Finding 1205806 (2025-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-04-02
Audit: 397551
Organization: Independence Communities INC (TX)

AI Summary

  • Core Issue: Four tenant move-out files were lost, leading to noncompliance with HUD requirements.
  • Impacted Requirements: Compliance with HUD Handbook 4350.3 for maintaining detailed tenant files.
  • Recommended Follow-Up: Management must ensure secure storage of all tenant files to prevent future incidents.

Finding Text

Findings reference number: 2025-003 - Title and AL Number of Federal Program: Supportive Housing for Persons with Disabilities, AL 14.181 - Type of finding: Compliance - Resolution Status: In process - Population size: N/A - Sample size: N/A - Repeat finding: No - Criteria: Under the Section 811 Project Rental Assistance program, the Project is responsible for establishing, maintaining, and protecting detailed, up-to-date tenant files in compliance with HUD Handbook 4350.3. - Condition: During the year ended December 31, 2025 four tenant move-out files of former tenants could not be located by the staff and management at the Project site. - Cause: Change in community director at site. - Effect: The Project is not in compliance with the compliance requirements of the program. - Noncompliance code: Z. Other - Questioned costs: None. - Reporting views of officials: Auditee agrees with the finding, - Context: This was noted while performing audit procedures on tenant eligibility during the audit. - Recommendation: Management should ensure that all tenant files are maintained in a safe and secure manner in accordance with HUD rules. - Auditee's comments: Auditee agrees with the finding, but asserts that this was a one-time incident where the previous community director, at the time of leaving, may have inadvertently destroyed or misplaced the files for tenants who had moved out. - Auditors' summary of auditee's comments: They are in agreement. Completion date: 12/31/26. - Response: Management will make sure to maintain all tenant files in a safe and secure manner.

Corrective Action Plan

During the year ended December 31, 2025, four tenant move-out files of former tenants could not be located by the staff and management at the Project site. - Management asserts that this was a one-time incident where the previous community director, at the time of leaving, may have inadvertently destroyed or misplaced the files for the tenants who had moved out.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1205804 2025-001
    Material Weakness Repeat
  • 1205805 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $186,421