Corrective Action Plans

Finding 547550 (2023-003)

Material Weakness 2023

Housing Authority of the County of Monterey

CA

Questioned Costs HUD Housing Programs Eligibility

Finding 2023-003 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 and 14.EHV Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements:...

Finding 2023-003 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 and 14.EHV Noncompliance – E. Eligibility – Tenant Files Non Compliance Material to the Financial Statements: Yes Significant Deficiency in Internal Control over Compliance for Eligibility: Emergency Housing Vouchers Material Weakness in Internal Control over Compliance for Eligibility: Section 8 Housing Choice Vouchers Program Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately 3,328 units. Of a sample size of fifty-four (54) tenant files, the following was noted: • One tenant file was missing entirely • Original application was missing in 6 files • Lead based paint form was missing in 3 files • Signed lease was missing in 3 files Our sample size is statistically valid. Known Questioned Costs: $88,087 Cause: There is significant deficiency in the Emergency Housing Vouchers Program and a material weakness in the Section 8 Housing Choice Vouchers Program in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. 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 Emergency Housing Vouchers Program is in non-compliance and the Section 8 Housing Choice Vouchers Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority accepts the recommendation of the auditor. The affected files relate to clients that have been on the program for decades and as files get large, archiving takes place. To correct this finding, a directive will be issued to staff that will ensure that when files are archived the original application must be placed in the current working file going forward. Jonathan Campbell, Director of Housing Programs, will be responsible to implement this corrective action by June 30, 2024.

View Audit 351739 Questioned Costs: $1

Finding 547496 (2023-002)

Significant Deficiency 2023

Montgomery Housing Partnership, INC

MD

Eligibility HUD Housing Programs Subrecipient Monitoring

Management hereby provides a statement of concurrence regarding the findings related to 4 out of the 9 tested tenants who did have the annual tenant recertification from completely timely. Additionally, Management hereby provides a statement of concurrence regarding 1 out of 9 tenants tested did not...

Management hereby provides a statement of concurrence regarding the findings related to 4 out of the 9 tested tenants who did have the annual tenant recertification from completely timely. Additionally, Management hereby provides a statement of concurrence regarding 1 out of 9 tenants tested did not have the accurate amount of adjusted annual income reported on the tenant recertification form. Management will begin the recertification process 120 days prior to the recertification effective date to ensure adequate time for preparation and review. Management will issue a Notice to Vacate to any household that has failed to provide required documentation 30 days prior to the recertification effective date. Furthermore, income calculations will be thoroughly reviewed to ensure all sources of income and assets are calculated accurately and without the possibility of income discrepancies. Both tasks will primarily be handled by the Property Manager and Assistant Property Manager with additional assistance and oversight from the Regional Director and Assistant Regional Directors.

View Audit 351691

Finding 546945 (2023-008)

Material Weakness 2023

Municipality of Juana Diaz

PR

HUD Housing Programs Material Weakness Reporting

Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the equity balances were properly calculated and reported in the Voucher Management System (VMS). Also, the Program staff were instructed to analyze previous equity balances reported in the...

Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the equity balances were properly calculated and reported in the Voucher Management System (VMS). Also, the Program staff were instructed to analyze previous equity balances reported in the VMS, an realize any necessary corrections.

View Audit 351312

Finding 546944 (2023-007)

Material Weakness 2023

Municipality of Juana Diaz

PR

HUD Housing Programs Material Weakness Reporting

Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the submission of financial information according to applicable requirements, and to reconcile the amounts reported in the Voucher Management System (VMS) with the accounting records and pr...

Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the submission of financial information according to applicable requirements, and to reconcile the amounts reported in the Voucher Management System (VMS) with the accounting records and proceed with any necessary corrections about the information previously reported. Moreover, the audited financial data schedule for the fiscal year 2022-2023 will be submitted as soon as the Single Audit Report be finally issued by the external auditors.

View Audit 351312

Finding 546943 (2023-006)

Material Weakness 2023

Municipality of Juana Diaz

PR

HUD Housing Programs Subrecipient Monitoring Eligibility

Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure that the re-examination and HAP determination processes will be performed according to program requirements and guidelines, and to obtain in a timely manner all the required documentation f...

Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure that the re-examination and HAP determination processes will be performed according to program requirements and guidelines, and to obtain in a timely manner all the required documentation for each reexamination executed.

View Audit 351312

Finding 541798 (2023-002)

Material Weakness 2023

Housing Authority of Covington

KY

Questioned Costs Internal Control / Segregation of Duties Eligibility

Authority Response: The Authority agrees with the finding and is in process of assessing and modifying controls over compliance to avoid similar issues. The Authority will increase oversight of the compliance of program. Steve Arlinghaus, Executive Director, is responsible for implementing this cor...

Authority Response: The Authority agrees with the finding and is in process of assessing and modifying controls over compliance to avoid similar issues. The Authority will increase oversight of the compliance of program. Steve Arlinghaus, Executive Director, is responsible for implementing this corrective action by June 30, 2024.

View Audit 350707 Questioned Costs: $1

Finding 530190 (2023-003)

None 2023

B'nai B'rith Covenant House of Peoria Inc. II 072-Ee038

IL

HUD Housing Programs Internal Control / Segregation of Duties

Management agrees and will continue to monitor the security deposit balances to ensure they maintain compliance with the regulatory agreement.

View Audit 348278

Finding 529679 (2023-007)

None 2023

Trinity Community Housing CORP

IL

HUD Housing Programs

The Management Agent will follow the Management Agent Certification for fees only for 5.57% of the residential income collected and reimburse the Project $35.47 for the collection of fees for miscellaneous income.

View Audit 347577

Finding 529651 (2023-006)

Material Weakness 2023

Town of Lake Lure

NC

Questioned Costs Procurement, Suspension & Debarment HUD Housing Programs

Finding: 2023-006 Name of Contact Person: Stephen Ford, Finance Director Corrective Action: The Town seeks to make the procurement process fair, open, and guided by a legal procurement process and related procedures. In May 2023, a new procurement policy and procedures was developed and adopted by...

Finding: 2023-006 Name of Contact Person: Stephen Ford, Finance Director Corrective Action: The Town seeks to make the procurement process fair, open, and guided by a legal procurement process and related procedures. In May 2023, a new procurement policy and procedures was developed and adopted by Town Council. Prior to the new policy, the prior guiding document was flawed, unclear, and sometimes vague. The new policy addressed those deficiencies and the new policy will be used in subsequent years. Also, in regards to the some major purchases, the Town had to address some purchases that availability, accessibility to services (sole source), extension of services (labor and need), and Council oversight. However management and Town Council confirms the need for safeguarding and adhering to the procurement policy, and has implemented training among staff as well as requiring general contractor oversight. Proposed Completion Date: The Town will implement the above procedure immediately.

View Audit 347541 Questioned Costs: $1

Finding 529340 (2023-103)

Material Weakness 2023

Pinal County, Arizona

AZ

HUD Housing Programs Reporting

Note: Finding noted by other auditors as finding 2023-002. Condition and Context – As of June 30, 2023, the restricted cash for the housing program does not exceed the ending housing assistance payment (HAP) restricted net position. Recommendation – The other auditors recommended management hire a...

Note: Finding noted by other auditors as finding 2023-002. Condition and Context – As of June 30, 2023, the restricted cash for the housing program does not exceed the ending housing assistance payment (HAP) restricted net position. Recommendation – The other auditors recommended management hire and retain competent individuals to calculate the restricted net position, HAP reserves and properly manage spending of funds. Contact Name: Rolanda Cephas, Housing Director Corrective Action Planned: The Housing Authority has recruited a Finance Manager who has demonstrated that she has strong financial skills and has sufficient knowledge and understanding of the factors that determine the Housing Authority's restricted net positions. Anticipated Completion Date: June 30, 2025

View Audit 347356

Finding 529339 (2023-102)

Material Weakness 2023

Pinal County, Arizona

AZ

HUD Housing Programs

Note: Finding noted by other auditors as finding 2023-001. Condition and Context: The U.S. Department of Housing and Urban Development uses the Voucher Management System (VMS) to collect Public Housing Agency’s (PHA) data that enables HUD to fund, obligate, and disburse funding. For the fiscal yea...

Note: Finding noted by other auditors as finding 2023-001. Condition and Context: The U.S. Department of Housing and Urban Development uses the Voucher Management System (VMS) to collect Public Housing Agency’s (PHA) data that enables HUD to fund, obligate, and disburse funding. For the fiscal year, the Housing Authority did not submit the correct restricted net position amounts. Recommendation: The other auditors recommended management hire and retain competent individuals to handle the monthly VMS submission. Contact Name: Rolanda Cephas, Housing Director Corrective Action Planned: The Housing Authority has recruited a Finance Manager who has demonstrated that she has strong financial skills and has sufficient knowledge and understanding of the factors that determine the Housing Authority's restricted net positions to accurately report in the Voucher Management System. Anticipated Completion Date: June 30, 2025

View Audit 347356

Finding 528806 (2023-001)

None 2023

Saraland Manor, Inc.

MS

HUD Housing Programs Reporting

We agree with Finding 2022-001 and the recommendations described above. We have engaged a CPA firm to perform a single audit for the periods December 31, 2021-2023.

View Audit 346856

Finding 528805 (2023-003)

None 2023

Saraland Manor, Inc.

MS

Cash Management HUD Housing Programs

We agree that surplus cash deposit was not made in FY2020, and the recommendations described above. Management will deposit any surplus cash required into the residual receipts in future periods.

View Audit 346856

Finding 528804 (2023-002)

None 2023

Saraland Manor, Inc.

MS

Cash Management HUD Housing Programs

We agree that surplus cash deposit was not made in FY2019, and the recommendations described above. Management will deposit any surplus cash required into the residual receipts in future periods.

View Audit 346856

Finding 528675 (2023-009)

Material Weakness 2023

Trinity Acres Housing Corporation

IL

HUD Housing Programs

The Management Agent follows the Management Agent Certification for fees only for 6.09% of the residential income collected and reimburses the Project $16.32 for collecting miscellaneous income.

View Audit 346684

Finding 528674 (2023-008)

Material Weakness 2023

Trinity Acres Housing Corporation

IL

HUD Housing Programs

The Corporation will reimburse the Project for the Management Fee Overpayment and Payroll Cost for the remaining balance of $12,526.95.

View Audit 346684

Finding 528673 (2023-007)

Material Weakness 2023

Trinity Acres Housing Corporation

IL

Procurement, Suspension & Debarment HUD Housing Programs Matching / Level of Effort / Earmarking

The Corporation will register and apply for PPP Forgiveness via the SBA PPP Direct Forgiveness Portal or contact SBA Customer Service at 877-552-2692.

View Audit 346684

Finding 528257 (2023-002)

Material Weakness 2023

Casita Park Housing Development Fund Corporation

NY

Questioned Costs HUD Housing Programs Special Tests & Provisions

Finding 2023-002 a. Condition As of September 30, 2023, management has not fully funded the tenant security deposits cash account. The tenant security deposits cash account was underfunded by $10,665. b. Action(s) Taken or Planned on the Finding Management will transfer $10,665 from the operating ac...

Finding 2023-002 a. Condition As of September 30, 2023, management has not fully funded the tenant security deposits cash account. The tenant security deposits cash account was underfunded by $10,665. b. Action(s) Taken or Planned on the Finding Management will transfer $10,665 from the operating account in order to fully fund the tenant security deposits account.

View Audit 346289 Questioned Costs: $1

Finding 528256 (2023-001)

Material Weakness 2023

Casita Park Housing Development Fund Corporation

NY

Questioned Costs Allowable Costs / Cost Principles HUD Housing Programs

Finding 2023-001 a. Condition During the year ended September 30, 2023, the project paid insurance expenses in the amount of $4,247 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of September 30, 2023 is $53,397. b. Action(s) Taken or Planned on th...

Finding 2023-001 a. Condition During the year ended September 30, 2023, the project paid insurance expenses in the amount of $4,247 on behalf of an affiliate from project cash without HUD approval. The amount due to the project as of September 30, 2023 is $53,397. b. Action(s) Taken or Planned on the Finding Because the PRAC contracts expire in April there is a delay in receiving subsidy monies until the renewals are approved. Insurance costs for this entity continue to increase exponentially, creating a financial burden on the project. To ensure the policies don’t cancel we will have the entity with the most money pay the bill and have the other PRAC projects reimburse. In 2023/2024 the PRACs are now on a five-year renewal so there should not be a delay in receiving subsidy monies. Thus, going forward, we do not anticipate this being an issue as long as the subsidy monies aren’t delayed and the rent increases are substantial enough to cover the large increases in insurance renewal premiums. The Corporation agrees with the finding and the auditor's recommendations have been adopted. As of the report date and subsequent to the statement of financial position date, the $53,397 was repaid back to the Corporation.

View Audit 346289 Questioned Costs: $1

Finding 524581 (2023-001)

Significant Deficiency 2023

City of Clarksville

TN

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Management’s Corrective Action Plan: Due to changes in departmental management and responsibilities submission was not timely. We have now implemented policies and procedures to ensure grant activity is reported in accordance with the grant requirements. This matter was resolved subsequent to June 3...

Management’s Corrective Action Plan: Due to changes in departmental management and responsibilities submission was not timely. We have now implemented policies and procedures to ensure grant activity is reported in accordance with the grant requirements. This matter was resolved subsequent to June 30, 2023.

View Audit 344028

Finding 524463 (2023-002)

Significant Deficiency 2023

Collier Housing Alternatives, Inc.

FL

HUD Housing Programs Reporting

The management's company's new CFO has brought the filings up-to-date as of November 2024 and reporting sumbissions will now be filed in a timely manner.

View Audit 343799

Finding 524240 (2023-002)

Material Weakness 2023

Next Move Homeless Services

CA

Questioned Costs Special Tests & Provisions HUD Housing Programs

Program: Continuum of Care Federal Financial Assistance Listing No.:14.267 Federal Agency: U.S. Department of Housing and Urban Development Pass-through: Sacramento Steps Forward Award Year: 2023 Compliance Requirement: Special Tests and Provisions – Reasonable Rental Rates Grant Award Number: ...

Program: Continuum of Care Federal Financial Assistance Listing No.:14.267 Federal Agency: U.S. Department of Housing and Urban Development Pass-through: Sacramento Steps Forward Award Year: 2023 Compliance Requirement: Special Tests and Provisions – Reasonable Rental Rates Grant Award Number: CA0955L9T032108, CA0955L9T032209, CA0143L9T032114, CA0143L9T032215, CA1303L9T032107, CA1303L9T032208 Finding Summary: • As a result of our procedures performed, we noted for 8 out of 17 rental participants tested, the organization could not provide documentation to demonstrate the reasonableness of contract rents being paid for individual housing units in relation to rents being charged for comparable units. This should have included an analysis of rents in the immediate area of the participants housing. • For 3 out of 41 rental payments tested, we noted the rent paid exceed the HUD-determined fair market rents for the fiscal year. Repeat Finding from Prior Years: Yes, Finding 2022-002 Management’s Response: We concur. Views of Responsible Officials and Corrective Action: • Develop policies and procedures for staff working on grants to ensure that all contract rents being paid for individual housing units are reasonable in relation to rents being charged for comparable units. Additionally, the policies and procedures will ensure that grant funds being used to pay rent will not exceed HUD-determined fair market rents. • Train grant staff on new policies and procedures. Name of Responsible Person: Bryan Wagner, CFO Projected Implementation Date: December 31, 2024

View Audit 343437 Questioned Costs: $1

Finding 523665 (2023-001)

Material Weakness 2023

Young Womens Christian Association of Greater Lafayette

IN

HUD Housing Programs Internal Control / Segregation of Duties

2023-001: EMPLOYMENT VERIFICATION--VOCA Issue: Employment Verification form for one employee from a sample of ten was missing from the employee’s files. Recommendation: Internal controls and procedures should be established, and documentation maintained to support all employee verification for emp...

2023-001: EMPLOYMENT VERIFICATION--VOCA Issue: Employment Verification form for one employee from a sample of ten was missing from the employee’s files. Recommendation: Internal controls and procedures should be established, and documentation maintained to support all employee verification for employment. Corrective Actions: YWCA acknowledges discrepancies in data metrics reported. • Implement a standardized checklist for employment documentation. • Educate HR staff on audit best practices, emphasizing complete and accurate employee files. • Schedule quarterly reviews to ensure compliance with documentation requirements.

View Audit 343088

Finding 523601 (2023-001)

None 2023

Iha, INC

CT

HUD Housing Programs Procurement, Suspension & Debarment Special Tests & Provisions

U.S. Department of Housing and Urban Development AUDIT FINDINGS: Finding Reference Number: 2023-001 Description of Finding: Homes with Hope, Inc. and Affiliate provides supportive housing via HUD Project Number 017-HD015, which requires the establishment and maintenance of a replacement reserve f...

U.S. Department of Housing and Urban Development AUDIT FINDINGS: Finding Reference Number: 2023-001 Description of Finding: Homes with Hope, Inc. and Affiliate provides supportive housing via HUD Project Number 017-HD015, which requires the establishment and maintenance of a replacement reserve fund in accordance with its HUD Regulatory Agreement. The Project did not make the monthly deposits in a timely manner during the year ended December 31, 2023 as specified in the agreement, and seven months’ worth of deposits were delinquent as of December 31, 2023. This was due, at least in part, to cash flow issues that resulted from delays in the process that the Project’s property manager utilized during the period for invoicing HUD via a third-party vendor for the related rental subsidy funds. Statement of Concurrence or Nonconcurrence: Homes with Hope, Inc. and Affiliate concurs with this audit finding. Corrective Action: A new in-house billing process that does not rely on a third-party vendor has been implemented since year-end, which should eliminate the cash-flow issue, Additionally, all delinquent deposits that were due as of December 31, 2023, were deposited in March 2024. Name of Contact Person: Helen McAlinden President & Chief Executive Director 203-226-3426x14 hmcalinden@hwhct.org Projected Completion Date: Immediately

View Audit 342991

Finding 523546 (2023-002)

Significant Deficiency 2023

Pennsylvania Housing Finance Agency

PA

Questioned Costs Cash Management HUD Housing Programs

U.S. Department of Housing and Urban Development Housing Trust Fund Program – Assistance Listing No. 14.275 Recommendation: CLA recommended that PHFA review their procedures around administrative expenses charged to the HTF program. Explanation of disagreement with audit finding: There is no disa...

U.S. Department of Housing and Urban Development Housing Trust Fund Program – Assistance Listing No. 14.275 Recommendation: CLA recommended that PHFA review their procedures around administrative expenses charged to the HTF program. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: PHFA will implement electronic time tracking, this will replace the current manual process of preparing timesheets that are entered into a database used to accumulate administrative expenses charged to federal programs. PHFA is currently in the process of implementing a Human Capital Management system that will allow employees to track the time they work on federal programs. Name of the contact person responsible for corrective action: Adrianne Trumpy, Director of Accounting Planned completion date for corrective action plan: July 1, 2024

View Audit 342838 Questioned Costs: $1

Corrective Action Plans

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