Finding 628464 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-27

AI Summary

  • Core Issue: The project management failed to provide the required HUD-approved management agent certification for the period before the property sale.
  • Impacted Requirements: HUD mandates that management agent certifications must be submitted and approved to ensure compliance.
  • Recommended Follow-Up: Confirm that the new management agent certification is in place and monitor compliance with HUD requirements moving forward.

Finding Text

Department of Housing and Urban Development Finding 2022-001 Section 202 Supportive Housing for the Elderly, AL 14.157 Statement of Condition The Project management was unable to provide a copy of the HUD approved management agent certification (HUD Form 9839) in effect for the period November 12, 2021 to May 10, 2022 (day before sale). Criteria HUD management agent certifications are required to be submitted to and approved by HUD. Cause The procedures in place to ensure that documentation of HUD approval of the management agent was retained were not followed. Effect or Potential Effect The management agent may not have been approved by HUD to provide services to the Organization. Questioned Costs None Recommendation The property obtained a HUD-approved management agent certification effective upon sale of the property on May 11, 2022. Additionally, the management company has prior HUD approval for other entities, and no management fees were paid to the new management agent during the audit period. Auditor Noncompliance Code: Z - Other (REAC); N - Special Tests and Provisions (UG) Finding Resolution Status: Resolved Reporting Views of Responsible Officials The Organization agrees with the finding and notes that the property has transitioned to a new owner with a HUD-approved management agent certification.

Categories

Special Tests & Provisions HUD Housing Programs Reporting

Other Findings in this Audit

  • 52022 2022-001
    Significant Deficiency
  • 52023 2022-002
    Material Weakness
  • 52024 2022-001
    Significant Deficiency
  • 52025 2022-002
    Material Weakness
  • 628465 2022-002
    Material Weakness
  • 628466 2022-001
    Significant Deficiency
  • 628467 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.31M