Finding 1208397 (2024-002)

Criteria: The Organization is required to perform an annual recertification of all tenants, which requires verifying tenant income and documenting eligibility with HUD Form 50059. Tenants are required to sign the form, and it must be maintained within the Organization’s tenant file, along with required supporting documentation. Additionally, the Organization should obtain an updated Form 9887/9887-A annually as part of the recertification process. Statement of Condition: The Organization did not obtain signed annual recertification forms for the tenant files tested during the audit and did not maintain all of the required information, such as the EIV reports, in the files to support the data used in its preparation. Cause of condition: The Organization did not pursue tenant compliance after initial recertification notices were mailed to the tenants. Effect of condition: There is no evidence of a tenant’s eligibility for rent assistance maintained by the Organization in the tenant file. Recommendation: The design of the current controls should be reviewed to ensure tenant files are complete and accurate. The Organization should fill out and maintain HUD Form 50059 for each annual recertification and keep information in the files that support the data used in its preparation. Tenants should sign the recertification form and also an updated Form 9887/9887-A. In addition, management should review all files and report and discrepancies to HUD in a timely manner. Views of Responsible Officials: Management agrees with the finding and will implement procedures to ensure tenant recertifications are documented in accordance with HUD guidelines and that proper documentation is maintained within the tenant files.