Finding Text
Finding 2022-002: Tenant Eligibility - Internal Control Document Maintenance - Significant Deficiency Assistance List Number: 14.157 - Supportive Housing for the Elderly (Section 202) - Capital Advances and Project Rental Assistance Contract Federal Agency: U.S. Department of Housing and Urban Development Federal Award Numbers in Cluster: N/A Federal Award Years in Cluster: January 1, 2022 - December 31, 2022 Pass-Through Entity: N/A Criteria: Under the HUD Occupancy Handbook, Chapter 5: Determining Income and Calculating Rent, the Corporation must have the family's annual income less allowable deduction to calculate the amount of assistance is paid on behalf of the family. Questioned Cost: None. Condition: One of the twelve tenants selected for testing provided incorrect information on the HUD-50059 form. This was not a statistically valid sample. Context: We identified one tenant (out of twelve selected tenants) that did not have the proper support for their listed assets per the HUD form 50059. Effect: There was one tenant whose certification was completed without the proper documentation for determining eligibility. Cause: This was an oversight by the Corporation's personnel. Recommendation: We recommend the Corporation implement procedures over internal controls so that tenant files contain proper documentation.