Information on universe: Total population was 45 units.
Sample Size: 5 files were selected for testing.
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run, due to the license expiring and the person with the license was no longer working there.
Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually.
Effect: Required documents were not in the files.
Context: Auditor reviewed tenant files noting the form was not present in the tenant files.
Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe: Total population was 45 units.
Sample Size: 5 files were selected for testing.
Condition: Several tenants were not recertified in accordance with HUD guidelines.
Criteria: All tenants must be recertified annually. Tenants must provide all income information at recertification.
Effect: HUD subsidy may be overstated.
Context: Auditor selected tenant files and discussed with the management agent that due to understaffing, there were difficulties in obtaining the appropriate documentation and therefore completing accurate 50059 forms.
Cause: Lack of oversight by management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe: Total population was 45 units.
Sample Size: 5 files were selected for testing.
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run, due to the license expiring and the person with the license was no longer working there.
Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually.
Effect: Required documents were not in the files.
Context: Auditor reviewed tenant files noting the form was not present in the tenant files.
Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe: Total population was 45 units.
Sample Size: 5 files were selected for testing.
Condition: Several tenants were not recertified in accordance with HUD guidelines.
Criteria: All tenants must be recertified annually. Tenants must provide all income information at recertification.
Effect: HUD subsidy may be overstated.
Context: Auditor selected tenant files and discussed with the management agent that due to understaffing, there were difficulties in obtaining the appropriate documentation and therefore completing accurate 50059 forms.
Cause: Lack of oversight by management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe: Internal Control testing
Sample size: Six employees selected for internal control testing.
Condition: Additional detail, documentation and approval/oversight is needed on some of time sheets for allocation to projects.
Criteria: All allocable time should have sufficient detail of duties performed and approvals.
Effect: Without stronger controls around allocations, improper allocation could occur.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of policy surrounding time reporting.
Recommendation: Job duties should be documented for each position and implement a policy to ensure all time sheets detail out the duties performed.
Information on universe: Internal Control testing
Sample size: Six employees selected for internal control testing.
Condition: Additional detail, documentation and approval/oversight is needed on some of time sheets for allocation to projects.
Criteria: All allocable time should have sufficient detail of duties performed and approvals.
Effect: Without stronger controls around allocations, improper allocation could occur.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of policy surrounding time reporting.
Recommendation: Job duties should be documented for each position and implement a policy to ensure all time sheets detail out the duties performed.
Information on universe: Total population was 45 units.
Sample Size: 5 files were selected for testing.
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run, due to the license expiring and the person with the license was no longer working there.
Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually.
Effect: Required documents were not in the files.
Context: Auditor reviewed tenant files noting the form was not present in the tenant files.
Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe: Total population was 45 units.
Sample Size: 5 files were selected for testing.
Condition: Several tenants were not recertified in accordance with HUD guidelines.
Criteria: All tenants must be recertified annually. Tenants must provide all income information at recertification.
Effect: HUD subsidy may be overstated.
Context: Auditor selected tenant files and discussed with the management agent that due to understaffing, there were difficulties in obtaining the appropriate documentation and therefore completing accurate 50059 forms.
Cause: Lack of oversight by management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe: Total population was 45 units.
Sample Size: 5 files were selected for testing.
Condition: Missing required documentation. Enterprise Income Verification (EIV) reports were not able to be run, due to the license expiring and the person with the license was no longer working there.
Criteria: HUD requires EIV forms to be run, monthly, quarterly and annually.
Effect: Required documents were not in the files.
Context: Auditor reviewed tenant files noting the form was not present in the tenant files.
Cause: Lack of oversight by management agent. The one individual with the EIV license was no longer working at the Organization.
Recommendation: A system should be in place requiring more than one individual to have an EIV license and ensure the license does not lapse.
Information on universe: Total population was 45 units.
Sample Size: 5 files were selected for testing.
Condition: Several tenants were not recertified in accordance with HUD guidelines.
Criteria: All tenants must be recertified annually. Tenants must provide all income information at recertification.
Effect: HUD subsidy may be overstated.
Context: Auditor selected tenant files and discussed with the management agent that due to understaffing, there were difficulties in obtaining the appropriate documentation and therefore completing accurate 50059 forms.
Cause: Lack of oversight by management agent.
Recommendation: Continue to hire and train additional staff to fill the staffing shortages.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe/sample size: It was noted during testing that some of the HUD form certifiers were not updated in a timely manner.
Condition: HUD forms must be certified by an authorized user.
Criteria: The certifier for HUD forms should be a current employee with oversight in the area the form pertains to.
Effect: The forms were not certified by the correct individual.
Context: Auditor reviewed source documents noting incorrect certifier.
Cause: Lack of oversight by management agent.
Recommendation: A procedure be implemented to ensure that the Project timely changes the certifier on forms when applicable.
Information on universe: Internal Control testing
Sample size: Six employees selected for internal control testing.
Condition: Additional detail, documentation and approval/oversight is needed on some of time sheets for allocation to projects.
Criteria: All allocable time should have sufficient detail of duties performed and approvals.
Effect: Without stronger controls around allocations, improper allocation could occur.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of policy surrounding time reporting.
Recommendation: Job duties should be documented for each position and implement a policy to ensure all time sheets detail out the duties performed.
Information on universe: Internal Control testing
Sample size: Six employees selected for internal control testing.
Condition: Additional detail, documentation and approval/oversight is needed on some of time sheets for allocation to projects.
Criteria: All allocable time should have sufficient detail of duties performed and approvals.
Effect: Without stronger controls around allocations, improper allocation could occur.
Context: Auditor selected timesheets for payroll control testing.
Cause: Lack of policy surrounding time reporting.
Recommendation: Job duties should be documented for each position and implement a policy to ensure all time sheets detail out the duties performed.