Finding 3971 (2023-001)

-
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2023-12-12
Audit: 6251
Organization: Asi Freeport, Inc. (MN)

AI Summary

  • Core Issue: One tenant file lacked a signed lease and disability form, which is required for compliance.
  • Impacted Requirements: All tenant files must include a signed lease and disability form to ensure proper HUD rent subsidy calculations.
  • Recommended Follow-Up: Remind project personnel to secure all necessary documentation during tenant move-in to prevent future issues.

Finding Text

FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 - Condition: One of three tenant files tested did not contain a signed lease and a signed disability form. Criteria: All tenant files should include the tenant's signed lease and a signed disability form. Effect: The Project may not have collected the proper amount of HUD rent subsidy. Context: A sample of tenant files were selected for testing tenant information in the process of computing the tenant share of monthly rent. The test found one file did not include a copy of the tenant's signed lease or a signed disability form. The non compliance did not have a financial effect. The details and results of the sample are as follows: Population - 22, $123318, Sample - 3, $13836, Not in compliance -1, $3384, Questioned costs - $3384. Cause: The management company failed to retain the tenant's signed lease and a signed disability form during the certification process. Recommendation: Project personnel should be reminded that obtaining a signed lease and a signed disability form is an important step in tenant management. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Project personnel will be reminded to obtain the proper documentation during the move-in process. Questioned Costs - Department of Housing and Urban Development - $3,384. Non-compliance code - R

Corrective Action Plan

FINDING 2023-001: SECTION 811, ASSISTANCE LISTING NUMBER 14.181 - The tenant file did not contain a signed lease or a signed disability form. Recommendation: Project personnel should be reminded that obtaining a signed lease and a signed disability form is an important step in tenant management. Action Taken: The Project agrees with the finding. Project personnel will be reminded to obtain the proper documentation during the move-in process. The tenant moved out in March 2023; therefore, management should consult with HUD to determine if remediation is required.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $123,318