The Village at Oasis Park - Phase I, Inc.

Criteria or specific requirement: Monthly deposits are required to be made to the replacement reserve account.

Condition: Monthly deposits were not made. Deposits were made every few months and total amount deposited ties to the required total deposits for the year.

Questioned costs: N/A

Context: Required deposits were made but they were not made monthly due to cash flow restraint.

Cause: Required deposits were made but they were not made monthly due to cash flow restraint.

Effect: Not in compliance with monthly requirement.

Repeat Finding: No

Recommendation: The Organization should make the required deposits monthly.

Views of responsible officials: There is no disagreement with the audit finding.

Criteria or specific requirement: The amount of the segregated, interest-bearing account maintained by The Village at Oasis Park - Phase I, Inc. for security deposits must at all times equal the total amount collected from the families then in occupancy plus any accrued interest and less allowable administrative costs adjustments.

Condition: The amount within the segregated, interest-bearing security deposits account was less than security deposits liability.

Questioned costs: N/A

Context: A separate, interest-bearing account is maintained but did not total an amount equal or greater than the security deposit liability due to cash flow restraint.

Cause: A separate, interest-bearing account is maintained but did not total an amount equal or greater than the security deposit liability due to cash flow restraint.

Effect: Not in compliance with security deposit requirement

Repeat Finding: No

Recommendation: The Organization should increase security deposit account to equal liability account.

Views of responsible officials: There is no disagreement with the audit finding.

Criteria or specific requirement: The program requires that organizations submit monthly vouchers to HUD so that rental subsidies can be calculated and paid to the Organization.

Condition: Monthly vouchers were not submitted to HUD in a timely manner.

Questioned costs: N/A

Context: The Organization hired an outside consultant and it was unclear who was responsible for filing the monthly vouchers. Vouchers were not filed timely but were filed and amounts were received subsequent to year end.

Cause: The Organization hired an outside consultant and it was unclear who was responsible for filing the monthly vouchers.

Effect: Voucher requests were not being submitted timely to HUD but were ultimately filed and received.

Repeat Finding: Yes

Recommendation: Policies and procedures should be strengthened to ensure that vouchers are filed timely.

Views of responsible officials: There is no disagreement with the audit finding.

Finding 2024 – 101 – Annual Recertification of Income Not Performed, Documentation of Eligibility (Material Weakness, Material Noncompliance)

Federal program information:

Funding agency: U.S. Department of Housing and Urban Development Title: Supportive Housing for people with disabilities Assistance Listing Number: 14.181 Award year: 2023/2024 Award numbers: Project 123-HD042; AZ20Q081002 Pass-Through grantors: N/A Compliance Requirement: Eligibility Questioned Costs: Unknown

Criteria: 24 CFR part 5 requires recipients of Supportive Housing for People with Disabilities funding to have annual certifications performed of income to ensure eligibility with this rental assistance program.

Condition: For 5 of 5 tenants tested, an annual certification of income was not performed during fiscal year 2024. For 1 of 1 new tenants moving into program during 2024, proof of eligibility was not maintained or provided to the auditors.

Cause and Effect: Due to employee turnover, and a lack of training of the compliance requirements over the program, annual recertifications were not performed on tenants and documentation of eligibility was not maintained for the new tenant during 2024.

Auditors’ Recommendations: Policies should be implemented that help ensure that new employees have adequate training over program requirements and that program requirements are followed.

Finding 2024 – 102 – Submission of Voucher information to HUD sub-systems. (Significant Deficiency, Compliance Finding-Other Matter)

Federal program information: Funding agency: U.S. Department of Housing and Urban Development Title: Supportive Housing for people with disabilities Assistance Listing Number: 14.181 Award year: 2023/2024 Award numbers: Project 123-HD042; AZ20Q081002 Pass-Through grantors: N/A Compliance Requirement: Reporting Questioned Costs: N/A

Criteria: The program requires that organizations submit monthly vouchers to HUD so that rental subsidies can be calculated and paid to the Organization.

Condition: Monthly vouchers were not submitted to HUD during fiscal year 2024 and therefore, HUD is unable to track subsidies and ultimately pay for these 2024 amounts.

Cause and Effect: The Organization was unable to obtain access to the HUD sub-system for income verification and vouchers and therefore, voucher requests were not being submitted timely to HUD and the Organization is unable to verify amounts that they will ultimately receive.

Auditors’ Recommendations: Policies and procedures should be strengthened to ensure that responsible employees have the necessary access to the various HUD systems and that all reports are submitted in a timely manner.

Finding 2024 – 103 – Single Audit Reporting Package and U.S. Housing and Urban Development REAC Submissions Not Filed Timely. (Significant Deficiency, Compliance Finding-Other Matter)

Federal program information: Funding agency: U.S. Department of Housing and Urban Development Title: Supportive Housing for people with disabilities Assistance Listing Number: 14.181 Award year: 2023/2024 Award numbers: Project 123-HD042; AZ20Q081002 Pass-Through grantors: N/A Compliance Requirement: Reporting Questioned Costs: N/A

Criteria: CFR 200.512 of the Uniform Guidance requires that the County submit an annual single audit reporting package and submit the data collection form prior to nine months after the end of the audit period. U.S. Housing and Urban Development requires that submissions to the Real Estate Assessment Center be made within 90 days after the fiscal year end.

Condition: The Organization did not submit the single audit reporting package and did not submit the information required to the Real Estate Assessment Center within the required timeframe.

Cause and Effect: Due to turnover within the Organization, certain accounts were not reconciled timely and there was difficulty accessing the various HUD systems.

Auditors’ Recommendations: Policies and procedures should be strengthened to ensure that year-end closing is performed within a reasonable period after year-end to allow for required submissions to be made within deadlines.

Funding agency: U.S. Department of Housing and Urban Development Title: Supportive Housing for people with disabilities Assistance Listing Number: 14.181 Award year: 2023 Award numbers: Project 123-HD042; AZ20Q081002 Pass-Through grantors: N/A Compliance Requirement: Special Tests and Provisions Questioned Costs: N/A Criteria: 24 CFR part 5, subpart G requires recipients of Supportive Housing for People with Disabilities funding to perform annual HQS inspections and to maintain documentation of these inspections. Condition: management could not provide supporting documentation for the performance of the annual HQS inspections during fiscal year ending September 30, 2023. Cause and Effect: Due to employee turnover, training and the maintaining of the supporting documentation over the HQS inspection processes were lagging. Proof of the performance of the HQS inspection could not be found in for fiscal year ending September 30, 2023. Auditors’ Recommendations: Policies and procedures should be strengthened concerning record retention of the HQS inspections to ensure they are properly maintained. Management should also provide housing staff with adequate training for the documentation of the HQS inspection process.