FAC Explorer

Finding 39932 (2022-001)

Significant Deficiency Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2022-12-12
Audit: 37520
Organization: Mayfield Manor II (FL)
Auditor: Bellows Associates P A

AI Summary

  • Core Issue: The project failed to verify initial income for seven tenants using EIV reports, violating HUD regulations.
  • Impacted Requirements: Compliance with timely income verification processes as mandated by HUD.
  • Recommended Follow-Up: Management must ensure timely EIV verification and maintain proper documentation in tenant files by 3/31/2023.

Finding Text

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Seventy-three tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: Yes, 2021-001. Criteria: HUD regulation requires timely verification of initial income through the use of Enterprise Income Verification (EIV) reports. Statement of Condition: The Project did not perform and/or maintain the initial EIV for seven tenants. Cause: The Project did not comply with HUD regulations as it relates to the condition listed above. Effect or Potential Effect: The Project is noncompliant with the income verification process. Auditor Non-Compliance Code: R ? Section 8 Program Admin. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: Management should verify initial tenant income through the EIV system in a timely manner and maintain verification in the tenant files. Response Indicator: Agree Completion Date: 3/31/2023 Response: Due to a change in staff the project was not able to perform file reviews on all tenants. Going forward, the regional director will ensure the files are adequately maintained.

Corrective Action Plan

Oversight Agency for Audit National Steelworkers Oldtimers Community Urban Development Company of Canton Two, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2022. Name and address of independent public accounting firm: Bellows Associates, P.A., 5401 N University Drive, Suite 201, Coral Springs, Florida 33067. Audit period: April 1, 2021 through March 31, 2022 The findings from the March 31, 2022 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the number in the schedule. FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING NO. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Recommendation: Management should verify initial tenant income through the EIV system in a timely manner and maintain verification in the tenant files. Action Taken: Due to a change in staff the project was not able to perform file reviews on all tenants. Going forward, the regional director will ensure the files are adequately maintained. If the Oversight Agency for Audit has questions regarding these plans, please call Christine Harris at 954-835-9200. Sincerely yours, Christine Harris Accounting Manager

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Capital Advance $4.27M
14.157 Supportive Housing for the Elderly - Project Rental Assitance Contracts $216,938