Finding 1161732 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-11-03

AI Summary

  • Core Issue: The Organization lacked a HUD approved Form 9839-B for its management agent from March 1 to March 31, 2025.
  • Impacted Requirements: Compliance with HUD guidelines for managing housing projects for low-income individuals.
  • Recommended Follow-Up: Ensure timely submission of requests for management agent approval to avoid future deficiencies.

Finding Text

S3800-010: Finding Reference Number 2025-002 (Significant Deficiency) S3800-011: Program Information Federal Program: Supportive Housing for the Elderly - Section 202 Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Resolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria Owners of insured and assisted multifamily housing projects are required by HUD administrative guidelines to have a HUD approved Project Owner’s/Management Agent’s Certification for housing projects managed by Administrators for extremely or very low-income persons (Form 9839-B). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2025 federal award program, we noted the Organization did not have a HUD approved Form 9839-B from March 1, 2025 through March 31, 2025. S3800-032: Cause The Organization did not submit a timely request to approve the management agent. S3800-033: Effect or Potential Effect As of March 31, 2025 the management agent had not been approved; however, on August 4, 2025 HUD retroactively approved the management agent effective March 1, 2025. S3800-035: Auditor Non-Compliance Code J – Unauthorized management fees S3800-040: Questioned Costs $0 S3800-045: Reporting Views of Responsible Officials Management agrees with auditor’s finding. S3800-050: Context The Organization is required to have all of its necessary forms and licenses current and up to date. S3800-080: Recommendation The Organization should timely submit the request to approve the management agent. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date July 24, 2025 S3800-150: Response See Corrective Action Plan

Corrective Action Plan

Finding 2025-002 Compliance Requirements N – Special Tests and Provisions Finding Type Financial Statement and Federal Awards Auditee’s Comments on Finding We agree with the auditors’ finding. Corrective Action On July 24, 2025 we filed HUD Form 9839-B requesting retroactive approval to March 1, 2025. Anticipated Completion Date July 24, 2025

Categories

Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 1161731 2025-001
    Material Weakness Repeat
  • 1161733 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $4.10M
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM_SECTION 8 MODERATE REHABILITATION $386,231