FAC Explorer

Finding 372294 (2023-001)

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Requirement
EN
Questioned Costs
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Year
2023
Accepted
2024-03-05
Audit: 293594
Organization: North Dade Senior Citizens Housing Developement Corporation, Inc., Rsi (FL)
Auditor: Bellows Associates P A

AI Summary

  • Core Issue: The Project failed to meet HUD requirements for tenant eligibility documentation, including annual inspections and timely income verification.
  • Impacted Requirements: Key regulations include annual unit inspections, timely application processing, and verification of income through EIV and third-party documentation.
  • Recommended Follow-Up: Implement procedures for timely income verification, ensure annual inspections are conducted, and maintain complete tenant documentation.

Finding Text

FINDING No. 2023-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Finding Resolution Status: Unresolved. Information on Universe Population Size: One hundred eighteen tenants. Sample Size Information: Twenty tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulation requires the following be performed in a timely manner and corresponding documentation maintained: • Annual unit inspections. • Apartment applications stamped with date and time received. • Verification of initial income through the use of Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS) • Verification of initial income through third-party verification documentation. Statement of Condition: The Project did not: • Perform an annual unit inspection for one tenant. • Mark the application for housing with the date and time received for one tenant. • Review the initial EIV within 90 days after transmission of move-in certification to TRACS for two tenants. • Obtain and/or maintain third party verification of initial income for one tenant. Cause: The Project did not maintain appropriate tenant eligibility documentation as required by HUD. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance residency may be disallowed. Unable to determine and assess whether the property has sustained any damages. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure initial tenant income through EIV system and third-party documentation are verified in a timely manner, annual unit inspections are performed, and all required tenant documentation is complete and accurate. Response Indicator: Agree. Completion Date: 06/30/2024 Response: Monthly reminders are being sent to all managers to run their EIV reports for the month. In addition, random files are being reviewed by compliance to ensure EIV reports are pulled, unit inspections performed, and required documentation is complete and accurate.

Corrective Action Plan

Oversight Agency for Audit, North Dade Senior Citizens Housing Development Corporation, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audit period: July 1, 2022 through June 30, 2023 The findings from the June 30, 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. SECTION III – FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2023-001: Section 207/223(f) Mortgage Insurance for the Refinancing of Existing Multifamily Housing Projects, ALN 14.155 Recommendation: The Project should implement procedures to ensure initial tenant income through EIV system and third-party documentation are verified in a timely manner, annual unit inspections are performed, and all required tenant documentation is complete and accurate. Action Taken: Monthly reminders are being sent to all managers to run their EIV reports for the month. In addition, random files are being reviewed by compliance to ensure EIV reports are pulled, unit inspections performed, and required documentation is complete and accurate.

Categories

HUD Housing Programs Eligibility Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.74M
14.195 Section 8 Housing Assistance Payments Program $967,719
14.195 Covid-19 Section 8 Housing Assistance Payments Program $8,194