Finding 1164422 (2024-006)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-12-10
Audit: 373851
Auditor: COHNREZNICK LLP

AI Summary

  • Core Issue: Management failed to provide necessary 3rd party income verification for tenant eligibility in two out of four cases.
  • Impacted Requirements: Compliance with the Oregon Housing and Community Services HTF Program Manual regarding tenant lease files and eligibility verification.
  • Recommended Follow-up: Implement and monitor procedures to ensure timely recertifications and proper maintenance of tenant lease files.

Finding Text

Finding No. 2024-006 - Uniform Guidance Compliance Requirement Code: E-Eligibility - Significant Deficiency Housing Trust Fund Federal Assistance Listing Number #14.275 Housing Trust Fund Entity Identifying Number Initial Year Finding instances Passed through Oregon Department of Housing & Community Services: Rose Apartments 3356 2019 1 The Mary Ann Apartments 3404 2020 1 Total instances 2 Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with the Compliance in State of Oregon Housing and Community Services HTF Program Compliance Manual. Condition In connection with our lease file review, we noted two instances of four tenants tested where management did not provide support that they performed a 3rd party income verification in accordance with policy. Cause Management's policies with respect to recertifications and eligibility and the maintenance of tenant lease files in accordance with Compliance in State of Oregon Housing and Community Services HTF Program Manual were not consistently followed. Effect or Potential Effect This could result in units being rented to ineligible tenants. Questioned Costs: Not applicable. Context In connection with the procedures applied to our HTF units testing, two of the four tenants tested did not have a 3rd party income verification performed in accordance with policy. Repeat Finding: No Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that recertifications and 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 Compliance in State of Oregon Housing and Community Services HTF Program Manual. Views of Responsible Officials ________________OPEN FOR REACH REPLY

Corrective Action Plan

Finding No. 2024-006 Housing Trust Fund Program Federal Assistance Listing Number #14.275 Statement of Condition In connection with our lease file review, we noted two instances of four tenants tested where management did not provide support that they performed a 3rd party income verification in accordance with policy. Corrective Action Plan As a result of the 2024 audit, a new process is set up to ensure that new employees receive HUD annual training. Management will continue to ensure that 3rd party income verification is performed in accordance with policy.

Categories

Eligibility Significant Deficiency

Other Findings in this Audit

  • 1164417 2024-001
    Material Weakness Repeat
  • 1164418 2024-002
    Material Weakness Repeat
  • 1164419 2024-003
    Material Weakness Repeat
  • 1164420 2024-004
    Material Weakness Repeat
  • 1164421 2024-005
    Material Weakness Repeat
  • 1164423 2024-007
    Material Weakness Repeat

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 $597,560
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $510,266
21.000 SECTION 607(e ) OF THE NEIGHBORHOOD REINVESTMENT CORPORATION ACT, AS AMENDED $418,750
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $380,000
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $221,798