Audit 382034

FINDING No. 2025-001: Project Based Rental Assistance Program, ALN 14.195 Finding Resolution Status: Unresolved. Information on Universe Population Size: Two hundred forty-four tenants. Sample Size Information: Twenty-six tenants. Identification of Repeat Finding and Finding Reference Number: No. Criteria: HUD regulations require all initial and ongoing tenant eligibility documentation to be obtained timely and maintained during tenancy. Statement of Condition: Missing documentation in tenant files: Two tenant files did not have EIVs obtained within 90 days of them being entered into TRACS. Eight tenant files did not have EIV reports performed or retained. Eight tenant files were missing a criminal background check performed at initial move-in. One tenant did not have a date of acceptance on their initial application. One tenant file was not retained in its entirety. One tenant file did not have the move-out inspection report. One tenant file had the move-in inspection completed after the move-in date. One tenant file had a form HUD-50059 signed after the effective date. Cause: Due to the manager position being vacant most of the year, the Project did not administer the Section 8 program according to HUD regulations. 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 procedures to ensure that proper initial eligibility procedures are conducted for potential tenants and that tenant files are accurately maintained. Response Indicator: Agree. Completion Date: 06/30/2026 Response: Staff training has been provided with additional HUD training inclusive of EIV reporting and tenant file maintenance and included in monthly reporting procedures.