Finding 1081521 (2024-002)

Material Weakness
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2024-11-08
Audit: 327746
Organization: Mary Lee Flagship (TX)

AI Summary

  • Core Issue: The Organization failed to obtain required signatures on consent forms from a continuing tenant during the recertification process.
  • Impacted Requirements: Non-compliance with HUD regulations (24 CFR § 5.230 and § 5.232) may lead to denial of assistance or termination of tenancy.
  • Recommended Follow-Up: Implement a second review process for documentation and engage an outside consultant to ensure compliance within 30 days, addressing any noncompliance promptly.

Finding Text

Condition: The Organization did not comply with the HUD requirement to obtain one continuing tenant’s signatures on consent forms and verification documents during the recertification process. Criteria: Per 24 CFR § 5.230, each member of the family of an assistance applicant or participant who is at least 18 years of age, and each family head and spouse regardless of age, shall sign one or more consent forms. Per 24 CFR § 5.232, In accordance with the provisions governing the program involved, if the assistance applicant or participant, or any member of the assistance applicant's or participant's family, does not sign and submit the consent form as required in § 5.230, then: (1) The processing entity shall deny assistance to and admission of an assistance applicant; (2) Assistance to, and the tenancy of, a participant may be terminated. Cause: Failure to follow internal control procedures during recertification of this tenant. Effect: Failure to follow these requirements may result in the imposition of sanctions and/or the assessment of disallowed costs. Questioned costs: $5,952 Context: We examined four tenant files on two new tenants and two continuing tenants out of a population of 24 residents in this project in fiscal year 2024 for this compliance attribute and this condition was noted in one of the selected continuing tenants. Repeat Finding: No Recommendation: We recommend a second person in the housing office review and certify in writing that the documentation for each initial certification or recertification is complete and in compliance with HUD documentation requirements prior to admitting a new tenant and prior to each continuing tenant’s annual recertification date going forward. Additionally, we recommend that an outside housing consultant conduct a review of all current tenant files to ensure completeness and compliance with HUD documentation requirements within the next 30 days and corrective actions to include termination of assistance to and tenancy of any noncompliant tenants as soon as possible thereafter. Reporting Views of Responsible Officials: Management agrees with the finding and commits to following the provided recommendations.

Categories

Questioned Costs

Other Findings in this Audit

  • 505078 2024-001
    Material Weakness Repeat
  • 505079 2024-002
    Material Weakness
  • 1081520 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $1.51M