Finding 1208424 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-04-22

AI Summary

  • Core Issue: The Organization failed to keep copies of tenant recertification notices and necessary supporting documents in tenant files.
  • Impacted Requirements: Lack of documentation means there is no proof of tenant eligibility for rent assistance, violating compliance standards.
  • Recommended Follow-Up: Review and improve controls to ensure tenants receive proper notices and that all recertification documents are collected and stored correctly.

Finding Text

Criteria: The Organization is required to inform tenants, through written notice, of their responsibility to provide information needed to complete recertification process and copies of these notices should be maintained in the tenant files, along with required supporting documentation. Statement of Condition: The Organization did not maintain copies of notices of recertification or all supporting documentation, such as the EIV reports, in the tenant files. In one of the files reviewed, there was no supporting documentation for the social security income amount used to calculate the tenants payment. Cause of condition: The Organization did not pursue tenant compliance with annual recertification process after initial notice of recertification provided upon completion of prior recertification. 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 tenants receive proper notice of the annual recertification process and that all documents related to recertification are acquired. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. 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.

Corrective Action Plan

Recommendation: The design of the current controls should be reviewed to ensure tenants receive proper notice of the annual recertification process and that all documents related to recertification are acquired. Additionally, tenant files should be reviewed to ensure all supporting documentation is included. Action Taken: The management of Thompson-Woodlief Apartments, Inc. accepts the recommendation of Deming, Malone, Livesay & Ostroff and, accordingly, management will implement procedures to ensure that tenant recertifications are documented in accordance with HUD guidelines and that proper documentation is maintained within the tenant files.

Categories

Eligibility HUD Housing Programs

Other Findings in this Audit

  • 1208425 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.61M