Finding 501255 (2022-003)

Material Weakness Repeat Finding
Requirement
Eligibility
Questioned Costs
-
Year
2022
Accepted
2024-10-01
Audit: 323534
Organization: First Ame Housing Association (WA)
Auditor: 91-1347576

AI Summary

  • Core Issue: Annual tenant recertifications were not completed on time, with 5 out of 16 files processed late and 5 lacking certifications for 2022.
  • Impacted Requirements: Compliance with HUD's Rental Assistance Agreements, which mandate annual recertification of tenant eligibility.
  • Recommended Follow-Up: Implement a secondary review process for tenant files to ensure timely recertifications and document the review in each file.

Finding Text

S3800 010 Finding Reference Number: 2022 003 S3800 011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800 015 Type of Finding: Federal Award Finding S3800 016 Finding Resolution Status: In process S3800 017 Information on Universe and Population Size: 98 tenant files S3800 018 Sample Size Information: 16 tenant files Sample size: 16 Dollar amount: $0 S3800 019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2021 004 S3800 020 Criteria: In accordance with the Rental Assistance Agreements with HUD, the Organization is required to recertify tenant eligibility on an annual basis. S3800 030 Statement of Condition: There were 5 out of the 16 tenant files which were processed on later than an annual basis and were late to recertify. In addition, another 5 tenant files of the 16 did not have certifications completed in 2022. S3800 032 Cause: After the prior management left, current staffing was not sufficient to ensure all certifications were completed timely. Also, some tenants were not willing to assist with the certification process. S3800 033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800 035 Auditor Non Compliance Code: R Section 8 program administration S3800 040 Questioned Costs: $0 S3800 045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800 012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800 037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800 050 Context: Management did not timely complete annual recertifications of tenants. S3800 080 Recommendation: Management should ensure annual recertifications of tenant files are being completed on a timely basis by implementing secondary review of tenant files and should document the review to be included in the files. S3800 090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800 130 Response Indicator: Agree S3800 140 Completion Date: 2/28/2024 S3800 150 Response: Ownership agreed with the finding and has implemented a corrective action plan.

Corrective Action Plan

Finding 2022-003 Federal Award Finding Name of Official Responsible for Corrective Action: Earl Richardson, First AME Housing Association Interim Executive Director Corrective Action Planned: Explanation: We acknowledge the oversight and would like to provide context to understand better the circumstances that led to the delay. We had internal challenges when our previous management company departed, leaving us with incomplete files and late recertifications or recertifications that never started, making it next to impossible to catch up promptly. Next, staff staffing issues contributed to the delays because staff members were not properly trained. Despite these challenges, we recognize the importance of adhering to HUD regulations and are committed to taking corrective measures. Corrective Actions Taken: We initiated immediate corrective actions to rectify the situation upon discovering the late recertifications. We have instituted the following measures to prevent the recurrence of late annual recertifications: 1. Created a recertification schedule and calendar with the annual recertification date, specific dates to notify residents that their annual recertification is due, and dates for submitting the information to CMS and to trac. The schedule and calendar are submitted to the executive director every two weeks to monitor progress, and a meeting is scheduled with staff every two weeks to review recertification issues. 2. We hired a consultant specializing in recertification to train the staff and work with staff daily to answer questions concerning our certification. Our recertification consultant is permanently on call to answer certification issues and continuous staff training. These measures are designed to ensure timely compliance with HUD regulations and to strengthen our internal processes.

Categories

HUD Housing Programs Reporting Eligibility

Other Findings in this Audit

  • 501254 2022-002
    Material Weakness Repeat
  • 501256 2022-004
    Material Weakness
  • 501257 2022-005
    Material Weakness Repeat
  • 1077696 2022-002
    Material Weakness Repeat
  • 1077697 2022-003
    Material Weakness Repeat
  • 1077698 2022-004
    Material Weakness
  • 1077699 2022-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.195 Project-Based Rental Assistance (pbra) $1.50M