FAC Explorer

Finding 4326 (2023-001)

-
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2023-12-14
Audit: 6743
Organization: Morse Elderly Housing Corporation (FL)
Auditor: Bellows Associates P A

AI Summary

  • Core Issue: One tenant's initial income verification was not completed within the required 90 days, violating HUD regulations.
  • Impacted Requirements: Failure to maintain proper documentation affects tenant eligibility verification and could lead to disallowed assistance costs.
  • Recommended Follow-Up: Implement timely procedures for initial eligibility checks and maintain necessary documentation; completion expected by 03/31/2024.

Finding Text

FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Twenty tenants. Sample Size Information: Three tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require timely verification of tenant’s initial income through Enterprise Income Verification (EIV) performed within 90 days of the tenant being entered into Tenant Rental Assistance Certification System (TRACS) with the corresponding documentation maintained. Statement of Condition: The Project did not perform and/or maintain the initial EIV report for one tenant. Cause: The Project did not maintain appropriate tenant eligibility documentation in accordance with HUD regulations. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance and residency may be disallowed. 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 that initial eligibility procedures are performed in a timely manner and that the corresponding documentation is maintained. Response Indicator: Agree. Completion Date: 03/31/2024 Response: The former community manager did not run an EIV timely as per HUD guidelines. We have provided staff with additional HUD training and we have set up automatic alerts to remind managers to pull the 90 day EIV Income Report based on individual tenant move in dates.

Corrective Action Plan

Oversight Agency for Audit, Morse Elderly Housing Corporation respectfully submits the following corrective action plan for the year ended March 31, 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: April 1, 2022 through March 31, 2023 The finding from the March 31, 2023 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. SECTION III - FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Recommendation: The Project should implement procedures to ensure that initial eligibility procedures are performed in a timely manner and that the corresponding documentation is maintained. Action Taken: The former community manager did not run an EIV timely as per HUD guidelines. We have provided staff with additional HUD training and we have set up automatic alerts to remind managers to pull the 90 day EIV Income Report based on individual tenant move in dates. If the audit Oversight Agency has questions regarding these plans, please call Christine Harris at 954-835- 9200. Sincerely yours, Christine Harris Accounting Manager

Categories

HUD Housing Programs Eligibility Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Capital Advance $1.08M
14.157 Supportive Housing for the Elderly - Project Rental Asssitance Contracts (prac) $125,323