Atwood Elder Housing, Inc.

Name of Federal Agency: Department of Housing and Urban Development Federal Program Name and Assistance Listing Number: 14.157 Federal Award Identification Number and Year: Not available; Program year 2025 Name of Pass-through Entity (if applicable): N/A Criteria: In accordance with 4-14.157-4 of the Appendix XI to 2 CFR, Part 200 of the United States Office of Management and Budget, the Corporation must reexamine family income and composition at least once every 12 months and adjust the total rent payment and housing assistance payment as necessary (24 CFR section 891.410). The Corporation is responsible for annually examining incomes of households occupying assisted units and making appropriate adjustments. Condition: In a sample of 4 files tested, there was an exception noted in 1 file in which the Corporation did not obtain the tenant's signature for recertification timely. Additionally, the Corporation only sent 1 of the 3 required reminder notices to the tenant beginning at 120 days prior to their recertification anniversary date. Cause: The Corporation failed to follow the recertification process and procedures which have been established for determining tenant eligibility in accordance with federal guidelines. Effect or Potential Effect: The Corporation is not in compliance with federal regulations regarding eligibility. Failure to timely recertify tenants could result in approval of ineligible tenants and incorrect assistance payment calculations. Questioned Costs: N/A Context: A sample of 4 tenant files were selected. We identified exceptions in 1 out of 4 files tested. The sample was not statistically valid. Identification as a Repeat Finding: This finding is not a repeat finding. Recommendation: We recommend that management reviews its internal controls over performing tenant recertification procedures to ensure compliance with eligibility requirements. Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility is done in accordance with guidelines specified by federal regulations. Views of Responsible Officials: Management agrees with the assessment and resulting finding. Corrective actions have been implemented to strengthen compliance controls, including calendar reminders for compliance team members, enhanced documentation in recertification checklists to clarify specific program requirements, and routine review of compliance expectations during monthly staff training and meetings. Management has also increased supervisory oversight and implemented periodic internal file audits to monitor adherence to recertification procedures and prevent future occurrences.

Item #2021-001 - Timely Deposit of Residual Receipts; Section 202, CFDA 14.157 Criteria: The project is required by its regulatory agreement to deposit residual receipts, as computed, within 90-days of its fiscal year-end. Condition: The December 31, 2020 required residual receipts deposit in the amount of $9,446 was not made within 90 days of the fiscal year-end. Cause: The delay in the deposit was caused by an administrative oversight. Questioned Costs: N/A Effect: The failure to deposit residual receipts timely results in funds remaining in the project's operating account during a period of time in which the funds actually belong to HUD. Auditor Noncompliance Code: Failure to make required residual receipts deposits timely. Recommendation: The Corporation should review their internal controls to ensure that residual receipt deposits are made within the 90-day required period. Management?s Response: The Corporation made the required deposit for the year ended October 31, 2020 on February 12, 2021. The Corporation has reviewed and strengthened their internal controls to ensure deposits are made within the required timeframe.