Finding 1238158 (2025-001)

Beneficiary Reporting (Internal Control) Condition: The Organization’s internal control procedures did not include effectively reviewing the HOME Program Housing Beneficiary Reports for accuracy prior to submission to the applicable oversight agency. Criteria: The Organization is required to submit semi-annual HOME Program Housing Beneficiary Reports in connection with the HOME funds it has received based on tenant income certifications. Cause: The Organization utilizes a third-party vendor to prepare the reports but did not have a review process which ensured the information in the reports was correct for the year ended December 31, 2025. Effect: We noted that there were errors relating to four units in our sample size of 28 units selected for testing from a population of 138 designated HOME-assisted units reported on the HOME Program Housing Beneficiary Reports during 2025. The errors included inaccuracies in the rents paid by tenant, monthly gross income, and reporting of occupancy of the units. The errors did not result in noncompliance with affordability requirements or the number of units designated as HOME units and therefore, had no impact on any other federally reported requirements. This was a nonstatistical sample. Questioned Costs: None. Repeat Finding: The finding is a repeat of a prior year finding since the year ended December 31, 2023. Auditor’s Recommendation: We recommend that a responsible employee review and approve all HOME Program Housing Beneficiary Reports for accuracy prior to their submission to the applicable oversight agency. The review should contain procedures to match the income amounts per the HOME Program Housing Beneficiary Reports with the specific tenant income certification forms and the rent roll. We recommend that the reviewer document the date of the income certification form for each unit as well as the initials of the reviewer. Views Of Responsible Officials And Planned Corrective Actions: Management agrees with the auditor’s recommendation. The Organization has hired a new Director of Compliance, who will implement internal controls and documentation of those controls over the review process of the HOME Program Housing Beneficiary Reports for accuracy prior to their submission to the applicable oversight agency.