Finding 38709 (2022-003)

Material Weakness
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2023-09-26
Audit: 46646
Auditor: M Group LLP

AI Summary

  • Core Issue: Tenant files lack current documentation, including required income certifications.
  • Impacted Requirements: Annual eligibility confirmation and documentation maintenance are not being met, risking HUD subsidies.
  • Recommended Follow-Up: Management should reassess and enhance policies for tenant eligibility and documentation monitoring.

Finding Text

Finding #2022-003: Section 8 Housing Assistance Payments Program CFDA 14.195 Condition: The Partnership?s did not maintain current documents in the tenant files, including annual Tenant Income Certification forms and income verification documentation. Criteria: The Partnership?s are required to annually confirm eligibility and maintain documentation in the tenant file including a signed Tenant Income Certification form and income verification documents. Questioned Costs: Unknown Effect: The Partnership?s are in violation of regulatory requirements governing tenant files and eligibility verification, which could result in the loss of HUD subsidies. Cause: Management?s policies with respect to tenant eligibility and tenant files were not consistently followed. Recommendation: Management should review its tenant eligibility policies and monitoring procedures to ensure compliance. Management Views: Management concurs and agrees to review and monitor policies and procedures regarding tenant eligibility and related documentation.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: See below Audit Firm: M Group, LLP Audit Period: The period from December 9, 2021 (Inception) through December 31, 2022 Gretna Village, LP VHDA (Project No. 02-1709-HF/SP and 02-1710-HCD) $ Unknown Waters at James Crossing, LP (FHA/Contract No. VA36-L000-130) $ Unknown Waters at Augusta, LP (FHA/Contract No. SC16-M000-060) $ Unknown Compliance Review COMMENTS ON FINDINGS AND RECOMMENDATIONS 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 #2022-003: Section 8 Housing Assistance Payments Program. CFDA: 14.195 CORRECTIVE ACTION TO BE COMPLETED: The Project's will review and monitor tenant eligibility and documentation procedures to ensure compliance. 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 US. 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 Nguyen, President of Atlantic Housing Management, Tnc.

Categories

Questioned Costs HUD Housing Programs Subrecipient Monitoring Eligibility

Other Findings in this Audit

  • 38694 2022-004
    Significant Deficiency Repeat
  • 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
  • 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