Finding Text
S2700-005 Finding Reference Number - 2025-001 Significant Deficiency, Compliance Federal Award No. 14.155 and 14.195 U.S. Department Of Housing and Urban Development: Eligibility S2700-006 Finding Resolution Status - IN PROCESS S2700-007 Information On Universe And Population Size - Population consisted of 189 tenant files. Incomplete tenant file documentation limits HUD’s and management’s ability to verify tenant eligibility, income determinations, rent calculations, and ongoing program compliance, and may result in housing assistance payments being made to ineligible tenants or in incorrect amounts. S2700-008 Sample Size Information - A sample of 18 tenant files were selected for testing. S2700-009 Noncompliance Information - Incomplete documentation was retained in tenant files in violation of HUD record retention requirements. S2700-010 Statement Of Condition - During our review of 18 tenant files selected for testing, we noted that 9 files (50%) were missing required documentation necessary to support tenant eligibility, income verification, rent calculation, and/or annual or interim recertifications. S2700-020 Criteria - Per requirements of the U.S. Department of Housing and Urban Development program regulations and the Regulatory Agreement, owners and management agents are required to maintain complete and accurate tenant files, including documentation supporting eligibility, income determinations, rent calculations, and recertifications. Additionally, HUD record retention requirements require tenant files to be maintained for the required retention period. S2700-030 Effect Or Potential Effect - The Project was not in compliance with HUD regulations. S2700-040 Cause - The incomplete tenant file documentation was due to process gaps in ensuring all required documents were consistently collected and retained. Contributing factors included varying staff practices and the absence of a standardized review process to confirm file completeness. S2700-050 Recommendation - We recommend that the Corporation strengthen internal controls over tenant file management by providing additional training to staff and review all tenant files to ensure completeness. S2700-065 Amount Of Questioned Costs - Undetermined. Because required eligibility, income, and recertification documentation was missing from tenant files, the allowability of housing assistance payments related to the affected tenant files could not be determined. Quantifying questioned costs would require a complete review and reconstruction of eligibility documentation and subsidy calculations for the affected tenants for the applicable period. S2700-100 Reporting Views Of Responsible Officials - OPEN Identification As A Repeat Finding: This is not a repeat finding.