Finding 971634 (2023-001)

Significant Deficiency
Requirement
F
Questioned Costs
-
Year
2023
Accepted
2024-04-30

AI Summary

  • Core Issue: The Corporation failed to maintain the property according to HUD's Regulatory Agreement, receiving a failing inspection score of 51c.
  • Impacted Requirements: Compliance with the HUD Regulatory Agreement, specifically the requirement for the property to be in good repair.
  • Recommended Follow-Up: Complete all necessary repairs by December 31, 2023, and implement procedures to ensure ongoing compliance before the next inspection.

Finding Text

Finding Type: - Immaterial noncompliance with major program requirements - Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program - 14.157 - U.S. Department of Housing and Urban Development - Supportive Housing for the Elderly (Section 202) Finding Resolution Status - Unresolved Information on Universe and Population Size - The Corporation was subject to one Real Estate Assessment Center (REAC) inspection during 2023. Sample Size Information - N/A - Not determined via a sampling method Identification of Repeat Finding and Finding Reference Number - N/A - Not a repeat finding Criteria - The HUD Regulatory Agreement requires the property to be maintained in good repair and condition. Statement of Condition - On January 24, 2023, the Corporation had a Real Estate Center physical inspection at the property and received a rating of 51c. Cause - There are several repairs that need to be completed through the building in order for the Corporation to be in compliance with the requirements of the Regulatory Agreement. Effect or Potential Effect - As a result of the inspection, the Corporation was in violation of its Regulatory Agreement with HUD. Auditor Noncompliance Code - I - Failure to maintain the property/open physical inspection(s) Reporting Views of Responsible Officials - The Corporation agrees with the finding as reported. Context - During testing for compliance with the HUD Regulatory Agreement, one instance of a REAC physical inspection with a rating of failing (score below 60) was noted. Recommendation - All required repairs should be made in accordance with the MOR inspection and the Regulatory Agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - The Corporation should implement procedures to ensure the property is in good repair and condition to remain in compliance with the Regulatory Agreement with HUD. All repairs identified in the REAC inspection report should be made prior to the next scheduled inspection date. Response Indicator - Agree Completion Date - December 31, 2023 Response - Management acknowledges noncompliance in the current fiscal year and has addressed all of the health and safety issues as of January 23, 2023.

Categories

HUD Housing Programs Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 395192 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $2,413