Finding Text
2024-002 - Internal Control Over Compliance, Material Noncompliance - Eligibility - Material weakness Federal program information: Funding Agency U.S. Department of Housing and Urban Development Program Title Indian Housing Block Grant Federal Assistance Listing Number 14.867 Condition: During testing of tenant files for FY 2024, we noted multiple exceptions indicating deficiencies in compliance and internal controls over tenant eligibility and documentation, including: Inclusion of tenant reported as deceased in 2017, with no supporting evidence of eligibility re- evaluation or proper transfer of occupancy. Missing or incomplete documentation for several sampled tenants, including: Housing applications (4 of 15 samples) Occupancy agreements received but not signed (1 of 15 samples) Income recertifications that were missing or outdated (6 of 15 samples) Inspection reports that were missing or outdated (6 of 15 samples) Criteria: In accordance with 25 USC 4133(d), each grant recipient is required to develop written policies governing the eligibility, admission, and occupancy of families for assisted housing. These policies must include verification of applicant income and an annual redetermination of rent based on recertification of income. The Housing Entity has established such policies, which set the standard for maintaining complete tenant files, verifying eligibility, and ensuring compliance with program requirements. Cause: The Housing Entity did not maintain or provide required documentation for tenant eligibility determinations, which limited the ability to verify compliance with established program policies. Effect: The Housing Entity was unable to demonstrate that eligibility determinations, rent calculations, and adherence to program policies were properly performed for the affected tenants. Auditor's Recommendation: The Housing Entity should implement controls to ensure that all required tenant documentation is accurately obtained, retained, and reviewed, thereby supporting eligibility determinations and compliance with program requirements