Finding 555570 (2024-007)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-04-21
Audit: 354066
Organization: Lincoln Street Housing, Inc. (CA)
Auditor: Snd Partners LLP

AI Summary

  • Core Issue: The July 2023 HUD-52670 form had incomplete tenant eligibility and payment information.
  • Impacted Requirements: Compliance with HUD Handbooks and Regulations is not being met, leading to material non-compliance.
  • Recommended Follow-Up: Management should enhance internal controls and ensure annual recertifications are completed as required by HUD.

Finding Text

Finding # 2024-007 Federal Grantor: U.S. Department of Housing and Urban Development AL # / Program : 14.181 - Supportive Housing for Persons with Disabilities Type of Finding: Federal Award - Eligibility - Material Weakness Finding Resolution Status: In Process Information on Universe Population Size: N/A Sample size information: N/A Criteria: Form HUD-52670 must contain accurate tenant information based on HUD Handbooks and Regulations. Statement of Condition / Context: The July 2023 form HUD-52670 submitted to HUD contained tenant eligibility information and calculated assistance payment information that was incomplete or unsubstantiated. Cause: Internal control over compliance with program compliance requirements are not operating effectively. Effect or Potential Effect: The effect is material non-compliance with HUD Handbooks and Regulations and the program listed above. Auditor Non-Compliance Code: R - Section 8 Program Administration Questioned Costs: $6,202 Recommendations: We recommend management review the current internal control procedures and implement additional procedures to ensure annual recertifications are performed as required by HUD. Response Indicator: Agree Completion Date: 6/30/2025 Reporting Views of Responsible Officials and Planned Corrective Action: "The June 2023 voucher was not correct when initially submitted. HCEB has attempted over the past 18 months to correct the June 2023 voucher, working closely with our Yardi support and HUD-SF team. Once the June 2023 voucher is paid, July 2023 and subsequent vouchers will be matched to Yardi records and submitted to TRACS processing. "

Corrective Action Plan

Finding 2024-007 The June 2023 voucher was not correct when initially submitted. HCEB has attempted over the past 18 months to correct the June 2023 voucher, working closely with our Yardi support and HUD-SF team. Once the June 2023 voucher is paid, July 2023 and subsequent vouchers will be matched to Yardi records and submitted to TRACS processing.

Categories

HUD Housing Programs Eligibility Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 555564 2024-001
    Material Weakness
  • 555565 2024-002
    Material Weakness
  • 555566 2024-003
    Material Weakness
  • 555567 2024-004
    Material Weakness
  • 555568 2024-005
    Material Weakness
  • 555569 2024-006
    Material Weakness
  • 555571 2024-008
    Material Weakness
  • 555572 2024-009
    Material Weakness
  • 555573 2024-010
    Material Weakness
  • 555574 2024-011
    Material Weakness Repeat
  • 1132006 2024-001
    Material Weakness
  • 1132007 2024-002
    Material Weakness
  • 1132008 2024-003
    Material Weakness
  • 1132009 2024-004
    Material Weakness
  • 1132010 2024-005
    Material Weakness
  • 1132011 2024-006
    Material Weakness
  • 1132012 2024-007
    Material Weakness
  • 1132013 2024-008
    Material Weakness
  • 1132014 2024-009
    Material Weakness
  • 1132015 2024-010
    Material Weakness
  • 1132016 2024-011
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $760,000
14.239 Home Investment Partnerships Program $693,650
14.181 Supportive Housing for Persons with Disabilities $117,960