Finding Text
Type of Finding – Federal Award Finding Finding Resolution Status – Resolved Identification of Repeat Finding and Finding Reference Number – N/A Criteria or Specific Condition – The owner is responsible for annually reexamining incomes of households occupying assisted units and make appropriate adjustments to the tenant payment and the project rental assistance payment (24 CFR section 891.410). Statement of Condition – Annual recertifications of existing tenants were not completed in a timely manner for 1 out of 15 units during the year ended June 30, 2025. It is expected that the recertification for this tenant, that moved into the Project in January 2025, will be retroactively certified as of the move in date on the October 2025 HAP voucher. Cause – The annual recertifications were not done in a timely manner due to staff turnover at the Project, along with staffing changes and the installation of new software at the third party processor of HAP billings. Effect or Potential Effect – The Project is not in compliance with the regulatory requirements. Auditor Non-Compliance Code – Z – Eligibility Questioned Costs – None Reporting View of Responsible Officials – We concur with the auditor’s recommendation. Recommendation – The Project should complete the recertification process for the tenants in a timely manner. Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations – Agree Response Indicator – Agree Completion Date – October 1, 2025 Response – The tenant recertifications will be monitored by the owner to ensure they are being completed in a timely manner.