Finding 512718 (2024-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2024-12-03

Audit: 330582

Organization: Northwestern Retirement Housing, Inc. (CA)

Auditor: Meseret Y Zeleke CPA

AI Summary

Core Issue: Two out of six tenant files lacked proof of current inspections, indicating a systemic problem.
Impacted Requirements: Timely availability of inspection documents is not being met, affecting compliance.
Recommended Follow-Up: Implement a process to ensure timely collection and verification of inspection documents for all tenants.

Finding Text

The finding is a result of a systemic problem. We judgmentally selected and reviewed six tenants’ files. Out of the six tenant files reviewed, two tenant’s files did not contain proof of current inspection and the remaining tenants’ files proof of inspection were available to us extremely late and it took numerous attempts to receive the documents.

Corrective Action Plan

Agrees with the finding. Management will take all necessary steps to ensure that all inspection will be completed at least once each fiscal year, as required and all supporting documents will be properly filed. For the two units failed, annual physical inspection was performed and completed on August 29, 2024.

Other Findings in this Audit

512717 2024-001

Significant Deficiency
1089159 2024-001

Significant Deficiency
1089160 2024-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.138	Mortgage Insurance_rental Housing for the Elderly	$2.97M
14.195	Section 8 Housing Assistance Payments Program	$323,599