Finding 606440 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-12
Audit: 36549
Organization: Heritage Place Phase Iii, Inc. (ID)
Auditor: Harris CPAS

AI Summary

  • Core Issue: One tenant's eligibility form (HUD-50059) was not signed, leading to non-compliance with HUD regulations.
  • Impacted Requirements: Annual recertification of tenant eligibility is mandatory under HUD regulatory agreements.
  • Recommended Follow-Up: Implement safeguards to ensure all compliance certifications are completed correctly moving forward.

Finding Text

"DESCRIPTION OF FINDING: THE HUD REGULATORY AGREEMENTS REQUIRES THE PROJECT TO RECERTIFY EACH TENANT?S ELIGIBILITY ON AN ANNUAL BASIS THROUGH FORM HUD-50059. ONE INSTANCE WAS NOTED WHERE A FORM HUD-50059 WAS NOT SIGNED BY THE TENANT. EFFECT: OUT OF COMPLIANCE WITH THE HUD REGULATORY AGREEMENT. RECOMMENDATIONS: WE RECOMMEND THAT THE PROJECT DESIGN AND IMPLEMENT SAFEGUARDS TO ENSURE ALL COMPLIANCE CERTIFICATIONS ARE COMPLETED PROPERLY. MANAGEMENT?S RESPONSE: THE ERROR OCCURRED DURING A TIME OF STAFF TRANSITION. THE NEW STAFF PERSON WAS NOT ABLE TO PERFORM HER DUTIES AND SHE WAS TERMINATED. WE QUICKLY HIRED FROM WITHIN, AUDITED OUR FILES AND HAVE CORRECTED ALL OF THE ERRORS FROM THE PREVIOUS EMPLOYEE. "

Categories

Eligibility HUD Housing Programs

Other Findings in this Audit

  • 29998 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $2.59M
14.182 Section 8 New Construction and Substantial Rehabilitation $40,314