Finding Text
Finding reference number: 2025-002 Assistance Listing (Federal award identification number and year): Project Based Rental Assistance (PBRA) CFDA No. 14.195 (HAP Contract No. TN40-0020-01 and 2016) Auditor non-compliance code: R – Section 8 Program Administration Finding resolution status: In process Universe population size: 231 resident files Sample size information: 24 resident files Statistically valid sample: 1 resident file Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2025-002: During the year ended December 31, 2025, one of the twenty-four resident files selected for testing under the OMB Compliance Supplement were unable to be located by the Agent. Criteria: Pursuant to the HAP Contract and the HUD Handbook 4350.3, agents must certify and recertify residents and update other applicable forms in accordance with HUD regulations. These documents are required to be retained for a minimum of three years. Effect: The Corporation was not able to verify its compliance with the HAP Contract and HUD Handbook. Cause: The Former Agent did not retain the resident file after the resident had moved out of the Property. Therefore, this file was not provided to the Agent upon transition of management. Recommendation: The Agent should review resident files completed by the Former Agent to ensure that all resident files include all properly executed and documented resident eligibility forms and ensure that these files are maintained at the Property for a minimum of three years. Management's response: The Agent concurs with the finding and the recommendation. The Agent will review resident files completed by the Former Agent to ensure that all resident files include all properly executed and documented resident eligibility forms and ensure that these files are maintained at the Property for a minimum of three years.