Finding Text
U.S. Department of Housing and Urban Development Federal Financial Assistance Listing 14.181 Section 811 Eligibility Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance Criteria: Pursuant to the terms of the agreement and HUD requirements, annual tenant certifications are to be completed and verified to determine the calculation of rental assistance to be received by the tenant. Certifications should be accurately completed, reviewed, and approved to support compliance reporting. Condition: One tenant file selected for testing had an incorrect component of the calculation, resulting in an incorrect calculation of tenant assistance. Cause: The exception appears to be due to oversight in the calculation and secondary review to ensure accurate information and calculations were included to determine tenant assistance amounts. Effect: Due to the incorrect calculations, the rental assistance amounts paid were incorrect, which could result in noncompliance with HUD requirements. Questioned Costs: None reported. Repeat Finding from Prior Year(s): No Recommendation: We recommend management strengthen tenant file and calculation review procedures to ensure all required eligibility documentation is retained in the file in accordance with HUD requirements. Views of Responsible Officials: Management agrees with the finding.