Finding 496203 (2023-005)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-09-09
Audit: 319145
Auditor: M Group LLP

AI Summary

  • Core Issue: Projects failed to recertify and verify income for Section 8 tenants.
  • Impacted Requirements: Annual eligibility confirmation and documentation are mandatory for tenant files.
  • Recommended Follow-Up: Management should enhance policies and monitoring to ensure compliance with eligibility verification.

Finding Text

Finding #2023-005: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 - Waters at James Crossing, LP., Brittany Woods/Park Chase, LLC Condition: The Projects did not recertify or obtain adequate income verification for Section 8 tenants. Criteria: The Projects are required to annually confirm eligibility and maintain documentation in the tenant file including a signed Tenant Income Certification form and income verification documents. Questioned Costs: $125,009 Effect: The Projects are in violation of regulatory requirements governing tenant files and eligibility verification, which could result in the loss of HUD subsidies. Cause: Management’s policies with respect to tenant eligibility and tenant files were not consistently followed. Repeat Finding: No Recommendation: Management should review its tenant eligibility policies and monitoring procedures to ensure compliance. Management Views: Management concurs and agrees to review and monitor policies and procedures regarding tenant eligibility and related documentation.

Categories

Questioned Costs HUD Housing Programs Subrecipient Monitoring Eligibility

Other Findings in this Audit

  • 496191 2023-001
    Material Weakness
  • 496192 2023-002
    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
  • 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