Finding 1208230 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-04-20
Audit: 399175
Organization: Leap Charities, Inc. (ID)
Auditor: SORREN CPAS PC

AI Summary

  • Core Issue: The organization failed to recertify tenant eligibility within the required one-year timeframe.
  • Impacted Requirements: Annual recertification as mandated by the Idaho Housing and Finance Association Administrative Plan.
  • Recommended Follow-Up: Implement a tracking system to ensure timely recertification for all tenants moving forward.

Finding Text

IDAHO HOUSING AND FINANCE ASSOCIATION ADMINISTRATIVE PLAN AND OMB COMPLIANCE SUPPLEMENT REQUIRES ORGANIZATION’S TO ANNUALLY RECERTIFY TENANT ELIGIBILITY, WHICH MUST OCCUR NO LATER THAN ONE YEAR FROM THE EFFECTIVE DATE OF THE PRIOR RECERTIFICATION. THE ORGANIZATION DID NOT COMPLETE THE RECERTIFICATION WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THE PREVIOUS RECERTIFICATION FOR CERTAIN TENANTS.

Corrective Action Plan

PRIOR TO THE COMPLETION OF THE AUDIT, ALL CERTIFICATIONS WERE COMPLETED AND NO ISSUES FOUND IN THE SUBSEQUENTLY COMPLETED LATE RECERTIFICATIONS. WE HAVE INSPECTED FILES AND VERIFIED THAT ANNUAL INCOME RECERTIFICATIONS HAVE BEEN COMPLETED FOR HTF, HOME AND NSP PROPERTIES EXCLUSIVELY OWNED BY LEAP CHARITIES, INC. MANAGEMENT HAS TAKEN CORRECTIVE ACTIONS TO CREATE QUALITY ASSURANCE CHECKPOINTS THAT REDUCE THE LIKELIHOOD OF LATE RECERTIFICATIONS OF INCOME IN THE FUTURE. SPECIFIC INTERVENTIONS ALREADY IMPLEMENTED INCLUDE THE USE OF PROPERTY MANAGEMENT SOFTWARE THAT PROVIDES AUTOMATIC REMINDERS RELATED TO INCOME COMPLIANCE REQUIREMENTS, STAFF TRAINING, AND INTERNAL COMPLIANCE DEPARTMENT REVIEWS. MANAGEMENT IS ADDITIONALLY SEEKING EXTERNAL COMPLIANCE REVIEWS. WE HAVE COMPLETED ALL RECERTIFICATIONS AS OF FEBRUARY 20, 2026. WE HAVE COMPLETED IMPLEMENTATION OF NEW SOFTWARE THAT PROVIDES REMINDERS FOR COMPLIANCE DEADLINES PER INDIVIDUAL HOMEOWNER. INTERNAL COMPLIANCE DEPARTMENT REVIEWS WERE IMPLEMENTED STARTING IN MARCH 2026. WE EXPECT ADDITIONAL STAFF TRAINING TO OCCUR BY APRIL 30, 2026. WE EXPECT TO ENGAGE AN EXTERNAL COMPLIANCE REVIEW ORGANIZATION BY JUNE 2026.

Categories

Eligibility

Programs in Audit

ALN Program Name Expenditures
14.275 HOUSING TRUST FUND $1.54M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $314,925
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $297,719
21.020 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS PROGRAM $166,685