Core Issue: A move-out inspection report lacked signatures from both the tenant and housing manager.
Impacted Requirements: All inspection reports must be signed by both parties to comply with federal guidelines.
Recommended Follow-Up: Management should review and update policies to ensure future compliance with signature requirements.
Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects Assistance Listing Number: 14.155 Federal Award Identification Number and Year: MN46T801017 - 2025 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: N/A Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Inspection reports should be signed by both the tenant and the housing manager. Condition: One move-out inspection report did not include signatures from either party. Questioned costs: None Cause: Management oversight as part of the unit inspection process for move-outs. Effect: No effect on the financial statements. Repeat Finding: No Recommendation: The Project should ensure that all inspection reports are signed by both the tenant and housing manager. Views of responsible officials: Management will review policies and procedures to ensure compliance is met going forward.
Corrective Action Plan
Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects – Assistance Listing No. 14.155 Recommendation: The Project should ensure that all inspection reports are signed by the housing manager and the tenant. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will review policies and procedures to ensure compliance is met. Name(s) of the contact person(s) responsible for corrective action: Carol Borgerson, CFO Planned completion date for corrective action plan: December 3, 2025
Categories
Internal Control / Segregation of DutiesProcurement, Suspension & DebarmentHUD Housing ProgramsSignificant Deficiency