Finding 15701 (2022-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-06-28
Audit: 18831
Organization: Woodstock Mutual Homes, Inc. (PA)
Auditor: Rubino & Company

AI Summary

  • Core Issue: Resident files lack proper documentation, including incomplete forms and missing reports.
  • Impacted Requirements: Compliance with HUD Handbook 4350.3 is not being met, as outlined in the HAP Contract.
  • Recommended Follow-Up: Conduct a thorough inspection of all resident files to identify and correct deficiencies.

Finding Text

2022-2 (CFDA NO. 14.195) ? Resident File Test Deficiencies Statement of Condition In July, 2020, US Housing Consultants, an outside consultant, performed a review of the Project?s resident files and noted that many of the resident files did not contain all of the proper documentation. Resident file deficiencies were also noted by us during our lease testing for the current year. The exceptions noted within the US Housing Consultants report and/or by us during our lease testing included, but were not limited to, incorrect or incomplete 50059 forms, missing or incomplete tenant applications, missing initial tenant move-in documentation, missing income verification reports, missing work order reports, and missing recertification reminder notices. Criteria The HAP Contract requires that the Project comply with the requirements in HUD Handbook 4350.3 regarding tenant lease files. Effect The Corporation did not maintain resident files in accordance with HUD regulations and policies. Recommendation The Corporation must maintain resident files in accordance with HUD regulations and policies. Management/Owner Response Management agrees with the finding. The resident files are undergoing a 100% file inspection by a separate CRM employee. All deficiencies will be identified and corrected such as items that cannot be re-created.

Corrective Action Plan

Management/Owner Response Management agrees with the finding. The resident files are undergoing a 100% file inspection by a separate CRM employee. All deficiencies will be identified and corrected such as items that cannot be re-created.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 15700 2022-001
    Material Weakness Repeat
  • 592142 2022-001
    Material Weakness Repeat
  • 592143 2022-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $4.36M
14.195 Section 8 Housing Assistance Payments Program $1.27M