Finding Text
2024-003 ALN 14.850 – Public Housing Operating Fund – Eligibility Condition and Criteria: The PHA is required to adhere to eligibility compliance requirements for all tenants participating in the Public Housing Operating Fund program. Specifically: Citizenship declaration forms, rent choice certification forms, and 50058 reports must be maintained for all tenants as part of the eligibility documentation. During testing, it was noted that the Authority did not have adequate internal controls designed to ensure compliance with eligibility requirements. Amount of Questioned Costs: None. Context: During our testing of a sample of 25 tenant files, it was noted that 12 files did not meet eligibility compliance requirements. 3 instances of files missing citizenship declaration forms 8 instances of files missing rent choice certification forms 1 instance of the file missing a 50058 report Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their Admissions and Continued Occupancy Policy. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Auditor’s Recommendation: We recommend that management review their controls over recertifications and ensure compliance standards for eligibility of tenants and rent calculations are met. We also recommend management should designate one person to review a sample of the files that have been recertified each month. The purpose of the review is to determine if the tenant files were prepared in accordance with internal policies and verify the compliance deficiencies have been corrected. Grantee Response: Management agrees with the finding and will follow the Auditor's recommendations.