Finding 1089885 (2024-001)

Finding No. 2024-001 - Tenant Application, Eligibility and Recertification Federal Agency: Housing and Urban Development (HUD) Federal Program: Supportive Housing for Persons with Disabilities – Section 811 Capital Advance Program and Project Rental Assistance: ALN 14.181 Criteria: Section 4-18 “Documenting Changes to Waiting Lists” of the HUD Occupancy Handbook (4350.3) requires that whenever a change is made in the waiting list, an action is taken, or an activity specific to an applicant occurs, a notation must be made on the waiting list and that an auditable record of changes to waiting lists is maintained. Condition: During the year ended June 30, 2024, we identified that the Corporation had one move-in. The Corporation maintained a waiting list, however, the Corporation did not maintain evidence of when changes were made to the waiting list, an action was taken, or an activity specific to an applicant occurred. As a result, we could not determine if the Corporation complied with requirements of its tenant selection plan in selecting an applicant from the waiting list. Questioned Costs: None Effect: The Corporation was not in compliance with the requirements under the program. Cause: The Corporation did not have appropriate controls in place to maintain an auditable record of changes to the waiting list with appropriate notations for changes made to the waiting list. Recommendation: We recommend the Corporation implement appropriate policies and internal controls as it relates to the requirements within Section 4-18 “Documenting Changes to Waiting Lists” of the HUD Occupancy Handbook (4350.3).