Finding 1169726 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-20
Audit: 382793
Organization: Nhhi - Champlin, Inc. (MN)

AI Summary

  • Core Issue: One tenant file lacked required disability verification documentation.
  • Impacted Requirements: Tenant files must include a copy of disability verification to comply with regulations.
  • Recommended Follow-Up: Ensure all tenant files are updated with necessary documentation and remind staff of this requirement.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 223(a)(7), ASSISTANCE LISTING NUMBER 14.155 Condition: One of the tenant files tested did not contain a copy of the tenant's disability verification. Criteria: The tenant file should contain a copy of the tenant's disability verification. Effect: There is no financial effect. Context: A sample of tenant files were selected to ensure that proper documentation was included. The test found that one of the files tested was not in compliance. The non-compliance did not have a financial effect. The details and results of the sample are as follows: Population - 24; Sample - 3; Not in Compliance - 1, Questioned Costs - None; Cause: A copy of the tenant's disability verification was not obtained and placed into the tenant file. Recommendation: The Project should obtain a copy of the tenant's disability verification and place it in the tenant file. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. They will remind Project personnel of the importance of obtaining a copy of each tenant's disability verification and placing it in the tenant file. Total-Department of Housing and Urban Development - $0; Non-compliance code: R

Corrective Action Plan

NHHI - Champlin, Inc. respectfully submits the following corrective action plans for the year ended September 30, 2025 Name and address of independent public accounting firm:Baker Meinz & Associates, LTD. 1000 Shelard Parkway, Suite 110 Minneapolis, MN 55426 Audit Period: September 30, 2025 The findings from the September 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS - FINANCIAL STATEMENT AUDIT - NONE; FINDINGS - FEDERAL AWARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-001: SECTION 223(a)(7), ASSISTANCE LISTING NUMBER 14.155 Condition: One of the tenant files tested did not contain a copy of the tenant's disability verification. Recommendation: The Project should obtain a copy of the tenant's disability verification and place it in the tenant file. Action Taken: The Project agrees with the finding. They obtained a copy of the tenant's disability verification during October, 2025.

Categories

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Other Findings in this Audit

  • 1169727 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $1.26M
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $236,446