Finding Text
Finding: 2025-004 Program Name: Public Housing Operating Fund (14.850) Federal Awarding Authority: Department of Housing and Urban Development Compliance Requirement: Eligibility Type of Finding: Significant Deficiency; Nonmaterial Noncompliance Criteria: For both family income examinations and reexaminations, the Authority must obtain and document in the file, third-party verification of reported family annual income Condition: The Authority was unable to provide documentation to show income had been verified during reexamination for 3 tenants out of a sample of 40 tenants. Cause: The Authority did not have appropriate controls in place to ensure and document that tenant income was verified for reexaminations. Effect: The Authority was not in compliance with eligibility compliance requirements for the year ended December 31, 2025. Auditor Recommendation: The Authority should implement a process to ensure third party documentation is obtained and maintained in the tenant file to support income reexamination. Questioned Costs: None. Management’s Response: Staff will attend annual file compliance training and upcoming rent calculation training to reinforce documentation requirements and ensure accurate income determinations going forward. We have also updated our file checklists, staff are reviewing all tenant files and we have an internal file review process, as noted in Finding 2025-002, to help ensure staff obtain and maintain all required third-party documentation for income reexaminations.