Finding 1079823 (2024-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2024-10-22
Audit: 325542
Organization: The Village of Oakman Manor (MI)

AI Summary

  • Core Issue: The organization did not keep proper documentation for the EIV system in tenant files, leading to a significant internal control deficiency.
  • Impacted Requirements: HUD mandates that tenant files must utilize EIV, and controls must ensure its proper use.
  • Recommended Follow-Up: Implement stronger internal controls to ensure EIV documentation is consistently maintained in tenant files.

Finding Text

Finding Type: - Immaterial noncompliance with major program requirements - Significant deficiency in internal control over compliance Title and Assistance Listing Number of Federal Program - Supportive Housing for the Elderly - Project Rental Assistance Contract and Capital Advance Finding Resolution Status - In process Information on Universe and Population Size - The total population size is the total number of units of 55. Sample Size Information - Three out of the six sample size Identification of Repeat Finding and Finding Reference Number - N/A Criteria - HUD requires tenant files to utilize the use of EIV, and the Organization should have controls in place to ensure EIV is properly being utilized. Statement of Condition - The Organization failed to maintain the proper EIV documentation. Cause - The Organization failed to maintain the support of EIV for three of the six selected samples. Effect or Potential Effect - The EIV was not properly kept in the tenant file. Auditor Noncompliance Code - S - Internal control deficiency Reporting Views of Responsible Officials - Management agrees with the finding as reported. Recommendation - The Organization should implement internal controls to ensure that the EIV system is properly utilized and saved in the tenant files. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations - Management agrees with the finding as reported and has taken measures to improve internal control over compliance by ensuring the EIV system will be properly utilized. Response Indicator - Agree Response - Management acknowledges the significant deficiency in internal control over compliance and has taken measures to improve internal control over compliance by ensuring the EIV system will be properly utilized.

Categories

Internal Control / Segregation of Duties HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 503381 2024-001
    Significant Deficiency
  • 503382 2024-001
    Significant Deficiency
  • 1079824 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $318,619