Audit 396244

Criteria: 24 CFR 982-516 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 Authoridy did not follow their internal controls designed to ensure compliance with Tenant Eligibility requirements. Questioned Cost: N/A Context: Testing of 25 tenant files identified an exception in 2 files as follows 2 files did not contain proper forms for identification of household residents. Cause: The Authority did not perform the recertification in accordance with their stated policies. Effect: The Authority is not in compliance with requirements regarding eligibility and tenant recertifications, which could result in incorrect total tenant payments for rent. Identification of repeat finding: No. Recommendation: I recommend the Authority continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of Responsible Officials: Management agrees with this finding. We have reviewed the recertification procedure and will contine to review recertifications.