Finding Text
Statement of Condition: During the review of tenant files it was noted there was insufficient documentation of a second party review on all files, 2 out of 25 files selected for testing did not report State of Michigan amounts for SSI, 2 out of 25 files selected for testing reported family contributions that were not taken into consideration when HAP was calculated, 1 out of 25 files selected for testing showed employment amounts were taken from EIV rather than from third party support resulting in the wrong employer and wages being reported, and it was noted there was a lack sufficient support for zero income individuals. Criteria: E. ELIGIBILITY: 2 CFR Part 200 Subpart F requires a PHA to have an eligible operating fund expenditure that is due and payable within 3 days of disbursing funds from the capital fund. Perspective Information: The Commission did not have effective internal controls over eligibility for the federal program. Questioned Costs: Unknown. Effect: The Commission is not in compliance with the requirements as outlined in the eligibility section above. Cause: Lack of controls over grant requirements. Recommendation: The Commission should implement policies and procedures to ensure all federal compliances are followed pertaining to eligibility. Management?s Response: New management has taken over the Commission subsequent to the period under audit and will ensure all staff members involved in the annual recertification and interim examinations are properly trained with respect to the rules and regulations pertaining to this process. Management will also implement stronger internal controls and policies regarding rent certifications.