Finding Text
Finding reference number: 2020-002
Assistance Listing title and number (Federal award identification number and year): Section 8 new construction and substantial rehabilitation Assistance Listing No. 14.182 (NJ39H085044 and 1979)
Auditor non-compliance code: R – Section 8 Program Administration
Finding resolution status: In process
Universe population size: 137 tenant files
Sample size information: 15 tenant files
Statistically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of Condition 2020-002 (Assistance Listing No. 14.182): During the year ended December 31, 2020, 15 of the 15 resident files selected for testing under the HUD Consolidated Audit Guide lacked properly executed and documented resident eligibility forms.
Criteria: In accordance with the Housing Assistance Payments Contract and HUD Handbook 4350.3, the Management Agent must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements.
Effect: The Corporation is not in compliance with the terms of the Housing Assistance Payments Contract or HUD Handbook 4350.3. Current, future, and potentially prior funding under the Housing Assistance Payments Contract could be impacted as a result of these resident files.
Cause: Upon taking over management of the property, the Management Agent received incomplete resident files from the previous management agent.
Recommendation: The Management Agent should ensure that all resident files are maintained at the site for each resident of the Property, and the Management Agent should ensure that the resident files include all properly executed and documented resident eligibility forms.
Completion date: In process
Management Response: Agree. Management intends to update all resident files to include all resident eligibility forms during the year ended December 31, 2021.