Finding Text
Condition: Two tenant files selected from a sample of five tenant files tested were missing the
move in inspection and tenant security deposit listed on lease does not agree to listing, as
required by HUD.
Criteria: Properly maintained tenant files are supposed to include all required items.Cause: Prior management had an oversight in internal controls to ensure that all required
documents are maintained in tenant files. Housing Opportunities Corporation (HOC) took over as
management agent in April 2023.
Effect or Potential Effect: The Corporation is not in compliance with its Project Rental Assistance
Contract and Tenant Selection Plan.
Recommendation: Management should design and implement internal controls to ensure all
required documentation is collected and maintained for all tenants and will conduct an inspection
of all tenant files to ensure completeness.
Views of Responsible Officials and Planned Corrective Actions: Management agrees with the
auditor’s finding and recommendation. A new management agent was hired in April 2023 to
oversee the implementation of a comprehensive internal control system, ensuring all tenant files
include required documentation.