Finding 1072633 (2023-001)

Material Weakness
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-09-09
Audit: 319145
Auditor: M Group LLP

AI Summary

  • Core Issue: The Partnership did not keep up with tenant certifications before on-site transfers, delaying payments until March 2024.
  • Impacted Requirements: Annual re-certification of tenants is necessary to comply with HAP Contract standards and ensure benefits align with income.
  • Recommended Follow-Up: Review HAP Contract rules and establish a tracking system for tenant certifications, especially during major renovations.

Finding Text

Finding #2023-001: Section 8 Housing Assistance Payments Program Assistance Listing 14.155– Waters at West Ashley, LP. Condition: The Partnership failed to maintain proper certifications prior to doing on-site transfers governed by the HAP Contract that required multiple months to unravel and resulted in a delay in payment until March 2024. Criteria: The Partnership is required to annually re-certify tenants to ensure they are meeting the HAP Contract requirements and receiving benefits according to their income. Questioned Costs: $639,206 Effect: The Partnership is in violation of the Section 8 Housing Assistance Payments Program. Repeat Finding: No Cause: The Project was undergoing a major rehabilitation and transferred tenants which had lost HUD certification. Recommendation: We recommend the Partnership review the rules that govern the HAP Contract and implement a system to ensure that all new and existing residents are meeting the Contract requirements. Management’s Views: Management is in agreement with the finding and will submit the remaining vouchers with the related certification documentation. Management will implement a process to accurately track unit transfers during a major rehabilitation and maintain the proper tenant certifications. Auditors comment: The Partnership has recertified existing residents, submitted the 2023 vouchers and received payment for the submitted vouchers as of April 3, 2024.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

  • 496191 2023-001
    Material Weakness
  • 496192 2023-002
    Material Weakness
  • 496193 2023-003
    Significant Deficiency
  • 496194 2023-003
    Significant Deficiency
  • 496195 2023-003
    Significant Deficiency
  • 496196 2023-003
    Significant Deficiency
  • 496197 2023-003
    Significant Deficiency
  • 496198 2023-003
    Significant Deficiency
  • 496199 2023-003
    Significant Deficiency
  • 496200 2023-003
    Significant Deficiency
  • 496201 2023-003
    Significant Deficiency
  • 496202 2023-003
    Significant Deficiency
  • 496203 2023-005
    Significant Deficiency
  • 496204 2023-005
    Material Weakness
  • 496205 2023-004
    Significant Deficiency
  • 496206 2023-004
    Significant Deficiency
  • 496207 2023-004
    Significant Deficiency
  • 496208 2023-004
    Significant Deficiency
  • 496209 2023-004
    Significant Deficiency
  • 1072634 2023-002
    Material Weakness
  • 1072635 2023-003
    Significant Deficiency
  • 1072636 2023-003
    Significant Deficiency
  • 1072637 2023-003
    Significant Deficiency
  • 1072638 2023-003
    Significant Deficiency
  • 1072639 2023-003
    Significant Deficiency
  • 1072640 2023-003
    Significant Deficiency
  • 1072641 2023-003
    Significant Deficiency
  • 1072642 2023-003
    Significant Deficiency
  • 1072643 2023-003
    Significant Deficiency
  • 1072644 2023-003
    Significant Deficiency
  • 1072645 2023-005
    Significant Deficiency
  • 1072646 2023-005
    Material Weakness
  • 1072647 2023-004
    Significant Deficiency
  • 1072648 2023-004
    Significant Deficiency
  • 1072649 2023-004
    Significant Deficiency
  • 1072650 2023-004
    Significant Deficiency
  • 1072651 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $11.82M
14.239 Home Investment Partnerships Program $3.44M
14.195 Section 8 Housing Assistance Payments Program $603,958