Finding 1055606 (2023-002)

Finding 2023-002: Eligibility Public Housing Program, Assistance Listing #14.850 Material Weakness Criteria – In accordance with the Public Housing Program there are three core occupancy procedures which are described in program regulations and other guidance : (1) determination eligibility; (2) determination of income and rent; and (3) leasing and continuing occupancy. Condition – During our audit of tenant files in the Public Housing Program, we noted there was no evidence noted in the files where a supervisory review procedure had been implemented. It appears the occupancy procedures related to the tenant files were being done by one person. It is important that a supervisory review occur to ensure compliance is maintained. Cause – The Authority has not performed a risk assessment on noncompliance that could occur if a proper control mechanism has not been implemented. Effect or Potential Effect - The inadequate review of the tenant files could lead to noncompliance with HUD Eligibility requirements. Recommendation - We recommend the Authority review its internal controls over tenant files to ensure the Authority continues compliance with Eligibility requirements. In addition in the event the staff member who works on the tenant files is unable to continue or there is a turnover in the position, the proper training can be maintained. View of Responsible Official: Management agrees with the Finding.