Finding 1166993 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-12-30

AI Summary

  • Core Issue: There is a minor noncompliance with HUD requirements regarding the use of the EIV system, specifically missing documentation for one tenant.
  • Impacted Requirements: The organization must ensure proper controls are in place for utilizing the EIV system as mandated by HUD.
  • Recommended Follow-Up: Management should establish and enforce procedures to guarantee all EIV documents are retained correctly, with a completion target of June 30, 2026.

Finding Text

Finding Type: - Immaterial noncompliance with major program requirements - Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program - 14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract and Capital Advance Finding Resolution Status - In Process Information on Universe and Population Size - The total population size is the total number of units, which is 40. Sample Size Information - A total of 1 out of the 5 samples Identification of Repeat Finding and Finding Reference Number - N/A Criteria - HUD requires the Organization to utilize EIV, including having controls in place to ensure EIV is being properly utilized. Statement of Condition - During testing of tenant files, it was noted that the EIV report was missing for one tenant. Cause - The Organization failed to maintain the proper EIV document for one of the tenants tested. Effect or Potential Effect - EIV was not properly kept within the tenant file Auditor Noncompliance Code - S - Internal control deficiency Reporting Views of Responsible Officials - Management will implement internal control procedures to ensure that the EIV system is properly utilized Recommendation - Management should implement proper procedures and controls to ensure EIV is properly utilized. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management acknowledges the noncompliance and related internal control deficiency over compliance and will implement proper procedures and controls to ensure EIV is properly utilized. Response Indicator - Agree Completion Date - June 30, 2026 Response - Management will ensure controls in place are followed and that all required documents are properly retained in each respective tenant file.

Corrective Action Plan

Finding Number: 2025-002 Condition: During testing of tenant files, it was noted that the EIV report was missing for one tenant. Planned Corrective Action: Management has acknowledged the noncompliance and related internal control deficiency over compliance and will implement proper procedures and controls to ensure EIV is properly utilized. Contact person responsible for corrective action: Tyler Luce Anticipated Completion Date: June 30, 2026

Categories

Internal Control / Segregation of Duties HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 1166990 2025-001
    Material Weakness Repeat
  • 1166991 2025-001
    Material Weakness Repeat
  • 1166992 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $3.51M