Finding Text
Criteria In accordance with the Organization’s regulatory agreement with the U.S. Department of Housing and Urban Development’s (HUD) for its Section 811 Project Rental Assistance Contract (PRAC), the Organization is required to determine whether applicants are eligible to occupy the subsidized property and receive housing assistance. Eligibility is determined by the rules and regulations promulgated by HUD. Based on the eligibility requirements, project owners must maintain eligibility documentation in the tenant’s file. Condition During the audit, we reviewed 6 tenant files, in which 5 instances were noted where the tenant files were incomplete, lacking required documentation indicating verification of eligibility: signed application form and consent to release of information form, signed lease agreement, and timely verification of sex offender background check. Cause The noncompliance was the result of administrative oversight, in which, project management personnel did not consistently follow the Organization’s policies and procedures. Effect Failure to obtain the required eligibility documentation can result in federal assistance to non-qualified individuals. Recommendation We recommend that the Organization comply with established policies and procedures to ensure that the proper eligibility documentation is maintained in the tenant’s file. Views of Responsible Officials and Planned Corrective Action 100% of the project staff will go through annual training. The Project Supervisor will continue to conduct quarterly reviews of the files and work with staff to address any discrepancies. Background checks are always obtained before moving in but the problem was with staff misplacing the original documentation and when management reviews the files and the document is missing, the staff obtains a new print out so the date will show a later date. To avoid similar occurrences in the future, the Supervisor who obtains the documents will save a soft copy of the original documents as a backup.