Finding 373 (2023-002)

Finding 2023-002: Tenant File Internal Controls Housing Choice Voucher Cluster, 14.871 and 14.879 Material Weakness – Eligibility Criteria: The Agency is required to establish effective controls to ensure the Agency complies with the applicable federal requirements governing eligibility. Condition: The Agency’s internal control documentation dictates a supervisor perform monthly internal audits of the tenant files to ensure compliance with eligibility and this review should be documented with a checklist within the tenant file and a log of the reviews be maintained. During our audit, we noted the Agency only did the supervisory reviews in the last month of the fiscal year and was not doing them monthly as in accordance with the Agency’s Standard Operating Procedures. Further, the Agency had a new staff that was responsible for calculation tenant eligibility that did not have documented supervisory reviews for his first five months of employment. Cause: The Agency’s staff indicated they were behind on reviews. Effect or Potential Effect: The Agency did not have effective controls over tenant eligibility. Recommendation: The Agency follow its internal control procedures it has established. The log should be completed by the supervisor monthly and the Executive Director should monitor to ensure its being done. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.