Finding Text
Significant Deficiency
2024-003 Eligibility
Federal Program – U.S. Department of Housing and Urban Development AL #14.871
Grant Award No. – MN107-Housing Choice Voucher
Federal Award Year – 2024
Criteria or Specific Requirement – The Authority must determine income eligibility and
calculate the tenant’s rent payment and housing assistance payment using the documentation
from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601
et seq.) (24 CFR sections 982.201, 982.515, and 982.516).
Condition – During our review of tenant files, two tenants had no signed lease documentation.
The error noted remained undetected after completion of a quality control worksheet, which
functions as the Authority’s primary internal review process to ensure an annual certification, at
minimum, was performed and appropriate tenant information is documented.
Context – We reviewed a sample of 13 of the Authority's 123 tenant files for compliance with
program eligibility requirements.
Effect – Tenant may have misunderstanding of agreed upon rent and regulations.
Cause – Lack of controls and oversight during the year.
Repeat Finding – This is not a repeat finding.
Recommendation – We recommend the Authority follow its policy and includes a signed lease
step on their quality control worksheet.
Views of Responsible Officials and Planned Corrective Actions – The Authority recognizes
the detection failure and plans to implement auditor’s recommendation.