Audit 360144

2024-001 Federal Agency: U. S. Department of HUD Federal program: Public and Indian Housing ALN: 14.850 Award Period: 10/1/23-9/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 880 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: $0 Context: Testing of 25 tenant files identified an exception in 1 file as follows: • 1 file did not contain documentation of a household member’s birth certificate. Cause: The Agency did not obtain all required documentation during the intake procedures. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None 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 intake procedure and will continue to review recertifications.

2024-001 Federal Agency: U. S. Department of HUD Federal program: Public and Indian Housing ALN: 14.850 Award Period: 10/1/23-9/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 880 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: $0 Context: Testing of 25 tenant files identified an exception in 1 file as follows: • 1 file did not contain documentation of a household member’s birth certificate. Cause: The Agency did not obtain all required documentation during the intake procedures. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None 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 intake procedure and will continue to review recertifications.