Finding 1155987 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2025-09-29
Audit: 368450
Organization: Saugatucket Spring INC (RI)

AI Summary

  • Core Issue: One tenant file was missing critical documents, including a signed recertification and identification.
  • Impacted Requirements: The Corporation is not complying with its Project Rental Assistance Contract due to inadequate file maintenance.
  • Recommended Follow-Up: Implement internal controls to ensure all tenant files are complete and conduct annual inspections.

Finding Text

Finding 2025-001 Supportive Elderly Housing Section 202 Condition: One out of the six tenant files tested had the following items missing: • Signed certification for the 6/1/2024 recertification • Social security card • Birth certificate • Move-out inspection • Pre-rental agreement Criteria: Tenant files should be maintained with all required documentation. Cause: The Corporation does not have internal controls in place to ensure that tenant files are properly maintained. Effect: The Corporation is no longer in compliance with its Project Rental Assistance Contract to receive subsidies. Recommendation: The Corporation should design and implement internal controls to ensure that all tenant files have proper documentation. Views of Responsible Officials and Planned Corrective Actions: Management is in agreement with the auditor’s findings. Management will ensure tenant file inspections are completed in on annual basis.

Corrective Action Plan

United States Department of Housing and Urban Development Saugatucket Springs, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2025 Name of Audit Firm: Damiano, Burk & Nuttall, P.C. 6 Blackstone Valley Place Suite 109 Lincoln, RI 02865 Audit period covered: 7/1/2024-6/30/2025 The findings from the June 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: Section 202 Project Rental Assistance—Assistance Listing # 14.157 Recommendation: The Corporation should design and implement internal controls to ensure that all tenant files have proper documentation. Action Taken: Management is in agreement with the auditor’s findings. Management has instructed all accounting personnel to review all matters related to tenant compliance. If the United States Department of Housing and Urban Development has questions regarding this plan, please call Frank Shea at (401) 296-3761.

Categories

Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $275,392