Finding Text
Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing Number: 14.181 Program: Supportive Housing for Persons with Disabilities Criteria: HUD requires that controls are implemented to ensure tenant eligibility with HUD requirements. Condition: Management did not complete reviews of tenant file applications and recertifications during a portion of the year to ensure compliance with HUD eligibility requirements. Cause: Staff turnover and shortages resulted in the review procedure not being completed. Effect: The lack of effective review procedures could have resulted in the Project having tenants that did not meet the eligibility requirements. All tenants tested during the audit were eligible to participate in the program. Questioned Costs: The amount of questioned costs cannot be determined. Context: We tested 3 of 13 tenant files noting that none of the applications or recertifications completed during the year were reviewed. Recommendation: We recommend management implement timely review of all tenant files after they have been prepared to ensure all participants in the program meet the eligibility requirements. Management's Response: The compliance oversight of the HUD project was maintained by the same individual from their acquisition during 2016 through her retirement in 2022. Due to staffing shortages after the employee's retirement, there was a portion of the year when no review of tenant applications and recertifications was done prior to completion. Management has filled that position and subsequently reviewed applications and recertifications prior to submission.