Finding Text
Criteria: Properly maintained tenant files are supposed to include all required items.
Information on Universe Population Size: 62 tenants.
Sample Size: 7 tenants. Effect or Potential Effect: The Company is not in compliance with its Project Rental Assistance
Contract to receive subsidies.
Recommendation: Management has designed and implemented internal controls to ensure all
required documentation is collected and maintained for all tenants and will conduct an inspection of
all tenant files to ensure completeness.
Management’s Response: Management agrees with the auditors’ finding and recommendation.
Statement of Condition: Two tenant files selected from a sample of seven tenant files tested were
missing one or more of the required documents including:
Annual recertification not signed (1 file)
Pre-rental application (1 file)
Cause: Management had an oversight in internal controls to ensure that all required documents are
maintained in tenant files. However, the pre-rental application and 2022 recertification signature
precedes the time from when Phoenix Property Management Co. took over management. Effect or Potential Effect: The Company is not in compliance with its Project Rental Assistance
Contract to receive subsidies.
Recommendation: Management has designed and implemented internal controls to ensure all
required documentation is collected and maintained for all tenants and will conduct an inspection of
all tenant files to ensure completeness.
Management’s Response: Management agrees with the auditors’ finding and recommendation.