Finding 1216254 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-06-01

AI Summary

  • Core Issue: One tenant file was missing required recertification paperwork, impacting the audit process.
  • Impacted Requirements: Annual recertification for all tenants was not met, leading to incomplete testing.
  • Recommended Follow-Up: Hire and train more staff to address management turnover and prevent future issues.

Finding Text

Finding 2025-002: Compliance finding Information on universe: Total population was 38 files. Sample Size: 6 files were selected for testing. Identification of repeat finding: Yes, 2024-003 Condition: Additional file had to be selected due to one of the files missing the recertification paperwork including a signed 50059. Criteria: All tenants must be recertified annually. Effect: Auditor was unable to test the income and expenses on one file. Context: Auditor selected tenant files and was unable to test one of the files resulting in an additional file needing to be tested. Cause: Turnover at the management agent. Recommendation: Continue to hire and train additional staff to fill the staffing shortages.

Corrective Action Plan

Finding 2025-002 Plan: Please see below the process for obtaining correct documentation including 50059’s. 1. Notification: Tenants are notified in advance to submit required documentation. 2. Tenant Submission: Tenants provide updated income and household info 3. Verification: Property management verifies the submitted information (e.g., contacting employers, reviewing documents). 4. Rent Calculation: Rent is recalculated based on updated income and family composition, per HUD guidelines. 5. 50059 Form: Completing the 50059 form accurately is crucial. It documents eligibility, income, and rent calculations. Errors can lead to incorrect rent, delays, or compliance issues. 6. Finalizing Recertification: After verification and accurate completion of the 50059, tenants are informed of any rent changes. 7. Record-Keeping: All recertification documents, including the 50059 form, are filed for compliance and audit purposes. By ensuring that recertifications are done annually, all tenant information is updated, and 50059 forms are accurately completed, doing so maintains program compliance and ensure that tenants are paying the correct rent based on their current financial situation. This is critical not only for HUD compliance but also for ensuring that tenants receive the appropriate level of assistance. Completion Date: 4/1/2026 Contact: Jackie Oliveira-Director of Affordable Housing

Categories

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Other Findings in this Audit

  • 1216243 2025-005
    Material Weakness Repeat
  • 1216244 2025-002
    Material Weakness Repeat
  • 1216245 2025-005
    Material Weakness Repeat
  • 1216246 2025-002
    Material Weakness Repeat
  • 1216247 2025-003
    Material Weakness Repeat
  • 1216248 2025-004
    Material Weakness Repeat
  • 1216249 2025-004
    Material Weakness Repeat
  • 1216250 2025-004
    Material Weakness Repeat
  • 1216251 2025-003
    Material Weakness Repeat
  • 1216252 2025-003
    Material Weakness Repeat
  • 1216253 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $338,825