Finding 972303 (2023-001)

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Requirement
P
Questioned Costs
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Year
2023
Accepted
2024-05-03

AI Summary

  • Core Issue: The Corporation W3S failed a REAC physical inspection with a rating of 53c, indicating noncompliance with HUD's regulatory agreement.
  • Impacted Requirements: The property must be maintained in good repair and condition as per HUD regulations.
  • Recommended Follow-up: Ensure all identified repairs are completed by June 2023 and implement procedures to maintain compliance for future inspections.

Finding Text

Finding Type - Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program - 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advance and Project Rental Assistance Contract Finding Resolution Status - In Process Information on Universe and Population Size - The Corporation W3S subject to one Real Estate Assessment Center (REAC) physical inspection on December 7. 2022 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 December 7. 2022. the Corporation had a Real Estate Assessment Center (REAC) physical inspection at the property and received a rating of 53c. 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 W3S in violation of its regulatory agreement with HUD. Auditor Noncompliance Code - I - Failure to maintain the propertyfopen 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 failing REAC physical inspection rating was noted. Recommendation - All required repairs should be made in accordance with the REAC 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 inspection. Response Indicator - Agree Completion Date - June 2023 Response - Management acknowledges noncompliance in the current fiscal year and has addressed all of the health and safety issues and all other findings identified during the REAC inspection by June 2023.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $139,816
14.195 Covid-19 - Section 8 Housing Assistance Payments Program $1,054