Finding Text
S3800-010: Finding Reference Number 2025-004 (Material Weakness) S3800-011: Program Information Federal Program: Supportive Housing for the Elderly (Section 202) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: E – Eligibility S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size 19 S3800-018: Sample Size Information 5 S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria HUD-subsidized, multifamily housing properties must follow specific guidelines for determining eligibility to determine whether they are in compliance with provisions in the HUD Handbook (4350.3). S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2025 federal award program, we noted the below concerns regarding adherence to HUD compliance requirements: • The Organization did not have the necessary supporting documentation to evaluate eligibility at the initial time of occupancy and annual recertification based on missing evidence of signed leases, security deposits, criminal and background information, verification of citizenship and immigration status, and move in inspections for three tenants in their files S3800-032: Cause The Organization did not follow HUD’s required procedures to determine eligibility. S3800-033: Effect or Potential Effect The Organization was not in compliance with the requirements of HUD related to determining initial eligibility and annual recertification. S3800-035: Auditor Non-Compliance Code R – Section 8 program administration S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization is required to be in compliance with provisions relating to tenant eligibility. S3800-080: Recommendation The Organization should follow procedures to ensure tenant eligibility and the Organization should review the accuracy / completeness of the documentation being processed in the tenant files on a periodic basis. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date September 30, 2025 S3800-150: Response See Corrective Action Plan