MONTE VISTA COMMUNITY CENTER HOUSING AUTHORITY, INC.

Finding 2025-001: Rural Rental Housing Loans Assistance Listing Number: 10.415 U.S. Department of Agriculture (Repeat of Finding 2024-001) Compliance Requirement: Eligibility, Program Income Type of finding: Internal Control Over Compliance (significant deficiency) Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require that the non-Federal entity establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award (2 CFR 200.303(a)). Condition: There were no reviews of the tenant eligibility determinations during the year for the Sierra Vista Alamosa Housing Complex. This complex represents 1 of 3 complexes and 27 of the 111 units included in the Rural Rental Housing Loans program. In addition, seven of the 12 monthly housing assistance payment requests submitted for the Sierra Vista Alamosa Housing Complex were not reviewed. Cause: Management has not implemented an internal control structure that provides for independent review of tenant eligibility determinations or all monthly housing assistance payment requests for the Sierra Vista Alamosa Housing Complex. Effect: Noncompliance with the Rural Rental Housing Loan requirements may exist and not be detected by the Organization. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The Organization should consider assessing and realigning the duties and responsibilities of the Executive Director, Administrative Assistant, and Alamosa Property Manager to provide for a review process of tenant eligibility determinations and the monthly housing assistance payment requests for the Sierra Vista Alamosa Housing Complex. Grantee’s Response: See corrective action plan.

Finding 2024-001: Rural Rental Housing Loans Assistance Listing Number: 10.415 U.S. Department of Agriculture Compliance Requirement: Eligibility Type of finding: Internal Control Over Compliance (significant deficiency) Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards require that the non-Federal entity establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award (2 CFR 200.303(a)). Condition: The Organization did not implement a review or monitoring process to ensure propriety in eligibility determinations and tenant lease agreements for the period June 2024 – December 2024. Specifically, there was no review of eligibility determinations and tenant lease agreements for 8 of 12 tenant files reviewed. Cause: The Administrative Assistants took over completing all tenant eligibility determinations after the previous Executive Director retired in May 2024 resulting in a lack of separate review. Effect: Noncompliance with the Rural Rental Housing Loan requirements may exist and not be detected by the Organization. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to ensure a review process is established through adequate segregation of duties. The Organization should consider assessing and realigning the duties and responsibilities of the Executive Director and Alamosa Administrative Assistant to provide for a review process of tenant eligibility determinations. Grantee’s Response: See corrective action plan.