Finding 1132528 (2024-002)

Condition: Two tenant files from a sample of five tenant files tested were missing one or more documents required by HUD regulations including:  One tenant file was missing the annual certification  Insufficient documentation provided for income verification purposes in one instance  Absence of required birth certificate documentation in one instance  Lack of move in inspection in two instances  Missing pre-rental application documentation in one instance Criteria: Properly maintained tenant files are supposed to include all required items. Cause: The management company had an oversight in internal controls to ensure that all required documents are maintained in tenant files. Effect or Potential Effect: The Corporation is not in compliance with its Project Rental Assistance Contract and Tenant Selection Plan. Recommendation: Management should design and implement 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. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the auditor’s finding and recommendation. Housing Opportunities Corporation will implement a comprehensive internal control system to ensure all tenant files include all required documentation.