Finding 11652 (2023-001)

Criteria: Management should have an internal control system in place to ensure compliance requirements of the HUD program are completed and reviewed in a timely manner. Condition: Management did not timely update recertifications and requests to HUD for tenant assistance payments for six of the ten tenants sampled. Five tenant assistance payments were subsequently adjusted on the HAP voucher. Cause: A lack of oversight and review as a result of resource constraints over internal controls over recertifications resulted in delays to timely completion of recertification requirements. Effect or potential effect: Lack of oversight of regulatory requirements could increase the risk of loss of funding and default on the HUD loan. Recommendation: Management should provide adequate resources to ensure internal control over compliance is maintained. Staff should receive necessary compliance training, and those charged with governance review compliance periodically during the year. Questioned costs: None identified. Views of responsible officials: Management is reviewing the internal controls over compliance of all HUD programs to ensure appropriate procedures are in place. Additionally, Management will be closely monitoring the timeliness of recertification to ensure accuracy in the HAP voucher.