The Havens, Inc

Finding Reference Number: 2024-02 Title and AL Number of Federal Program: Section 811 Capital Advance and PRAC 14.181 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: n/a Criteria: In accordance with HUD regulations, the Corporation should maintain an Affirmative Fair Housing Marketing Plan (AFHMP) Statement of Condition: The Corporation does not have an AFHMP. Cause: Management was not aware of the requirement. Effect or Potential Effect: The Project is noncompliance with HUD regulatory agreement. Auditor Non-Compliance Code: Z - Other Questioned Costs: $- Reportable Views of Responsible Officials: Management is in agreement with the finding and will take steps needed to obtain an AFHMP. Context: n/a Recommendation: Management should review HUD requirements annually and ensure all requirements are being met. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's assessment. Response Indicator: Agree Completion Date: 6/30/2025 Response: Management is in agreement with the finding and will take steps needed to obtain an AFHMP. -

2. 2024-02 i. Comments on Finding: In accordance with HUD regulations, the Corporation should maintain an Affirmative Fair Housing Marketing Plan (AFHMP) ii. Actions Taken or Planned: Management will take steps needed to obtain an AFHMP.  Responsible Person: Chelsea Gulden  Anticipated Completion Date: 6/30/2025  Steps to Implement: Obtain an AFHMP.

Supportive Housing for Persons with Disabilities (Section 811), Assistance Listing Number 14.181 Criteria: A good system of internal control contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion. Statement of Condition: The Organization has a lack of segregation of duties in certain areas due to a limited staff. Cause: There are a limited number of individuals involved in the internal control process. Effect: Inadequate segregation of duties could adversely affect the Organization’s ability to detect misstatements material to the financial statements in a timely manner by individuals in the normal course of performing their assigned functions. Recommendation: We recognize that it may not be cost effective for the Organization to hire additional staff. The Organization should continue to rely on compensating controls in place. Views of Responsible Officials: We agree with the finding. Due to cost restraints, the Organization will not hire any additional staff. The Organization will continue to rely on compensating controls in place.

Corrective Action Plan: Due to cost restraints, the Organization will not hire any additional staff. The Organization will continue to rely on compensating controls in place. Auditee Contact: Mickie Helms (Citywide Realty Services, Inc.), Management Agent

2022-001

Supportive Housing for Persons with Disabilities (Section 811), CFDA 14.181 Criteria: A good system of internal control contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion. Statement of Condition: The Organization has a lack of segregation of duties in certain areas due to a limited staff. Cause: There are a limited number of individuals involved in the internal control process. Effect: Inadequate segregation of duties could adversely affect the Organization?s ability to detect misstatements material to the financial statements in a timely manner by individuals in the normal course of performing their assigned functions. Recommendation: We recognize that it may not be cost effective for the Organization to hire additional staff. The Organization should continue to rely on compensating controls in place. Views of Responsible Officials: We agree with the finding. Due to cost restraints, the Organization will not hire any additional staff. The Organization will continue to rely on compensating controls in place.

Corrective Action Plan: Due to cost restraints, the Organization will not hire any additional staff. The Organization will continue to rely on compensating controls in place. Auditee Contact: Mickie Helms (Citywide Realty Services, Inc.), Management Agent

2021-001

Supportive Housing for Persons with Disabilities (Section 811), CFDA 14.181 Criteria: The Code of Federal Regulations (24 CFR 5.703) states that HUD housing must be decent, safe, sanitary and in good repair. Also, the Project?s HUD Regulatory Agreement states that the property must be maintained in good and substantial repair and condition. Statement of Condition: On July 9, 2021, the Project received a score of 55c on its HUD physical inspection. This score resulted from numerous health and safety and other deficiencies. Cause: Some Project repairs were delayed by COVID restrictions and resulting labor and supply shortages as well as by insufficient cash flows. Also, management contended that some defects were cited incorrectly. Effect: A physical inspection score below 60 indicates that the owner may not be fulfilling its contractual obligations to HUD and that the residents may not be receiving the quality of housing to which they are entitled. Recommendation: The owner should correct all deficiencies and make all necessary repairs as soon as possible to be in compliance with HUD. Views of Responsible Officials: The low score reflects issues with drainage and tripping hazards on the grounds plus paint on a sprinkler head ring. There were very few issues in the apartments themselves. Our appeal for this inspection was denied. Subsequently, the Project received a score of 55 on its September 15, 2022 HUD physical inspection, but management?s appeal for this inspection raised the score to 63.

Corrective Action Plan: The work on the grounds was in progress at the time of the inspection and was finished shortly thereafter (14.96 points). Quality Sprinkler was called to replace the ring on the sprinkler head immediately (10 points). Auditee Contact: Mickie Helms (Citywide Realty Services, Inc.), Management Agent

Section 811, CFDA 14.181 Criteria: A good system of internal control contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion. Statement of Condition: The Organization has a lack of segregation of duties in certain areas due to a limited staff. Cause: There are a limited number of individuals involved in the internal control process. Effect: Inadequate segregation of duties could adversely affect the Organization?s ability to detect misstatements material to the financial statements in a timely manner by individuals in the normal course of performing their assigned functions. Recommendation: We recognize that it may not be cost effective for the Organization to hire additional staff. The Organization should continue to rely on compensating controls in place. Views of Responsible Officials: We agree with the finding. Due to cost restraints, the Organization will not hire any additional staff. The Organization will continue to rely on compensating controls in place.

Corrective Action Plan: Due to cost restraints, the Organization will not hire any additional staff. The Organization will continue to rely on compensating controls in place. Auditee Contact: Mickie Helms (Citywide Realty Services, Inc.), Management Agent

2020-001

Section 811, CFDA 14.181 Criteria: A good system of internal control contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion. Statement of Condition: The Organization has a lack of segregation of duties in certain areas due to a limited staff. Cause: There are a limited number of individuals involved in the internal control process. Effect: Inadequate segregation of duties could adversely affect the Organization?s ability to detect misstatements material to the financial statements in a timely manner by individuals in the normal course of performing their assigned functions. Recommendation: We recognize that it may not be cost effective for the Organization to hire additional staff. The Organization should continue to rely on compensating controls in place. Views of Responsible Officials: We agree with the finding. Due to cost restraints, the Organization will not hire any additional staff. The Organization will continue to rely on compensating controls in place.

Corrective Action Plan: Due to cost restraints, the Organization will not hire any additional staff. The Organization will continue to rely on compensating controls in place. Auditee Contact: Mickie Helms (Citywide Realty Services, Inc.), Management Agent

2019-001

Section 811, CFDA 14.181 Criteria: A good system of internal control contemplates an adequate segregation of duties so that no one individual handles a transaction from its inception to completion. Statement of Condition: The Organization has a lack of segregation of duties in certain areas due to a limited staff. Cause: There are a limited number of individuals involved in the internal control process. Effect: Inadequate segregation of duties could adversely affect the Organization?s ability to detect misstatements material to the financial statements in a timely manner by individuals in the normal course of performing their assigned functions. Recommendation: We recognize that it may not be cost effective for the Organization to hire additional staff. The Organization should continue to rely on compensating controls in place. Views of Responsible Officials: We agree with the finding. Due to cost restraints, the Organization will not hire any additional staff. The Organization will continue to rely on compensating controls in place.

Corrective Action Plan: Due to cost restraints, the Organization will not hire any additional staff. The Organization will continue to rely on compensating controls in place. Auditee Contact: Mickie Helms (Citywide Realty Services, Inc.), Management Agent

2018-001

Section 811, CFDA 14.181 Criteria: The HUD Management Agent Handbook (4381.5) states that to initiate a change in the management fee percentage, the owner and agent must submit a new Management Agent Certification (HUD-9839-B) showing the revised management fee, and this Certification must be approved in writing by HUD. Statement of Condition: The management agent billed the Organization management fees using a percentage of 12.84% instead of the 10.66% approved by HUD on the Management Agent Certification. Cause: The management agent included a request for a management fee percentage increase to 12.84% with the Project?s budget worksheet submitted to HUD for PRAC renewal. The agent thought that the HUD-approved PRAC renewal automatically approved the management fee percentage increase to 12.84%. Effect: The Organization was not in compliance with HUD regulations. The Organization overpaid management fees by $3,925. Recommendation: Management should insure that HUD Handbook procedures are followed when requesting an increase in management fee percentage. The agent should refund the $3,925 overpayment to the Organization. Views of Responsible Officials: We agree with the finding. We will obtain written HUD approval for any future management fee percentage changes. The management agent will refund the $3,925 overpayment of management fees to the Organization as soon as possible.

Corrective Action Plan: The management agent will refund the $3,925 overpayment of management fees to the Organization as soon as possible. Auditee Contact: Mickie Helms (Citywide Realty Services, Inc.), Management Agent

GSA_MIGRATION

GSA_MIGRATION

2017-001

GSA_MIGRATION

GSA_MIGRATION

2016-001

GSA_MIGRATION

GSA_MIGRATION

2015-001