Finding 1217374 (2025-002)

Eligibility Federal Program Information: Funding agency: U.S. Department of Housing and Urban Development Title: Indian Housing Block Grant Assistance Listing Number: 14.867 Award year and number: 2025 & 55-IH-55-73180 Criteria or Specific Requirement: Federal regulations require that each recipient shall adopt and follow written policies governing the eligibility, admission, and occupancy of families for housing assisted with grant funds that comply with the grant requirements (USC 4133 (d)). Condition: Pursuant to testing of eligibility and internal controls over eligibility, we noted the following control deficiency and noncompliance: Two tenants did not have an annual recertification. One tenant's rent calculation did not match the lease agreement. Context: We tested a sample of 48 out of 232 files for the year. Questioned Costs: None Effect: The program may be serving ineligible participants. Cause: Program staff turnover and lack of supervisory monitoring contributed to the control deficiency. Repeat: Yes - Years as Repeat Finding: One Auditor's Recommendation: We recommend the Agency strengthen its internal controls over eligibility to monitor all relevant information and documentation affecting the eligibility process. View of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.