Core Issue: A move-in inspection report lacked the tenant's signature, indicating a gap in compliance.
Impacted Requirements: All inspection reports must be signed by both the tenant and the housing manager.
Recommended Follow-Up: Implement a process to ensure all inspection reports are properly signed moving forward.
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: MN46T781014-20Z-2019
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: A move-in inspection report was missing the tenant’s signature.
Questioned costs: None
Cause: Management oversight as part of the unit inspection process for move-ins and move-outs.
Effect: No effect on the financial statements.
Repeat Finding: No
Recommendation: The Project should ensure that all inspection reports are signed by the tenant.
Views of responsible officials: Management
Corrective Action Plan
U.S. Department of Housing and Urban Development
2023-001 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: Douglas Wyckoff, Controller
Planned completion date for corrective action plan: December 14, 2023
Categories
Internal Control / Segregation of DutiesProcurement, Suspension & DebarmentHUD Housing ProgramsSignificant Deficiency