Finding Text
Finding: 2025-002 Program Name: Section 8 Project Based Cluster (14.195-CL). Federal Awarding Authority: Department of Housing and Urban Development Compliance Requirement: Eligibility Type of Finding: Significant Deficiency; Nonmaterial Noncompliance Criteria: From a sample of 40 files, the Authority was unable to provide the following documents: - Four citizenship declaration forms - One social security card - Two Personal Declaration and Questionnaire forms - Two Form 9887 Notice and Consent for Release of Information. - Eight files did not contain documentation supporting the tenant’s current year income used in the calculation of rent Condition: The Authority was unable to provide information necessary to determine eligibility for all applicants selected for testing. Cause: The Authority does not have a process in place to ensure all documentation necessary to complete the tenant reexamination process is obtained. Effect: The Authority did not maintain all required documentation in the tenant files selected for testing. Auditor Recommendation: The Authority should implement a system to review files for appropriate supporting documentation after each reexamination. Questioned Costs: None. Management’s Response: We have updated our file checklists to better ensure that staff collect all required supporting documentation needed to determine eligibility during each reexamination. Staff received training on the new checklist format in late 2025 and have begun using the updated checklists. We are also reviewing all participant files to verify they are complete and compliant. In addition, we have an internal file review process that includes quality control reviews of a percentage of files at each site to help ensure required documentation is present and program requirements are being met. Staff will also attend annual file compliance training to reinforce documentation requirements and support continued compliance going forward.