Finding 1057812 (2023-001)

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Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-08-19
Audit: 317405
Organization: Sharon Manor Homes INC (NC)

AI Summary

  • Issue: Two tenant files were found noncompliant due to missing documentation and incorrect lease usage.
  • Requirements Impacted: HUD mandates specific documentation and the use of the correct model lease for tenant files.
  • Follow-up: Management should fix the errors and implement procedures to ensure compliance moving forward.

Finding Text

Finding Resolution Status: Resolved. Population Size: 39. Sample Size 4. Noncompliance Information: I tested four tenant files and found noncompliance in two files. Condition: The files for Unit 4703-3 and Unit 4707-7 did have a signed 92006 by the tenant and an incorrect HUD Model Lease was used for both tenants. Criteria: As part of the tenant certification and recertification, HUD requires certain documentation be maintained in the tenant files and the correct model lease be used. Effect: The Project was not in compliance with HUD rules and regulations. Cause: Managment agent oversight. Recommendation: The management agent should correct all the missing or incorrect informantion and establish procedures to make sure the correct model lease is used.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.39M
14.195 Section 8 Housing Assistance Payments Program $212,864