Audit 335324

Significant Deficiency Finding 2024-001 Significant Deficiency in Internal Control over Compliance Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public and Indian Housing ALN #: 14.850 Award Period: 4/1/23-3/31/24 Criteria: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Statement of Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: N/A Context: Testing of 25 tenant files identified an exception in 5 files as follows: • 2 files did not contain proper forms of identification for all members of the household. • 5 files did not contain a properly signed Form 214 certifying U.S. Citizenship or proper immigration status for all household members as required. Cause: The Agency did not perform the recertification in accordance with their stated policies. Effect: The Authority is not in compliance with requirements regarding eligibility and tenant recertifications, which could result in incorrect total tenant payments for rent. Identification of a repeat finding: No Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the recertification procedure and will continue to review recertifications.

Significant Deficiency Finding 2024-001 Significant Deficiency in Internal Control over Compliance Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public and Indian Housing ALN #: 14.850 Award Period: 4/1/23-3/31/24 Criteria: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Statement of Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: N/A Context: Testing of 25 tenant files identified an exception in 5 files as follows: • 2 files did not contain proper forms of identification for all members of the household. • 5 files did not contain a properly signed Form 214 certifying U.S. Citizenship or proper immigration status for all household members as required. Cause: The Agency did not perform the recertification in accordance with their stated policies. Effect: The Authority is not in compliance with requirements regarding eligibility and tenant recertifications, which could result in incorrect total tenant payments for rent. Identification of a repeat finding: No Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the recertification procedure and will continue to review recertifications.