Corrective Action Plans

Finding 501977 (2024-004)

Material Weakness 2024

Low Rent Housing Agency of Knoxville, Iowa

IA

Cash Management Material Weakness Internal Control / Segregation of Duties

Finding 2024-004 Planned corrective action: The checklist for CFP activity utilized by the Housing Agency was updated last year, but wording was updated this year to reflect the 3-day Treasury Rule. Nan McKay training varies from this rule. The Housing Agency made progress in this area this year, b...

Finding 2024-004 Planned corrective action: The checklist for CFP activity utilized by the Housing Agency was updated last year, but wording was updated this year to reflect the 3-day Treasury Rule. Nan McKay training varies from this rule. The Housing Agency made progress in this area this year, but will use the 3-day Treasury Rule as a guide and closely follow the checklist. Estimated completion date: The HA’s plan is to have this corrected at 2025’s audit. The CFP checklist was updated when the auditor was on-site and staff will closely utilize it.

View Audit 324135

Finding 501976 (2024-003)

Material Weakness 2024

Low Rent Housing Agency of Knoxville, Iowa

IA

Internal Control / Segregation of Duties Special Tests & Provisions Cash Management

Finding 2024-003 Planned corrective action: The Housing Agency has limited funds for additional staff hires. Internal controls will be implemented by building them into what the Board reviews monthly. This will provide additional oversight and aid in elimination of errors. Estimated completion dat...

Finding 2024-003 Planned corrective action: The Housing Agency has limited funds for additional staff hires. Internal controls will be implemented by building them into what the Board reviews monthly. This will provide additional oversight and aid in elimination of errors. Estimated completion date: The HA’s plan is to have this corrected at 2025’s audit. A new checklist of items for monthly Board review will be established within 30 days and followed.

View Audit 324135

Finding 501814 (2024-001)

Material Weakness 2024

Chippewa Valley Schools

MI

Questioned Costs School Nutrition Programs Subrecipient Monitoring

Condition: The School District does not currently have a control in place whereby a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in an incorrect reporting of the number of free and reduced priced meals, which could result in the Sch...

Condition: The School District does not currently have a control in place whereby a review of the meal counts entered into the Michigan Nutrition Data (MiND) system takes place, which could result in an incorrect reporting of the number of free and reduced priced meals, which could result in the School District being reimbursed an incorrect amount by the Michigan Department of Education. Planned Corrective Action: The Business Office has implemented a formalized internal control procedure for the Food Service Department to adhere, alongside performing a thorough review of the monthly claims reimbursement submission. The formalized internal control procedure will accompany the supporting documentation submitted to the Business Office monthly (Attachment A). The procedure involves a review of inputted meal counts, prior to the claim submission. The Food Service Department Administrator responsible for meal claim input will provide corroboration of input accuracy, as documented by signoff from a secondary reviewer. In addition, the Business Office has prepared a Meal Claim Check Tool spreadsheet to utilize, on a monthly basis, as another layer of validation. The Meal Claim Check Tool spreadsheet allows the Business Office to input meal count figures from the Food Service POS system report and compare against the figures from the claims submission report. Any discrepancy identified would be immediately addressed with the Food Service Department and would require an amended claim submission. Contact person responsible for corrective action: Danielle Jacobs, Director of Business Services Anticipated Completion Date: 08/01/2024

View Audit 323903 Questioned Costs: $1

Finding 501753 (2024-005)

Material Weakness 2024

Low Rent Housing Agency of Grinnell, Iowa

IA

Special Tests & Provisions HUD Housing Programs Material Weakness

Finding 2024-005 Utility Allowance Material Weakness/Non-Compliance – Special Tests and Provisions I agree with finding I have reached out to several companies that provide this service; however, the cost has either been too high, or this HA is to small for them to provide this service. As a sugges...

Finding 2024-005 Utility Allowance Material Weakness/Non-Compliance – Special Tests and Provisions I agree with finding I have reached out to several companies that provide this service; however, the cost has either been too high, or this HA is to small for them to provide this service. As a suggestion from another HA, I have again reached out to our software company requesting information or a quote. As of today’s date, I have made three requests with no answer back.

View Audit 323838

Finding 501752 (2024-004)

Material Weakness 2024

Low Rent Housing Agency of Grinnell, Iowa

IA

HUD Housing Programs Special Tests & Provisions Material Weakness

Finding 2024-004 HQS Quality Control Inspections Housing Choice Voucher, 14.871 Material Weakness/Non-Compliance – Special Tests and Provisions Repeat Finding 2023-2024 I agree with these findings After the 2023 Finding it was the intention of the GLRHA to partner with the city Building Director to...

Finding 2024-004 HQS Quality Control Inspections Housing Choice Voucher, 14.871 Material Weakness/Non-Compliance – Special Tests and Provisions Repeat Finding 2023-2024 I agree with these findings After the 2023 Finding it was the intention of the GLRHA to partner with the city Building Director to assist in follow up HQS Inspections. However, the city charges $50 per inspection in addition to the schedules of the director any HA staff are difficult to line up. I have requested a neighboring HA partner with this office to do the HQS Inspections, it is unknown at this time if this will be approved, or a charge associated with these inspections.

View Audit 323838

Finding 501751 (2024-003)

Material Weakness 2024

Low Rent Housing Agency of Grinnell, Iowa

IA

HUD Housing Programs Special Tests & Provisions Material Weakness

Finding 2024-003 HUD Depository Agreement Material Weakness/Non-Compliance – Special Tests and Provisions Repeat Finding 2023-003 I agree with finding Correcting this finding has been in development since the 2023 Audit. Notes on actions taken and the delay can be submitted upon request. As of Augu...

Finding 2024-003 HUD Depository Agreement Material Weakness/Non-Compliance – Special Tests and Provisions Repeat Finding 2023-003 I agree with finding Correcting this finding has been in development since the 2023 Audit. Notes on actions taken and the delay can be submitted upon request. As of August 2024, this correction is in its final steps. Once the fully completed Depository Agreement is received a copy will be submitted.

View Audit 323838

Finding 501750 (2024-002)

Material Weakness 2024

Low Rent Housing Agency of Grinnell, Iowa

IA

Internal Control / Segregation of Duties Special Tests & Provisions Eligibility

Finding 2024-002 Internal Control Structure Material Weakness – Eligibility, Reporting and Special Tests and provisions Repeat Finding 2023-002 I agree with finding The Authority is small with limited administrative staff. Further, the Board of Commissioners is a volunteer oversight board and not a...

Finding 2024-002 Internal Control Structure Material Weakness – Eligibility, Reporting and Special Tests and provisions Repeat Finding 2023-002 I agree with finding The Authority is small with limited administrative staff. Further, the Board of Commissioners is a volunteer oversight board and not a managing board and does not have the time or expertise to provide the necessary services to correct the internal control deficiencies noted. The Board has reviewed the issue and determined that there are no additional procedures which can be done to eliminate the deficiencies and accepts them at this time.

View Audit 323838

Finding 501707 (2024-002)

Material Weakness 2024

Women's Health and Family Planning Association of Texas

TX

Material Weakness Reporting Internal Control / Segregation of Duties

Finding #2024-002 – Material Weakness and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Family Planning Services, Assistance Listing #93.217, Contract Number: FPHPA006521-02-00, Contract Year: 04/01/23 – 03/31/24. Condition and context: The find...

Finding #2024-002 – Material Weakness and Other Noncompliance. Applicable federal program: U. S. Department of Health and Human Services, Family Planning Services, Assistance Listing #93.217, Contract Number: FPHPA006521-02-00, Contract Year: 04/01/23 – 03/31/24. Condition and context: The finding reported as finding #2024-001 includes adjustments for the year ended March 31, 2024 to increase federal expenditures by $220,388. Recommendation: See finding #2024-001. Planned corrective action: WHFPT will strengthen its policies and procedures by documenting the subrecipient reconciliation process in greater detail and will add a requirement for additional reviews. Responsible officer: Kathie Nixon, CEO. Estimated completion date: October 31, 2024

View Audit 323776

Finding 501684 (2024-003)

Material Weakness 2024

Rio Housing Association, Inc. /covenant Place 075-Ee045

WI

Internal Control / Segregation of Duties Eligibility Material Weakness

Segregation of Duties Supportive Housing for the Elderly – Assistance Listing No. 14.157 Recommendation: The Project should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Explanation of disagreement with audit finding: There is no disagreement with the...

Segregation of Duties Supportive Housing for the Elderly – Assistance Listing No. 14.157 Recommendation: The Project should continue to evaluate its staffing in order to segregate incompatible duties whenever possible. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The board of directors will continue to closely monitor the financial operations of the Project. Name(s) of the contact person(s) responsible for corrective action: Mary Gilberts, Management Agent Planned completion date for corrective action plan: June 2025

View Audit 323728

Finding 501681 (2024-002)

Material Weakness 2024

Pennsylvania's State System of Higher Education Foundation

PA

Eligibility Material Weakness

#2024-002 – Material Weakness – Eligibility Coronavirus State and Local Fiscal Recovery Funds, ALN #21.027 Recommendation We recommend verifying each applicant’s enrollment status with all universities prior to disbursement of scholarship funding. View of responsible officials and planned corrective...

#2024-002 – Material Weakness – Eligibility Coronavirus State and Local Fiscal Recovery Funds, ALN #21.027 Recommendation We recommend verifying each applicant’s enrollment status with all universities prior to disbursement of scholarship funding. View of responsible officials and planned corrective action The Foundation receives information directly from PASSHE universities to verify enrollment status of applicants. Universities submit information to the Foundation on an electronic form, which includes Student Name, Student ID, Scholarship Amount, Student Enrollment Status, etc. Authorized officials enter their approval by changing “Pending Review” to either “Scholarship Eligible” or “Not Eligible” on the form and keying in the scholarship amount the student is eligible for based on their verified enrollment status, for example: $1,000 for a part time student or $2,000 for a full-time student. For 4 of the 40 applicants sampled during the audit, a PASSHE university created an inconsistency on the form, having not completed or updated the enrollment status column to be consistent with the final amount they verified approved for payment. The key control, i.e. the University’s entry and approval of the eligible amount, prevented any errors from occurring. The Foundation verified the enrollment status for the four applicants identified in the audit, noting that the scholarships were properly disbursed. Going forward the Foundation has updated its verification process with the universities to ensure proper classification of the applicant’s enrollment status is verified in accordance with the eligibility requirements of the grant.

View Audit 323720

Finding 501680 (2024-001)

Material Weakness 2024

Pennsylvania's State System of Higher Education Foundation

PA

Material Weakness

#2024-001 – Material Weakness – Operating Deficiency – Classification of expenses Coronavirus State and Local Fiscal Recovery Funds, ALN #21.027 Recommendation We recommend that administrative expenses be recorded in accordance to the natural classification of the underlying expense, but be allocate...

#2024-001 – Material Weakness – Operating Deficiency – Classification of expenses Coronavirus State and Local Fiscal Recovery Funds, ALN #21.027 Recommendation We recommend that administrative expenses be recorded in accordance to the natural classification of the underlying expense, but be allocated to the grant award by reclassifying the expense to the correct class within the accounting system. View of responsible officials and planned corrective action Management acknowledges deficiencies in the process of recording administrative expenses. The Foundation records expenses in their natural classification at the time of initial recognition. In the current period, management later reclassified certain expenses (e.g. Payroll) from natural class to functional class (e.g. program expenses) to address an accounting recommendation made by the auditor during the prior audit. Upon identifying the error, management restored the impacted expenses to their natural classifications. The adjustment had no effect on net assets or total expenses and did not impact any disbursement of federal grant funds. The Foundation will continue to record expenses by natural classification at point of entry and will not make any subsequent reclassifications to the underlying expense.

View Audit 323720

Finding 499462 (2024-008)

Material Weakness 2024

Outpatient Medical Center, Inc.

LA

Questioned Costs Cash Management Subrecipient Monitoring § 200.305

2024-008 Cash Management Corrective action planned: Federal draws will be made with approval of the Director of Financial Operations or their designee for expenditures that have been incurred and recorded in the general ledger. Electronic documentation will be organized by draw to ensure proper d...

2024-008 Cash Management Corrective action planned: Federal draws will be made with approval of the Director of Financial Operations or their designee for expenditures that have been incurred and recorded in the general ledger. Electronic documentation will be organized by draw to ensure proper documentation is maintained. Anticipated completion date: 11-30-2024 Contact person responsible for corrective action: Cathy Liles, Director of Fiscal Operations

View Audit 322303 Questioned Costs: $1

Finding 499458 (2024-007)

Material Weakness 2024

Outpatient Medical Center, Inc.

LA

Allowable Costs / Cost Principles Material Weakness Reporting

2024-007 Reporting (repeat of finding 2023-003) Corrective action planned: The new accounting system which OMC implemented in April 2024, allows for better tracking of UDS related costs, primarily financial related data. Documentation for UDS reporting will be maintained and updated when needed. ...

2024-007 Reporting (repeat of finding 2023-003) Corrective action planned: The new accounting system which OMC implemented in April 2024, allows for better tracking of UDS related costs, primarily financial related data. Documentation for UDS reporting will be maintained and updated when needed. Internal auditing has already been implemented to ensure compliance with reporting requirements. Anticipated completion date: 11-30-2024 Contact person responsible for corrective action: Richard Bruce, Chief Operating Officer

View Audit 322303

Finding 498870 (2024-001)

Material Weakness 2024

Old Towne Square, Inc.

OK

Eligibility HUD Housing Programs Material Weakness

OLD TOWNE SQUARE, INC. CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2024 AND 2023 Old Towne Square, Inc 609 SW F Avenue Lawton, OK 73501 Telephone: (580) 353-7392 Fax: (580) 353-6111 Corrective Action Plan Finding: 2024-001-Lack of Adequate Quality Control Regarding Tenant Procedures- Eligibil...

OLD TOWNE SQUARE, INC. CORRECTIVE ACTION PLAN YEAR ENDED JUNE 30, 2024 AND 2023 Old Towne Square, Inc 609 SW F Avenue Lawton, OK 73501 Telephone: (580) 353-7392 Fax: (580) 353-6111 Corrective Action Plan Finding: 2024-001-Lack of Adequate Quality Control Regarding Tenant Procedures- Eligibility Condition: The quality of supervision over tenant file functions, such as calculating tenant rent and Housing Assistance Payments should be timely and sufficient to find errors in calculations or mis-application or mis-understanding of procedures. Corrective Action Planned: I am Rita Love, Executive Director. We will comply with the auditor’s recommendation. Person responsible for corrective action: Rita Love, Executive Director Telephone: (580) 353-7392 Old Towne Square, Inc. Fax: (580) 353-6111 609 SW F Avenue Lawton, OK 73501 Anticipated Completion Date: By November 30, 2024

View Audit 321636

Finding 497407 (2024-003)

Material Weakness 2024

Charter Township of Redford

MI

Material Weakness Reporting § 200.329

Finding Number: 2024-003 Condition: Controls in place were not adequate to ensure the Township reported expenditures on the report in the proper categories. Planned Corrective Action: Management will ensure procedures are put into place to ensure expenditures are reported under the correct categorie...

Finding Number: 2024-003 Condition: Controls in place were not adequate to ensure the Township reported expenditures on the report in the proper categories. Planned Corrective Action: Management will ensure procedures are put into place to ensure expenditures are reported under the correct categories. Contact person responsible for corrective action: Finance Director Anticipated Completion Date: 3/31/2025

View Audit 320152

Finding 497401 (2024-001)

Material Weakness 2024

Charter Township of Clinton

MI

Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

Finding Number: 2024-001 Condition: We noted no formal evidence that required inspections were performed prior to contract approval in one instance. We also noted no formal evidence that inspections were performed upon project completion to ensure that work was carried out in accordance with contrac...

Finding Number: 2024-001 Condition: We noted no formal evidence that required inspections were performed prior to contract approval in one instance. We also noted no formal evidence that inspections were performed upon project completion to ensure that work was carried out in accordance with contract specifications in one instance. Planned Corrective Action: After the inspector has done the initial walk through to identify required repairs, a full comprehensive write-up and cost is established for all rehabilitation projects that document additional repairs to be completed that are more preventative in nature. Any additional items discovered during the project or requested by the homeowner will be added to the write-up. For any emergency repairs, a memorandum will be added to the file. To ensure that pre_x0002_rehabilitation and post-rehabilitation inspections are taking place, the Assistant Planning Director will review a list of ongoing rehabilitation projects at a minimum on a monthly basis. Contact person responsible for corrective action: Edwin Manninen Anticipated Completion Date: Immediately

View Audit 320150

Finding 496411 (2024-001)

Material Weakness 2024

Full Harvest Housing, Inc.

IA

Allowable Costs / Cost Principles Special Tests & Provisions Subrecipient Monitoring

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED MARCH 31, 2024 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee t...

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED MARCH 31, 2024 Title 2, U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Subpart F, Section 511 – Audit Findings Follow-up requires the auditee to prepare a corrective action plan to address each audit finding included in the current year auditor’s reports. The Corrective Action Plan for Current Year Findings present our corrective action plan for the Financial Statement and/or Federal Award Findings described in the accompanying Schedule of Findings and Questioned Costs for the period ended March 31, 2024. Finding 2024-001 Responsible Party Name: Tamara Wallace Position: Executive Director – Management Agent Telephone Number: 816-233-4250 Federal Agency Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements A/B - Activities Allowed or Unallowed and Allowable Costs/Cost Principles, C – Cash Management, E – Eligibility, L – Reporting, and N – Special Tests and Provisions Finding Type Financial Statement and Federal Awards Auditee’s Comment on Finding We agree with the auditor’s finding. Corrective Action Management reported that the failure(s) involved records related to the period managed by the predecessor management company. We will request and keep all required documentation from HUD and establish processes and procedures to ensure compliance with the Regulatory Agreement. Anticipated Completion Date September 30, 2024

View Audit 319319

Finding 485586 (2024-002)

Material Weakness 2024

Housing Authority of the City of Cheyenne

WY

HUD Housing Programs Material Weakness Special Tests & Provisions

The Authority agrees with finding 2024-002 • The Authority did not ensure that all financial institutions required to collateralize had pledged identifiable U.S. Government or Agency securities. o The Authority has corrected this issue and will ensure in the future that all pledges meet HUD requirem...

The Authority agrees with finding 2024-002 • The Authority did not ensure that all financial institutions required to collateralize had pledged identifiable U.S. Government or Agency securities. o The Authority has corrected this issue and will ensure in the future that all pledges meet HUD requirements.

View Audit 318359

Finding 485405 (2024-001)

None 2024

Lincoln Christian University

IL

Material Weakness Reporting Internal Control / Segregation of Duties

2024-001 Material Adjustments and Financial Statement Preparation Recommendation: We recommend that the University establish internal procedures to adjust all account balances at year-end and evaluate their internal staff capacity. Explanation of disagreement with audit finding: There is no disagr...

2024-001 Material Adjustments and Financial Statement Preparation Recommendation: We recommend that the University establish internal procedures to adjust all account balances at year-end and evaluate their internal staff capacity. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: This was the final year in which Lincoln Christian University provided degree-earning education. These material entries and assistance with financial statement preparation are not expected in future years. Name of the contact person responsible for corrective action: Margie Martin, Director of Accounting Planned completion date for corrective action plan: May 31, 2025

View Audit 318153

Finding 478295 (2024-005)

Material Weakness 2024

Epsom Elderly Housing, Inc.

NH

Material Weakness

Plan: The management agent has already started exploring consulting options to support the performance of duties, ensuring file accuracy, timely and accurate recertifications, and prompt filling of vacancies. Anticipated Completion Date: 09/30/2024 Responsible person: Jackie Oliveira, Director of...

Plan: The management agent has already started exploring consulting options to support the performance of duties, ensuring file accuracy, timely and accurate recertifications, and prompt filling of vacancies. Anticipated Completion Date: 09/30/2024 Responsible person: Jackie Oliveira, Director of Affordable Housing

View Audit 314973

Finding 478287 (2024-005)

Material Weakness 2024

Belmont Elderly Housing, Inc.

NH

Material Weakness

Plan: The management agent has already started exploring consulting options to support the performance of duties, ensuring file accuracy, timely and accurate recertifications, and prompt filling of vacancies. Anticipated Completion Date: 09/30/2024 Responsible person: Jackie Oliveira, Director of...

Plan: The management agent has already started exploring consulting options to support the performance of duties, ensuring file accuracy, timely and accurate recertifications, and prompt filling of vacancies. Anticipated Completion Date: 09/30/2024 Responsible person: Jackie Oliveira, Director of Affordable Housing

View Audit 314972

Finding 1206687 (2023-006)

Material Weakness 2023

Homeless Resource Council of the Sierras

CA

Subrecipient Monitoring Cash Management Material Weakness

The Organization agrees with the audit finding. There were gaps in information flow due to staff turnover. The Organization already has a process in place to maintain documentation in a logical manner with adequate access.

View Audit 398809

Finding 1206508 (2023-008)

Material Weakness 2023

MacOmb County

MI

Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.501 § 200.512 § 200.514

The County acknowledges the deficiency in internal controls over financial reporting. The transition to the Workday ERP system in 2023 resulted in delays and challenges in producing timely and accurate financial data. The County is strengthening reconciliation and review processes while continuing t...

The County acknowledges the deficiency in internal controls over financial reporting. The transition to the Workday ERP system in 2023 resulted in delays and challenges in producing timely and accurate financial data. The County is strengthening reconciliation and review processes while continuing to refine system functionality and staff proficiency. Although the 2024 audit represents the first full year in the new system, some delays have continued. The County expects processes to stabilize and reporting timelines to improve, with full resolution anticipated in the 2025 audit cycle.

View Audit 398574

Finding 1206355 (2023-006)

Material Weakness 2023

HOUSING AUTHORITY OF THE CITY OF MILWAUKEE

WI

HUD Housing Programs Special Tests & Provisions Eligibility

Special Tests and Provisions - Waiting List Public and Indian Housing - ALN 14.850 Material Weakness in Internal Controls Material Noncompliance Condition: During our audit, we noted that the Authority was unable to provide complete and adequate waiting list documentation to support the selection of...

Special Tests and Provisions - Waiting List Public and Indian Housing - ALN 14.850 Material Weakness in Internal Controls Material Noncompliance Condition: During our audit, we noted that the Authority was unable to provide complete and adequate waiting list documentation to support the selection of tenants who were admitted i nto the Public Housing Program. Specifically, required records demonstrating waiting list position, selection order, and eligibility determinations were not available for review. As a result, we were unable to verify that applicants were admitted in accordance with HUD waiting list and tenant selection requirements. Auditor Recommendations: We recommend that management perform a reconciliation of the waiting list and reconstruct missing documentation where possible to support applicant selection and admission into the program. Management should update and formalize waiting list procedures in accordance with HUD regulations and the Authority's ACOP, i mplement supervisory review controls to verify completeness of waiting list documentation prior to tenant admission, and ensure records are retained in accordance with HUD and federal record-retention requirements. In addition, management should provide training to staff responsible for waiting list administration to promote consistent compliance with HUD requirements. Action Taken: HACM's Lease and Compliance department has done additional training with their staff since 2023 on Occupancy, Eligibility, Income and Rent Calculation. In addition, the Director has provided additional onboarding training to new employees and has provided YARDI Aspire training in how to perform certain tasks in YARDI software, i ncluding waitlist selection. We believe that the error rate will decrease in future years from 2023. In addition, between March 2026 and June 2026, the Lease and Compliance Director will work with all staff that maintain waitlists or perform waitlist selection to reiterate the proper documentations of how to maintain records that demonstrate waitlist positions, selection order and proper selection. Name of Responsible Person: Marquetta Treadway, Lease and Compliance Director Projected Completion Date: June 30, 2026

View Audit 398376

Finding 1206354 (2023-005)

Material Weakness 2023

HOUSING AUTHORITY OF THE CITY OF MILWAUKEE

WI

HUD Housing Programs Eligibility Material Weakness

Eligibility P ublic and Indian Housing - ALN 14.850 Material Weakness in Internal Controls Material Noncompliance Condition: Out of an approximate population of 2,150 tenants from the Public and Indian Housing program, we tested 43 tenants and the following deficiencies were noted: • 16 files were m...

Eligibility P ublic and Indian Housing - ALN 14.850 Material Weakness in Internal Controls Material Noncompliance Condition: Out of an approximate population of 2,150 tenants from the Public and Indian Housing program, we tested 43 tenants and the following deficiencies were noted: • 16 files were missing a flat rent option form, • 14 files were missing 214 forms, • 10 units did not have the required inspection performed, • 9 files had incorrect income or missing income support, • 8 files incorrectly contained prior year information in the current year recertification, • 6 files were missing valid 9886 forms, • 2 files were missing identification for adults in the household, and • 1 file was missing birth certificate or other documentation for minors receiving income credits. A uditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor's sample. Action Taken: HACM's Lease and Compliance department has done additional training with their staff since 2023 on Occupancy, Eligibility, Income and Rent Calculation. In addition, the Director has provided additional onboarding training to new employees and has provided YARDI Aspire training in how to perform certain eligibility tasks in YARDI. We believe that the error rate will decrease in future years from 2023. In add ition,between March 2026 and June 2026, the Lease and Compliance Director will work with all staff that perform initial eligibility or recertifications to reiterate the major topics that HACM has had deficiencies and the proper way to treat those items. Name of Responsible Person: Marquetta Treadway, Lease and Compliance Director Projected Completion Date: June 30, 2026

View Audit 398376

Corrective Action Plans

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