Finding 1080193 (2024-001)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2024-10-25

AI Summary

  • Core Issue: There is a significant deficiency in internal controls related to tenant eligibility documentation for the Supportive Housing for the Elderly program.
  • Impacted Requirements: HUD mandates that tenant files must support eligibility and that the EIV system is properly utilized.
  • Recommended Follow-Up: Management should establish and enforce procedures to ensure proper maintenance of tenant files and effective use of the EIV system.

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 14.157, 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, which is 113. Sample Size Information A total of 2 out of the 12 samples Identification of Repeat Finding and Finding Reference Number N/A Criteria HUD requires tenant files to be maintained to support tenant eligibility and for the Organization to utilize EIV, including having controls in place to ensure EIV is being properly utilized. Statement of Condition The Organization failed to maintain the proper EIV and tenant file documentation. Cause The Organization failed to maintain the proper EIV document to one of the tenants tested and could not provide tenant file information related to another tenant. Effect or Potential Effect EIV was not properly kept within the tenant file, and tenant eligibility could not be supported. Auditor Noncompliance Code S Internal control deficiency Reporting Views of Responsible Officials Management will implement internal control procedures to ensure that the EIV system is properly utilized and tenant files are properly maintained to document the tenant's eligibility. Recommendation Management should implement proper procedures and controls to ensure EIV is properly utilized and tenant file information is properly maintained to support tenant eligibility. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations Management acknowledges the noncompliance and related internal control deficiency over compliance and will implement proper procedures and controls to ensure EIV is properly utilized and tenant file information is properly maintained to support tenant eligibility. Response Indicator Agree

Categories

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

Other Findings in this Audit

  • 503751 2024-001
    Significant Deficiency
  • 503752 2024-001
    Significant Deficiency
  • 1080194 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $8.26M