Finding Text
Material Weakness – Special Tests and Provisions – Waiting List Administration and Tenant Selection Criteria The Project is responsible for establishing and maintaining effective internal controls to ensure eligible applicants be selected from the waiting list in accordance with established preferences and the chronological order of application, unless a documented exception is permitted. The Project is responsible for maintaining effective internal controls to ensure applicants are selected and admitted in compliance with HUD requirements and its approved Administrative Plan. Condition During our testing of tenant admissions, we noted that applicants were admitted to the Project without being selected in accordance with the approved waiting list. Cause Turnover in staffing and lack of oversight led to internal controls not being followed in compliance with waiting list requirements. Questioned Costs Not Applicable. Effect The Project cannot demonstrate that housing opportunities were offered fairly and consistently to eligible applicants. Failure to follow waiting list procedures increases the risk of noncompliance with HUD requirements and may result in eligible applicants being improperly bypassed. Context We noted 2 of 5 tenants selected from the continuously rolling waiting list were selected in the wrong order. In reviewing the remainder of the waiting list, we noted other applicants were offered out of order as well. Repeat Finding This is not a repeat finding. Recommendation We recommend the Project implement supervisory review procedures over tenant admissions, require documentation of all waiting list exceptions, and periodically monitor compliance with waiting list selection procedures. Response The Project agrees with the finding and will implement controls to ensure proper selection from the waiting list.