Information on universe: Total population was 34 files.
Sample Size: 7 files were selected for testing.
Identification of repeat finding: Yes, 2023-001
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 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.
Information on universe: Total population was 34 files.
Sample Size: 7 files were selected for testing.
Identification of repeat finding: Yes, 2023-002
Condition: Additional files had to be selected due to two of the files missing the recertification paperwork including a signed 50059. Repeat issue upon selecting additional files.
Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file.
Effect: Auditor was unable to test the income and expenses on 3 files.
Context: Auditor selected tenant files and was unable to test two of the files resulting in additional files needing to be tested. One of the additional files was still unable to be tested.
Cause: Turnover at the management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe: Total population was 34 files.
Sample Size: 7 files were selected for testing.
Identification of repeat finding: Yes, 2023-001
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 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.
Information on universe: Total population was 34 files.
Sample Size: 7 files were selected for testing.
Identification of repeat finding: Yes, 2023-002
Condition: Additional files had to be selected due to two of the files missing the recertification paperwork including a signed 50059. Repeat issue upon selecting additional files.
Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file.
Effect: Auditor was unable to test the income and expenses on 3 files.
Context: Auditor selected tenant files and was unable to test two of the files resulting in additional files needing to be tested. One of the additional files was still unable to be tested.
Cause: Turnover at the management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe and sample size: Accounts were selected during preliminary analytics due to the unusual balance.
Identification of repeat finding: Yes, 2023-003
Condition: Required maintenance was not performed in a timely manner.
Criteria: All maintenance should be performed in a timely manner.
Effect: Several tenant units and common areas have not been completely remedied from the flood.
Context: Auditor noted that there was a flood during 2023 due to burst pipes which was covered by an insurance reimbursement. The project was started and never completed after the contractor left and never came back. The work has not been completed as of August 31, 2024.
Cause: Turnover at the management agent and lack of available contractors in a rural area.
Recommendation: The Housing Director or other designated employee should be monitoring all major maintenance projects to ensure they are completed in a timely manner regardless of turnover at the project level.
Information on universe and sample size: Accounts were selected during preliminary analytics due to the unusual balance.
Identification of repeat finding: Yes, 2023-003
Condition: Required maintenance was not performed in a timely manner.
Criteria: All maintenance should be performed in a timely manner.
Effect: Several tenant units and common areas have not been completely remedied from the flood.
Context: Auditor noted that there was a flood during 2023 due to burst pipes which was covered by an insurance reimbursement. The project was started and never completed after the contractor left and never came back. The work has not been completed as of August 31, 2024.
Cause: Turnover at the management agent and lack of available contractors in a rural area.
Recommendation: The Housing Director or other designated employee should be monitoring all major maintenance projects to ensure they are completed in a timely manner regardless of turnover at the project level.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Identification of repeat finding: Yes, 2023-004
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 timely changes the certifier on forms when applicable.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Identification of repeat finding: Yes, 2023-004
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 timely changes the certifier on forms when applicable.
Information on universe: Payroll control testing.
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: Yes, 2023-005
Condition: Lack of detailed job duties, review and approvals on time allocated and charged to the property as well as one employee missing allocations.
Criteria: Time sheets should have detailed allocations and job duties as well as be reviewed and approved.
Effect: Allocation sheets had errors, therefore causing improper charges to the property.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of oversight.
Recommendation: Time sheets should have detailed job duties performed and time allocated to the property based on these duties performed. The time sheets then need to be reviewed and approved.
Information on universe: Payroll control testing.
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: Yes, 2023-005
Condition: Lack of detailed job duties, review and approvals on time allocated and charged to the property as well as one employee missing allocations.
Criteria: Time sheets should have detailed allocations and job duties as well as be reviewed and approved.
Effect: Allocation sheets had errors, therefore causing improper charges to the property.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of oversight.
Recommendation: Time sheets should have detailed job duties performed and time allocated to the property based on these duties performed. The time sheets then need to be reviewed and approved.
Information on universe: Total population was 34 files.
Sample Size: 7 files were selected for testing.
Identification of repeat finding: Yes, 2023-001
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 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.
Information on universe: Total population was 34 files.
Sample Size: 7 files were selected for testing.
Identification of repeat finding: Yes, 2023-002
Condition: Additional files had to be selected due to two of the files missing the recertification paperwork including a signed 50059. Repeat issue upon selecting additional files.
Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file.
Effect: Auditor was unable to test the income and expenses on 3 files.
Context: Auditor selected tenant files and was unable to test two of the files resulting in additional files needing to be tested. One of the additional files was still unable to be tested.
Cause: Turnover at the management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe and sample size: Accounts were selected during preliminary analytics due to the unusual balance.
Identification of repeat finding: Yes, 2023-003
Condition: Required maintenance was not performed in a timely manner.
Criteria: All maintenance should be performed in a timely manner.
Effect: Several tenant units and common areas have not been completely remedied from the flood.
Context: Auditor noted that there was a flood during 2023 due to burst pipes which was covered by an insurance reimbursement. The project was started and never completed after the contractor left and never came back. The work has not been completed as of August 31, 2024.
Cause: Turnover at the management agent and lack of available contractors in a rural area.
Recommendation: The Housing Director or other designated employee should be monitoring all major maintenance projects to ensure they are completed in a timely manner regardless of turnover at the project level.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Identification of repeat finding: Yes, 2023-004
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 timely changes the certifier on forms when applicable.
Information on universe: Payroll control testing.
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: Yes, 2023-005
Condition: Lack of detailed job duties, review and approvals on time allocated and charged to the property as well as one employee missing allocations.
Criteria: Time sheets should have detailed allocations and job duties as well as be reviewed and approved.
Effect: Allocation sheets had errors, therefore causing improper charges to the property.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of oversight.
Recommendation: Time sheets should have detailed job duties performed and time allocated to the property based on these duties performed. The time sheets then need to be reviewed and approved.
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.
Identification of repeat finding: No
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 and management fee needs to be adjusted for vacancies.
Effect: There were significant vacancies, some tenant’s subsidies had expired, and the management fee was overstated.
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.
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.
Identification of repeat finding: No
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 and management fee needs to be adjusted for vacancies.
Effect: There were significant vacancies, some tenant’s subsidies had expired, and the management fee was overstated.
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.
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.
Identification of repeat finding: No
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 and management fee needs to be adjusted for vacancies.
Effect: There were significant vacancies, some tenant’s subsidies had expired, and the management fee was overstated.
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.
Information on universe: Total population was 34 files.
Sample Size: 7 files were selected for testing.
Identification of repeat finding: Yes, 2023-001
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 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.
Information on universe: Total population was 34 files.
Sample Size: 7 files were selected for testing.
Identification of repeat finding: Yes, 2023-002
Condition: Additional files had to be selected due to two of the files missing the recertification paperwork including a signed 50059. Repeat issue upon selecting additional files.
Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file.
Effect: Auditor was unable to test the income and expenses on 3 files.
Context: Auditor selected tenant files and was unable to test two of the files resulting in additional files needing to be tested. One of the additional files was still unable to be tested.
Cause: Turnover at the management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe: Total population was 34 files.
Sample Size: 7 files were selected for testing.
Identification of repeat finding: Yes, 2023-001
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 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.
Information on universe: Total population was 34 files.
Sample Size: 7 files were selected for testing.
Identification of repeat finding: Yes, 2023-002
Condition: Additional files had to be selected due to two of the files missing the recertification paperwork including a signed 50059. Repeat issue upon selecting additional files.
Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file.
Effect: Auditor was unable to test the income and expenses on 3 files.
Context: Auditor selected tenant files and was unable to test two of the files resulting in additional files needing to be tested. One of the additional files was still unable to be tested.
Cause: Turnover at the management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe and sample size: Accounts were selected during preliminary analytics due to the unusual balance.
Identification of repeat finding: Yes, 2023-003
Condition: Required maintenance was not performed in a timely manner.
Criteria: All maintenance should be performed in a timely manner.
Effect: Several tenant units and common areas have not been completely remedied from the flood.
Context: Auditor noted that there was a flood during 2023 due to burst pipes which was covered by an insurance reimbursement. The project was started and never completed after the contractor left and never came back. The work has not been completed as of August 31, 2024.
Cause: Turnover at the management agent and lack of available contractors in a rural area.
Recommendation: The Housing Director or other designated employee should be monitoring all major maintenance projects to ensure they are completed in a timely manner regardless of turnover at the project level.
Information on universe and sample size: Accounts were selected during preliminary analytics due to the unusual balance.
Identification of repeat finding: Yes, 2023-003
Condition: Required maintenance was not performed in a timely manner.
Criteria: All maintenance should be performed in a timely manner.
Effect: Several tenant units and common areas have not been completely remedied from the flood.
Context: Auditor noted that there was a flood during 2023 due to burst pipes which was covered by an insurance reimbursement. The project was started and never completed after the contractor left and never came back. The work has not been completed as of August 31, 2024.
Cause: Turnover at the management agent and lack of available contractors in a rural area.
Recommendation: The Housing Director or other designated employee should be monitoring all major maintenance projects to ensure they are completed in a timely manner regardless of turnover at the project level.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Identification of repeat finding: Yes, 2023-004
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 timely changes the certifier on forms when applicable.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Identification of repeat finding: Yes, 2023-004
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 timely changes the certifier on forms when applicable.
Information on universe: Payroll control testing.
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: Yes, 2023-005
Condition: Lack of detailed job duties, review and approvals on time allocated and charged to the property as well as one employee missing allocations.
Criteria: Time sheets should have detailed allocations and job duties as well as be reviewed and approved.
Effect: Allocation sheets had errors, therefore causing improper charges to the property.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of oversight.
Recommendation: Time sheets should have detailed job duties performed and time allocated to the property based on these duties performed. The time sheets then need to be reviewed and approved.
Information on universe: Payroll control testing.
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: Yes, 2023-005
Condition: Lack of detailed job duties, review and approvals on time allocated and charged to the property as well as one employee missing allocations.
Criteria: Time sheets should have detailed allocations and job duties as well as be reviewed and approved.
Effect: Allocation sheets had errors, therefore causing improper charges to the property.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of oversight.
Recommendation: Time sheets should have detailed job duties performed and time allocated to the property based on these duties performed. The time sheets then need to be reviewed and approved.
Information on universe: Total population was 34 files.
Sample Size: 7 files were selected for testing.
Identification of repeat finding: Yes, 2023-001
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 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.
Information on universe: Total population was 34 files.
Sample Size: 7 files were selected for testing.
Identification of repeat finding: Yes, 2023-002
Condition: Additional files had to be selected due to two of the files missing the recertification paperwork including a signed 50059. Repeat issue upon selecting additional files.
Criteria: All tenants must be recertified annually and all recertification paperwork including third party verifications must be in the tenant file.
Effect: Auditor was unable to test the income and expenses on 3 files.
Context: Auditor selected tenant files and was unable to test two of the files resulting in additional files needing to be tested. One of the additional files was still unable to be tested.
Cause: Turnover at the management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe and sample size: Accounts were selected during preliminary analytics due to the unusual balance.
Identification of repeat finding: Yes, 2023-003
Condition: Required maintenance was not performed in a timely manner.
Criteria: All maintenance should be performed in a timely manner.
Effect: Several tenant units and common areas have not been completely remedied from the flood.
Context: Auditor noted that there was a flood during 2023 due to burst pipes which was covered by an insurance reimbursement. The project was started and never completed after the contractor left and never came back. The work has not been completed as of August 31, 2024.
Cause: Turnover at the management agent and lack of available contractors in a rural area.
Recommendation: The Housing Director or other designated employee should be monitoring all major maintenance projects to ensure they are completed in a timely manner regardless of turnover at the project level.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Identification of repeat finding: Yes, 2023-004
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 timely changes the certifier on forms when applicable.
Information on universe: Payroll control testing.
Sample size: Five employees selected for internal control testing.
Identification of repeat finding: Yes, 2023-005
Condition: Lack of detailed job duties, review and approvals on time allocated and charged to the property as well as one employee missing allocations.
Criteria: Time sheets should have detailed allocations and job duties as well as be reviewed and approved.
Effect: Allocation sheets had errors, therefore causing improper charges to the property.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of oversight.
Recommendation: Time sheets should have detailed job duties performed and time allocated to the property based on these duties performed. The time sheets then need to be reviewed and approved.
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.
Identification of repeat finding: No
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 and management fee needs to be adjusted for vacancies.
Effect: There were significant vacancies, some tenant’s subsidies had expired, and the management fee was overstated.
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.
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.
Identification of repeat finding: No
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 and management fee needs to be adjusted for vacancies.
Effect: There were significant vacancies, some tenant’s subsidies had expired, and the management fee was overstated.
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.
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.
Identification of repeat finding: No
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 and management fee needs to be adjusted for vacancies.
Effect: There were significant vacancies, some tenant’s subsidies had expired, and the management fee was overstated.
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.