FAC Explorer

Finding 3708 (2023-003)

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Requirement
P
Questioned Costs
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Year
2023
Accepted
2023-12-08
Audit: 5869
Organization: Cornerstone Housing North, Inc. (NH)
Auditor: Leone McDonnell & Roberts P A

AI Summary

  • Core Issue: Tenant files have errors and HAP vouchers are incomplete, leading to inaccuracies in HUD receivables.
  • Impacted Requirements: HUD mandates that all managers receive proper training and that HAP vouchers include all tenants.
  • Recommended Follow-Up: The project manager should pursue ongoing training and collaborate with HUD and the software provider to resolve these issues.

Finding Text

Information on Universe Population Size: Audit procedures throughout tenant file testing and revenue testing. Sample Size Information: Audit procedures throughout tenant file testing and revenue testing. Identification of Repeat Finding: Not a repeat finding. Criteria: HUD requires all managers to have the appropriate training and all HAP vouchers be complete. Condition: Tenant files with mistakes were not corrected and HAP vouchers do not reflect all tenants. Cause: Turnover at the management agent and software conversion. Effect: The HAP vouchers are not accurate causing a large receivable from HUD. Context: Auditor noted that files with prior findings and issues did not have a corrected 50059 but instead a recertification. The auditor also noted that the HAP vouchers continued not to be paid by HUD and were missing several tenants. This is a result of a couple things. One being turnover and lack of knowledge/training for the new property manager. The new property manager has continued to take courses and trainings but did not possess the necessary knowledge for the corrections to be made. The second issue was a software conversion in which the new software was unable to transmit the vouchers to HUD. At year end there were still tenants not being submitted on the vouchers. Recommendation: The project manager should continue to attend trainings and work with HUD and the software company to solve the issues with the rental software.

Corrective Action Plan

Plan: We are aware of the transmission issues through TRACS as a result of the software transition. We are working closely with our software provider, YARDI to ensure all recertifications are transmitted and received. The Program Director will also be attending continued HUD trainings through National Center for Housing Management. Contact: Christina Morin, Program Director. Anticipated Completion date: October 2, 2023

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $1.62M