Finding 496192 (2023-002)

Material Weakness
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-09-09
Audit: 319145
Auditor: M Group LLP

AI Summary

  • Core Issue: The Partnership did not renew their HAP Contract before it expired, leading to a loss of subsidy payments from May to December 2023.
  • Impacted Requirements: Management must actively monitor contract terms to prevent lapses in subsidy coverage.
  • Recommended Follow-Up: Implement procedures to ensure timely contract renewals and avoid future oversights.

Finding Text

Finding #2023-002: Section 8 Housing Assistance Payments Program 14.195 – Gretna Village, LP Type of Finding: Material Weakness Condition: The Partnership failed to renew their HAP Contract before it expired on April 27, 2023, resulting in the Project not receiving subsidy payments from May through December 2023. Criteria: Management should monitor contract terms to ensure the renewal process is started in sufficient time so there is no lapse in the Project receiving subsidies. Effect: The Partnership is without a valid HAP contract. Repeat Finding: No Questioned Cost: $167,975 Cause: Oversight Recommendation: Management should monitor contract terms and have procedures in place to ensure contract coverage does not lapse. Auditor’s Comment: The Partnership submitted a new HAP Contract for approval and received payment for the May through December 2023 subsidies in May 2024.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: Gretna Village Partnership VHDA Project Numbers: 02-1709-HF/SP and 02-1710-HCD Audit Firm: M Group, LLP Audit Period: The year ended December 31, 2023 Compliance Review COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN OR TO BE TAKEN FINDING 2023-002: Section 8 Housing Assistance Payments Program, Assistance Listing: 14.195 CORRECTIVE ACTION TO BE COMPLETED: The Partnership is in the process of submitting a new HAP Contract for approval from HUD. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Mr. Michael N. Nguyen, President & CEO of Atlantic Housing Management, Inc.

Categories

Questioned Costs HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 496191 2023-001
    Material Weakness
  • 496193 2023-003
    Significant Deficiency
  • 496194 2023-003
    Significant Deficiency
  • 496195 2023-003
    Significant Deficiency
  • 496196 2023-003
    Significant Deficiency
  • 496197 2023-003
    Significant Deficiency
  • 496198 2023-003
    Significant Deficiency
  • 496199 2023-003
    Significant Deficiency
  • 496200 2023-003
    Significant Deficiency
  • 496201 2023-003
    Significant Deficiency
  • 496202 2023-003
    Significant Deficiency
  • 496203 2023-005
    Significant Deficiency
  • 496204 2023-005
    Material Weakness
  • 496205 2023-004
    Significant Deficiency
  • 496206 2023-004
    Significant Deficiency
  • 496207 2023-004
    Significant Deficiency
  • 496208 2023-004
    Significant Deficiency
  • 496209 2023-004
    Significant Deficiency
  • 1072633 2023-001
    Material Weakness
  • 1072634 2023-002
    Material Weakness
  • 1072635 2023-003
    Significant Deficiency
  • 1072636 2023-003
    Significant Deficiency
  • 1072637 2023-003
    Significant Deficiency
  • 1072638 2023-003
    Significant Deficiency
  • 1072639 2023-003
    Significant Deficiency
  • 1072640 2023-003
    Significant Deficiency
  • 1072641 2023-003
    Significant Deficiency
  • 1072642 2023-003
    Significant Deficiency
  • 1072643 2023-003
    Significant Deficiency
  • 1072644 2023-003
    Significant Deficiency
  • 1072645 2023-005
    Significant Deficiency
  • 1072646 2023-005
    Material Weakness
  • 1072647 2023-004
    Significant Deficiency
  • 1072648 2023-004
    Significant Deficiency
  • 1072649 2023-004
    Significant Deficiency
  • 1072650 2023-004
    Significant Deficiency
  • 1072651 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $11.82M
14.239 Home Investment Partnerships Program $3.44M
14.195 Section 8 Housing Assistance Payments Program $603,958