Finding Text
Assistance Listing (Federal award identification number and year): Section 8 Housing
Assistance Payments Contract, CFDA# 14.195 (Project identification number HAP #CA16L000119)
Auditor non-compliance code: R – Section 8 Program Administration
Finding resolution status: Completed
Universe population status: 116 tenant files
Sample size information: 12 tenant files
Statistically valid sample: N/A
Name of Federal agency: U.S Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition #2024-004: During the year ended June 30, 2024, 1 of the 12 resident
files selected for testing under the HUD Consolidated Audit Guide was missing the most recent
executed HUD-50059 and most recent lease agreement and/or amendment.
Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Corporation must
certify and recertify residents and update other applicable forms in accordance with HUD regulations
and contractual requirements.
Effect: The Corporation is not in compliance with the terms of the HAP Contract or HUD Handbook
4350.3. Current, future, and potentially prior funding under the HAP Contract could be impacted as a
result of these resident files.
Cause: The Corporation was unable to locate the entirety of 1 of the 12 resident files selected for
testing at the Property.
Recommendation: The Corporation should ensure that all resident files are maintained at the site
for each resident of the Property, and the Corporation should ensure that the resident files include all
properly executed and documented resident eligibility forms.
Management's response: Management concurs with the finding and recommendation. The resident
file noted in the statement of condition was for a resident who moved out of the Property during the
year ended June 30, 2024. No further action is required related to this resident's file. However, the
Corporation intends to review and update, as necessary, the other resident files to ensure the Property
is in compliance with HUD requirements.