Finding 504823 (2024-001)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2024
Accepted
2024-11-06
Audit: 327520
Organization: Homecrest House (MD)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: There were 21 cases of noncompliance with HUD regulations related to sharing Electronic Income Verification (EIV) information.
  • Impacted Requirements: HUD regulations prohibit the electronic dissemination of EIV data to independent public auditors.
  • Recommended Follow-Up: Review and update procedures to ensure compliance with HUD regulations regarding EIV information sharing.

Finding Text

During the procedures applied to a sample of tenant lease files, we noted the following instances of noncompliance with HUD regulations regarding dissemination of Electronic Income Verification ("EIV") information: 21 instances were noted where EIV information was provided in electronic format to the independent public auditor.

Corrective Action Plan

Corrective Action Plan prepared by: Name: Louis Sigalas Position: CFO Telephone Number: 301-939-4488 The following is a recommended format to be followed by the auditee for preparing a corrective action plan: A. Current Findings on the Schedule of Findings, Questioned Costs and Recommendations 1. Finding 2024-001 a. Comments on the Finding and Each Recommendation • 21 instances were noted where EIV information was provided in electronic format. I agree with the following item that was noted. b. Action(s) Taken or Planned on the Finding This was a simple error/oversight in sending along documents electronically that should have only been reviewed in person as they were included on the full request list from the auditors. Moving forward we want that list from the auditors separate from the full list. Additionally, we have reiterated through training to the employees involved as well as other employees in the organization that EIV forms cannot be sent electronically and the auditors must review in person. B. Status of Corrective Actions on Findings Reported in the Schedule of the Status of Prior Audit Findings, Questioned Costs and Recommendations We deem this finding corrected. There are no financial issues as they relate to this item. All documents that were shared/emails have been fully deleted so no one can gain access. We have spoken with the employees as well as departments heads to ensure that this does not occur again and it will be emphasized more in our trainings.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1081265 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $8.63M
14.195 Section 8 Housing Assistance Payment Program $3.29M