Finding 1132135 (2024-001)

Finding reference number: #2024-001 Auditor non-compliance code: E – Eligibility Finding resolution status: In progress Universe population size: 85 resident files Sample size information: 9 resident files Statistically valid sample: Yes Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Wyoming Community Development Authority Questioned costs: N/A Repeat Finding: No Statement of condition #2024-001 (Assistance Listing No. 14.239 and 14.275): During the year ended September 30, 2024, two of the nine resident files selected for testing under the HUD Consolidated Audit Guide lacked properly executed and documented resident eligibility forms. Criteria: Pursuant to the HAP Contract, HUD Handbook 4350.3, HOME loan agreement, and NHTF loan agreement, the Agent must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements. Effect or potential effect: The Company is not in compliance with the terms of the HAP Contract, HUD Handbook 4350.3, HOME loan agreement, or NHTF loan agreement. Current, future, and potentially prior funding under the HAP Contract, HOME loan, and NHTF loan could be impacted as a result of these resident files. Cause: The Agent was unable to locate the required resident eligibility forms for two of the nine resident files selected for testing at the Property. Recommendation: The Agent should ensure that all resident files are maintained at the site for each resident of the Property, and the Agent should ensure that the resident files include all properly executed and documented resident eligibility forms. Completion date: September 30, 2025 Management response: The Agent concurs with the finding and recommendation. The resident files noted in the statement of condition were for residents who moved out of the Property during the year ended September 30, 2024. No further action is required related to these residents' files. The Agent intends to review and update, as necessary, the other resident files during the year ended September 30, 2024 to ensure the Property is in compliance with HUD requirements.