Finding Text
Material weakness in internal controls over compliance and instances of noncompliance related to eligibility. Federal Agency: US Department of Housing and Urban Development Program Title: HOME Investment Partnerships Program Assistance Listing Number: 14.239 Award Numbers: HOME Aspenwood Rehabilitation, HOME 1993#3, HOME 1995-3, HOME 2002#11, HCS-15-42-1213-198(1), 200511041001.006 Project Period: October 5, 1995 - September 30, 2055 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Subpart D requires a recipient to ensure that Federal funding is expended and associated programs are implemented in full accordance with the U.S. Constitution, applicable Federal statutes and regulations, including eligibility requirements required by the program. Condition/Context for Evaluation The Agency was required by the grant to annually recertify individuals that resided in the low-income housing properties. During the audit for the year ending June 30, 2025, it was determined that the Agency had failed to complete recertifications for 10% of their HOME unit properties. Cause The Agency faced challenges with their property management company resulting in a delay in certain operations being performed. Effect or Potential Effect The Agency did not apply their stated controls over eligibility consistently. Questioned Costs Not applicable for eligibility. Repeat Finding Not applicable. Recommendation We recommend that the Agency strengthen monitoring over recertification processes to ensure they are being completed as required. Views of Responsible Officials and Corrective Action Plan Management concurs with the finding and has provided the accompanying management corrective action.