Corrective Action Plans

Finding 555971 (2024-003)

Significant Deficiency 2024

Big Springs Medical Association D/b/a Missouri Highlands Health Care

MO

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties § 200.329

Our quarterly status progress report was inadvertently sent two days past the due date in to our state office. We have corrected this by implementing controls by placing the quarterly due dates on our calendars so these due dates are no longer overlooked going forward.

View Audit 354688

Finding 555960 (2024-002)

Significant Deficiency 2024

Arirang Housing,inc.

CA

Subrecipient Monitoring Reporting § 200.512

Finding 2024-002: For the year ended June 30, 2023, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 9 months after the end of the audit period. The audited financial statements were submitted to the Federal Audit Clearinghouse on December 5, 2024...

Finding 2024-002: For the year ended June 30, 2023, the Corporation did not submit audited financial statements to the Federal Audit Clearinghouse within 9 months after the end of the audit period. The audited financial statements were submitted to the Federal Audit Clearinghouse on December 5, 2024. Comments on the Finding and Each Recommendation: The Corporation should submit audited financial statements to the Federal Audit Clearinghouse within the time frames required. Action(s) taken or planned on the finding: The audited financial statements have been submitted to the Federal Audit Clearinghouse.

View Audit 354675

Finding 555959 (2024-001)

Significant Deficiency 2024

Arirang Housing,inc.

CA

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Finding 2024-001: During the year ended June 30, 2024, the Corporation did not make the required deposits to the reserve for replacements. Comments on the Finding and Each Recommendation: Management should make a deposit to the reserve for replacements for $4,846 for the delinquent deposits. In futu...

Finding 2024-001: During the year ended June 30, 2024, the Corporation did not make the required deposits to the reserve for replacements. Comments on the Finding and Each Recommendation: Management should make a deposit to the reserve for replacements for $4,846 for the delinquent deposits. In future periods, management should fund the reserve for replacements on an annual basis as required by the HUD regulatory agreement or request HUD approval for a suspension of deposits. Action(s) taken or planned on the finding: Management made a deposit of $4,846 on January 3, 2025 for the delinquent deposits.

View Audit 354675 Questioned Costs: $1

Finding 555947 (2024-001)

Significant Deficiency 2024

Paschall Senior Housing, Inc.

CA

Questioned Costs Subrecipient Monitoring HUD Housing Programs

Finding 2024-001: Comments on the Finding and Each Recommendation During the year ended December 31, 2024, the Corporation withdrew funds totaling $5,562 from the reserve for replacements account without receiving approval from HUD. Management should transfer funds of $5,562 from the operating ca...

Finding 2024-001: Comments on the Finding and Each Recommendation During the year ended December 31, 2024, the Corporation withdrew funds totaling $5,562 from the reserve for replacements account without receiving approval from HUD. Management should transfer funds of $5,562 from the operating cash account to the reserve for replacements account. Action(s) taken or planned on the finding Management concurs with the finding and the auditor's recommendation. Management intends to transfer $5,562 from the operating cash account to the reserve for replacements account.

View Audit 354658 Questioned Costs: $1

Finding 555941 (2024-001)

Significant Deficiency 2024

Dayspring Programs, Inc. and Subsidiaries

MD

Allowable Costs / Cost Principles Reporting Procurement, Suspension & Debarment

Corrective Action: We recognize the importance of ensuring that expenses are incurred within the correct reporting period for grant compliance. To address this issue and prevent future occurrences, we are implementing the following corrective actions: - Adjustment of Financial Reporting: We will w...

Corrective Action: We recognize the importance of ensuring that expenses are incurred within the correct reporting period for grant compliance. To address this issue and prevent future occurrences, we are implementing the following corrective actions: - Adjustment of Financial Reporting: We will work with the grantor agency to secure the appropriate federal approvals for any projects that may extend past the end of our fiscal year if necessary. - Enhanced Internal Controls: Our finance team will implement stricter monitoring of expense recognition, ensuring that only incurred costs are included in grant reimbursement requests. - Vendor Coordination: Going forward, we will attempt to implement a more rigorous project timeline review process with contractors to anticipate and address potential supply chain delays before committing grant funds. We remain committed to fully complying with grant guidelines and to strengthening our financial management processes.

View Audit 354649

Finding 555927 (2024-101)

Significant Deficiency 2024

Espiritu Community Development Corporation

AZ

Subrecipient Monitoring Reporting § 200.512

The management team will establish a system for monitoring all required reporting deadlines. This system will be designed to track the filing requirements for each grant and contract, ensuring that deadlines are clearly identified and adhered to. The Chief Operating Officer will be designated as the...

The management team will establish a system for monitoring all required reporting deadlines. This system will be designed to track the filing requirements for each grant and contract, ensuring that deadlines are clearly identified and adhered to. The Chief Operating Officer will be designated as the authority responsible for overseeing the monitoring process. They will review the monitoring list on a regular basis, ensuring that all required reports are filed in a timely manner. The grant team will institute regular compliance reviews to assess our adherence to reporting deadlines and identify any areas for improvement. Our management team has engaged with a new external accountant to ensure the audit prep is completed in a timely manner

View Audit 354619

Finding 555814 (2024-001)

Material Weakness 2024

Walker County Board of Education

AL

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

We will follow the appropriate procurement policies when using federal award funding in accordance with Section 200.320 (b) of the Uniform Guidance. This will be further emphasized by having the CSFO train the staff that use federal funding. The policies and other rules will be emphasized formally...

We will follow the appropriate procurement policies when using federal award funding in accordance with Section 200.320 (b) of the Uniform Guidance. This will be further emphasized by having the CSFO train the staff that use federal funding. The policies and other rules will be emphasized formally.

View Audit 354526 Questioned Costs: $1

Finding 555796 (2024-002)

Significant Deficiency 2024

Ivy Plaza Housing Corporation

OH

Questioned Costs HUD Housing Programs Special Tests & Provisions

Finding 2024-002 HUD Approval Process for Residual Receipts Withdrawal Program Name/Assistance Listing Title: Supportive Elderly Housing Section 202 Federal Assistance Listing No: 14.157 Corrective Action Plan: To address the issue of withdrawing funds from the residual receipts account without ...

Finding 2024-002 HUD Approval Process for Residual Receipts Withdrawal Program Name/Assistance Listing Title: Supportive Elderly Housing Section 202 Federal Assistance Listing No: 14.157 Corrective Action Plan: To address the issue of withdrawing funds from the residual receipts account without prior HUD approval, we will take corrective actions to ensure compliance with HUD regulations. We will communicate this with HUD to determine if replenishment is required and provide supporting documentation for review. If HUD mandates replenishment, we will explore available funding sources to restore the withdrawn amount. Additionally, we will enhance documentation procedures, implement stricter internal controls to ensure prior approval for withdrawals, and designate a compliance contact to facilitate future HUD communications. A tracking system will also be developed to oversee fund withdrawals and prevent similar occurrences in the future. Proposed Completion Date: 12/31/2025

View Audit 354481 Questioned Costs: $1

Finding 555795 (2024-001)

Significant Deficiency 2024

Ivy Plaza Housing Corporation

OH

Questioned Costs HUD Housing Programs Subrecipient Monitoring

2024-001 Strengthening Compliance with Replacement Reserve Deposit Requirements Program Name/Assistance Listing Title: Supportive Elderly Housing Section 202 Federal Assistance Listing No: 14.157 Corrective Action Plan: To address the identified shortfall in replacement reserve deposits, we wil...

2024-001 Strengthening Compliance with Replacement Reserve Deposit Requirements Program Name/Assistance Listing Title: Supportive Elderly Housing Section 202 Federal Assistance Listing No: 14.157 Corrective Action Plan: To address the identified shortfall in replacement reserve deposits, we will implement measures to ensure compliance with HUD requirements. Moving forward, we will prioritize making timely deposits and closely monitor reserve balances to prevent future delays. A tracking sheet will be established to record monthly payments, and quarterly reviews will be conducted to identify and address any shortfalls proactively. Additionally, we will schedule a check-in meeting with our accounting firm by the third quarter to review reserve balances and ensure all funding obligations are met. We will also find ways to fund the deficit as soon as possible to restore compliance and maintain financial stability. These actions will strengthen financial oversight and help maintain compliance with HUD regulations. Proposed Completion Date: 12/31/2025

View Audit 354481 Questioned Costs: $1

Finding 555794 (2024-001)

Significant Deficiency 2024

Trinity Terrace, Inc.

MD

HUD Housing Programs Eligibility Subrecipient Monitoring

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner as well as timely recertification, as required by HUD guidelines. We attribute this finding to prior management handling of compliance as w...

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner as well as timely recertification, as required by HUD guidelines. We attribute this finding to prior management handling of compliance as well as the delay in software set-up at management transition. b. Action(s) Taken or Planned on the Finding As there has been a change in the Management Agent, the agent will ensure that the EIV Income Report and annual certifications are completed according to HUD guidelines. The site now has updated its file set-up review to make sure reports have been completed within HUD guidelines and new company policy as well as corporate compliance monitoring.

View Audit 354477

Finding 555742 (2024-001)

Significant Deficiency 2024

Nutley Senior Citizens Housing Corporation

NJ

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Management has reviewed the audit finding and acknowledges the delay in depositing surplus cash. Management was under the impression that the surplus cash was going to be used for the reduction of a future HAP payment. Management believes this was an isolated incident and has taken corrective action...

Management has reviewed the audit finding and acknowledges the delay in depositing surplus cash. Management was under the impression that the surplus cash was going to be used for the reduction of a future HAP payment. Management believes this was an isolated incident and has taken corrective action by reinforcing internal procedures to ensure timely deposits in the future. Additional monitoring measures have been implemented to prevent recurrence.

View Audit 354370

Finding 555740 (2024-001)

Material Weakness 2024

Victory Oaks, Inc.

MD

HUD Housing Programs Eligibility Subrecipient Monitoring

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner as well as timely recertification, as required by HUD guidelines. We attribute this finding to prior management handling of compliance as w...

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner as well as timely recertification, as required by HUD guidelines. We attribute this finding to prior management handling of compliance as well as the delay in software set-up at management transition. b. Action(s) Taken or Planned on the Finding As there has been a change in the Management Agent, the agent will ensure that the EIV Income Report and annual certifications are completed according to HUD guidelines. The site now has updated its file set-up review to make sure reports have been completed within HUD guidelines and new company policy as well as corporate compliance monitoring

View Audit 354366

Finding 555738 (2024-003)

Significant Deficiency 2024

Victory Heights, Inc.

MD

HUD Housing Programs Subrecipient Monitoring

a. Comments on the Finding and Each Recommendation Management acknowledges that the security deposit was not returned within 30 days of move-out for certain selected files. We attribute this finding to prior days of move-out for certain selected files. We attribute this finding to prior management h...

a. Comments on the Finding and Each Recommendation Management acknowledges that the security deposit was not returned within 30 days of move-out for certain selected files. We attribute this finding to prior days of move-out for certain selected files. We attribute this finding to prior management handling of compliance as well as the delay in software set-up at management transition. b. Action(s) Taken or Planned on the Finding As there has been a change in the Management Agent, the agent will ensure that move-outs are processed within the proper time frame. Management has instituted company policy as well as corporate compliance monitoring that requires timely processing.

View Audit 354365

Finding 555736 (2024-002)

Material Weakness 2024

Victory Heights, Inc.

MD

HUD Housing Programs Eligibility Subrecipient Monitoring

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner as well as timely recertification, as required by HUD guidelines and that a move-in inspection report was missing. We attribute this findin...

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner as well as timely recertification, as required by HUD guidelines and that a move-in inspection report was missing. We attribute this finding to prior management handling of compliance as well as the delay in software set-up at management transition. b. Action(s) Taken or Planned on the Finding As there has been a change in the Management Agent, the agent will ensure that the EIV Income Report and annual certifications are completed according to HUD guidelines. The site now has updated its file set-up review to make sure reports have been completed within HUD guidelines and new company policy as well as corporate compliance monitoring.

View Audit 354365

Finding 555732 (2024-001)

Significant Deficiency 2024

Manor Apartments, Inc.

MD

HUD Housing Programs Eligibility Subrecipient Monitoring

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner as well as timely recertification, as required by HUD guidelines. We attribute this finding to prior management handling of compliance as w...

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner as well as timely recertification, as required by HUD guidelines. We attribute this finding to prior management handling of compliance as well as the delay in software set-up at management transition. b. Action(s) Taken or Planned on the Finding As there has been a change in the Management Agent, the agent will ensure that the EIV Income Report and annual certifications are completed according to HUD guidelines. The site now has updated its file set-up review to make sure reports have been completed within HUD guidelines and new company policy as well as corporate compliance monitoring.

View Audit 354363

Finding 555731 (2024-001)

Material Weakness 2024

Cheval Court, Inc.

MD

HUD Housing Programs Eligibility Subrecipient Monitoring

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner as well as timely recertification, as required by HUD guidelines. We attribute this finding to prior management handling of compliance as w...

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner as well as timely recertification, as required by HUD guidelines. We attribute this finding to prior management handling of compliance as well as the delay in software set-up at management transition. b. Action(s) Taken or Planned on the Finding As there has been a change in the Management Agent, the agent will ensure that the EIV Income Report and annual certifications are completed according to HUD guidelines. The site now has updated its file set-up review to make sure reports have been completed within HUD guidelines and new company policy as well as corporate compliance monitoring.

View Audit 354361

Finding 555716 (2024-001)

Significant Deficiency 2024

Avondale Park Apartments, INC

MD

HUD Housing Programs Eligibility Subrecipient Monitoring

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner as well as timely recertification, as required by HUD guidelines. We attribute this finding to prior management handling of compliance as w...

a. Comments on the Finding and Each Recommendation Management agrees that the EIV Income Report for certain selected files were not generated in a timely manner as well as timely recertification, as required by HUD guidelines. We attribute this finding to prior management handling of compliance as well as the delay in software set-up at management transition. b. Action(s) Taken or Planned on the Finding As there has been a change in the Management Agent, the agent will ensure that the EIV Income Report and annual certifications are completed according to HUD guidelines. The site now has updated its file set-up review to make sure reports have been completed within HUD guidelines and new company policy as well as corporate compliance monitoring.

View Audit 354355

Finding 555695 (2024-002)

Significant Deficiency 2024

Wyoming Housing Network, Inc. and Subsidiaries

WY

Questioned Costs Special Tests & Provisions Subrecipient Monitoring

Finding #2024-002 Comments on the Finding and Each Recommendation: During the year ended September 30, 2024, the Corporation made three withdrawals from the reserve for replacements account totaling $31,043 without obtaining RD approval. Management should request retroactive approval for the reserve...

Finding #2024-002 Comments on the Finding and Each Recommendation: During the year ended September 30, 2024, the Corporation made three withdrawals from the reserve for replacements account totaling $31,043 without obtaining RD approval. Management should request retroactive approval for the reserve for replacements withdrawals totaling $31,043 and obtain RD approval prior to making withdrawals from the reserve for replacements account in the future. Action(s) taken or planned on the finding: Management concurs with the finding. Management requested and received retroactive approval for the reserve for replacements withdrawals totaling $31,043 and will obtain RD approval prior to making withdrawals from the reserve for replacements account in the future.

View Audit 354311 Questioned Costs: $1

Finding 555692 (2024-001)

Significant Deficiency 2024

Wyoming Housing Network, Inc. and Subsidiaries

WY

HUD Housing Programs Subrecipient Monitoring Eligibility

Finding #2024-001 Comments on the Finding and Each Recommendation: During the year ended September 30, 2024, two of the nine resident files selected for testing under the HUD Consolidated Audit Guide lacked properly executed and documented resident eligibility forms. The Agent should ensure that all...

Finding #2024-001 Comments on the Finding and Each Recommendation: During the year ended September 30, 2024, two of the nine resident files selected for testing under the HUD Consolidated Audit Guide lacked properly executed and documented resident eligibility forms. The Agent should ensure that all resident files are maintained at the site for each resident of the Property, and the Agent should ensure that the resident files include all properly executed and documented resident eligibility forms. Action(s) taken or planned on the finding: The Agent concurs with the finding and recommendation. The resident files noted in the statement of condition were for residents who moved out of the Property during the year ended September 30, 2024. No further action is required related to these residents' files. The Agent intends to review and update, as necessary, the other resident files during the year ended September 30, 2024 to ensure the Property is in compliance with HUD requirements.

View Audit 354311

Finding 555653 (2024-004)

Material Weakness 2024

Link of Hampton Roads, Inc.

VA

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.308 § 200.309 § 200.403

1. Implement pre-approval controls; require date validation for all expenses against the award' s period of performance. Program Director or Executive Director or Accounting Director to review and approve. 2. Conduct training; educating staff on 2 CFR requirements and period-of-performance limitatio...

1. Implement pre-approval controls; require date validation for all expenses against the award' s period of performance. Program Director or Executive Director or Accounting Director to review and approve. 2. Conduct training; educating staff on 2 CFR requirements and period-of-performance limitations. 3. Perform periodic reviews; monitor compliance quarterly to detect outliers.

View Audit 354255

Finding 555652 (2024-003)

Material Weakness 2024

Link of Hampton Roads, Inc.

VA

Allowable Costs / Cost Principles Subrecipient Monitoring Cash Management § 200.308 § 200.309 § 200.403

1. Implement pre-submission controls; require Date validation for all expenses against the award's period of performance. Program Director or Executive Director or Accounting Director to review and approve. 2. Conduct training; educating staff on 2 CFR requirements and period-of-performance limitati...

1. Implement pre-submission controls; require Date validation for all expenses against the award's period of performance. Program Director or Executive Director or Accounting Director to review and approve. 2. Conduct training; educating staff on 2 CFR requirements and period-of-performance limitations. 3. Perform periodic reviews; monitor compliance quarterly to detect outliers.

View Audit 354255

Finding 555640 (2024-002)

Significant Deficiency 2024

66th Avenue Apts. Inc. Dba Cardosa Village 136-Hd006

CA

Subrecipient Monitoring HUD Housing Programs

Finding 2024-002: The Property received a score of 49 (out of a possible 100) in a physical inspection of the property performed on June 21, 2024, by a representative of HUD. Scores below 60 may be referred to the Departmental Enforcement Center. By reference, the NSPIRE inspection is included as a ...

Finding 2024-002: The Property received a score of 49 (out of a possible 100) in a physical inspection of the property performed on June 21, 2024, by a representative of HUD. Scores below 60 may be referred to the Departmental Enforcement Center. By reference, the NSPIRE inspection is included as a statement of condition. Comments on the Finding and Each Recommendation: Management should maintain policies and procedures which help to ensure any substandard conditions are identified and corrected expeditiously. Management should continue to conduct routine unit and general property inspections and deficiencies should be corrected in a timely manner. Management should ensure all necessary repairs have been made. Action(s) taken or planned on the finding: Management concurs with the finding and agrees with the auditor's recommendation. Management has responded to HUD in regards to this inspection report and has addressed all exigent health and safety issues. Management will continue to correct all remaining deficiencies noted and will implement a process of self-inspection of units and common areas. Management expects that a new physical inspection will be completed in 2025.

View Audit 354222

Finding 555638 (2024-001)

Significant Deficiency 2024

66th Avenue Apts. Inc. Dba Cardosa Village 136-Hd006

CA

Questioned Costs Cash Management HUD Housing Programs

Finding 2024-001: The Property paid expenses totaling $6,702 on behalf of another property without HUD approval. Comments on the Finding and Each Recommendation: Management should seek reimbursement for these transactions from the other property. Action(s) taken or planned on the finding: Manageme...

Finding 2024-001: The Property paid expenses totaling $6,702 on behalf of another property without HUD approval. Comments on the Finding and Each Recommendation: Management should seek reimbursement for these transactions from the other property. Action(s) taken or planned on the finding: Management concurs with the finding and agrees with the auditor's recommendation. On February 11, 2025, a reimbursement from the other property totaling $6,702 was deposited into the Property's operating account.

View Audit 354222 Questioned Costs: $1

Finding 555623 (2024-002)

Significant Deficiency 2024

Marygrove Non-Profit Housing Corporation II

MI

Subrecipient Monitoring HUD Housing Programs

Finding #2024-002: The replacement reserve balance was not maintained in an interest bearing account during the year ended December 31, 2024. Comments on the Finding and Each Recommendation: Management should move funds to an interest bearing account. Action(s) taken or planned on the finding: Ag...

Finding #2024-002: The replacement reserve balance was not maintained in an interest bearing account during the year ended December 31, 2024. Comments on the Finding and Each Recommendation: Management should move funds to an interest bearing account. Action(s) taken or planned on the finding: Agree. The new management agent has gained access to the replacement reserve account and will move replacement reserve funds to an interest bearing account.

View Audit 354194

Finding 555622 (2024-001)

Significant Deficiency 2024

Marygrove Non-Profit Housing Corporation II

MI

Subrecipient Monitoring HUD Housing Programs

Finding #2024-001: There was not a management entity profile able to be provided in effect for the period January 1, 2024 through June 30, 2024. Comments on the Finding and Each Recommendation: HUD should approve a new board of directors and management agent. Action(s) taken or planned on the find...

Finding #2024-001: There was not a management entity profile able to be provided in effect for the period January 1, 2024 through June 30, 2024. Comments on the Finding and Each Recommendation: HUD should approve a new board of directors and management agent. Action(s) taken or planned on the finding: Agree. The new board of directors and new management agent took over the Property effective July 1, 2024 and have executed a management entity profile with HUD.

View Audit 354194

Corrective Action Plans

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