Finding Text
Condition: Out of a population of approximately 6,000 tenants for the Public Housing program, 41
tenant files were tested and the following exceptions were noted:
• 2 files had late recertification performed of which 1 missed getting an annual recertification in 2024;
• 1 file was missing 214 form documentation for household members;
• 1 file had a missing valid 9886 form; and
• 1 file did not have support of an inspection being performed during the year.
Context: The auditor haphazardly selected 41 tenant files out of the population, which we consider to
be a statistically valid sample size. The auditor reviewed the tenant files and supporting documentation
to ensure proper procedures are being followed and that the Housing Authority is in compliance with
HUD requirements regarding timely, complete, and accurate tenant files.
Criteria: The Authority’s ACOP and 24 CFR 960.259 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. In addition, 24 CFR 5.705 requires each unit be periodically
inspected.
Cause: The Housing Authority experienced staffing and operational challenges during the year 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. Additionally, a few of the exceptions might have been caused by oversight or misfiling of documents.
Effect: The Housing Authority is not in full compliance with HUD requirements regarding eligibility
which could result in the incorrect amount of rental assistance provided.
Questioned Costs: Unknown.
Auditor’s Recommendations: The Housing Authority should reevaluate their established procedures
and controls in place to ensure full compliance in regards to recertifications. The Housing Authority
needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the
population of tenant files that were not selected as part of the auditor’s sample.
View of Responsible Officials: See Corrective Action Plan.