Finding 1062030 (2023-002)

Finding 2023-002: Required Support for Annual Recertifications - Material Weakness - Material Noncompliance Assistance Listing Number: 14.157 Federal Agency: U.S. Department of Housing and Urban Development Federal Award Number: Not applicable Federal Award Year: January 1, 2023 to December 31, 2023 Pass-Through Entity: Not applicable Criteria: The Project shall maintain adequate support in the tenant files to support annual recertification amounts and determined tenant and Housing Assistance payment amounts determined from annual recertifications. Questioned Cost: None reported. Condition/Context: During testing of eligibility for the year, three of the four recertifications selected were not completed timely. Our sample was not statistically valid. Effect: Failure to perform timely recertification of tenants may result in ineligible tenants receiving housing assistance payments. Housing assistance payments were suspended by the U.S. Department of Housing and Urban Development beginning October 2023 and through the end of the year. Housing assistance payments were received subsequently in July 2024. Cause: Lack of management oversight of the property manager. Recommendation: The Project should have procedures in place to ensure all recertifications are done timely and accurately, and proper documentation is maintained.   Views of Responsible Officials and Planned Corrective Actions: Management will ensure proper training is given to staff responsible for annual recertifications. Management will ensure monthly reconciliation of recertification is reviewed timely and all supporting documentation of the reconciliation is kept in the resident tenant files.