FAC Explorer

Finding 1166504 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-23
Audit: 377520
Organization: Nba/gpva Accessible Housing II Inc. (MO)
Auditor: DAUBY O'CONNOR & ZALESKI LLC

AI Summary

  • Core Issue: The Corporation lacks a HUD-approved Project Owner's/Management Agent's Certification (HUD-9839-B), which is required for compliance.
  • Impacted Requirements: Management fees cannot be paid without this certification, leading to potential non-compliance with the regulatory agreement.
  • Recommended Follow-up: Continue pursuing the certification from HUD and refrain from paying management fees until it is received, with a target completion date of June 30, 2026.

Finding Text

Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007) Auditor non-compliance code: J - Unauthorized management fees Finding resolution status: In process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $2,424 Statement of condition 2025-001: For the year ended June 30, 2025, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B). Criteria: Pursuant to the regulatory agreement and HUD handbook 5381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD- 9839-B). Effect: The Corporation is not in compliance with the regulatory agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B). Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent. Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839- B) is received. Completion date: June 30, 2026 Management's response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.

Corrective Action Plan

Statement of condition 2025-001: For the year ended June 30, 2025, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B). Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839- B) is received. Action(s) taken or planned on the finding: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.

Categories

HUD Housing Programs Subrecipient Monitoring

Other Findings in this Audit

  • 1166503 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $120,093