality control review to monitor the maintenance of tenant files. PHA Response: The SHA has implemented a corrective action plan to address noted deficiencies. The SHA has had significant staffing turnover in the last year. While vacant positions were filled, the SHA contracted with Nan McKay Associates (NMA) to complete all Annual Recertifications. NMA assigned four full-time staff to complete all recertifications and assigned one additional full-time staff person to conduct a monthly Qualify Control Review of all recertifications completed by NMA. During NMA's contract, SHA focused hiring and training new staff. SHA has hired a new Director of Leased Housing, a new Leased Housing Supervisor, and three Leasing Coordinators. SHA is also in the process of promoting it's Tenant Selector to Leasing Coordinator and onboarding a new Tenant Selector. The Director and Supervisor have been providing one-on-one training and support. New staff have also been enrolled in training opportunities provided by outside vendors such as the Nan McKay Rent Calculation Class. As of 7/31/2024, SI-IA has resumed program management from NMA. SHA has also increased the agency's internal quality control audits. The Director of Leased Housing has increased monthly SEMAP review from 10 to 40 files. Monthly feedback is provided to staffers individually and systemic issues are addressed to the entire department. The Supervisor also conducts a monthly review of the Income Verification Tool, following up with staffers to assist them in addressing discrepancies with their client's records. Additionally, SHA has fully implemented an electronic file storage system, utilizing PHA Web's online system to better organize, track, and maintain client files. Since implementation of the corrective action plan, 100% of reviewed files were found to have appropriate Payment Standards, 99% have appropriate third party documentation, and 98% have appropriate adjusted income. 84% were found to have appropriate Utility Allowances. Corrective action has been taken on all errors, and guidance has been provided to staff. Staff are currently conducting a front to back audit of Utility Allowances. SHA will continue conducting file audits, as well as following up with staff. PHA Goal: Based on the SHA's monthly quality control sample of tenant files: (A) The SHA obtains third party verification of reported family annual income, the value of assets totaling more than $5,000, expenses related to deductions from annual income, and other factors that affect the determination of adjusted income, and uses the verified information in determining adjusted income, and/or documents tenant files to show why third party verification was not available; (B) The SHA properly attributes and calculates allowances for any medical, child K:are, and/or disability assistance expenses; and (C) The SHA uses the appropriate utility allowances to determine gross rent for the unit leased, (D) The SHA applies the appropriate payment standard in accordance with 24 CFR 982.505. PHA Strategies: 1) The SHA will review its current quality control tracking system to record the results of random sampling of files as required in 985.2. The SHA will revise this system of an ongoing basis if necessary. Targeted completion date: 3/31/2025. 2) Confirm that 90% or more files sampled contain proper third party written verification (or equivalent) of income and assets, proper calculation of appropriate deductions and allowances and that appropriate utility allowance were used in the calculation of tenant rent. Targeted completion date: 3/31/2025. Person Responsible: Matt Lincoln, Director of Leased Housing Daved Hospedales, Leased Housing Supervisor

View Audit 331370

Finding 513468 (2024-001)

Significant Deficiency 2024

Aiken County Commission on Alcohol and Drug Abuse

SC

HUD Housing Programs

THE DUTIES WILL BE SEGREGATED AS MUCH AS POSSIBLE AND THE BOARD OF COMMISSIONERS WILL REMAIN INVOLVED IN REVIEWING THE FINANCIAL STATEMENTS OF THE COMMISSION.

View Audit 331352

Finding 513443 (2024-001)

Significant Deficiency 2024

Simcha, Inc.

OH

HUD Housing Programs Eligibility Internal Control / Segregation of Duties

Management will maintain tighter scrutiny over the waiting list intake process and only appropriately qualified individuals will enter the waitlist. Additionally, sufficient notations will be made on the waiting list to provide documentation of management decisions and an auditable record of changes...

Management will maintain tighter scrutiny over the waiting list intake process and only appropriately qualified individuals will enter the waitlist. Additionally, sufficient notations will be made on the waiting list to provide documentation of management decisions and an auditable record of changes and updates to information. The waiting list will be printed out every 30 days and will be maintained in our files.

View Audit 331271

Finding 513399 (2024-001)

None 2024

The Open Door Network

CA

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Management's Response/Planned Corrective Action: The Organizations Director overseeing these programs will engage with the Compliance Manager to review and establish policies to ensure documentation is retained. Additionally, staff will be trained on policies. This will be completed by February 202...

Management's Response/Planned Corrective Action: The Organizations Director overseeing these programs will engage with the Compliance Manager to review and establish policies to ensure documentation is retained. Additionally, staff will be trained on policies. This will be completed by February 2025.

View Audit 331259

Finding 513353 (2024-001)

Significant Deficiency 2024

City of Woodruff

SC

HUD Housing Programs

The duties will be segregated as much as possible, and the City Council will remain involved in reviewing the financial statements of the City.

View Audit 331206

Finding 513210 (2024-001)

Material Weakness 2024

Housing Authority of the City of Alamosa, Colorado

CO

HUD Housing Programs Material Weakness Reporting

2024-001 Application of Wait List Recommendation: Recommendation: It is recommended the Authority review all of the policies in place relating to the certification of tenants and the admittance of new tenants. It is also recommended that employees are trained on these policies and that periodic r...

2024-001 Application of Wait List Recommendation: Recommendation: It is recommended the Authority review all of the policies in place relating to the certification of tenants and the admittance of new tenants. It is also recommended that employees are trained on these policies and that periodic reviews are performed on tenant files to ensure compliance with policies. . Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action in response to finding: The Organization will review the admission process to determine if additional controls can be implemented in the process and will document the policy in place. Name of the contact person responsible for corrective action: Brian Lujan, Executive Director Planned completion date for corrective action plan: January 2025

View Audit 331160

Finding 513152 (2024-001)

Material Weakness 2024

Melbourne Housing Authority

FL

Special Tests & Provisions HUD Housing Programs Material Weakness

2024-001 Special Tests and Provisions – UEL Formula (Form 52722) and Formula Income Public and Indian Housing Program – CFDA 14.850 Material Weakness in Internal Control and Material Noncompliance Condition: Unable to test HUD Form 52722, 52723, and the utility ledger for accuracy and completion. ...

2024-001 Special Tests and Provisions – UEL Formula (Form 52722) and Formula Income Public and Indian Housing Program – CFDA 14.850 Material Weakness in Internal Control and Material Noncompliance Condition: Unable to test HUD Form 52722, 52723, and the utility ledger for accuracy and completion. Recommendation: The Authority should retain the utility ledger for each fiscal year under audit. Action Taken: We concur with the recommendation. Due to the ongoing COVID-19 pandemic and related staff absences and turnover, we were not able to retain the utility ledger. We will retain the utility ledger for each fiscal year under audit. Effective Date: December 4, 2024 Contact Information: Michael Bean, Executive Director Melbourne Housing Authority 1401 Guava Avenue Melbourne, Florida 32935 (321) 775-1563

View Audit 331139

Finding 513121 (2024-001)

Significant Deficiency 2024

Aha Westhaven, LLC

AL

HUD Housing Programs Eligibility Reporting

2024-001 ALN 14.195 – Section 8 Housing Assistance Payments Program – Eligibility Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Cole Carroll, Executive Direct...

2024-001 ALN 14.195 – Section 8 Housing Assistance Payments Program – Eligibility Management acknowledged the finding and will follow the Auditor's recommendations as listed in the Schedule of Findings and Questioned Costs. Person Responsible for Correction of Finding: Cole Carroll, Executive Director Projected Completion Date: June 30, 2025

View Audit 331082

Finding 513086 (2024-002)

Material Weakness 2024

Housing Authority of the City of Paterson

NJ

Questioned Costs HUD Housing Programs Material Weakness

Finding 2024-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Voucher & Emergency Housing Vouchers Assistance Listing Number: 14.871 & 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Non Complia...

Finding 2024-002: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Section 8 Housing Choice Voucher & Emergency Housing Vouchers Assistance Listing Number: 14.871 & 14.EHV Noncompliance – N. Special Tests and Provisions – Housing Quality Standards Non Compliance Material to the Financial Statements: Section 8 Housing Choice Vouchers - Yes Emergency Housing Vouchers - No Material Weakness and Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions. Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussions with management, the Authority did not properly abate fifteen (15) out of twenty-nine (29) annual failed inspections selected for testing. Context: The Authority did not properly abate fifteen (15) out of twenty-nine (29) 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). Our sample size is statistically valid. Known Questioned Costs: Section 8 Housing Choice Vouchers $50,873 Emergency Housing Vouchers $1,308 Cause: There is a material weakness in Section 8 Housing Choice Vouchers and a significant deficiency in Emergency Housing Vouchers in internal controls over compliance for the special tests and provisions type of compliance related to HQS inspections. 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 Vouchers Program is in material non-compliance with the special tests and provisions type of compliance related to HQS inspections and the Emergency Housing Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: We agree with the Auditor’s observations on the re-inspection of the failed units. The Authority had an independent contractor whose contract was terminated due to their unacceptable performance with HQS inspections. As a result, two HQS inspectors were recently hired, and a clerical person to assist in improving the quality control component of the program as it relates to HQS inspections. In addition, the Authority recently hired a Director of Leasing and Occupancy, and a Supervisor of the department, and has implemented a more stringent oversight to ensure that internal control policies are being followed in a timely manner to show improvement in this area, and an overall improvement to the entire function of this department. We are also actively seeking to fill two vacant Tenant Interviewer/Investigator positions. The current staffing change mentioned above puts the agency in a position to implement and ensure a tracking system being able to capture areas on Annual HQS unit status, First Inspection if failed for life threatening HQS deficiencies rescheduled within 24 hours and 30 days for all other deficiencies. Abatements are placed on all units having two failed HQS inspections. All current occupied units are being reviewed for HQS inspection status, and a resolving issues to those units not in compliance with the program. Views of responsible officials and planned corrective action: Ms. Irma Gorham, Executive Director is responsible to remedy the deficiency by March 31, 2025.

View Audit 331015 Questioned Costs: $1

Finding 513039 (2024-001)

Significant Deficiency 2024

Nba/gpva Accessible Housing II Inc.

MO

Questioned Costs HUD Housing Programs Subrecipient Monitoring

Statement of condition 2024-001: For the year ended June 30, 2024, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B). Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839...

Statement of condition 2024-001: For the year ended June 30, 2024, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B). Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received. Action(s) taken or planned on the finding: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.

View Audit 330935 Questioned Costs: $1

Finding 513038 (2024-001)

Significant Deficiency 2024

Nba/gpva Accessible Housing, Inc.

MO

Questioned Costs HUD Housing Programs Procurement, Suspension & Debarment

Statement of condition 2024-001: For the year ended June 30, 2024, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B). Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-...

Statement of condition 2024-001: For the year ended June 30, 2024, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B). Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839- B) is received. Action(s) taken or planned on the finding: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.

View Audit 330933 Questioned Costs: $1

Finding 512852 (2024-001)

Significant Deficiency 2024

Collins' Way, Inc.

MD

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Department of Housing and Urban Development Supportive Housing for Persons with Disabilities – Assistance Listing No. 14.181 Recommendation: Submit the $315.75 immediately to the Replacement Reserve Account and train employees involved in the requirements of HUD in regards to timely and accurate ...

Department of Housing and Urban Development Supportive Housing for Persons with Disabilities – Assistance Listing No. 14.181 Recommendation: Submit the $315.75 immediately to the Replacement Reserve Account and train employees involved in the requirements of HUD in regards to timely and accurate Replacement Reserve contributions. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The amount of $315.75 was submitted to the Replacement Reserve via a transfer on September 26, 2024. Training to review the Replacement Reserve funding requirements will be completed. Name(s) of the contact person(s) responsible for corrective action: Thomas Evans, Chief Financial Officer. Planned completion date for corrective action plan: October 31, 2024 If the Department of Housing and Urban Development has questions regarding this plan, please call Thomas Evans at 301-663-8811 X1120.

View Audit 330617

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