Finding 1077697 (2022-003)

S3800 010 Finding Reference Number: 2022 003 S3800 011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800 015 Type of Finding: Federal Award Finding S3800 016 Finding Resolution Status: In process S3800 017 Information on Universe and Population Size: 98 tenant files S3800 018 Sample Size Information: 16 tenant files Sample size: 16 Dollar amount: $0 S3800 019 Identification of Repeat Finding and Finding Reference Number: Repeat finding, prior reference number 2021 004 S3800 020 Criteria: In accordance with the Rental Assistance Agreements with HUD, the Organization is required to recertify tenant eligibility on an annual basis. S3800 030 Statement of Condition: There were 5 out of the 16 tenant files which were processed on later than an annual basis and were late to recertify. In addition, another 5 tenant files of the 16 did not have certifications completed in 2022. S3800 032 Cause: After the prior management left, current staffing was not sufficient to ensure all certifications were completed timely. Also, some tenants were not willing to assist with the certification process. S3800 033 Effect or Potential Effect and Perspective: Housing assistance may be over paying for tenant. Tenants may not be eligible as required. S3800 035 Auditor Non Compliance Code: R Section 8 program administration S3800 040 Questioned Costs: $0 S3800 045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800 012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800 037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800 050 Context: Management did not timely complete annual recertifications of tenants. S3800 080 Recommendation: Management should ensure annual recertifications of tenant files are being completed on a timely basis by implementing secondary review of tenant files and should document the review to be included in the files. S3800 090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800 130 Response Indicator: Agree S3800 140 Completion Date: 2/28/2024 S3800 150 Response: Ownership agreed with the finding and has implemented a corrective action plan.