Finding Text
2022-002: Lack of Documentation for Review of Tenant Files Federal Departments: Department of Housing and Urban Development Assistance Listing #: 14.239 Internal Controls Significant Deficiency Category of Finding ? Eligibility Criteria ? Uniform Guidance requires in S200.303 that nonprofit organizations establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition ? Personnel at the Corporation were unable to produce documentation supporting the review of tenant files for tenant eligibility. Cause ? The Corporation has an informal process around tenant file review. It was clearly communicated to the team that reviews are required, and checklist were provided, but it was not clearly communicated that documentation needed to be maintained to show the review occurred. Effect ? A tenant could be ineligible and it would not be caught as a file review was not completed, or the review is not properly completed and no one would know since there was no documentation of the review or lack of review. Recommendation ? We recommend that management create written tenant file review policies and procedures which include a requirement that the review process be documented when reviews are completed. Auditee?s comments and response ? The Corporation created written policies and procedures for affordable housing program compliance and review of the applicable tenant files in fiscal year 2023 and is in the process of adopting these policies and procedures. Responsible party for corrective action: Nancy Cashman, Executive Director