Finding 1147797 (2023-005)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2025-07-15
Audit: 362297
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: Two out of seven tenant files were missing during the audit, indicating a failure to maintain proper documentation.
  • Impacted Requirements: Compliance with the Clark County Community Services CDBG Procedures Manual and grant documents regarding tenant eligibility and lease file maintenance.
  • Recommended Follow-up: Management should implement and monitor new procedures to ensure timely income verification and proper maintenance of tenant lease files.

Finding Text

Finding No. 2023-005 - Uniform Guidance Compliance Requirement Code: N- Special Tests and Provisions - Significant Deficiency CDBG Entitlement Grants Cluster Federal Assistance Listing Number #14.218 Community Development Block Grants - Entitlement Grants Cluster Entity Identifying Number Initial year Finding instances Passed-through City of Portland, Portland Housing Bureau:: Allen Fremont 3110013 2015 2 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with the Clark County Community Services CDBG Procedures Manual and grant documents. Condition In connection with our lease file review, we noted two instances of seven tenants tested where management was unable to locate tenant files. Cause Management's policies with respect to eligibility and the maintenance of tenant lease files in accordance with Compliance in Clark County Community Services CDBG Procedures Manual and grant documents were not consistently followed. Effect or Potential Effect This could result in units being rented to ineligible tenants. Questioned Costs: N/A. Context In connection with the procedures applied to our CDBG units testing, two of the seven tenants tested did have lease files available. Repeat Finding: No Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that correct income verification procedures are performed timely, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of Clark County Community Services CDBG Procedures Manual and grant documents. Views of Responsible Officials The Compliance Specialist discovered missing files at a property while pulling files for the audit. The Compliance team worked to contact residents and rebuild the files with the missing documents. Compliance management investigated and determined the cause of the missing documents was due to a prior site manager not scanning and filing the appropriate documents, along with high staff turnover during this time. The Compliance team is finalizing a new procedure, in addition to the existing, to audit Yardi Voyager for uploaded completed files after move-in and recertification: the goal of this is to catch missing files and documents timely and hold site teams accountable for following the required procedures.

Categories

Eligibility Special Tests & Provisions Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 571351 2023-001
    Significant Deficiency Repeat
  • 571352 2023-002
    Significant Deficiency Repeat
  • 571353 2023-003
    Significant Deficiency Repeat
  • 571354 2023-004
    Significant Deficiency
  • 571355 2023-005
    Significant Deficiency
  • 571356 2023-006
    Significant Deficiency Repeat
  • 571357 2023-007
    Significant Deficiency
  • 1147793 2023-001
    Significant Deficiency Repeat
  • 1147794 2023-002
    Significant Deficiency Repeat
  • 1147795 2023-003
    Significant Deficiency Repeat
  • 1147796 2023-004
    Significant Deficiency
  • 1147798 2023-006
    Significant Deficiency Repeat
  • 1147799 2023-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $1.76M
14.275 Housing Trust Fund $1.63M
99.999 Low Income Housing Preservation and Resident Homeownership Act of 1990-Capital Grant $964,955
14.195 Section 8 Housing Assistance Payments Program $536,176
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $527,343
21.000 Section 607(e ) of the Neighborhood Reinvestment Corporation Act, As Amended $432,750
14.241 Housing Opportunities for Persons with Aids $380,000
14.239 Home Investment Partnerships Program $214,929