Finding Text
Eligibility
Public and Indian Housing Program - AL No. 14.850
Material Weakness in Internal Control
Material Noncompliance
Condition: Out of an approximate population of 621 tenants, a total of 44 tenant files were selected
for testing and the following deficiencies were noted:
Eleven files had an annual recertification completed over 12 months after the
previous recertification,
Twenty files were missing inspections,
One file was missing a photo identification for one adult tenant,
Three files were missing the flat rent option sheet,
Two files did not have 9886 release of information from within 15 months of the
annual recertification, and
Two files were missing all supporting documents.
Criteria: The Authority’s ACOP and 24 CFR 960.259 requires internal controls to be in place to
ensure proper procedures are being followed in compliance with HUD requirements regarding
complete and accurate tenant files.
Context: The auditor haphazardly selected 44 tenant files out of the population, which is considered
to be a statistically valid sample. The auditor reviewed the tenant files and support to ensure that
proper procedure are being followed and that the Authority is in compliance with HUD requirements
regarding timely, complete, and accurate tenant files.
Cause: The Authority continued to experience staffing turnover and did not have the available staff
to fully implement the established internal controls to ensure proper compliance with regards to timely
recertifications and collection of required HUD documentation to complete the tenant files.
Effect: The Authority is not in full compliance with HUD requirements regarding eligibility which could
result in the incorrect amount of rental assistance provided.
Questioned Costs: None.
Auditor Recommendations: The Authority should continue to train staff on the established
procedures and controls in place to ensure full compliance in regard to eligibility. The Authority needs
to correct the deficiencies noted in the tested files and consider the impact to the rest of the
population of tenant files that were not selected as part of the auditor’s sample.
Management Response: See Corrective Action Plan.