Audit 407044

Criteria Management is required to maintain fidelity bond coverage equal to or exceeding two months of gross potential rent collections. Management currently does not have fidelity bond coverage. Statement of Condition Fidelity bond coverage is insufficient to meet the Section 8 Housing Assistance Payments program requirements. Effect or Potential Effect Insufficient fidelity bond coverage to meet program requirements. Cause Management was not aware that fidelity bond coverage was a requirement as part of the program. Recommendation We recommend that management obtain fidelity bond coverage to meet program requirements. Views of Responsible Officials and Planned Corrective Action Management will review program requirements for fidelity bond coverage and obtain appropriate coverage.

Criteria Management is required to maintain a current, executed management agent certification in accordance with program requirements to evidence the formal arrangement and responsibilities of the management agent. Statement of Condition The Organization did not have a current, executed management agent certification in place during the audit period. Effect or Potential Effect Lack of a current, executed management agent certification will result with noncompliance with program requirements. Cause Management has attempted but has not been able to obtain an updated executed management agent certification from the program administrator. Recommendation We recommend that management obtain an updated executed management agent certification. Views of Responsible Officials and Planned Corrective Action Management is in agreement and will work with the program administrator in order to get an updated executed management agent certification.