Finding 1211028 (2025-002)

Condition: While testing a sample of 40 new admissions to the program to ascertain if they were selected from the waiting list in accordance with the Authority’s applicant selection policies, the Authority was unable to provide supporting documentation for eight of the applicants who were issued vouchers during the year. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require the Authority to maintain documentation supporting the administration of its waiting list, including records necessary to demonstrate that applicants are selected from the waiting list in accordance with established policies and HUD requirements. Context: The auditor randomly selected 40 waiting list applicant files for testing to determine whether applicants were selected from the waiting list in accordance with the Authority’s policies and HUD requirements. Eight of the requested files were not available for review. Cause: The condition occurred because the Authority was undergoing a digitalization process to convert physical records into electronic files through a contracted third-party vendor. Complications encountered during the file conversion and organization process resulted in certain waiting list files being temporarily unavailable for review. Effect: Because the requested documentation was not available for review, the auditor was unable to perform certain procedures related to waiting list testing for the eight files. Questioned Costs: Unknown Auditor Recommendations: We recommend the Authority ensure that all waiting list documentation is properly maintained and accessible, particularly during the transition to digital records, to allow for timely retrieval of supporting documentation when requested by the oversight agency or other third parties. Management Response: See the Corrective Action Plan in this report.