Finding 2024-002: Compliance finding
Information on Universe Population Size : Population size was 56 files.
Sample Size Information : Ten tenant files were tested.
Condition: Tenant rent and tenant assistance were not calculated correctly.
Criteria: HUD requires that tenant income and expenses be recertified annually to determine tenant and HUD portions of rent.
Effect: Tenant portion and HUD portion of rent were inaccurate.
Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted multiple files in which the income and/or expenses were not calculated correctly.
Cause: Oversight by property manager.
Recommendation: A procedure be implemented to ensure that all tenant income and expenses are reviewed by a second individual to ensure accuracy.
Finding 2024-004: Significant deficiency
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project changes the certifier on forms, when applicable, in a timely manner.
Finding 2024-002: Compliance finding
Information on Universe Population Size : Population size was 56 files.
Sample Size Information : Ten tenant files were tested.
Condition: Tenant rent and tenant assistance were not calculated correctly.
Criteria: HUD requires that tenant income and expenses be recertified annually to determine tenant and HUD portions of rent.
Effect: Tenant portion and HUD portion of rent were inaccurate.
Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted multiple files in which the income and/or expenses were not calculated correctly.
Cause: Oversight by property manager.
Recommendation: A procedure be implemented to ensure that all tenant income and expenses are reviewed by a second individual to ensure accuracy.
Finding 2024-004: Significant deficiency
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project changes the certifier on forms, when applicable, in a timely manner.
Finding 2024-003: Compliance finding
Information on Universe Population Size : Population size was 56 files.
Sample Size Information : Ten tenant files were tested.
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run due to the license expiring and the person with the license no longer working at the organization.
Criteria: HUD requires EIV forms to be run, monthly, quarterly, and annually.
Effect: Required documents were not in the files.
Context: Auditor reviewed tenant files noting the form was not present in the tenant files.
Cause: Lack of oversight by the management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Finding 2024-003: Compliance finding
Information on Universe Population Size : Population size was 56 files.
Sample Size Information : Ten tenant files were tested.
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run due to the license expiring and the person with the license no longer working at the organization.
Criteria: HUD requires EIV forms to be run, monthly, quarterly, and annually.
Effect: Required documents were not in the files.
Context: Auditor reviewed tenant files noting the form was not present in the tenant files.
Cause: Lack of oversight by the management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Finding 2024-005: Material Weakness
Information on universe/sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner; existing tenants need to be recertified annually.
Effect: There were significant vacancies and some tenant’s subsidies had expired.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.
Finding 2024-005: Material Weakness
Information on universe/sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner; existing tenants need to be recertified annually.
Effect: There were significant vacancies and some tenant’s subsidies had expired.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.
Finding 2024-002: Compliance finding
Information on Universe Population Size : Population size was 56 files.
Sample Size Information : Ten tenant files were tested.
Condition: Tenant rent and tenant assistance were not calculated correctly.
Criteria: HUD requires that tenant income and expenses be recertified annually to determine tenant and HUD portions of rent.
Effect: Tenant portion and HUD portion of rent were inaccurate.
Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted multiple files in which the income and/or expenses were not calculated correctly.
Cause: Oversight by property manager.
Recommendation: A procedure be implemented to ensure that all tenant income and expenses are reviewed by a second individual to ensure accuracy.
Finding 2024-004: Significant deficiency
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project changes the certifier on forms, when applicable, in a timely manner.
Finding 2024-002: Compliance finding
Information on Universe Population Size : Population size was 56 files.
Sample Size Information : Ten tenant files were tested.
Condition: Tenant rent and tenant assistance were not calculated correctly.
Criteria: HUD requires that tenant income and expenses be recertified annually to determine tenant and HUD portions of rent.
Effect: Tenant portion and HUD portion of rent were inaccurate.
Context: Auditor selected tenant files to test the tenant eligibility, income and allowable expenses and noted multiple files in which the income and/or expenses were not calculated correctly.
Cause: Oversight by property manager.
Recommendation: A procedure be implemented to ensure that all tenant income and expenses are reviewed by a second individual to ensure accuracy.
Finding 2024-004: Significant deficiency
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project changes the certifier on forms, when applicable, in a timely manner.
Finding 2024-003: Compliance finding
Information on Universe Population Size : Population size was 56 files.
Sample Size Information : Ten tenant files were tested.
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run due to the license expiring and the person with the license no longer working at the organization.
Criteria: HUD requires EIV forms to be run, monthly, quarterly, and annually.
Effect: Required documents were not in the files.
Context: Auditor reviewed tenant files noting the form was not present in the tenant files.
Cause: Lack of oversight by the management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Finding 2024-003: Compliance finding
Information on Universe Population Size : Population size was 56 files.
Sample Size Information : Ten tenant files were tested.
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run due to the license expiring and the person with the license no longer working at the organization.
Criteria: HUD requires EIV forms to be run, monthly, quarterly, and annually.
Effect: Required documents were not in the files.
Context: Auditor reviewed tenant files noting the form was not present in the tenant files.
Cause: Lack of oversight by the management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Finding 2024-005: Material Weakness
Information on universe/sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner; existing tenants need to be recertified annually.
Effect: There were significant vacancies and some tenant’s subsidies had expired.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.
Finding 2024-005: Material Weakness
Information on universe/sample size: It was noted during testing that the management agent was not able to perform management duties in a timely manner.
Condition: All management agent duties should be performed timely.
Criteria: Tenant units should be filled in a timely manner; existing tenants need to be recertified annually.
Effect: There were significant vacancies and some tenant’s subsidies had expired.
Context: Auditor noted the vacancies and file issues during testing.
Cause: Significant turnover at the management agent.
Recommendation: The management agent should hire a consultant to assist with performing the necessary management agent duties until they are fully staffed.