Finding Text
2025-009 ALN 14.850 – Public Housing Operating Fund – Special Tests and Provisions – Environmental Review Condition and Criteria: Per 24 CFR sections 50, 58, 58.36, and 50 Subpart E, the Authority shall perform environmental testing and lead based testing. During our audit, it was determined that the Authority did not perform environmental or lead based testing. Amount of Questioned Costs. None. Context: The environmental testing and lead based testing were unable to be provided. Cause: The absence of environmental and lead based testing appears to be due to a lapse in internal control and recordkeeping procedures related to required HUD documentation. This was the result of prior management's record keeping and current management being unable to locate documentation that was maintained by the prior management. Effect or Potential Effect: The Authority is not in compliance with HUD requirements over environmental and lead based testing. Auditor’s Recommendation: Management should ensure environmental testing and lead based testing is performed timely. Grantee Response: Management acknowledges the finding and will follow the auditor’s recommendation.