Finding Text
2025-002: Supportive Housing for Persons with Disabilities – AL #14.181 – Eligibility Criteria or Specific Requirement (including statutory, regulatory, or other citation) Per Uniform Guidance (2 CFR 200.303), non-federal entities are required to establish and maintain effective internal controls over federal awards. HUD program guidelines also require documentation and supervisory review of tenant eligibility, rent determinations, and related compliance activities. Condition During our audit, we noted that tenant files, which included eligibility determinations, income verifications, and rent calculations, were not consistently reviewed or approved by management. Cause This was the result of an administrative oversight, in which, the property management personnel did not consistently follow the Corporation’s policies and procedures. Effect or Potential Effect The absence of management review increases the risk of noncompliance with federal regulations, incorrect eligibility determinations, and inaccurate rent calculations, which could result in questioned costs or adverse impact on program participants. Questioned Costs - None Identification as a Repeat Finding, if applicable – No Recommendation We recommend that the Corporation comply with established policies and procedures that require the review and approval of all tenant files by a designated supervisor. Views of Responsible Officials See attached response for view of responsible officials and planned corrective actions.