Finding 1072797 (2023-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-10

AI Summary

  • Core Issue: Villagebrook Apartments failed to recertify residents on time, violating HUD regulations.
  • Impacted Requirements: Non-compliance with the HAP Contract and HUD Handbook 4350.3 may affect current and future funding.
  • Recommended Follow-Up: Conduct a thorough review of resident files and ensure timely recertifications moving forward.

Finding Text

Finding reference number: 2023-001 Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Program, Assistance Listing. No. 14.195, IL06M000196, 2012 Auditor non-compliance code: N. Special Tests and Provisions Finding resolution status: In process Universe population size: 147 resident files Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $0 Statement of condition 2023-001: During the year ended December 31, 2023, Villagebrook Apartments did not recertify residents timely as required by HUD Handbook 4350.3. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Agent must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements. Effect: Villagebrook Apartments is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Current, future, and potentially prior funding under the HAP Contract could be impacted as a result of the recertifications not being completed timely. Cause: Villagebrook Apartments was understaffed during the years ended December 31, 2023 and 2022 and the employees responsible for completing recertifications were not doing so timely. Recommendation: The Agent should complete a review of all resident files and complete all recertifications that were not completed timely. The Agent should ensure that all residents are recertified timely in the future. Management's response: The Agent reported this concern and agrees with the finding and recommendation. The Agent is working to address the staffing issues at Villagebrook Apartments and to provide additional training to the employees regarding recertification requirements. As of December 31, 2023, the Agent has completed a 100% file review and believes that all outstanding recertifications have been completed.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 496355 2023-001
    Significant Deficiency Repeat
  • 496356 2023-002
    Significant Deficiency
  • 1072798 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.188 Housing Finance Agencies (hfa) Risk Sharing $15.80M
14.195 Section 8 Housing Assistance Payments Program $1.12M
14.239 Home Investment Partnerships Program $688,217
14.218 Community Development Block Grants/entitlement Grants $311,783