FAC Explorer

Finding 1175084 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-24
Audit: 388708
Organization: Crystal Run Owner Corporation V (NY)
Auditor: BONADIO & CO LLP

AI Summary

  • Core Issue: The organization continued to voucher for a unit after a tenant moved out, violating HUD reporting requirements.
  • Impacted Requirements: HUD mandates that subsidies for vacated units be removed effective the day after move-out.
  • Recommended Follow-Up: Implement a new move-out notification workflow to ensure timely reporting of tenant departures.

Finding Text

Finding 2025-001: Supportive Housing for Persons with Disabilities, Federal Assistance Listing Number 14.181 Criteria: HUD requires entities to accurately report occupancy and adjust monthly HUD vouchers to exclude units where tenants have vacated. HUD’s Tenant Rental Assistance Certification System (TRACS) guidance requires removal of subsidy for vacated units effective the day after move-out. Condition: During our testing of HUD vouchers for the year ended June 30, 2025, we noted one tenant move-out during the year. The Organization continued to voucher for an additional month after the move-out. This amount was subsequently adjusted once the vacated unit was reported to the Finance Department. Context: There was one move-out during the year. Cause: The formal control related to reporting of move-outs was not followed. Effect: The Organization received funding in advance of services being provided. Recommendation: We recommend that new procedures be implemented to ensure move-outs are timely reported. Views of management and planned corrective action: Management concurs. We will implement a move-out notification workflow.

Corrective Action Plan

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED JUNE 30, 2025 U.S. Department of Housing and Urban Development Crystal Run Owner Corporation V (the Organization), HUD Project No. 012-HD091 respectfully submits the following corrective action plan for the year ended June 30, 2025. Name and address of independent public accounting firm: Bonadio & Co., LLP, 432 North Franklin Street #60, Syracuse, New York 13204 Audit period: July 1, 2024 – June 30, 2025 The findings from the 2025 schedule of findings and questioned costs are discussed below. Findings are numbered consistently with the number assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2025-001: Supportive Housing for Persons with Disabilities, Federal Assistance Listing Number 14.181 Recommendation: We recommend that new procedures be implemented to ensure move-outs are timely reported. Action Taken: Management is in the process of implementing a new move-out notification workflow. Name of Contact Person Responsible for Corrective Action: Audra Coon, Director of Finance, (845) 695-2554. Anticipated Completion Date: May 2026

Categories

HUD Housing Programs Reporting

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR THE ELDERLY $1.11M