Finding Text
2025-002 – Waiting List Procedures U.S. Department of Housing and Urban Development 14.850 – Public Housing Operating Fund N. Special Tests and Provisions - Public Housing Waiting List - Significant Deficiency - Internal Control and Compliance Finding Condition: During review of the Public Housing Operating Fund program, RBT noted the Authority did not retain sufficient documentation demonstrating that newly admitted tenants were selected from the waiting list in accordance with its established waiting list policy. Criteria: The PHA must establish and adopt written policies for admitting tenants. The PHA tenant selection policies must include requirements for applications and waiting lists, a description of the policies for selecting applicants from the waiting lists, and policies for verification and documentation of information relevant to the acceptance or rejection of an applicant (24 CFR sections 960.202 through 960.206). Cause: The Authority’s internal controls over the waiting list selection process were not adequately designed or implemented to ensure documentation was retained in accordance with the Authority’s policy. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: The newly admitted tenant to the program selected for testing did not contain an audit trail or supporting documentation demonstrating when the tenant was added to the waiting list or how their selection was determined based on points or ranking. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends the Authority implement internal controls to ensure that documentation is maintained to support the selection of newly admitted tenants from the waiting list. Such documentation should include the date the applicant was added to the waiting list, their ranking determination, and evidence that selection was made in accordance with the Authority’s established waiting list policy. Auditee's Response: See corrective action plan.