Finding Text
Material Weakness, Eligibility
Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal
control procedures in place to ensure that applicants have all required documentation in their file. In
accordance with 24 CFR Part 5 Subpart F, the City must maintain documentation to support tenant
eligibility.
Condition: The City did not follow procedures to ensure the proper eligibility determination were
made and documented.
Context: Of the 180 applicants during the current year valued at $495,432, we examined 36
(valued at $99,685) and determined that 2 (6%) applicants did not have properly calculated
resources. Upon further review and recalculation, the two applicants were deemed eligible.
Effect: Participants could receive benefits for which they are not eligible.
Cause: Weakness in implementation of controls over eligibility procedures.
Questioned Cost: None. This finding represents an internal control issue; therefore, questioned
costs are not applicable.
Recommendation: Tenant files should be reviewed to verify that calculations are accurate, and all
required documentation has been obtained before approving benefits.
Views of Responsible Officials and Planned Corrective Actions: The City agrees with this
finding. Please refer to the Corrective Action Plan section of this report.
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