Audit 404023

Criteria: To ensure ongoing compliance with HUD requirements, tenant files must be properly maintained and reviewed on a regular basis. Condition: Tenant file reviews were randomly selected and performed on a monthly basis. For five out of twelve months of the year, tenant files were not reviewed by the Program Manager. Questioned Costs: None. Cause: MCHA did not have adequate written policies and procedures in place to ensure tenant files were reviewed consistently and timely throughout the year. In the absence of formalized review requirements and monitoring controls, file reviews were not performed during certain periods. Effect: There is an increased risk that tenant files may not be maintained in accordance with HUD requirements, compliance issues may go undetected and unallowable payments could be made. Auditor’s Recommendations: We recommend MCHA develop and implement formal policies and procedures to ensure tenant files are reviewed consistently and timely throughout the year. Management’s Response: MCHA acknowledges the finding related to the lack of formal written policies and inconsistent tenant file monitoring. MCHA identified this issue before the audit and, in November 2025, developed, approved, and implemented a formal Tenant File Review Policy and Procedure. This policy establishes requirements for review frequency, file selection, documentation, and oversight to improve consistency and support compliance with HUD requirements.