Finding 1169540 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-01-16
Audit: 382486
Organization: Ecunet Housing, Inc. (OR)

AI Summary

  • Core Issue: One tenant file lacked the required annual recertification for 2025, risking overpayment of housing assistance.
  • Impacted Requirements: Timely verification and calculation of tenant income and annual recertification are essential for compliance with program rules.
  • Recommended Follow-Up: Management should ensure timely tenant certifications and consider a secondary review process for accuracy.

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 12 tenant files. Sample Size Information: 3 tenant files Identification of Repeat Finding and Finding Reference Number: Not a repeat finding. Criteria: In accordance with eligibility and to determine whether total tenant rent payment were calculated in accordance with program requirements, the Owner and management must correctly verify and calculate income and ensure annual recertification is done timely. Statement of Condition: One of the tenant files selected for review did not have the annual recertification for 2025. Cause: Management had change in staffing that caused delay in annual reexamination and obtaining the appropriate documentation. Effect or Possible Effect and Perspective: Housing assistance may be overpaid if tenants is not eligible or income and deductions have changed from prior certification. 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: Hopewell Apartments FHA/Contract Number: 126-HD009 Context: During our tests of compliance over the program, the documentation to support annual recertification was not complete. Recommendation: Management should ensure that all tenant certifications are performed timely as required and recommend to implement a secondary review of files. Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership 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 Eligibility Reporting

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $75,994