Finding 25929 (2022-001)

-
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: One tenant file lacked the required annual recertification for 2022, risking overpayment of housing assistance.
  • Impacted Requirements: Compliance with eligibility criteria for tenant rent calculations as mandated by federal program regulations.
  • Recommended Follow-Up: Implement a secondary review process to ensure all tenant certifications are completed as required.

Finding Text

S3800-010 Finding Reference Number: 2022-001 S3800-011 Title and Assistance Listing Number of Federal Program: 14.157 Supportive Housing for the Elderly (Section 202) S3800-015 Type of Finding: Federal Award Finding S3800-016 Finding Resolution Status: In process S3800-017 Information on Universe and Population Size: 65 tenant files S3800-018 Sample Size Information: 7 tenant files Sample size: 7 Dollar amount: $- S3800-019 Identification of Repeat Finding and Finding Reference Number: Not a repeat finding. S3800-020 Criteria: In accordance with eligibility and to determine whether total tenant rent payment were calculated in accordance with program requirements, the owner must correctly verify and calculate income during annual recertifications. Statutory or regulatory requirement on which the finding is based S3800-030 Statement of Condition: One of the tenant files selected for review did not perform the annual recertification for 2022. S3800-032 Cause: No annual recertification was done for one tenant file in 2022 due to staff turnover. S3800-033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800-035 Auditor Non-Compliance Code: R - Section 8 program administration S3800-040 Questioned Costs: $364 S3800-045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800-012 Please identify the property(s) and associated questioned costs this finding applies to: Walnut Grove Apartments S3800-037 FHA/Contract Number: 126-EE045 S3800-050 Context: As noted above, the issue noted was found in 1 out of 7 files. S3800-080 Recommendation: Management and ownership should ensure that all tenant certifications are performed as required by implementing a secondary review of files. S3800-090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800-130 Response Indicator: Agree S3800-140 Completion Date: 9/30/2023 S3800-150 Response: Ownership agreed with the finding and has implemented a corrective action plan.

Corrective Action Plan

Name of Auditee: Walnut Grove Non-Profit Housing FHA Auditee Identification Number: 126-EE045 Period Covered by the Audit: Year ended December 31, 2022 CAP provided by: Name: Andrea Bean Position: Director of Property Management Telephone Number: 360-694-2501 Finding 2022-001: 1. Statement of Condition: One of the tenant files selected for review did not perform the annual recertification for 2022. 2. Cause: No annual recertification was done for one tenant file in 2022 due to staff turnover. 3. Actions Taken on the Finding: Site staff are currently working with the resident to complete missing AR and will make any necessary adjustments to the resident ledger. Management?s corrective action plan includes processing monthly outstanding AR reporting from our Management software by our Compliance Specialist. These monthly reports will be provided to our Housing Portfolio Managers and reviewed with site staff to ensure that AR?s are completed timely and provide additional monitoring to prevent AR?s being missed in the future.

Categories

Questioned Costs Eligibility HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $5.06M