Finding Text
2022-001 Lack of Controls Over Rental Assistance (significant deficiency) Federal program: Continuum of Care Rental Assistance Program Assistance Listing Number: 14.267 Federal agency: Department of Housing and Urban Development Passed through: City of Albuquerque Condition: Lease agreements for 2 clients out of 12 tested. Client LG received rental assistance of $558 in February 2022 and a rental agreement to support the assistance was not in the client?s file. Client RR received rental assistance in November 2021 and a rental agreement to support the assistance was not in the client?s file. Criteria: 24 CFR 582.315 requires program participants enter into an occupancy agreement in order to receive rental assistance. Internal controls over rental assistance payments must include a copy of a lease agreement as supporting documentation for these payments. Cause: The organization did not maintain a copy of the lease agreement. Effect: Rental assistance payments may not have been transmitted to the correct landlords or for the correct amounts. Questioned costs: Not applicable. Auditor?s Recommendation: Rental files should be reviewed by someone other than the preparer after initial intake and at least annually thereafter. The reviewer should develop a checklist to ensure that the client file is complete. All rental calculations should be also be recalculated during the review process. Views of Responsible Officials: TLS has implemented the following procedures to ensure a copy of lease agreements as supporting documents for rental assistance payments. The new CoC/HUD Programs Manager has been auditing all rental assistance clients to ensure each client has the proper documentation. TLS utilizes a flowchart to document all new rental assistance intakes. In addition, there are checklists in every file and a spreadsheet was created to track all documentation.