Finding Text
Low Rent Program-ALN#14.850 Finding 2025-002-Internal Control Over Compliance Needs Improvement-Eligibility Criteria and Condition It appears that there was not a representative check of tenant file and waiting list functions by a qualified second party. Auditing Statement of Auditing Standards (SAS) #115 dictates that either “absent or inadequate segregation of duties within a significant account or process” are defined by the Standard as at least a significant deficiency, if not a material weakness. The lack of a documented check noted in the first sentence is considered an inadequate segregation of duties. Context We reviewed twenty-five Low Rent files. We did not note any exceptions. Effect Risk is reduced to an acceptable level that systematic errors are timely detected. Cause Apparent oversight. Recommendation Quality control checks of the waiting list and all tenant file procedures should be timely made and documented. Annual inspections should be done, documented, and available for third party review. Enterprise Income Verification [EIV] should be done, documented and available for third party review. Leases should be redone at least annually. View of Responsible Official We have recently designated