Finding 1206041 (2025-001)

Material Weakness Repeat Finding
Requirement
EJ
Questioned Costs
-
Year
2025
Accepted
2026-04-07

AI Summary

  • Core Issue: Lack of independent reviews for tenant eligibility and monthly payment requests at the Sierra Vista Alamosa Housing Complex.
  • Impacted Requirements: Compliance with eligibility and program income regulations under 2 CFR 200.303(a) is not being met.
  • Recommended Follow-Up: Strengthen internal controls by establishing a review process and reassessing roles to ensure proper oversight of tenant eligibility and payment requests.

Finding Text

Finding 2025-001: Rural Rental Housing Loans Assistance Listing Number: 10.415 U.S. Department of Agriculture (Repeat of Finding 2024-001) Compliance Requirement: Eligibility, Program Income Type of finding: Internal Control Over Compliance (significant deficiency) Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require that the non-Federal entity establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award (2 CFR 200.303(a)). Condition: There were no reviews of the tenant eligibility determinations during the year for the Sierra Vista Alamosa Housing Complex. This complex represents 1 of 3 complexes and 27 of the 111 units included in the Rural Rental Housing Loans program. In addition, seven of the 12 monthly housing assistance payment requests submitted for the Sierra Vista Alamosa Housing Complex were not reviewed. Cause: Management has not implemented an internal control structure that provides for independent review of tenant eligibility determinations or all monthly housing assistance payment requests for the Sierra Vista Alamosa Housing Complex. Effect: Noncompliance with the Rural Rental Housing Loan requirements may exist and not be detected by the Organization. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The Organization should consider assessing and realigning the duties and responsibilities of the Executive Director, Administrative Assistant, and Alamosa Property Manager to provide for a review process of tenant eligibility determinations and the monthly housing assistance payment requests for the Sierra Vista Alamosa Housing Complex. Grantee’s Response: See corrective action plan.

Corrective Action Plan

Finding 2025-001: Rural Rental Housing Loans Assistance Listing Number: 10.415 U.S. Department of Agriculture (Repeat of Finding 2024-001) Compliance Requirement: Eligibility, Program Income Type of finding: Internal Control Over Compliance (significant deficiency) Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The Organization should consider assessing and realigning the duties and responsibilities of the Executive Director, Administrative Assistant, and Alamosa Property Manager to provide for a review process of tenant eligibility determinations and the monthly housing assistance payment requests for the Sierra Vista Alamosa Housing Complex. Action Taken: This finding was from the actions of the pervious on-site manager, concerning the Alamosa Complex only. Sierra Vista/Alamosa Complex has already implemented the internal control concerning compliance in house. Priscilla and Alonzo will make sure that all internal compliance issues are segregated and check by at least 2 persons in the office, and if needed, the Executive Director can request viewing of internal control procedures as well. Alonzo and Priscilla prepare and review along with signatures of the review and approval dates of internal affairs. "This institution is an equal opportunity provider." If there are questions regarding this plan, please call the responsible party at (719)852-5505. Sincerely yours, Corinna Garcia Executive Director Monte Vista Community Center Housing Authority, Inc.

Categories

Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Allowable Costs / Cost Principles Eligibility HUD Housing Programs Significant Deficiency Program Income

Other Findings in this Audit

  • 1206039 2025-001
    Material Weakness Repeat
  • 1206040 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.415 RURAL RENTAL HOUSING LOANS $2.10M
10.415 RURAL RENTAL HOUSING LOANS RENTAL ASSISTANCE $348,677
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $292,841
10.415 RURAL RENTAL HOUSING LOANS INTEREST SUBSIDY $109,835