Finding Text
2025-006 - Documentation of Controls U.S. Department of Housing and Urban Development 14.850 - Public Housing Operating Fund E. Eligibility - Significant Deficiency and Compliance Finding Condition: During review of the Public Housing Operating Fund program, RBT noted that the Authority was not appropriately maintaining documentation of the controls over Eligibility. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts (such as 24 CFR Section 982), and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: None of the sixty tenants files selected for testing contained documentation of the internal controls performed. Two files contained noncompliance exceptions. One tenant file did not include Form HUD-50058 for the period under audit. One file incorrectly reflected the tenant as eligible for reduced rent, although the tenant did not meet the eligibility criteria. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority maintain the checklist that the Tenant Housing Representatives use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant's file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee's Response: See corrective action plan.