Finding 1210789 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-04-29

AI Summary

  • Core Issue: Three out of thirteen resident files lacked properly executed eligibility forms, violating compliance standards.
  • Impacted Requirements: Non-compliance with OMB Compliance Supplement and HOME loan agreement could affect current and future funding.
  • Recommended Follow-Up: WHN Property Management should complete recertifications for remaining residents and ensure all eligibility forms are properly documented and maintained.

Finding Text

Finding reference number: #2025-001 Auditor non-compliance code: E - Eligibility Finding resolution status: In Process Universe population size: 111 resident files Sample size information: 13 resident files Statistically valid sample: Yes Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Wyoming Community Development Authority Questioned costs: N/A Repeat Finding: Yes Statement of condition #2025-001 (Assistance Listing No. 14.239): During the year ended September 30, 2025, three of the thirteen resident files selected for testing under the OMB Compliance Supplement lacked properly executed and documented resident eligibility forms. Criteria: Pursuant to the OMB Compliance Supplement and HOME loan agreement, the Agent must certify and recertify residents in accordance with 24 CFR Part 92.203 at least annually. Effect or potential effect: The Company is not in compliance with the terms of the OMB Compliance Supplement and HOME loan agreement. Current, future, and potentially prior funding under the HOME loan could be impacted as a result of these resident files. Cause: Syringa Property Management, Inc. did not complete the required resident eligibility forms for three of the thirteen resident files selected for testing at the Property. WHN Property Management was unable to complete the recertification process after taking over management due to timing and one resident vacating the unit. Recommendation: WHN Property Management should complete recertifications for the two residents still residing at the Property, ensure that all resident files are maintained at the site for each resident of the Property, and ensure that the resident files include all properly executed and documented resident eligibility forms. Completion date: February 25, 2026 Management response: WHN Property Management concurs with the finding and recommendation. WHN Property Management is in the process of completing recertifications for two of the residents still residing at the Property. One of the resident files noted in the statement of condition was for a resident who moved out of the Property in November 2025. No further action is required related to this resident's file. WHN Property Management intends to review and update, as necessary, the other resident files during the year ended September 30, 2026 to ensure the Property is in compliance with the OMB Compliance Supplement and the HOME loan agreement.

Corrective Action Plan

Finding #2025-001 Comments on the Finding and Each Recommendation: During the year ended September 30, 2025, three of the thirteen resident files selected for testing under the OMB Compliance Supplement lacked properly executed and documented resident eligibility forms. WHN Property Management should complete recertifications for the two residents still residing at the Property, ensure that all resident files are maintained at the site for each resident of the Property, and ensure that the resident files include all properly executed and documented resident eligibility forms. Action(s) taken or planned on the finding: WHN Property Management concurs with the finding and recommendation. WHN Property Management is in the process of completing recertifications for two of the residents still residing at the Property. One of the resident files noted in the statement of condition was for a resident who moved out of the Property in November 2025. No further action is required related to this resident's file. WHN Property Management intends to review and update, as necessary, the other resident files during the year ended September 30, 2026 to ensure the Property is in compliance with the OMB Compliance Supplement and the HOME loan agreement.

Categories

Subrecipient Monitoring Eligibility Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1210787 2025-001
    Material Weakness Repeat
  • 1210788 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $4.35M
14.275 HOUSING TRUST FUND $2.00M
10.415 RURAL RENTAL HOUSING LOANS $850,883
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $729,815
21.000 Neighborworks America Corporation $333,500
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $89,293
14.169 HOUSING COUNSELING ASSISTANCE PROGRAM $63,331
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $28,383
10.437 INTEREST ASSISTANCE PROGRAM $21,205
14.252 SECTION 4 CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE HOUSING $14,629