Finding 1229125 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-09-09

AI Summary

  • Core Issue: The Project failed to conduct the required annual utility allowance analysis, which is necessary to support the current utility allowance amount.
  • Impacted Requirements: HUD regulations mandate that utility allowances must be analyzed and adjusted annually to ensure they are reasonable.
  • Recommended Follow-Up: The Project should establish procedures to comply with HUD regulations and ensure timely preparation of supporting documentation by the completion date of 12/31/2026.

Finding Text

FINDING No. 2025-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Utility costs. Sample Size Information: Annual utility allowance analysis. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require the owner to submit an analysis of any utility allowances with supporting documentation, make an annual review of tenant utility allowances to determine their reasonableness, and adjust the allowances, when appropriate. Statement of Condition: The Project did not prepare the utility allowance analysis to support the current utility allowance amount. Cause: The Project did not prepare the utility allowance for the current year. Effect or Potential Effect: Unable to verify the accuracy and reasonableness of the utility allowance amount. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted. Recommendation: The Project should implement procedures for compliance with all HUD regulations and ensure that the supporting documents are prepared in a timely manner. Response Indicator: Agree. Completion date: 12/31/2026 Response: Staff training has been provided regarding UA support and included in monthly reporting procedures.

Corrective Action Plan

FINDING No. 2025-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures for compliance with all HUD regulations and ensure that the supporting documents are prepared in a timely manner. Action Taken: Staff training has been provided regarding UA support and included in monthly reporting procedures. If the Oversight Agency for Audit has questions regarding the plan, please call Irene Phillips at 954-835-9200. Sincerely yours, Irene Phillips, CFO Irene Phillips CFO

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 1229124 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY - CAPITAL ADVANCE $2.84M
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY - PRAC $373,488