Finding Text
Criteria: Internal controls are required to be in place to ensure proper procedures are being followed and the Project is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Condition: During the eligibility testing of the audit, we identified tenant files were missing documentation required to be maintained to support tenant eligibility, income verification and rent determination. We consider this finding to be a significant deficiency with the Eligibility Compliance Requirement. Effect: The Project is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: $0 Cause: The Project experienced turnover resulting in inconsistent file management practices and ineffective internal review procedures to ensure that all required eligibility documentation is obtained and retained. Recommendation: The Project should consider reevaluating their established procedures and controls currently in place to ensure full compliance regarding eligibility and documentation retained in tenant files. The Project needs to correct the deficiencies noted in the tested files. Views of Responsible Officials: Management agrees with the findings. There was significant turnover during and subsequent to the audit period resulting in a lack of controls. Controls have been re-evaluated and implemented under new management. Further response is included in the Corrective Action Plan.