Finding Text
Condition: In three tenant files selected from a sample of five tenant files, several documents were
not present. These missing items include documentation of move in unit inspections (3), move out
inspection (1), birth certificates (1), income verification (1), signed lease (1), and pre-rental
application (1). Also, one tenant file’s security deposit listed on the recertification does not agree
to listing, as required by HUD.
Criteria: Properly maintained tenant files are required to include all items listed above. 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. HOC will continue to go through the tenant files to ensure
all documentation is present in the files.