Finding 481371 (2023-002)

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Requirement
EN
Questioned Costs
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Year
2023
Accepted
2024-08-19
Audit: 317405
Organization: Sharon Manor Homes INC (NC)

AI Summary

  • Core Issue: Two applicants were skipped on the waiting list without explanation, and one application lacked a date and time stamp.
  • Impacted Requirements: HUD rules require proper maintenance of applications and waiting lists to ensure correct tenant move-in order.
  • Recommended Follow-Up: Management should create procedures to maintain the waiting list accurately and document reasons for any applicant being passed over.

Finding Text

Finding Resolution Status: Resolved. Population Size: N/A. Sample Size: N/A. Noncompliance information: I tested the waiting list and found two applicants that had been passed over with no explanation as to why they were passed over. In addition, the move-in for unit 4703-2 had no date or time stamp on the original application. Condition: Two applicants had been passed over on the waiting list with no explanation and applicants with later dates on their applications were moved in. The application for one move-in was not date and time stamped and the correct move in order could not be determined. Criteria: HUD rules and regulations require that the applications and waiting list be maintained in a way so that the tenant move-in order can be determined. Effect: Applicants could be moved-in in an incorrect order and there is no way of telling if applicants that were passed over should have been moved in. Cause: Managment agent oversight. Reccomendation: The management agent should establish procedures to make sure the waiting list is being properly maintained and explanations for passing over an applicant is recorded so that a proper move-in order can be established and verified.

Corrective Action Plan

Management’s comments: We are in agreement with the finding. The manager, on the original application for 4703-2, had failed to time stamp the original application. There was an updated application attached to it which was used for the move-in. The manager has been reminded to time stamp all applications to ensure and document applicants are processed in proper order according to the waitlist. In regards to the applicants that had been passed over on the waiting list, the Manager had offered the units, noted as findings, to the respective applicants who were next on the waiting list. However, one applicant was unreachable given the phone number did not work and the letter dispatched to the applicant came back as undeliverable. The other applicant is, currently, in rehab and will not be able to occupy any unit until she has finished her treatment. That applicant will remain on the waiting list and will be contacted when the next unit becomes available. The manager failed to note the activity on the waiting list as she has been instructed to do. The manager has been trained to note when any applicants on the waiting list have been contacted and not to skip any applicants on the waiting list. The property management software allows us to make these notations. 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.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.39M
14.195 Section 8 Housing Assistance Payments Program $212,864