2022-002 Department of Housing and Urban Development, Assistance Listing Number 14.239, Home Investment Partnership Program and 14.267 Continuum of Care Program: Control Deficiency Criteria: To meet the various aspects of program compliance, tenant files should have documentation that includes income verification, eligibility determination and current rental agreements. Condition: Tests of tenant files identified instances .where not all documentation was able to be located. Cause: Housing Initiatives, Inc. does not have a consistent process and recordkeeping system that ensures all tenant files are complete or that all applicable records are available timely. Effect: Without the necessary documentation to verify that tenants meet the various compliance requirements, there may be instances of noncompliance. Recommendation: We recommend that Housing Initiative develop processes and procedures to ensure that all tenant files are complete and include all necessary documentation to verify compliance. Response: Housing Initiative, Inc. is aware of the compliance requirements and the importance of complete tenant files. We have been working towards updating records and utilizing electronic records systems which may have resulted in not being able to find the documentation during testing. We feel tenant files and records should be complete in the future. Housing Initiatives, Inc.'s Corrective Action Plan: Regarding financial reporting finding, Housing Initiatives staff will continue to work with the same auditing firm to ensure that reporting for the current year is in line with GAAP requirements. In part, this will involve strengthening the agency's relationship with a third-party accounting firm. A recent merger involving the firm that Housing Initiatives used for the past several years provides an opportunity to involve a different firm. As regards the second finding, Housing Initiatives recognizes the importance and requirement of maintaining all required documentation for clients served. A review of all files will be implemented to reveal any incomplete documentation, and then steps taken to address any omissions.