Finding 615150 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
$1
Year
2022
Accepted
2023-09-26
Audit: 46646
Auditor: M Group LLP

AI Summary

  • Core Issue: The Partnership did not submit monthly Housing Assistance Payments Program vouchers on time, leading to a loss of five months' rental income.
  • Impacted Requirements: Timely submission of vouchers is mandatory for receiving rental assistance under the Section 8 program.
  • Recommended Follow-Up: The Partnership should submit the outstanding vouchers to recover the remaining funds; management agrees and has begun addressing the issue.

Finding Text

Finding #2022-001: Section 8 Housing Assistance Payments Program, CFDA: 14.195 ? Waters at Augusta, L.P. Condition: The Partnership failed to set up and submit the monthly Housing Assistance Payments Program vouchers for payment in a timely manner resulting in five months of subsidy rental income not received. Criteria: The Partnership is required to submit monthly vouchers for payment of rental assistance. Questioned Costs: $666,659 Effect: The Partnership is in violation of the Section 8 Housing Assistance Payments Program. Cause: HUD experienced complications setting up the System for Award Management (SAM) number. The partnership filled out the application accurately but when HUD processed the SAM number, it incorrectly contained information for Waters at Ribaut which took several months for HUD to resolve internally. There were additional delays incurred in HUD implementing the correct depository bank account information. Recommendation: We recommend the Partnership submit the missing vouchers for payment. Management?s Views: Management is in agreement with the finding and will submit the remaining vouchers. Auditors comment: Partially Cleared. The Partnership has successfully set up and submitted the August, September, and October 2022 vouchers and received $391,023 in 2023 for all three months.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

  • 38694 2022-004
    Significant Deficiency Repeat
  • 38695 2022-004
    Significant Deficiency Repeat
  • 38696 2022-005
    Significant Deficiency
  • 38697 2022-004
    Significant Deficiency Repeat
  • 38698 2022-004
    Significant Deficiency Repeat
  • 38699 2022-004
    Significant Deficiency Repeat
  • 38700 2022-004
    Significant Deficiency Repeat
  • 38701 2022-004
    Significant Deficiency Repeat
  • 38702 2022-004
    Significant Deficiency Repeat
  • 38703 2022-005
    Significant Deficiency
  • 38704 2022-004
    Significant Deficiency Repeat
  • 38705 2022-005
    Significant Deficiency
  • 38706 2022-004
    Significant Deficiency Repeat
  • 38707 2022-004
    Significant Deficiency Repeat
  • 38708 2022-001
    Material Weakness
  • 38709 2022-003
    Material Weakness
  • 38710 2022-005
    Significant Deficiency Repeat
  • 38711 2022-006
    Significant Deficiency Repeat
  • 38712 2022-003
    Material Weakness
  • 38713 2022-002
    Material Weakness Repeat
  • 38714 2022-003
    Material Weakness
  • 615136 2022-004
    Significant Deficiency Repeat
  • 615137 2022-004
    Significant Deficiency Repeat
  • 615138 2022-005
    Significant Deficiency
  • 615139 2022-004
    Significant Deficiency Repeat
  • 615140 2022-004
    Significant Deficiency Repeat
  • 615141 2022-004
    Significant Deficiency Repeat
  • 615142 2022-004
    Significant Deficiency Repeat
  • 615143 2022-004
    Significant Deficiency Repeat
  • 615144 2022-004
    Significant Deficiency Repeat
  • 615145 2022-005
    Significant Deficiency
  • 615146 2022-004
    Significant Deficiency Repeat
  • 615147 2022-005
    Significant Deficiency
  • 615148 2022-004
    Significant Deficiency Repeat
  • 615149 2022-004
    Significant Deficiency Repeat
  • 615151 2022-003
    Material Weakness
  • 615152 2022-005
    Significant Deficiency Repeat
  • 615153 2022-006
    Significant Deficiency Repeat
  • 615154 2022-003
    Material Weakness
  • 615155 2022-002
    Material Weakness Repeat
  • 615156 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $21.17M
14.239 Home Investment Partnerships Program $3.54M
14.195 Section 8 Housing Assistance Payments Program $1.38M