Finding 1146372 (2025-001)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-07-01

AI Summary

  • Core Issue: Missing eligibility documentation for 4 out of 9 tenants, including income certifications and social security cards.
  • Impacted Requirements: Annual completion of HUD-50059 forms and maintenance of supporting income documentation are not being met.
  • Recommended Follow-Up: Implement procedures to ensure timely completion of certifications and proper documentation retention to avoid eligibility errors.

Finding Text

Eligibility Statement of Condition: During the 2025 audit, we noted the following items required under the Supportive Housing for the Elderly (Section 202) Assistance Listing 14.157 for the determination of eligibility could not be provided for the following: * Certifications – 4 out of 9 tenants did not have income certifications available for our review and 1 out of 9 did not have an updated certification form (Form HUD-50059) * Social Security – 2 of 9 tenants did not have social security cards available for our review. * Lease – 1 of 9 the lease amounts did not agree to the form HUD-50059. Criteria: In accordance with requirements over eligibility and operations for the program, the income certification form HUD-50059 should be completed annually and supporting documentation for income should be maintained in files. Cause: This occurred due to staff turnover. Effect: Failure to maintain supporting documentation could result in errors in eligibility and incorrect tenant rent calculation. Recommendation: Procedures should be implemented to ensure that the HUD certification form 50059 are completed annually and all required documentation is maintained to verify income. Views of Responsible Officials: Management concurs with the findings and had already commenced corrective actions prior to the issuance of this report. These actions were initiated to address deficiencies resulting from the inadequate performance of the former property manager, who resigned from the position. Additionally, a new property manager has been hired to ensure compliance with established procedures and to oversee the continued implementation of corrective measures.

Categories

Eligibility HUD Housing Programs

Other Findings in this Audit

  • 569930 2025-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $1.37M
14.195 Project-Based Rental Assistance (pbra) $570,591