Audit 375341

Name of Federal Agency: Department of Housing and Urban Development Federal Program Name and Assistance Listing Number: 14.881 Federal Award Identification Number and Year: SC OCD 2645 23699015MTW; Program year 2025 Name of Pass-through Entity (if applicable): Commonwealth of MA - Executive Office of Housing and Livable Communities Criteria: According to 4-14.881-8 of Appendix XI to 2 CFR, Part 200 of the United States Office of Management and Budget, the Company must ensure that beneficiaries are "low-income families", as defined in Section 3(b)(2) of the 1937 Housing Act. Condition: In a sample of 25 files tested, there was an exception noted in 2 files where the Company did not perform recertifications timely. Cause: The Company failed to follow the policies and procedures which have been established for determining tenant eligibility in accordance with federal guidelines. Effect or Potential Effect: The Company is not in compliance with federal regulations regarding eligibility. The assistance payment calculation may be inaccurate resulting in an underpayment or overpayment. Additionally, ineligible applicants may be approved for tenancy. Questioned Costs: N/A Context: A sample of 25 tenant files were selected. We identified exceptions in 2 out of the 25 files tested. The sample was not statistically valid. Identification as a Repeat Finding This finding is not a repeat finding Recommendation: We recommend that management reviews its internal controls over performing tenant recertification procedures to ensure compliance with eligibility requirements. Management should establish procedures and monitor compliance with those procedures to ensure that the determination of tenant eligibility is done in accordance with guidelines specified by federal regulations.