Management’s comments:
We are in agreement with the finding. The compliance manager has instructed the manager as to the importance of the tenants completing all the required paperwork to include signing, dating, and checking the appropriate box or boxes.
In regards to the incorrect leases being used, the manager had the residents sign the correct HUD Model Leases. Further, the manager is noting on the correct lease, “Corrected Lease,” when the resident signs and initialing the note along with the resident. She has been instructed to remove any old leases or forms in her computer to ensure this oversight is not repeated.
Auditor’s comments:
Government Auditing Standards requires the auditor to perform limited procedures on Sharon Manor Homes, Inc.’s response to the findings identified in my audit and described in the accompanying schedule of findings, questioned costs, and recommendations. Sharon Manor Homes, Inc’s response was not subjected to the other auditing procedures applied in the audit of the financial statements and, accordingly, I express no opinion on the response.