Finding 1166670 (2025-001)

Finding 2025-001 Eligibility – Significant Deficiency in Internal Control over Compliance and Immaterial Instances of Noncompliance Program: U.S. Department of Agriculture Rural Rental Assistance Program: ALN 10.427 Award Number: Various Award Year: 2024, 2025 Criteria: Pursuant to 7 CFR 3560.576, the Health Center must determine whether actual dollars earned from farm labor by a domestic farm laborer did not exceed 65 percent of the annual income limits. Condition/Cause: Sea Mar Farmworker and Community Housing Development Association did not consistently follow policies and procedures in place over the eligibility process. Income verification documents used in the eligibility determination process were not always obtained prior to the tenant’s movein date and/or were not retained. Effect: Elgibility upon move-in could not be verified for all tenants. Questioned Cost Not applicable. Context We selected 40 tenants out of the entire population of tenants who may be eligible to receive rental assistance. In 7 of the 40 samples tested, the Health Center did not retain documents evidencing that income verification took place prior to the tenant’s move-in date. Repeat Finding: Not applicable. Recommendation: We recommend that further processes and trainings be put in place to ensure the the eligibility determination process is accurately applied to all qualifiying program participants and applicable documentation is retained. Views of Responsible Officials: The Health Center concurs with the findings and is working on implementing the recommendation.