Finding Text
Non-Material Non-Compliance Material Weakness, Eligibility, Special Tests and Provisions 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. In accordance with 24 CFR sections 960.202 through 960.208, the City must establish, adopt, and follow policies for admission of tenants as it relates to the Public Housing waiting list. All families admitted to the program must be selected from the waiting list. Condition: The City did not follow procedures to ensure the proper eligibility determinations were made and documented. Context: Of the 163 applicants during the current year valued at $518,453, we examined 33 (valued at $100,361) and determined that 2 (7% valued at $16,692) applicants were not supported with case documentation to confirm eligibility. Of the 33 applicants we examined, we determined that 1 (3%) applicant did not have documentation to confirm they were selected from the waiting list. Upon further review, the applicant is deemed eligible. Effect: Participants could receive benefits for which they are not eligible Cause: Weakness in implementation of controls over eligibility procedures Identification of a Repeat Finding: This is modified and a repeat of Finding 2024-003 from the immediate previous audit. Questioned Cost: In accordance with 2 CFR 200, auditors are required to report known questioned costs when likely questioned costs are greater than $25,000. The sample results identified $16,692 in known questioned costs. 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.