Finding Text
Missing Tenant Files Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matter Criteria or specific requirement: The Organization is required to obtain various documents and retain these documents in the tenant file, including but not limited to the original application, supporting documentation for income, HAP contract, lease agreement, etc. (24 CFR section 982). Condition: During our testing, we noted that the Organization failed to have proper documentation of tenants' files in their online system. From a sample of 60 tenant files, four of tenants did not have complete files to support eligibility in the program. Questioned costs: None Context: From a sample of 60 program participant files selected for eligibility testing, four original complete files were missing within the Organization’s online system. Cause: The Housing Specialist did not scan in or obtain the original information required for a tenant’s file as part of the application process. Effect: File did not contain required information per 24 CFR section 982. A program participant could have been receiving HAP when not qualified or receiving the incorrect amount of HAP. Repeat finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialists to ensure tenant files are retained and scanned into the online system in a timely manner. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.