Finding 6798 (2023-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2023-12-28

AI Summary

  • Core Issue: The Organization failed to maintain required documentation for tenant security deposits and move-outs, leading to non-compliance with HUD guidelines.
  • Impacted Requirements: Eligibility determination and security deposit management as outlined in HUD Handbook (4350.3).
  • Recommended Follow-Up: Implement procedures to ensure compliance and periodically review tenant file documentation for accuracy and completeness by December 31, 2023.

Finding Text

S3800-011: Program Information Federal Program: Supportive Housing for the Elderly - Section 202 Federal Agency: U.S. Department of Housing and Urban Development Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: E - Eligibility S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 53 S3800-018: Sample Size Information 10 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria HUD-subsidized, multifamily housing properties must follow specific guidelines for determining eligibility and establishing and maintaining security deposits for tenants moving out; and determine whether they are in compliance with provisions in the HUD Handbook (4350.3). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2023 federal award program, we noted that the Organization did not have the necessary documentation related to security deposits for five tenants and move-outs for three tenants in their files. S3800-032: Cause The Organization did not follow HUD required procedures for eligibility and security deposits. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to determining initial eligibility and establishing and maintaining security deposits for tenants moving out. S3800-035: Auditor Non-Compliance Code M – Security deposits S3800-040: Questioned Costs Unknown S3800-045: Reporting Views of Responsible Officials Management agrees with the auditor’s finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to tenant eligibility and establishing and maintaining security deposits for tenants moving out. S3800-080: Recommendation The Organization should follow procedures to ensure tenant eligibility and establishing and maintaining security deposits for tenants moving out and the Organization should review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Concur S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date December 31, 2023 S3800-150: Response See Corrective Action Plan

Corrective Action Plan

Responsible Party Name: Fred Gibbs Position: President, Management Agent Telephone Number: (913) 709-1811 Federal Agency U.S. Department of Housing and Urban Development Federal Program Supportive Housing for the Elderly (Section 202) Compliance Requirements E - Eligibility Finding Type Federal Awards Auditee’s Comments on Finding We agree with the auditors’ finding. Corrective Action We will follow procedures to ensure tenant eligibility and establishing and maintaining security deposits for tenants moving out and we will review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis. Anticipated Completion Date December 31, 2023

Categories

HUD Housing Programs Subrecipient Monitoring Eligibility Reporting Special Tests & Provisions

Other Findings in this Audit

  • 6797 2023-001
    Material Weakness Repeat
  • 6799 2023-003
    Material Weakness
  • 583239 2023-001
    Material Weakness Repeat
  • 583240 2023-002
    Material Weakness
  • 583241 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $4.10M
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $297,516