FAC Explorer

Finding 1177619 (2025-004)

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 allowed to rent due to insufficient eligibility review processes.
  • Impacted Requirements: Compliance with eligibility certification standards was not met, leading to a significant deficiency in internal controls.
  • Recommended Follow-up: Implement stricter control procedures for verifying resident eligibility and ensure management communicates these policies effectively.

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, we were unable to obtain proper review over eligibility certification. Questioned Costs: None. Context: Through audit compliance testing procedures, it was identified that one individual tested was unable to be identified as eligible due to lack of support. Cause: Due to change in property manager and that the resident was unresponsive. Effect: The Project allowed an ineligible resident to continue 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

Eligibility for a resident was not supported. 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
  • 1177617 2025-003
    Material Weakness Repeat
  • 1177618 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