Finding 1168763 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-01-12
Audit: 380849
Organization: Center for Housing and Health (IL)

AI Summary

  • Core Issue: One out of forty client selections lacked required documentation for eligibility verification, specifically a signed Zero-Income Affidavit for clients reporting no income.
  • Impacted Requirements: Eligibility criteria under 24 CFR section 574.3 were not fully met, risking potential rental assistance to ineligible clients.
  • Recommended Follow-Up: Ensure all participant files include third-party income verification and signed Zero-Income Affidavits for clients with no income.

Finding Text

Federal program: AL #14.241 Housing Opportunities for Persons With Aids FY/Federal Award ID#: FY2025/See Schedule of Federal Expenditures Federal agency: Department of Urban Development Pass thru entity: AIDS Foundation of Chicago Criteria: A person eligible for assistance under this program means a person with HIV or AIDS who is a low-income individual and the person’s family, including persons important to their care or wellbeing, as defined in 24 CFR section 574.3. The eligibility of those tenants who were admitted to the program should be determined by (1) obtaining applications that contain all the information needed to determine eligibility, including diagnosis, documentation of housing need, income, rent, and order of selection; and (2) obtaining third party verifications or documentation of expected income, assets, unusual medical expenses, and any other pertinent information. Some households entering the HOPWA program may indicate that they have no income. In such cases, agencies are expected to document this fact by obtaining a certification of “no income” from the applicant through a Zero-Income Affidavit. Condition: One out of forty selections did not include documentation to satisfy criteria (2) above. Further, twelve of out forty selections related to clients with no-income, which included selfverification by the client of no income along with other supplemental documentation to satisfy criteria (2) above, however there was no signed Zero-Income Affidavit. The sample was not statistically valid. Questioned Costs: None noted. Cause: Lack of a maintaining required eligibility compliance documentation. Effect: If supporting documentation for eligibility is not maintained there is a reasonable possibility that rental assistance may be provided for clients that are ineligible to participate in the program. Recommendation: Third party verification of low-income or other supplemental documentation to satisfy criteria (2) above should be maintained in the program participant's file. In addition, Zero-Income Affidavits should be signed by all participants with no income and maintained in the program participant's file. Views of Responsible Officials: Management concurs and the supportive housing policies and procedures manual will be updated to reflect the requirements of 24 CFR Part 574, Subparts B to F. Further, the organization will fully implement no-income affidavits to be used anytime a client self_x0002_reports no income.

Corrective Action Plan

Finding: We noted through audit procedures that one out of forty selections did not include documentation to satisfy certain eligibility criteria. Further, twelve of out forty selections related to clients with no-income, which included self-verification by the client of no income along with other supplemental documentation to satisfy certain eligibility criteria, however there was no Zero-Income Affidavit. Corrective Action Taken or Planned: The supportive housing policies and procedures manual will be updated to reflect the requirements of 24 CFR Part 574, Subparts B to F. Further, the organization will fully implement no-income affidavits to be used anytime a client self-reports no income. Anticipated Date of Completion: December 31, 2025 Name of Contact Person: Beth Frantz, Chief Finance Officer

Categories

Eligibility

Other Findings in this Audit

  • 1168746 2025-001
    Material Weakness Repeat
  • 1168747 2025-001
    Material Weakness Repeat
  • 1168748 2025-001
    Material Weakness Repeat
  • 1168749 2025-001
    Material Weakness Repeat
  • 1168750 2025-001
    Material Weakness Repeat
  • 1168751 2025-001
    Material Weakness Repeat
  • 1168752 2025-001
    Material Weakness Repeat
  • 1168753 2025-001
    Material Weakness Repeat
  • 1168754 2025-001
    Material Weakness Repeat
  • 1168755 2025-002
    Material Weakness Repeat
  • 1168756 2025-002
    Material Weakness Repeat
  • 1168757 2025-002
    Material Weakness Repeat
  • 1168758 2025-002
    Material Weakness Repeat
  • 1168759 2025-002
    Material Weakness Repeat
  • 1168760 2025-002
    Material Weakness Repeat
  • 1168761 2025-002
    Material Weakness Repeat
  • 1168762 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.267 CONTINUUM OF CARE PROGRAM $2.46M
14.241 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS $290,492
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $289,942
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $225,362
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $29,800