Finding 1314 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2023-11-07
Audit: 2469
Organization: Shore Courts, INC (RI)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The project did not keep necessary eligibility documents for applicants, violating HUD requirements.
  • Impacted Requirements: Missing documents include social security verification, income verification, lease agreements, and birth certificates.
  • Recommended Follow-up: Implement training for property management to ensure adherence to documentation policies and prevent future oversights.

Finding Text

Criteria or Specific Requirement (including statutory, regulatory, or other citation) Per HUD's occupancy requirements (HUD Handbook 4350.3), the project owners are required to determine whether applicants are eligible to occupy the subsidized property and receive housing assistance. Eligibility is determined by federal statute and HUD regulation. Based on the eligibility requirements, project owners must maintain eligibility documentation in the tenant file. Condition During fiscal year ended June 30, 2023, several instances were noted where the Project failed to retain the following required eligibility documentation: verification of social security number, verification of income, lease agreement and birth certificate. Cause This noncompliance was the result of an administrative oversight, in which, the property management personnel did not consistently follow the Corporation's policies and procedures. Effect or Potential Effect Failure to obtain a required eligibility documentation can result in federal assistance to non-qualified individuals.

Corrective Action Plan

Shore Courts, Inc. agrees with the audit finding identified as part of the FY23 Annual Audit performed by Marcum, Inc. The inconsistencies occurred during a transition of personnel and is believed to be an isolated incident associated with orientation. Going forward, controls will be put in place to assure compliance, including, but not limited to, centralization of files, improved orientation procedures and periodic internal reviews conducted by Finance staff.

Categories

HUD Housing Programs Eligibility

Other Findings in this Audit

  • 577756 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $878,619