Finding 609895 (2022-001)

Material Weakness Repeat Finding
Requirement
EN
Questioned Costs
-
Year
2022
Accepted
2022-12-27
Audit: 28755
Organization: Homes for McConnellsburg, Inc. (MD)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: Two tenants completed their recertification late, violating HUD guidelines.
  • Impacted Requirements: Tenant eligibility must follow HUD Handbook 4350.3 for subsidized housing.
  • Recommended Follow-Up: Management should implement and monitor procedures to ensure timely recertification and proper lease file maintenance.

Finding Text

Statement of Condition During the year ended March 31, 2022, in connection with our lease file review, we noted the following deficiency: Two out of two existing tenants tested completed their current year recertification after the required recertification date. Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Questioned Costs N/A Effect The procedures for determining tenant eligibility were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. Auditor Noncompliance Code: E - Eligibility and N - Special Tests and Provisions Finding Resolution Status: Resolved Views of Responsible Officials and Planned Corrective Actions: The Corporation agrees with the finding and the auditor's recommendation has been adopted.

Categories

HUD Housing Programs Special Tests & Provisions Eligibility

Other Findings in this Audit

  • 33453 2022-001
    Material Weakness Repeat
  • 33454 2022-001
    Material Weakness Repeat
  • 33455 2022-001
    Material Weakness Repeat
  • 609896 2022-001
    Material Weakness Repeat
  • 609897 2022-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $5,275