FAC Explorer

Finding 517511 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2025-01-02
Audit: 335548
Organization: Brockwood Community Association 054-11142 (NC)
Auditor: Bernard Robinson & Company LLP

AI Summary

  • Core Issue: Missing tenant signature on the HUD-50059 during recertification.
  • Impacted Requirements: Compliance with HUD Handbook 4530.3, which mandates signatures from all adult household members.
  • Recommended Follow-Up: Management should implement a process to ensure all required signatures are obtained before submission to HUD.

Finding Text

Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Statement of Condition: During the year ending December 31, 2023, the Organization did not obtain the required signature of a tenant on the HUD-50059 at recertification. Criteria: HUD Handbook 4530.3 REV-1 CHG-3, Chapter 7 section 3 states that signature of the head, co-head, spouse and all other adult members of the household on the HUD-50059 are required prior to submitting to the Contract Administrator or HUD. Effect: Noncompliance with HUD regulations and potential errors in rental assistance. Cause: Management oversight. Context: Of the seven tenant files tested for eligibility compliance, one of the files did not have the signature of the tenant on the HUD-50059 prior to submitting to HUD/TRACs. Questioned Costs: $0 Recommendation: We recommend that the management ensure the required household members sign the HUD-50059 prior to submitting to HUD. Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding and obtained the required signatures on the HUD-50059. Management will ensure that all required signatures are obtained on all Form HUD-50059's prior to submitting to HUD going forward.

Corrective Action Plan

Brockwood Community Association 801 W. Washington Street Greenville, South Carolina 29601 CORRECTIVE ACTION PLAN March 20, 2024 U.S. Department of Housing and Urban Development Charles Bennett Federal Building 400 West Bay Street, Suite 1015 Jacksonville, Florida 32202 Brockwood Community Association respectively submits the following Corrective Action Plan for the year ended December 31, 2023. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The finding from the year ended December 31, 2023 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. FINDING - Federal Award Program Audit Finding 2023-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Projects (Section 223(f)/207) Recommendation: We recommend that the management ensure the required household members sign the HUD-50059 prior to submitting to HUD. Action Taken: We agree with Finding 2023-001 and the recommendation described in the accompanying schedule of findings and questioned costs. Management obtained the required signature on the HUD-50059. Management will ensure that all required signatures are obtained on all Form HUD-50059's prior to submitting to HUD going forward. If HUD has questions regarding this corrective action plan, please call (704) 771-1696. Sincerely yours, Claudia A Keene, CPA Controller Multifamily Select, Inc. Managing Agent

Categories

HUD Housing Programs Procurement, Suspension & Debarment Eligibility

Other Findings in this Audit

  • 1093953 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.10M
14.195 Section 8 Housing Assistance Payments Program $409,180