Finding 1169539 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-01-16
Audit: 382485
Organization: Three West Housing, Inc. (OR)

AI Summary

  • Core Issue: One tenant file lacked proper documentation, and another was not recertified on time, risking overpayment from HAP.
  • Impacted Requirements: Compliance with Section 811 mandates timely annual reexaminations and proper documentation in tenant files.
  • Recommended Follow-Up: Conduct an internal review of tenant files to ensure all documentation is complete and timely.

Finding Text

Title and Assistance Listing Number of Federal Program: 14.181 Supportive Housing for Persons with Disabilities (Section 811). Type of Finding: Federal Award Finding Finding Resolution Status: In progress Information on Universe and Population Size: Population is 24 tenant files. Sample Size Information: 4 Identification of Repeat Finding and Finding Reference Number: Not a repeat finding. Criteria: Supportive Housing for Persons with Disabilities (Section 811) requires the Owner and management must include verification documentation in the tenant file and ensure timely annual reexamination. Statement of Condition: During our tests of compliance over the program, we noted one tenant file that did not have appropriate documentation at the time of our review of tenant files and another tenant file that did not have the annual tenant recertification completed timely. Cause: Owner and management had change in staffing that caused delay in annual reexamination and obtaining the appropriate documentation. Effect or Possible Effect and Perspective: HAP could be overpaid if the tenant becomes ineligible or does not have adequate documentation to support its asset or income. Auditor Non-Compliance Code: R - Section 8 program administration Questioned Costs: N/A. Reporting Views of Responsible Officials: Management agrees with the finding and has implemented a corrective action plan. Please identify the property(s) and associated questioned costs this finding applies to: Fanno Creek Apartments FHA/Contract Number: 126-HD007-CMI Context: During our tests of compliance over the program, the documentation to support assets were not timely available and appear to have been obtained subsequent to the auditor's inquiry. Recommendation: We recommend that the Organization to have an internal review of the tenant files. Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management agrees with the auditor. Response Indicator: Agree Completion Date: 09/15/2025 Response: Management agrees with the finding and has implemented a corrective action plan.

Corrective Action Plan

Title and AL Number of Federal Program: 14.181 Supportive Housing for Persons with Disabilities (Section 811) Federal Award Agency: U.S. Department of Housing and Urban Development Name of Contact Person: Barry Gault, Chief Financial Officer Corrective Action: 1) Management will assign a secondary review by the Compliance Manager and establish controls in place to ensure that recertifications are performed timely. Date of Planned Corrective Action: 09/15/2025 Submitted by: Barry Gault

Categories

HUD Housing Programs Reporting Eligibility

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $105,914