Finding 1218926 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-06-25
Audit: 404966
Organization: Park City Communities, INC (CT)
Auditor: COHNREZNICK LLP

AI Summary

  • Core Issue: Tenant income verification was not completed on time in 15 cases, violating HUD eligibility requirements.
  • Impacted Requirements: Compliance with HUD regulations on income verification, family status, citizenship, and social security disclosure.
  • Recommended Follow-Up: Park City should enhance internal processes for timely income verification and utilize the new digital management system for better record-keeping.

Finding Text

2025-002 - Eligibility: Public Housing Operating Fund (FALN #14.850) United States Department of Housing and Urban Development Federal Award Identification Number and Year: CT00100004424D Criteria HUD regulations of Annual Income (24 CFR § 5.609), Eligible Family Status (24 CFR § 5.403), Citizenship and Eligible Immigrant Status (24 CFR § 5.506) and Disclosure of Social Security Numbers (24 CFR § 5.216) require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were not completed in a timely matter as follows: ● In fifteen instances, income verification form not found in file or performed timely. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Our sample was a statistically valid sample. Effect or Possible Effect The tenant income verification was not performed timely. Cause The cause is unknown. Identification as a Repeat Finding This finding is a repeat finding (see prior year finding number: 2024-002). Recommendation We recommend that Park City continue to improve its internal processes to ensure tenant income verification is performed timely. Park City's Response Park City has implemented a secure, digital document management protocol requiring that all income verification forms and re-examination documents be scanned and stored within Yardi, the newly adopted digital management system. This transition ensures that all records are accurately maintained, securely stored, and readily accessible for audits and inspections. By digitizing these critical documents, Park City is enhancing regulatory compliance, reducing administrative inefficiencies, and strengthening data integrity. This approach aligns with best practices for record retention and enables swift retrieval of documentation to meet oversight and inspection requirements.

Corrective Action Plan

2025-002 - Eligibility: Public Housing Operating Fund (FALN #14.850) Criteria HUD regulations of Annual Income (24 CFR § 5.609), Eligible Family Status (24 CFR § 5.403), Citizenship and Eligible Immigrant Status (24 CFR § 5.506) and Disclosure of Social Security Numbers (24 CFR § 5.216) require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were not completed in a timely matter as follows: • In fifteen instances, the income verification form was not found in the file or not performed timely. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Our sample was a statistically valid sample. Effect or Possible Effect The tenant income verification form was not performed timely. Cause The cause is unknown. Identification as a Repeat Finding This finding is a repeat finding (see prior year finding number: 2024-002). Recommendation We recommend that Park City continue to improve its internal processes to ensure tenant income verification is performed timely. Park City's Response A Compliance Manager has been hired to randomly review resident files to make sure all documentation is maintained. An email reminder is sent monthly to managers to insure that EIV for move-ins is done on a timely basis. Contact: Jillian Baldwin Email & Phone Number : jbaldwin@oarkcitycommunities.org (203) 337-8900

Categories

HUD Housing Programs Eligibility

Other Findings in this Audit

  • 1218924 2025-001
    Material Weakness Repeat
  • 1218925 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC HOUSING OPERATING FUND $16.45M
14.872 PUBLIC HOUSING CAPITAL FUND $9.51M
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $1.08M
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $1.05M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $661,863
14.892 CHOICE NEIGHBORHOODS PLANNING GRANTS $326,762
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $158,109
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $37,398
14.901 HEALTHY HOMES WEATHERIZATION COOPERATION DEMONSTRATION GRANTS $22,770