Finding Text
2025-001 Eligibility Federal Program U.S. Department of Agriculture AL #10.415 – Significant Deficiency Grant Award No. Rural Rental Housing Loans Federal Award Year 2025 Criteria As a condition of funding, the SEMMCHRA must provide accurate information and documentation to verify income eligibility (2 CFR section 200.208). Condition During review of tenant files, we noted one instance in which the SEMMCHRA did not use the correct income amount in their calculation to determine a tenant’s eligibility for assistance. Questioned Costs None Context We tested a sample of 14 of the Authority’s 131 tenant files and found that an improper calculation was performed in one tenant file. Effect Tenants who do not meet eligibility requirements may receive assistance. Cause Lack of appropriate review of tenant income calculations. Repeat Finding Not a repeat finding. Recommendation We recommend the SEMMCHRA reviews its internal control procedures to ensure a quality control review is performed to verify all required documentation and calculations are maintained in the tenant files. Views of Responsible Officials Management recognizes the deficiency and plans to implement the auditor’s recommendation.