FAC Explorer

Finding 1177617 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-10
Audit: 391021
Organization: Leeway-Welton Housing Corporation (CT)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: An ineligible resident was found living in the property during the 2025 audit.
  • Impacted Requirements: Compliance with eligibility criteria for residents under the Section 811 program.
  • Recommended Follow-Up: Strengthen control procedures to ensure proper enforcement of resident eligibility policies.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811) Assistance Listing Number: 14.181 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Ineligible Resident Condition: During the 2025 audit, an ineligible resident was residing at the property. Questioned Costs: None. Context: Through audit compliance testing procedures, it was identified that one resident tested was not eligible to reside in the Project. Cause: Due to change in property manager and that an existing resident was using improper eligibility requirements. Effect: The Project allowed an ineligible resident to rent from the Project. Repeat Finding: None. Recommendation: We recommend enforcing control procedures over resident eligibility. Views of Responsible Officials: Management identifies that the resident move-in was conducted by the prior management company. The management company will recommunicate their policies and ensure proper controls over eligibility are enforced.

Corrective Action Plan

An ineligible resident was residing at the property. Recommendation: CLA recommends enforcing control procedures over resident eligibility. Explanation of disagreement with audit finding: Management identifies that the resident move-in was conducted by the prior management company. Action planned in response to finding: During fiscal 2026, the management company will recommunicate their policies and ensure proper controls over eligibility are enforced. Name of the contact person responsible for corrective action: Sabine Cox, EHM Comptroller Planned completion date for corrective action plan: September 30, 2026

Categories

HUD Housing Programs Eligibility

Other Findings in this Audit

  • 1177612 2025-001
    Material Weakness Repeat
  • 1177613 2025-001
    Material Weakness Repeat
  • 1177614 2025-002
    Material Weakness Repeat
  • 1177615 2025-002
    Material Weakness Repeat
  • 1177616 2025-003
    Material Weakness Repeat
  • 1177618 2025-004
    Material Weakness Repeat
  • 1177619 2025-004
    Material Weakness Repeat
  • 1177620 2025-005
    Material Weakness Repeat
  • 1177621 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $270,226