Finding 38694 (2022-004)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-09-26
Audit: 46646
Auditor: M Group LLP

AI Summary

  • Core Issue: Projects lack a process to void uncashed utility reimbursement checks and return funds to HUD.
  • Impacted Requirements: HAP contracts mandate timely voiding of checks and returning funds as adjustments on vouchers.
  • Recommended Follow-Up: Establish controls to ensure compliance with payment and return procedures for uncashed checks; Projects plan to remit $39,694 to HUD.

Finding Text

Finding #2022-004: Section 8 Housing Assistance Payments Program CFDA 14.195 Condition: The Projects do not have a process in place to void uncashed utility reimbursement checks and return funds to HUD on a timely basis. Criteria: The HAP contracts require the Projects to void the check and return the funds to HUD as an adjustment on the voucher. Effect: The Projects are in violation of their HAP contracts. Questioned Cost: $39,694 Cause: Oversight Recommendation: The Projects should review the compliance requirements and establish controls and procedures to properly account for the payment of the reimbursement to the tenant and the return of funds to HUD on tenant reimbursement checks not cashed. Auditor?s Comment: The Projects have plans to establish a process to track utility reimbursements. The Projects will remit $39,694 to HUD for utility reimbursement checks not cashed.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: See below Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2022 Projects: Afton Gardens, LLC (FHA/Contract No. VA36L00002) $1,223 Boulder Creek, LLC (FHA/Contract No. SC 16M000064) $2,897 Brentwood Crossing, LLC (FHA/Contract No. NC19M000070) $4,457 Brittany Woods/Park Chase, LLC (FHA/Contract No. GA06L00060) $7,933 Cedar Moor, LLC (FHA/Contract No. NC19L000146) $2,296 Crescent Hills, LLC (FHA/Contract No. SC16M000062) $5,071 Spring Grove, LLC (FHA/Contract No. SC 16L000003 and SC 160056002) $3,122 Temple Court, LLC (FHA/Contract No. FL29A002001) $239 Timber Ridge, LLC (FHA/Contract No. NC19M000088) $8,980 Roosevelt Gardens, LLC (FHA/Contract No. SC16M00005l) $1,754 Gretna Village, LP (FHA/Contract No. 02-1709-HF/SP and 02-1710-HCD) $1,722 Compliance Review We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN OR TO BE TAKEN FINDING 2022-004: Section 8 Housing Assistance Payments Program, CFDA: 14.195 CORRECTIVE ACTION TO BE COMPLETED: During 2022, the Projects attempted to remit utility reimbursement funds to HUD. However, the remittance was not accepted by HUD due to insufficient information. The Projects will remit tenant utility reimbursement checks not cashed to HUD. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Mr. Michael N. Nguyen, President & CEO of Atlantic Housing Management, Inc.

Categories

Questioned Costs HUD Housing Programs Cash Management

Other Findings in this Audit

  • 38695 2022-004
    Significant Deficiency Repeat
  • 38696 2022-005
    Significant Deficiency
  • 38697 2022-004
    Significant Deficiency Repeat
  • 38698 2022-004
    Significant Deficiency Repeat
  • 38699 2022-004
    Significant Deficiency Repeat
  • 38700 2022-004
    Significant Deficiency Repeat
  • 38701 2022-004
    Significant Deficiency Repeat
  • 38702 2022-004
    Significant Deficiency Repeat
  • 38703 2022-005
    Significant Deficiency
  • 38704 2022-004
    Significant Deficiency Repeat
  • 38705 2022-005
    Significant Deficiency
  • 38706 2022-004
    Significant Deficiency Repeat
  • 38707 2022-004
    Significant Deficiency Repeat
  • 38708 2022-001
    Material Weakness
  • 38709 2022-003
    Material Weakness
  • 38710 2022-005
    Significant Deficiency Repeat
  • 38711 2022-006
    Significant Deficiency Repeat
  • 38712 2022-003
    Material Weakness
  • 38713 2022-002
    Material Weakness Repeat
  • 38714 2022-003
    Material Weakness
  • 615136 2022-004
    Significant Deficiency Repeat
  • 615137 2022-004
    Significant Deficiency Repeat
  • 615138 2022-005
    Significant Deficiency
  • 615139 2022-004
    Significant Deficiency Repeat
  • 615140 2022-004
    Significant Deficiency Repeat
  • 615141 2022-004
    Significant Deficiency Repeat
  • 615142 2022-004
    Significant Deficiency Repeat
  • 615143 2022-004
    Significant Deficiency Repeat
  • 615144 2022-004
    Significant Deficiency Repeat
  • 615145 2022-005
    Significant Deficiency
  • 615146 2022-004
    Significant Deficiency Repeat
  • 615147 2022-005
    Significant Deficiency
  • 615148 2022-004
    Significant Deficiency Repeat
  • 615149 2022-004
    Significant Deficiency Repeat
  • 615150 2022-001
    Material Weakness
  • 615151 2022-003
    Material Weakness
  • 615152 2022-005
    Significant Deficiency Repeat
  • 615153 2022-006
    Significant Deficiency Repeat
  • 615154 2022-003
    Material Weakness
  • 615155 2022-002
    Material Weakness Repeat
  • 615156 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $21.17M
14.239 Home Investment Partnerships Program $3.54M
14.195 Section 8 Housing Assistance Payments Program $1.38M