Finding 555811 (2024-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2025-04-24

Audit: 354517

Organization: Robertson Hill Apartments, Inc. (NC)

Auditor: Bernard Robinson & Company LLP

AI Summary

Core Issue: Annual tenant recertifications were not conducted, violating HUD requirements.
Impacted Requirements: Compliance with HUD Handbook 4350.3, which mandates annual verification of tenant income and family composition.
Recommended Follow-Up: Management should ensure all required recertifications are completed annually to avoid noncompliance and potential subsidy payment issues.

Finding Text

Finding 2024-001: U.S. Department of Housing and Urban Development, Supportive Housing for Persons with Disabilities (Section 811) Statement of Condition: During the year ending June 30, 2024, required annual tenant recertifications were not conducted. Criteria: According to HUD Handbook 4350.3, tenants are required to be recertified annually to ensure they still meet program requirements. The recertification process ensures that tenant's income and family composition are verified annually to determine continued eligibility for assistance and to adjust rent payments accordingly. Effect: Noncompliance with HUD regulations and potential errors in rental assistance, as well as the suspension of subsidy payments by HUD. Cause: Management oversight. Context: The population size is 9 tenants. Per our testing, one of the tenant recertifications had not been performed. Questioned Costs: $0 Recommendation: We recommend that management ensure the required recertifications are performed annually. Views of Responsible Officials and Corrective Action Plan: Management has hired additional employees to fully staff the leasing department. Management will ensure that all required recertifications are performed going forward.

Corrective Action Plan

ROBERTSON HILL APARTMENTS, INC. Raleigh, North Carolina CORRECTIVE ACTION PLAN March 25, 2025 U. S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303-2806 Robertson Hill Apartments, Inc. respectfully submits the following Corrective Action Plan for the year ended June 30, 2024. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 Audit period: Year ended June 30, 2024 The finding from the June 30, 2024 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. Findings - Federal Award Programs Audits Finding No. 2024-001: Supportive Housing for Persons with Disabilities (Section 811), CFDA #14.181 Recommendation: We recommend that management ensure the required recertifications are performed annually. Views of Responsible Officials and Corrective Action Plan: Management has hired additional employees to fully staff the leasing department. Management will ensure that all required recertifications are performed going forward. If HUD has questions regarding this plan, please call Mr. Everett McElveen at 919-754-9960. Sincerely yours, Everett McElveen CEO CASA

Other Findings in this Audit

1132253 2024-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.181	Supportive Housing for Persons with Disabilities	$1.34M