Finding 1166849 (2025-007)

2025-007 - Waiting List Procedures U.S. Department of Housing and Urban Development 14.850 - Public Housing Operating Fund N. Special Tests and Provisions - Significant Deficiency and Compliance Finding Condition: During review of the Public Housing Operating Fund program, RBT noted that the Authority did not select tenants in accordance with a tenant selection and assignment policy and staff are unfamiliar with waiting list preferences. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority did not establish an Admissions and Continued Occupancy Policy ("ACOP") and, thus, did not have a tenant selection and assignment policy. Staff are unfamiliar with waiting list preferences. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of the four new tenants admitted to the program selected for testing, four were not in compliance as the Authority did not have a tenant selection and assignment policy. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority establish a Admission and Continued Occupancy Policy which includes a tenant selection and assignment policy detailing procedures for admitting tenants to the program. Staff should be trained on tenant selection procedures. Auditee's Response: See corrective action plan.