Finding 403156 (2023-002)

Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with the regulatory agreement. Condition During the performance of our audit, we noted that 2 out of 6 tenants tests did not have annual re-certification and income verifications performed. Cause Management’s polices and procedures with respect to the determination of eligibility and maintenance of lease files in accordance with the regulatory agreement were not consistently followed. Effect Failure to determine eligibility and maintaining tenant lease files could result in units being rented to ineligible tenants. Prior Year Finding None noted. Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that tenant eligibility is correctly determined and that lease files are properly maintained in accordance with the regulatory agreement.