Finding 529421 (2024-001)

-
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-22

AI Summary

  • Issue: Unit inspections were not conducted as required by HUD guidelines.
  • Impact: Four out of twelve tenant files lacked inspection documentation, risking tenant safety and unit condition.
  • Follow-up: Villa Scalabrini must improve record-keeping to ensure all unit inspections are documented in tenant files.

Finding Text

Finding 2024-001: Section 8 Project-Based Cluster – Project Based Rental Assistance, Federal Assistance Listing Number 14.195 Criteria: The HUD Handbook requires owners to perform and document inspections of each unit on at least an annual basis. Condition: Unit inspections were not performed during the year. Context: We reviewed 12 tenant files for documentation of unit inspections, four of which did not have documentation of the inspections. Cause: Documentation of inspections for some units were misfiled. Effect: The tenant’s unit may not be in a decent, safe, and sanitary condition. Recommendation: We recommend that Villa Scalabrini ensure documentation of unit inspections is maintained in all tenant files. Views of management and planned corrective action: Villa Scalabrini will ensure inspections are properly documented in all tenant files.

Corrective Action Plan

U.S. Department of Housing and Urban Development St. Peter’s Italian Church Housing Development Fund Co., Inc. Mortgagor (Villa Scalabrini), HUD Project No. 014-11175 respectfully submits the following corrective action plan for the year ended September 30, 2024. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #60 Syracuse, New York 13204 Audit period: October 1, 2023 – September 30, 2024 The findings from the 2024 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2024-001: Section 8 Project-Based Cluster – Project Based Rental Assistance, Federal Assistance Listing Number 14.195 Recommendation: Our auditors recommended that we ensure documentation of unit inspections is maintained in all tenant files. Action Taken: We completed a review of tenant files and reinspected those units without appropriate documentation. Name of Contact Person Responsible for Corrective Action: Kyle Lyskawa, CFO, (315) 424-1821. Anticipated Completion Date: January 2025

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.09M
14.195 Section 8 Housing Assistance Payments Program $946,730
14.191 Multifamily Housing Service Coordinators $25,550