Corrective Action Plans

Finding 1214380 (2025-002)

Material Weakness 2025

IL

Reporting § 200.328

The County was previously unable to access the SLFRF quarterly reports on the US Department of Treasury’s portal. The County has since received assistance from the US Department of Treasury and has been given access to the US Department of Treasury’s portal. The County is going to make it a priority...

The County was previously unable to access the SLFRF quarterly reports on the US Department of Treasury’s portal. The County has since received assistance from the US Department of Treasury and has been given access to the US Department of Treasury’s portal. The County is going to make it a priority to submit the SLFRF quarterly reports by the due dates listed in the SLFRF Compliance and Reporting Guidance. Management anticipates the completion of this item by November 30, 2026.

View Audit 401033

Finding 1214351 (2025-003)

Material Weakness 2025

Regional School Unit No. 10

ME

Internal Control / Segregation of Duties

Management Response/Corrective Action Plan: A document is in place to remove a student from a cohort. This will be completed by the Guidance office, and then reviewed and signed off by the Principal. An Annual email will be sent out to Guidance and HS Principals to remind them of the document and th...

Management Response/Corrective Action Plan: A document is in place to remove a student from a cohort. This will be completed by the Guidance office, and then reviewed and signed off by the Principal. An Annual email will be sent out to Guidance and HS Principals to remind them of the document and the process from our Data Manager each year in September.

View Audit 401031

Finding 1214349 (2025-002)

Material Weakness 2025

Regional School Unit No. 10

ME

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Management response/corrective action: The Business Manager will work with others to create an internal controls procedure for all Grants, including Federal Grants.

View Audit 401031

Finding 1214348 (2025-001)

Material Weakness 2025

Androscoggin Home Health Service, Inc.

ME

Matching / Level of Effort / Earmarking

Condition Found: During the audit we noted the Association has not maintained the reserve balance as required. Response: Androscoggin Home Health Services, Inc. d/b/a Andwell Health Partners paid off the total amount of debt to the United States Department of Agriculture under the federal program, C...

Condition Found: During the audit we noted the Association has not maintained the reserve balance as required. Response: Androscoggin Home Health Services, Inc. d/b/a Andwell Health Partners paid off the total amount of debt to the United States Department of Agriculture under the federal program, Community Facilities Loans and Grants prior to December 31, 2025 to satisfy loan requirement, and the future reserve is no longer deemed necessary. Responsible Party: Dr. RJ Gagnon, DBA, MBA, CHFP, CSAF Chief Financial and Operating Officer (207) 777-7740 Anticipated Completion Date: 12/31/25

View Audit 401030

Finding 1214347 (2025-001)

Material Weakness 2025

Genesee Health Plan

MI

Allowable Costs / Cost Principles § 200.430

To prevent future occurrences, Genesee Health Plan has updated its payroll allocation procedures, and employees now track time directly through the payroll system.

View Audit 401020

Finding 1214346 (2025-002)

Material Weakness 2025

Operation A.b.l.e. of Greater Boston, Inc.

MA

Subrecipient Monitoring

Corrective Action Plan Condition: Subrecipient monitoring procedures for ALN 17.235 were not followed, resulting in a duplicate payment and inadequate oversight. Cause: Significant turnover in accounting staff and lack of continuity in subrecipient monitoring controls. Effect: Duplicate payment was ...

Corrective Action Plan Condition: Subrecipient monitoring procedures for ALN 17.235 were not followed, resulting in a duplicate payment and inadequate oversight. Cause: Significant turnover in accounting staff and lack of continuity in subrecipient monitoring controls. Effect: Duplicate payment was made and required federal monitoring controls were not followed. Corrective Actions Taken or to be Taken:  Conduct a complete file review of the subrecipient, including all invoices, monitoring records, and communications.  Recovered the duplicate payment and coordinated resolution with the sub award agency.  Prepare a formal Subrecipient Close-Out Certification documenting deliverables and financial reconciliation. Timeline for Completion: All subrecipient corrective actions will be completed before complete liquidation of the Organization. Responsible Party: Liquidation Board Officer / Grant Close-Out Administrator

View Audit 401019

Finding 1214334 (2025-001)

Material Weakness 2025

Ucr of Covington Tn D/b/a Fox Hollow Com 081-11045

OH

Internal Control / Segregation of Duties

Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management will monitor security deposit refunds in order to ensure refunds meet the regulatory agreement requirements.

View Audit 401007

Finding 1214264 (2025-001)

Material Weakness 2025

North Pointe Affordable Housing, LLC

SC

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking

View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. Management notes that it did not previously have controls in place to timely file its financial statements. Management will institute procedures to ensure that the financial statements are electronicall...

View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. Management notes that it did not previously have controls in place to timely file its financial statements. Management will institute procedures to ensure that the financial statements are electronically filed with the Federal Audit Clearinghouse within the earlier of 30 days from the audit report date or within 9 months of year-end.

View Audit 400995

Finding 1214263 (2025-001)

Material Weakness 2025

Cumberland Gardens Affordable Housing, LLC

AL

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking

View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. Management notes that it did not previously have controls in place to timely file its financial statements. Management will institute procedures to ensure that the financial statements are electronicall...

View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. Management notes that it did not previously have controls in place to timely file its financial statements. Management will institute procedures to ensure that the financial statements are electronically filed with the Federal Audit Clearinghouse within the earlier of 30 days from the audit report date or within 9 months of year-end. Contact Person Responsible: R.B. Coats, III, President

View Audit 400994

Finding 1214262 (2025-101)

Material Weakness 2025

Mohave County Community College District

AZ

Student Financial Aid Reporting Significant Deficiency

During fiscal year 2025, differences were identified between amounts reported on the Fiscal Operations Report and Application to Participate (FISAP) and the District’s finalized accounting records due to yearend adjustments recorded after submission of the report. The District recognizes the importa...

During fiscal year 2025, differences were identified between amounts reported on the Fiscal Operations Report and Application to Participate (FISAP) and the District’s finalized accounting records due to yearend adjustments recorded after submission of the report. The District recognizes the importance of ensuring reported amounts reconcile fully to underlying accounting records and acknowledges that additional coordination between Business Services and Financial Aid is necessary to strengthen reporting accuracy. To address this finding, the District will undertake the following actions: 1. Develop a formal reconciliation process between the general ledger, student financial aid reporting, and FISAP submissions prior to report filing. 2. Establish documented timelines to ensure year-end accounting adjustments are evaluated and incorporated into federal reporting, when applicable. These actions are intended to improve reporting accuracy, strengthen interdepartmental communication, and ensure compliance with federal reporting requirements under the Student Financial Assistance Cluster.

View Audit 400990

Finding 1214258 (2025-001)

Material Weakness 2025

Lupus Foundation of America, Inc.

DC

Allowable Costs / Cost Principles

CORRECTIVE ACTION PLAN For the Year Ended September 30, 2025 Finding No. 2025-001: Allowable Costs – Significant Deficiency – Internal Control and Compliance Finding ALN 93.068 – Chronic Diseases: Research, Control, and Prevention, Grant Number 5NU58DP006907-04-00, Grant Period: September 30, 2020 t...

CORRECTIVE ACTION PLAN For the Year Ended September 30, 2025 Finding No. 2025-001: Allowable Costs – Significant Deficiency – Internal Control and Compliance Finding ALN 93.068 – Chronic Diseases: Research, Control, and Prevention, Grant Number 5NU58DP006907-04-00, Grant Period: September 30, 2020 to September 29, 2025 Corrective Action Plan 1. Planned Corrective Actions Management has implemented and will formalize the following procedures to ensure compliance with federal salary limitation requirements: A. Formal Salary Cap Calculation Control • Establish a documented procedure requiring calculation of the Executive Level II salary cap annually and whenever updated by HHS. • Maintain written documentation of the capped rate calculation for each employee whose compensation exceeds the threshold. B. Payroll Allocation Review Control • Require a secondary review by the Controller (or designated finance personnel independent of the preparer) of all payroll allocations charged to federal awards for employees subject to the salary cap. • Review will confirm that capped salary, related fringe benefits, and indirect costs are properly calculated prior to posting to the general ledger. C. Grant Compliance Checklist • Implement a standardized federal grant compliance checklist to be completed monthly prior to drawdowns. This checklist will include verification of salary cap compliance. D. Staff Training • Provide targeted training to finance and payroll staff regarding: o Executive Level II compensation limits o 2 CFR §200.430 (Compensation—personal services) o Federal cost allowability requirements 2. Implementation Timeline All corrective procedures were implemented as of February 2026, with formal documentation completed no later than March 31, 2026. Sincerely, Cynthia R. Meekins, MBA Chief Financial Officer Direct: 202.349.1141

View Audit 400980

Finding 1214249 (2025-005)

Material Weakness 2025

HABITAT FOR HUMANITY OF KANSAS CITY

MO

Allowable Costs / Cost Principles Significant Deficiency Matching / Level of Effort / Earmarking

Allowable Costs and Activities – Assistance Listing No. 21.027 Recommendation: Management should ensure that all disbursements are reviewed and approved in accordance with established policies prior to payment and that evidence of such approvals is properly documented and retained in the audit trail...

Allowable Costs and Activities – Assistance Listing No. 21.027 Recommendation: Management should ensure that all disbursements are reviewed and approved in accordance with established policies prior to payment and that evidence of such approvals is properly documented and retained in the audit trail. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will review our procedures surrounding ensuring that the proper review and approval is obtained for all disbursements prior to payment, and will establish policies, procedures, and internal controls to retain these approvals as part of the audit trail. Name of the contact person responsible for corrective action: Lindsay Hicks Planned completion date for corrective action plan: June 30, 2026

View Audit 400970

Finding 1214245 (2025-004)

Material Weakness 2025

HABITAT FOR HUMANITY OF KANSAS CITY

MO

Procurement, Suspension & Debarment Eligibility Significant Deficiency

Suspension and Debarment – Assistance Listing No. 21.027 Recommendation: Management should implement a formal process to document and retain evidence of suspension and debarment verification for all applicable vendors, including verification dates. Management should also establish periodic review pr...

Suspension and Debarment – Assistance Listing No. 21.027 Recommendation: Management should implement a formal process to document and retain evidence of suspension and debarment verification for all applicable vendors, including verification dates. Management should also establish periodic review procedures to ensure continued vendor eligibility in accordance with Federal requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Organization will establish and/or revise policies, procedures, and internal controls to ensure the documentation and retention of evidence of suspension and debarment verification, including periodic review of all applicable vendors. Name of the contact person responsible for corrective action: Lindsay Hicks Planned completion date for corrective action plan: June 30, 2026

View Audit 400970

Finding 1214241 (2025-001)

Material Weakness 2025

River Valley Child Development Services

WV

Matching / Level of Effort / Earmarking § 200.512

2025-001 - SEFA REPORTING Recommendation: We recommend that the Organization review and address personnel and cross-staffing needs, specifically in the event of an emergency, to ensure timely reporting and submission in accordance with federal regulations. Action Taken: • The agency will develop and...

2025-001 - SEFA REPORTING Recommendation: We recommend that the Organization review and address personnel and cross-staffing needs, specifically in the event of an emergency, to ensure timely reporting and submission in accordance with federal regulations. Action Taken: • The agency will develop and maintain an audit preparation timeline with milestone deadlines • Executive Leadership Team members will participate in cross-training on audit preparation.

View Audit 400951

Finding 1214234 (2025-009)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 and 14.EHV Noncompliance – N. Special Tests and Provisions - Reasonable Rent Non Compliance Material to the Financial Statements: No Significant Deficiency...

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 and 14.EHV Noncompliance – N. Special Tests and Provisions - Reasonable Rent Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Reasonable Rent. The Authority must do the following: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The Authority must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: Based upon inspection of the Authority’s files and discussion with management, the Authority did not have procedures or software in place to perform the required evaluation of rent reasonableness. Context: There were approximately fifteen(15) newly leased units in the Emergency Housing Vouchers Program. Of a sample size of two (2) newly leased units in the Emergency Housing Vouchers Program, two (2) unit's documentation of reasonable rent was not available for examination. Our sample size is statistically valid. Known Questioned Costs: Unknown Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to reasonable rent. The Authority experienced high turnover and did not properly train employees in the HCV department, which resulted in the Authority having a limited capacity to perform rent reasonableness calculations and properly maintain and monitor a system of internal controls that reasonably assures the program is in compliance with program requirements. Effect: The Section 8 Housing Choice Vouchers Program is in non-compliance with the special tests and provisions type of compliance related to reasonable rent. Recommendation: We recommend that the Authority establish a software and implement a process whereby Authority personnel are hired and trained on performing the appropriate rent reasonableness procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Section 8 Housing Voucher Cluster Programs and will train staff on rent reasonableness and implement internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

Finding 1214233 (2025-007)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

HUD Housing Programs Special Tests & Provisions Significant Deficiency

Finding 2025-007: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 and 14.EHV Noncompliance – N. Special Tests and Provisions – HQS Enforcement Non Compliance Material to the Financial Statements: Yes Sig...

Finding 2025-007: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 and 14.EHV Noncompliance – N. Special Tests and Provisions – HQS Enforcement Non Compliance Material to the Financial Statements: Yes Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: HQS Enforcement. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets the Housing Quality Standards (HQS) and the Authority must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. If deficiencies are not correcting in the required time period, the Authority must abate housing assistance payments in accordance with their admin plan. Condition: Based upon inspection of the Authority’s files and on discussions with management, the Authority did not provide support for two (2) failed inspections. Context: Of a sample size of two (2) failed inspections, the Authority did not provide support for two (2) failed inspections selected for testing, and did not abate housing assistance payments for the two (2) units selected. As a result, the Authority was not in compliance with the HQS as required by 24 CFR sections 982.158(d) and 982.405(b). Known Questioned Costs: $31,548 Cause: There is a significant deficiency in internal controls over compliance for the special tests and provisions type of compliance related to HQS enforcement due to high turnover. Effect: The Housing Voucher Cluster Programs are in material non-compliance with the special tests and provisions type of compliance related to HQS enforcement. Recommendation: We recommend that the Authority implement a process whereby Authority personnel are hired and trained on HQS enforcement that will reasonably assure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Housing Voucher Cluster Programs and has implemented a process to prevent the same issues from occurring. The Authority will also continue to train staff on HQS enforcement and enhance it's internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

Finding 1214232 (2025-006)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

Special Tests & Provisions HUD Housing Programs Material Weakness

Finding 2025-006: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 & 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements:...

Finding 2025-006: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Federal Catalog Numbers: 14.871 & 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Criteria: HQS Inspections. Per the Authority's HCV Admin Plan, the PHA must inspect the unit leased to a family at least annually to determine if the unit meets HQS standards and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). These inspection reports 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 inspection reports that were unavailable for examination at the time of audit. Context: Of a sample size of twenty-four (24) units, thirteen (13) units did not have annual HQS inspections performed timely. Our sample size is statistically valid. Known Questioned Costs: $131,112 Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in material non-compliance with the with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance related to HQS inspections in accordance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the significant deficiency in the Housing Voucher Cluster Programs and will implement internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

Finding 1214231 (2025-005)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

HUD Housing Programs Eligibility Material Weakness

Finding 2025-005: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.EHV Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness i...

Finding 2025-005: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.EHV Non Compliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family members 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 1,056 units. Of a sample size of twenty-four (24) tenant files, the following was noted:  HUD form 9886 was unable to be provided in 6 files - Verification of income was unable to be provided in 2 files - HUD-50058 form was unavailable for review in 4 files - Citizen Declaration Section 214 form was unable to be provided in 9 files - Signed leases were unable to be provided in 8 files - Original application was missing in 2 files - Lead based paint forms were missing 2 files - The Authority was unable to provide 1 tenant file during the time of audit. Known Questioned Costs: $ 149,640 Cause: There is a material weakness in the Housing Voucher Cluster in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority experienced high turnover and did not properly train employees in the HCV department, which resulted in the Authority having a limited capacity to perform the required maintenance of tenant files, and properly maintain and monitor a system of internal controls that reasonably assures the program is in compliance. Effect: The Housing Voucher Cluster Programs are in material non-compliance with the eligibility requirements of the programs. Recommendation: We recommend that the Authority implement a process whereby Authority personnel are hired and trained on tenant file maintenance so that documents are accumulated, stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Housing Voucher Cluster Programs and will train staff on the proper maintenance of tenant files and implement internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

Finding 1214230 (2025-008)

Material Weakness 2025

ATLANTIC CITY HOUSING AUTHORITY & URBAN REDEVELOPMENT AGENCY

CA

HUD Housing Programs Eligibility Material Weakness

Finding 2025-008: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Material Noncompliance Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Comp...

Finding 2025-008: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Public and Indian Housing Program Federal Catalog Numbers: 14.850 Material Noncompliance Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility 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 1,086 units. Of a sample size of twenty-four (24) tenant files, the following was noted: - Citizenship declaration was missing in 1 file - HUD-9886 form was missing in 5 files - Signed lease was missing in 1 file. Our sample size is statistically valid. Known Questioned Costs: $48,870 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority experienced high turnover and did not properly train employees in the Public and Indian Housing department, which resulted in the Authority having a limited capacity to perform the required maintenance of tenant files, and properly maintain and monitor a system of internal controls that reasonably assures the program is in compliance. Effect: The Public and Indian Housing Program is in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend that the Authority implement a process whereby Authority personnel are hired and trained on tenant file maintenance so that documents are accumulated, stored and safeguarded to ensure compliance with the Uniform Guidance and the compliance supplement. Views of responsible officials and planned corrective action: The Authority has recognized the deficiencies in the Public Housing Program and will train staff on the proper maintenance of tenant files and implement internal control procedures that will ensure compliance with federal regulations. Malcom Isler, HCV Program Director/Interim Deputy Executive Director is responsible for ensuring proper internal controls are in place to prevent significant deficiencies and material weaknesses from occurring and is expected to be completed by July 31, 2026.

View Audit 400937

Finding 1214224 (2025-002)

Material Weakness 2025

Community Housing Iii, Inc. Fir Grove Apartments

OR

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures a...

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to insure that move out inspections are performed timely, security deposits are returned timely and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to return security deposits in a timely manner but was delayed in issuing the security deposit refund for this unit due to staffing issues. In 2026 property management will be outsourced to a third-party management company to address any outstanding compliance issues.

View Audit 400934

Finding 1214222 (2025-001)

Material Weakness 2025

Community Housing Iii, Inc. Fir Grove Apartments

OR

Eligibility HUD Housing Programs Subrecipient Monitoring

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures a...

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly (Section 202) Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to insure that EIVs and recertifications are performed timely, inspections are completed, waitlists are being completed and followed, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to complete certifications in a timely manner but due to staffing shortages at the property continued to have issues with timely completion of income certifications in 2025. In 2026 property management will be outsourced to a third-party management company to address outstanding compliance issues.

View Audit 400934

Finding 1214220 (2025-003)

Material Weakness 2025

Community Housing Ii, Inc. the Maples II Apartments

OR

Eligibility HUD Housing Programs Special Tests & Provisions

Federal Award Findings and Questioned Costs Item 2025-003 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor com...

Federal Award Findings and Questioned Costs Item 2025-003 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility and the maintenance of lease files are in accordance with guidelines specified by HUD. Action Taken: REACH has policies in place to complete move in inspections but due to tenant noncompliance and staffing issues this inspection was missed. Management scheduled training with staff in March 2026.

View Audit 400933

Finding 1214218 (2025-002)

Material Weakness 2025

Community Housing Ii, Inc. the Maples II Apartments

OR

HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor com...

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that move out inspections are performed timely, security deposits are returned timely and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to return security deposits in a timely manner but was slightly delayed in issuing the security deposit refund for this unit. Management reviewed with the teams to ensure rent refunds would be processed within 30 days.

View Audit 400933

Finding 1214216 (2025-001)

Material Weakness 2025

Community Housing Ii, Inc. the Maples II Apartments

OR

Eligibility HUD Housing Programs Subrecipient Monitoring

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor com...

Federal Award Findings and Questioned Costs Item 2025-001 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Federal Assistance Listing Number: 14.157 Recommendation: Management should establish procedures and monitor compliance with those procedures to ensure that EIVs are performed timely, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Action Taken: REACH has policies in place to complete EIVs and recertifications in a timely manner but due to staffing shortages and tenant noncompliance issues the property continued to have issues with timely completion of income certifications in 2025. In 2026 property management will be outsourced to third party management company to address outstanding compliance issues.

View Audit 400933

Finding 1214214 (2025-002)

Material Weakness 2025

Powell Boulevard Apartments, Inc.

OR

HUD Housing Programs Subrecipient Monitoring Allowable Costs / Cost Principles

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Program Federal Assistance Listing Number: 14.181 Recommendation: Management should review the HUD...

Federal Award Findings and Questioned Costs Item 2025-002 Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Program Federal Assistance Listing Number: 14.181 Recommendation: Management should review the HUD-52670 and HUD-52670-A every month to ensure that it contains the correct tenants and amounts requested. Action Taken: REACH has policies in place to ensure that HAP funds received are only for current tenants. Due to staffing issues there was a delay in updating the HAP contract. All excess funds received will be returned to HUD.

View Audit 400931

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