Finding Text
Condition: Out of an approximate population of 450 of tenants, a total of 42 files were selected for testing and the following deficiencies were noted:
• Nine files were missing the 214 declaration documents performed for the FYE 2024 annual recertification,
• Seven files were missing EIV report for the FYE 2024 annual recertification,
• Five files were missing supporting documentation for income reported,
• Two files were missing 9886 release of information documents during the FYE 2024 annual recertification process,
• Two files had incorrect calculation of income allowances, and
• One file was missing information to determine custody of minor child.
Criteria: 24 CFR 983.353 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files.
Context: The auditor randomly selected 42 tenant files out of the population, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files.
Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments.
Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided.
Questioned Costs: Unknown.
Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the internal quality control sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample.
Management Response: See Corrective Action Plan.