Finding Text
Finding 2024-001 – Tenant Move Outs
Title and CFDA Number of Federal Program: Section 202 - Capital Advance – 14.157.
Type of Finding: Financial Statements and Federal Award.
Finding Resolution Status: Completed.
Information on Universe and Population Size: Population of seven tenant move out files.
Sample Size Information: Three tenant move out files.
Identification of Repeat Finding and Finding Reference Number: This is not applicable.
Criteria: Three tenant move out files were selected using the haphazard method based on a
population of seven tenants. Based on the selection, two of the three tenant files were missing
various supporting documentation.
Statement of Condition: Kanesville’s tenant move out files omitted required elements in
accordance with the HUD handbook and PRAC contract.
Cause: Management agent did not monitor tenant move out files and retain required
information.
Effect or Potential Effect: Due to a lack of documentation, inaccurate tenant move out
information can be verified.
Auditor Code: S – Internal Control Deficiency.
Questioned Costs: $0.
Reporting View of Responsible Officials: Management agent will review tenant move out files to
ensure they are in compliance with HUD standards. This finding occurred when M3 was
managing the property. Kanesville hired a new management agent that is familiar with HUD
standards.
Context: See effect above.
Recommendation: Tenant move out files are being maintained by the new management agent
to ensure compliance with HUD standards.
Auditor Summary of the Auditees Comments on Findings and Recommendations: Document
and maintain tenant move out files information in the future for inspection.
Response Indicator: Agreed.
Completion Date: August 16, 2024
Reporting Views of Responsible Officials / Corrective Action Plan / Management Agent
Response: Management agent is currently documenting tenant move out files in compliance
with the HUD handbook and PRAC contract.