Corrective Action Plans

Finding 1208458 (2025-001)

Material Weakness 2025

MD

HUD Housing Programs Eligibility

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 required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 12...

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 required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame and that an error was made on a rent calculation. b. Action(s) Taken or Planned on the Finding Management compliance is addressing the generating of EIV reports to align with verification dates (<120 days) rather than when annual recertification notices are generated/sent (at least 120 days). Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion. There has also been a change in site staff.

View Audit 399436

Finding 1208456 (2025-001)

Material Weakness 2025

Victory Crest, Inc.

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recommendation: Management agrees with the finding b. Action(s) Taken or Planned on the Finding Management has updated the policies and procedures and monitoring of EIV processes. All employees renew EIV training annually and are monitored by the compliance depart...

a. Comments on the Finding and Each Recommendation: Management agrees with the finding b. Action(s) Taken or Planned on the Finding Management has updated the policies and procedures and monitoring of EIV processes. All employees renew EIV training annually and are monitored by the compliance department to ensure compliance.

View Audit 399435

Finding 1208454 (2025-001)

Material Weakness 2025

Palmer Park Senior Housing, Inc.

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recommendation Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding Delays in recertification completion have improved; a majority of the certifica...

a. Comments on the Finding and Each Recommendation Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion.

View Audit 399433

Finding 1208453 (2025-002)

Material Weakness 2025

Avondale Park Apartments, INC

MD

Subrecipient Monitoring HUD Housing Programs Matching / Level of Effort / Earmarking

A. Comments on the Finding and Each Recommendation During the year ended December 31, 2025, the project did not make the required monthly deposits to the replacement reserve in the amount of $10,616. Avondale is required to make monthly deposits to the reserve of $1,924. Effective July 1, 2025, the ...

A. Comments on the Finding and Each Recommendation During the year ended December 31, 2025, the project did not make the required monthly deposits to the replacement reserve in the amount of $10,616. Avondale is required to make monthly deposits to the reserve of $1,924. Effective July 1, 2025, the monthly deposits required by HUD increased to $2,090. b. Action(s) Taken or Planned on the Finding All required replacement reserve deposits were brought current as of January 13, 2026. Going forward, management will implement enhanced monitoring procedures to ensure timely monthly funding in accordance with HUD requirements. In the event of cash flow constraints, management will proactively reduce nonessential expenditures or seek an owner contribution to maintain compliance with the regulatory agreement.

View Audit 399431

Finding 1208452 (2025-001)

Material Weakness 2025

Avondale Park Apartments, INC

MD

HUD Housing Programs Eligibility

a. Comments on the Finding and Each Recomendation: Management agrees that the EIV Income Report for certain slected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120...

a. Comments on the Finding and Each Recomendation: Management agrees that the EIV Income Report for certain slected files were not generated in a timely manner, as required by HUD guidelines. Management agrees that a portion of the tenant lease files reviewed were not signed/completed within the 120 day time frame. b. Action(s) Taken or Planned on the Finding: Management compliance is addressing the generating of EIV reports to align with verification dates (<120 days) rather than when annual recertification notices are generated/sent (at least 120 days). Delays in recertification completion have improved; a majority of the certifications reviewed were effective within first 6 months of transition while the site was still adjusting to new software and management. Additional training has been provided to emphasize the importance of timely reporting and completion.

View Audit 399431

Finding 1208447 (2025-004)

Material Weakness 2025

Industrial Development Authority of the City of Danville, Virginia

VA

Period of Performance

The auditee concurs with the recommendation and has reaffirmed the need to review dates on supporting documentation before disbursements are made.

View Audit 399418

Finding 1208445 (2025-003)

Material Weakness 2025

Industrial Development Authority of the City of Danville, Virginia

VA

The auditee concurs with the recommendation. SAM.gov registrations are now reviewed periodically, and the Unique Entitiy ID will be kept active in order to provide required reporting should the Authroty have future federal funding.

View Audit 399418

Finding 1208443 (2025-002)

Material Weakness 2025

Industrial Development Authority of the City of Danville, Virginia

VA

Subrecipient Monitoring Reporting

The unique relationship between the pass-through entity and the Authority contributed to this oversight. Though the entities have separate governing bodies, the staff for each is identical. Although the recipient of the report would have been the same person as the preparer, the Authority achnowledg...

The unique relationship between the pass-through entity and the Authority contributed to this oversight. Though the entities have separate governing bodies, the staff for each is identical. Although the recipient of the report would have been the same person as the preparer, the Authority achnowledgesthat this is a requirement of receiving these funds and the auditee concurs with the need to complete said reporting.

View Audit 399418

Finding 1208441 (2025-001)

Material Weakness 2025

Mid-Mo Barrier-Free Hsg-Phys. Hndcp-Dba Freedom House II

MO

Management agrees with the finding. The residual reciepts accouNT Deficiency was funded on August 26, 2025 in the amount of $22,779. Management will ensure that the residual receipts account is properly funded in the future.

View Audit 399414

Finding 1208440 (2025-001)

Material Weakness 2025

Alliance Health of Quincy, Inc.

MA

HUD Housing Programs

Section 223 Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities – Assistance Listing No. 14.157 Recommendation: The auditor recommends that management update its policies and procedures on monitoring policy coverage to ensure that cover...

Section 223 Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities – Assistance Listing No. 14.157 Recommendation: The auditor recommends that management update its policies and procedures on monitoring policy coverage to ensure that coverage is adequate to cover collections. The auditor also recommends that management update its fidelity policy to bring the Project back into compliance.. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: (1) Management will include an updated policy concerning annual re-verification of its fidelity policy such that the policy limits will exceed HUDs ongoing requirements for coverage. (2) Management will immediately increase limits from the previous limits ($3.5M) to a new higher limit ($5M) that will be well in excess of HUDs current requirements. Name(s) of the contact person(s) responsible for corrective action: Paul Kemp Planned completion date for corrective action plan: March 31, 2026

View Audit 399404

Finding 1208439 (2025-002)

Material Weakness 2025

Albia Community School District

IA

Internal Control / Segregation of Duties Reporting

The District continues to review duties and procedures throughout all fiscal services to improve segregation of duty procedures. We are implementing procedures to ensure additional oversight in areas such as cash handling, recordkeeping and financial reporting. These procedures include ensuring that...

The District continues to review duties and procedures throughout all fiscal services to improve segregation of duty procedures. We are implementing procedures to ensure additional oversight in areas such as cash handling, recordkeeping and financial reporting. These procedures include ensuring that all journal entries, cash receipt entry, check batches, and balancing procedures are reviewed/edited by more than one person at Central Office.

View Audit 399393

Finding 1208431 (2025-004)

Material Weakness 2025

Anderson Place Apartments, Inc.

IN

Equipment & Real Property Management

Recommendation: The design of the current controls should be reviewed to ensure that all required monthly deposits are made to the reserve for replacement. The Organization should ensure that funds are deposited to the reserve to correct the shortage. Action Taken: Management agrees with the finding...

Recommendation: The design of the current controls should be reviewed to ensure that all required monthly deposits are made to the reserve for replacement. The Organization should ensure that funds are deposited to the reserve to correct the shortage. Action Taken: Management agrees with the finding and will implement procedures to ensure that all required deposits are made to the reserve for replacement. A deposit has been made to correct this shortage.

View Audit 399384

Finding 1208430 (2025-003)

Material Weakness 2025

Anderson Place Apartments, Inc.

IN

Cash Management

Recommendation: The design of the current controls should be reviewed to ensure all tenant security deposits are properly tracked. Management should make transfers to the security deposit account to cover all deposits currently on hand. Action Taken: Management agrees with the finding and will imple...

Recommendation: The design of the current controls should be reviewed to ensure all tenant security deposits are properly tracked. Management should make transfers to the security deposit account to cover all deposits currently on hand. Action Taken: Management agrees with the finding and will implement procedures to ensure proper tracking of security deposits and will make the necessary transfer to fund the security deposit account.

View Audit 399384

Finding 1208429 (2025-002)

Material Weakness 2025

Anderson Place Apartments, Inc.

IN

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of annual recertification process and that the process is completed by the tenants certification anniversary date. Action Taken: The Organization accepts the recommendation of Deming, Malone...

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of annual recertification process and that the process is completed by the tenants certification anniversary date. Action Taken: The Organization accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will provide timely notice of annual recertifications to all tenants in accordance with HUD guidelines to ensure process is completed on time and will ensure all supporting documentation is maintained in tenant files.

View Audit 399384

Finding 1208428 (2025-004)

Material Weakness 2025

Cain Center Apartments, Inc. Dba Brown-MacKinnon Apartments

KY

Cash Management

Recommendation: The design of the current controls should be reviewed to ensure all tenant security deposits are properly tracked. Management should make transfers to the security deposit account to cover all deposits currently on hand. Action Taken: The management of Cain Center Apartments, Inc. db...

Recommendation: The design of the current controls should be reviewed to ensure all tenant security deposits are properly tracked. Management should make transfers to the security deposit account to cover all deposits currently on hand. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all move out adjustments processed utilize the proper vacancy date. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billing.

View Audit 399383

Finding 1208427 (2025-003)

Material Weakness 2025

Cain Center Apartments, Inc. Dba Brown-MacKinnon Apartments

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure proper vacancy dates are utilized on the monthly vouchers when a move out is processed. The overpayment of subsidy received should be repaid to HUD. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-...

Recommendation: The design of the current controls should be reviewed to ensure proper vacancy dates are utilized on the monthly vouchers when a move out is processed. The overpayment of subsidy received should be repaid to HUD. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all move out adjustments processed utilize the proper vacancy date. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billing.

View Audit 399383

Finding 1208426 (2025-002)

Material Weakness 2025

Cain Center Apartments, Inc. Dba Brown-MacKinnon Apartments

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting ...

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will provide timely notice of annual recertifications to all tenants in accordance with HUD guidelines to ensure process is completed on time and will ensure all supporting documentation is maintained in tenant files.

View Audit 399383

Finding 1208425 (2025-003)

Material Weakness 2025

Thompson-Woodlief Apartments, Inc.

KY

Cash Management

Recommendation: The design of the current controls should be reviewed to ensure all tenant security deposits are properly tracked. Management should make transfers to the security deposit account to cover all deposits currently on hand. Action Taken: The management of Thompson-Woodlief Apartments, I...

Recommendation: The design of the current controls should be reviewed to ensure all tenant security deposits are properly tracked. Management should make transfers to the security deposit account to cover all deposits currently on hand. Action Taken: The management of Thompson-Woodlief Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure proper tracking of security deposits and will make the necessary transfer to fund the security deposit account.

View Audit 399382

Finding 1208424 (2025-002)

Material Weakness 2025

Thompson-Woodlief Apartments, Inc.

KY

Eligibility HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that all documents related to recertification are acquired. Additionally, tenant files should be reviewed to ensure all supporting documentation is ...

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that all documents related to recertification are acquired. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. Action Taken: The management of Thompson-Woodlief Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that tenant recertifications are documented in accordance with HUD guidelines and that proper documentation is maintained within the tenant files.

View Audit 399382

Finding 1208423 (2025-006)

Material Weakness 2025

Jude's Place Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure that all withdrawals from the reserve for replacement agree to the amount approved by HUD. The Organization should return the excess funds withdrawn to the reserve. Action Taken: The management of Jude’s Place Apartments...

Recommendation: The design of the current controls should be reviewed to ensure that all withdrawals from the reserve for replacement agree to the amount approved by HUD. The Organization should return the excess funds withdrawn to the reserve. Action Taken: The management of Jude’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all withdrawals from the reserve for replacement agree to the amount approved by HUD. The excess funds withdrawn were returned to the reserve in May 2025.

View Audit 399381

Finding 1208422 (2025-005)

Material Weakness 2025

Jude's Place Apartments, Inc.

KY

Cash Management

Recommendation: The design of the current controls should be reviewed to ensure all tenant security deposits are properly tracked. Management should make transfers to the security deposit account to cover all deposits currently on hand. Action Taken: The management of Jude’s Place Apartments, Inc. a...

Recommendation: The design of the current controls should be reviewed to ensure all tenant security deposits are properly tracked. Management should make transfers to the security deposit account to cover all deposits currently on hand. Action Taken: The management of Jude’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure proper tracking of security deposits and will make the necessary transfer to fund the security deposit account.

View Audit 399381

Finding 1208421 (2025-004)

Material Weakness 2025

Jude's Place Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure that information used on Form 50059 in the calculation of tenant payments should agree to the supporting documentation maintained in tenant files. Overpayment of subsidy should be repaid to HUD. Action Taken: The managem...

Recommendation: The design of the current controls should be reviewed to ensure that information used on Form 50059 in the calculation of tenant payments should agree to the supporting documentation maintained in tenant files. Overpayment of subsidy should be repaid to HUD. Action Taken: The management of Jude’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that information used on Form 50059 in the calculation of tenant payments should agree to the supporting documentation maintained in tenant files. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billings.

View Audit 399381

Finding 1208420 (2025-003)

Material Weakness 2025

Jude's Place Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure that all adjustments to monthly billings are reviewed before processing. The Organization should repay the overpayment of subsidy to HUD. Action Taken: The management of Jude’s Place Apartments, Inc. accepts the recommen...

Recommendation: The design of the current controls should be reviewed to ensure that all adjustments to monthly billings are reviewed before processing. The Organization should repay the overpayment of subsidy to HUD. Action Taken: The management of Jude’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all adjustments to monthly billings are reviewed to ensure they are processed correctly. Overpayment of subsidy will be repaid to HUD through adjustments to monthly billings.

View Audit 399381

Finding 1208419 (2025-002)

Material Weakness 2025

Jude's Place Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting docu...

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of annual recertification process and that the process is completed by the tenants certification anniversary date. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. Action Taken: The management of Cain Center Apartments, Inc. dba Brown-Mackinnon Apartments accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will provide timely notice of annual recertifications to all tenants in accordance with HUD guidelines to ensure process is completed on time and will ensure all supporting documentation is maintained in tenant files.

View Audit 399381

Finding 1208418 (2025-004)

Material Weakness 2025

Edsil's Place Apartments, Inc.

KY

HUD Housing Programs

Recommendation: The design of the current controls should be reviewed to ensure that all adjustments to monthly billings are reviewed before submission. The Organization should repay the overpayment of subsidy to HUD. Action Taken: The management of Edsil’s Place Apartments, Inc. accepts the recomme...

Recommendation: The design of the current controls should be reviewed to ensure that all adjustments to monthly billings are reviewed before submission. The Organization should repay the overpayment of subsidy to HUD. Action Taken: The management of Edsil’s Place Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that all adjustments to monthly billings are reviewed before submission.. The overpayment of subsidy will be repaid to HUD through adjustments to monthly billings.

View Audit 399380

Corrective Action Plans

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