Finding 2022-002 Federal Award Finding
Name of Official Responsible for Corrective Action:
Earl Richardson, First AME Housing Association Interim Executive Director
Corrective Action Planned:
Reviewing the audit report, we acknowledge discrepancies in our income calculation and verification
processes. We understand the critical importance of accurate income assessments in determining HUD
HAP eligibility and share your commitment to maintaining the program's integrity. To rectify the identified
issues, we have initiated the following corrective actions.
1. Review and Update Procedures: We have thoroughly reviewed our existing income calculation and
verification procedures. Based on this review, we are revising and updating our procedures to ensure
compliance with HUD regulations and guidelines.
2. Staff Training: Recognizing the importance of well-trained staff in accurately executing income
verification processes, we are implementing a comprehensive training program. This program will cover
HUD guidelines, income calculation methods, and verification protocols to enhance the skills of our staff
involved in the eligibility determination process.
3. Internal Audits and HUD Compliance Control: We are implementing an internal audit and
compliance control program to regularly review and assess our income calculation and verification
This proactive approach will help identify and address
potential issues before they escalate. We have hired an outside consultant skilled in HUD compliance
to review all new applications for compliance and to communicate with staff the corrections needed
before tenant applications are submitted to CMS and Trac for final approval and payment.
4. Enhanced Documentation: We understand the significance of maintaining detailed and accurate
documentation. Our organization is implementing measures to enhance documentation practices,
ensuring that all relevant information is recorded and readily available for audit purposes. By doing this,
we assure you that this will not be a repeat finding.
5. Communication and Collaboration with HUD: We are committed to maintaining open lines of
communication with the HUD office. Any changes to our procedures, policies, or protocols related to
income calculation and verification will be promptly communicated to the HUD office for review and
feedback.
We aim to ensure that our organization fully complies with HUD requirements and that we continue to
provide accurate and reliable information for HAP eligibility.