Finding 1229983 (2026-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2026
Accepted
2026-09-16

AI Summary

  • Core Issue: Tenant files lack necessary documentation and reviews, leading to compliance gaps with HUD requirements.
  • Impacted Requirements: Inconsistent documentation affects tenant eligibility, rent calculations, and overall compliance.
  • Recommended Follow-Up: Strengthen processes and controls to ensure all required documentation is consistently included in tenant files.

Finding Text

We identified deficiencies within tenant files indicating that management’s existing processes and controls were not sufficient to ensure consistent compliance with applicable HUD requirements. Specifically, tenant files did not consistently contain required supporting documentation, evidence of required reviews, or documentation necessary to demonstrate compliance with program requirements. These conditions resulted in instances where management was unable to demonstrate that tenant eligibility, rent calculations, and/or other compliance determinations were performed in accordance with applicable HUD requirements.

Corrective Action Plan

As explained in Management’s response to Finding 2026-002, Baptist Retirement Village had been approved for MFCS’s reduced (25%) monthly sampling of annual recertifications based on the property’s prior compliance history, its continuous 100% review of move-in and interim certifications, and MFCS’s ongoing availability for certification and compliance support. Because errors were identified during this reduced-sample review, the property is returning to 100% file review for all certifications, which will remain in place until Baptist Retirement Village again meets all criteria for reduced sampling — two consecutive years without MOR resident-file findings, a minimum two-year site manager tenure, and at least one year of error-free annual recertifications. In addition, SPM is updating the standardized tenant file checklist and written internal control procedures covering eligibility determination, income/rent calculation, and required certifications, with a documented compliance sign-off required before a file is considered complete

Categories

Eligibility HUD Housing Programs

Other Findings in this Audit

  • 1229981 2026-001
    Material Weakness Repeat
  • 1229982 2026-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $2.54M