Audit 49584

2021-001 ? Eligibility - Tenant File Documentation (Repeated from Prior Year) Finding Type. Material noncompliance; Material weakness in internal control over compliance (Eligibility) Federal program U.S. Department of Housing and Urban Development ? Supportive Housing for the Elderly (ALN# 14.157) Criteria. Under Section 202 of the National Housing Act of 1959, Project management is responsible for performing an examination of and obtaining support for items of income, assets, and expenses, for proper calculation of tenant assistance payments for applying residents and annual recertification and calculation of such information thereafter, and for obtaining signed and properly completed forms. Condition. Out of a sample of 8 tenant files, we noted: 1) One out of eight instances where a tenant EIV was not run within 90 days of move in, however third party support was received upon move in; 2) One out of eight instances where a tenant's saving account was not verified by a third party; 3) Two out of eight instances where a tenant file was missing completely or missing substantial documentation used to support the tenant assistance payment. Further, we noted that a tenant waitlist was not maintained during the year. Cause. Management does not appear to have sufficient internal control procedures in place to properly implement all of HUD's program requirements. Effect. As a result of this condition, certain tenant files did not contain all required supporting documentation. Questioned Costs. The total amount of federal subsidies received during 2022 for the two missing files was $2,377. Recommendation. We recommend management strengthen their current policies and follow a documented review process for all new and existing resident files and ensure that this review occurs on a timely basis. Further, we recommend management ensure all proper supporting documentation is maintained in the residents' files. We also recommend management ensure a waitlist is properly maintained. View of Responsible Officials. Management agrees with this comment and has prepared a corrective action plan.

2021-001 ? Eligibility - Tenant File Documentation (Repeated from Prior Year) Finding Type. Material noncompliance; Material weakness in internal control over compliance (Eligibility) Federal program U.S. Department of Housing and Urban Development ? Supportive Housing for the Elderly (ALN# 14.157) Criteria. Under Section 202 of the National Housing Act of 1959, Project management is responsible for performing an examination of and obtaining support for items of income, assets, and expenses, for proper calculation of tenant assistance payments for applying residents and annual recertification and calculation of such information thereafter, and for obtaining signed and properly completed forms. Condition. Out of a sample of 8 tenant files, we noted: 1) One out of eight instances where a tenant EIV was not run within 90 days of move in, however third party support was received upon move in; 2) One out of eight instances where a tenant's saving account was not verified by a third party; 3) Two out of eight instances where a tenant file was missing completely or missing substantial documentation used to support the tenant assistance payment. Further, we noted that a tenant waitlist was not maintained during the year. Cause. Management does not appear to have sufficient internal control procedures in place to properly implement all of HUD's program requirements. Effect. As a result of this condition, certain tenant files did not contain all required supporting documentation. Questioned Costs. The total amount of federal subsidies received during 2022 for the two missing files was $2,377. Recommendation. We recommend management strengthen their current policies and follow a documented review process for all new and existing resident files and ensure that this review occurs on a timely basis. Further, we recommend management ensure all proper supporting documentation is maintained in the residents' files. We also recommend management ensure a waitlist is properly maintained. View of Responsible Officials. Management agrees with this comment and has prepared a corrective action plan.

2021-001 ? Eligibility - Tenant File Documentation (Repeated from Prior Year) Finding Type. Material noncompliance; Material weakness in internal control over compliance (Eligibility) Federal program U.S. Department of Housing and Urban Development ? Supportive Housing for the Elderly (ALN# 14.157) Criteria. Under Section 202 of the National Housing Act of 1959, Project management is responsible for performing an examination of and obtaining support for items of income, assets, and expenses, for proper calculation of tenant assistance payments for applying residents and annual recertification and calculation of such information thereafter, and for obtaining signed and properly completed forms. Condition. Out of a sample of 8 tenant files, we noted: 1) One out of eight instances where a tenant EIV was not run within 90 days of move in, however third party support was received upon move in; 2) One out of eight instances where a tenant's saving account was not verified by a third party; 3) Two out of eight instances where a tenant file was missing completely or missing substantial documentation used to support the tenant assistance payment. Further, we noted that a tenant waitlist was not maintained during the year. Cause. Management does not appear to have sufficient internal control procedures in place to properly implement all of HUD's program requirements. Effect. As a result of this condition, certain tenant files did not contain all required supporting documentation. Questioned Costs. The total amount of federal subsidies received during 2022 for the two missing files was $2,377. Recommendation. We recommend management strengthen their current policies and follow a documented review process for all new and existing resident files and ensure that this review occurs on a timely basis. Further, we recommend management ensure all proper supporting documentation is maintained in the residents' files. We also recommend management ensure a waitlist is properly maintained. View of Responsible Officials. Management agrees with this comment and has prepared a corrective action plan.

2021-001 ? Eligibility - Tenant File Documentation (Repeated from Prior Year) Finding Type. Material noncompliance; Material weakness in internal control over compliance (Eligibility) Federal program U.S. Department of Housing and Urban Development ? Supportive Housing for the Elderly (ALN# 14.157) Criteria. Under Section 202 of the National Housing Act of 1959, Project management is responsible for performing an examination of and obtaining support for items of income, assets, and expenses, for proper calculation of tenant assistance payments for applying residents and annual recertification and calculation of such information thereafter, and for obtaining signed and properly completed forms. Condition. Out of a sample of 8 tenant files, we noted: 1) One out of eight instances where a tenant EIV was not run within 90 days of move in, however third party support was received upon move in; 2) One out of eight instances where a tenant's saving account was not verified by a third party; 3) Two out of eight instances where a tenant file was missing completely or missing substantial documentation used to support the tenant assistance payment. Further, we noted that a tenant waitlist was not maintained during the year. Cause. Management does not appear to have sufficient internal control procedures in place to properly implement all of HUD's program requirements. Effect. As a result of this condition, certain tenant files did not contain all required supporting documentation. Questioned Costs. The total amount of federal subsidies received during 2022 for the two missing files was $2,377. Recommendation. We recommend management strengthen their current policies and follow a documented review process for all new and existing resident files and ensure that this review occurs on a timely basis. Further, we recommend management ensure all proper supporting documentation is maintained in the residents' files. We also recommend management ensure a waitlist is properly maintained. View of Responsible Officials. Management agrees with this comment and has prepared a corrective action plan.