Finding 401296 (2023-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-06-20
Audit: 309343
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: The Agency failed to review participant rent assessments during intake, leading to noncompliance with federal regulations.
  • Impacted Requirements: This finding violates 24 CFR 578.77, which mandates proper review of tenant income certifications.
  • Recommended Follow-Up: Implement regular spot checks on participant files to ensure compliance with program requirements.

Finding Text

Calculation of Participant Portion of Rent Review Significant Deficiency U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Passed through Massachusetts Balance of State Program, Executive Office of Housing and Livable Communities ALN #: 14.267 Federal Award Identification #: MA0243L1T162215 Condition: Participant reassessment for their portion of the rent was not reviewed by the Agency during the participant intake process. Criteria: 24 CFR 578.77 Questioned Costs: $0 Context: Out of 25 participants tested, there were two participants who did not have proper review and approval of the tenant income certification calculation. Cause: Due to turnover in staffing at one location, there was a gap in the review and approval of the tenant income certification forms. Effect: Noncompliance with federal requirements. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that periodic spot checks be completed on participant files to ensure that program requirements are being met. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Calculation of Participant Portion of Rent Review Planned Corrective Action: The weaknesses in the rent calculation process had already been identified by Heading Home’s management team and addressed. As a result, new procedures were put in place during the FY 2024 recertification process (March-June 2024) and include the following: All completed recertification packets are stored under the client page in AppFolio (property management software) with a copy given to the Case Manager to file in the client’s binder. The Real Estate Property Manager (Director of Real Estate) is responsible for uploading the packet to AppFolio. Packet includes the new Rent Letter, new Lease, TIC, and Verification Documents 1. A newly implemented checklist and tracking spreadsheet show each client’s progress through the annual recertification process. It includes completed rent calculation, client signature, Heading Home signature, correct storage of recert packet, and update of rent in property management software. The Property Manager (Director of Real Estate) is responsible for maintaining this sheet. 2. The checklist and tracking sheet are reviewed by Senior Director of Real Estate on a weekly basis with Property Manager, Senior Director of Contracts and Compliance, and applicable Programs team members. Person Responsible for Corrective Action Plan: Jaclyn Manchester, Senior Director of Real Estate and Facilities Anticipated Date of Completion: The above actions have been implemented for FY 2024 annual recertifications with a draft policy and procedure in place. The finalized annual recertification policy and procedure will be completed by 08/31/2024.

Categories

Significant Deficiency

Other Findings in this Audit

  • 977738 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $387,770
14.267 Continuum of Care Program $224,955