Audit 363899

FINDING No. 2024-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-one tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require timely collection and retention of all initial and ongoing tenant eligibility documentation. Annual unit inspections are also required, and both initial and current tenants must be timely verified using the Enterprise Income Verification (EIV) report. Statement of Condition: Missing documentation in tenant files: • Two tenant files did not include a completed HUD-50059 form for 2023/2024. • Two tenant files had HUD-50059 forms that were signed but not dated by either party. • One tenant was missing a signature on the HUD-50059 form. • Four tenant files did not include a VAWA policy. • One tenant file included a VAWA policy that was not signed by the tenant. • Three tenant files were missing one or more required lease addendums. • One tenant file was missing the required information release form (HUD-9887/9887-A). • Two tenant files did not include an annual unit inspection report. • One tenant’s move-in inspection report was signed but not dated by both parties. • Two tenant files lacked sufficient documentation to verify tenant income levels. • Three tenant files did not retain the required EIV reports. • Two tenant files did not include a receipt or cleared check image for the security deposit. • One tenant file listed a security deposit amount that did not agree with supporting documentation. • Two tenant files did not include a signed housing application. • One tenant file did not include a dated and time-stamped housing application. Cause: The Project did not follow HUD regulations for determining tenant eligibility, maintaining required tenant documentation, and accurately administering PRAC. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance may be disallowed. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement stronger internal controls over the administration of tenant eligibility and file maintenance, inclusive of more rigorous staff training, to ensure HUD regulations are followed timely and accurately. Response Indicator: Agree. Completion Date: 12/31/2025 Response: Staff training has been provided with additional HUD training inclusive of EIV reporting, tenant file maintenance, and monthly reporting procedures.

FINDING No. 2024-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Fifty-one tenants. Sample Size Information: Ten tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require timely collection and retention of all initial and ongoing tenant eligibility documentation. Annual unit inspections are also required, and both initial and current tenants must be timely verified using the Enterprise Income Verification (EIV) report. Statement of Condition: Missing documentation in tenant files: • Two tenant files did not include a completed HUD-50059 form for 2023/2024. • Two tenant files had HUD-50059 forms that were signed but not dated by either party. • One tenant was missing a signature on the HUD-50059 form. • Four tenant files did not include a VAWA policy. • One tenant file included a VAWA policy that was not signed by the tenant. • Three tenant files were missing one or more required lease addendums. • One tenant file was missing the required information release form (HUD-9887/9887-A). • Two tenant files did not include an annual unit inspection report. • One tenant’s move-in inspection report was signed but not dated by both parties. • Two tenant files lacked sufficient documentation to verify tenant income levels. • Three tenant files did not retain the required EIV reports. • Two tenant files did not include a receipt or cleared check image for the security deposit. • One tenant file listed a security deposit amount that did not agree with supporting documentation. • Two tenant files did not include a signed housing application. • One tenant file did not include a dated and time-stamped housing application. Cause: The Project did not follow HUD regulations for determining tenant eligibility, maintaining required tenant documentation, and accurately administering PRAC. Effect or Potential Effect: Unable to verify tenant eligibility and cost of assistance may be disallowed. Auditor Non-Compliance Code: R – Section 8 Program Administration. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement stronger internal controls over the administration of tenant eligibility and file maintenance, inclusive of more rigorous staff training, to ensure HUD regulations are followed timely and accurately. Response Indicator: Agree. Completion Date: 12/31/2025 Response: Staff training has been provided with additional HUD training inclusive of EIV reporting, tenant file maintenance, and monthly reporting procedures.