Audit 410908

2026-001 – US Department of Housing and Urban Development (HUD) Handbook – Tenant Application, Eligibility, and Recertification – Citizenship Declaration Form – Significant Deficiency Federal Program: US Department of Housing and Urban Development – Interest Reduction Payments – Rental and Cooperative Housing for Lower Income Families (14.103) Criteria: An appropriate system of internal controls requires that Minot Vocational Adjustment Workshop, Inc., DBA: Kalix and Affiliates comply with the requirements of the Rental and Cooperative Housing for Lower Income Families compliance supplement and maintain a completed and signed citizenship declaration form for all tenants. Condition/Context: During our single audit testing of AL 14.103, Rental and Cooperative Housing for Lower Income Families, it was noted that there was not a copy of a tenant’s signed citizenship declaration form in one of the eight files tested. Cause: The Organization’s internal controls have not been designed to monitor its compliance with this requirement of the Rental and Cooperative Housing for Lower Income Families compliance supplement. Questioned Costs: There were no questioned costs associated with this finding. Effect: The Organization did not retain a copy of the tenant’s signed and completed citizenship declaration form and failed to detect that they were not in compliance with this requirement of the Rental and Cooperative Housing for Lower Income Families program. Recommendation: We recommend establishing a control to ensure that all required documents are obtained and filed accordingly. Views of Responsible Officials and Planned Corrective Actions: We agree with this finding. See corrective actions plan item 2026-001. Indication of repeat finding: This is not a repeat finding.