Finding Text
Material Weakness, Eligibility. Criteria: In accordance with 2 CFR 200, management should have an adequate system of internal control procedures in place to ensure that applicants have all required documentation in their file. In accordance with 24 CFR Part 5 Subpart F, the City must maintain documentation to support tenant eligibility. Condition: The City did not follow procedures to ensure the proper eligibility determinations were made and documented. Context: Of the 6,168 housing assistance payments during the current year valued at $5,286,995, we examined 60 (valued at $54,964) and determined that 6 (10% valued at $5,441) applicants did not have properly calculated resources. Upon further review and recalculation, the six applicants were deemed eligible. Effect: Participants could receive benefits for which they are not eligible. Cause: Weakness in implementation of controls over eligibility procedures. Questioned Cost: None. This finding represents an internal control issue; therefore, questioned costs are not applicable. Recommendation: Tenant files should be reviewed to verify that calculations are accurate, and all required documentation has been obtained before approving benefits. Views of Responsible Officials and Planned Corrective Actions: The City agrees with this finding. Please refer to the Corrective Action Plan section of this report.