Finding Text
FINDINGS - MAJOR FEDERAL AWARD PROGRAMS AUDIT (CONTINUED) Department of Housing and Urban Development Finding 2025-003: Major Program: Supportive Housing for the Elderly (Section 202 Capital Advance - Accumulated Balance), Federal Assistance Listing Number 14.157 STATEMENT OF CONDITION One tenant file, out of six files reviewed, did not include verification detail for one asset included in the certification. CRITERIA HUD Handbook 4350.3 Revision 1 for HUD Subsidized Multifamily Housing Programs requires owners to verify asset values at the time of certification. EFFECT OF CONDITION One tenant’s certification did not include verification of one of the asset values. CONTEXT During audit fieldwork, six tenant files from a statistically valid sample were examined for compliance with tenant eligibility criteria. Of the six files examined, an asset value for one tenant was not properly verified and documented in the tenant file. CAUSE OF CONDITION Management mistakenly did not ensure the asset verification documentation was included in the tenant file. RECOMMENDATION The auditor recommends ensuring all tenants’ assets are verified at the time of certification and documentation is maintained in the tenants’ file. Also, the tenant file noted above is certified to determine if the proper tenant rent and HUD assistance payment were accurately calculated for the year ended December 31, 2025. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTIONS The Project will be continuing to train staff on the HUD Handbook requirements for tenant files.