Finding Text
Finding No. 2023-002
Condition – As of December 13, 2024, management was unable to provide tenant income documents for
2 tenant files of 7 tenant files sampled out of the population (66 total tenant files).
Management was unable to provide tenant security deposit documents for all 3 move-ins and move-outs
sampled out of the population (9 total move-ins and 13 total move-outs during the audit period).
Criteria – Occupancy personnel are expected to have a strong knowledge of the various compliance
requirements regarding tenant eligibility and tenant security deposit as explained in the HUD regulatory
agreement. Controls should be in place to ensure noncompliance is detected and corrected on a timely basis.
Cause – The system of quality review that was in place was not sufficient to detect all instances of
noncompliance with file documentation.
Effect – There is a possibility that, under the HUD regulatory agreement, HUD may invoke any remedies
available by law to redress the breach or compel compliance by the Organization with the tenant file
requirements.
Recommendation – We recommend that control systems are put in place to ensure there are regular reviews
of tenant files to enable management to identify deficiencies and provide training, guidance, and procedures
to eliminate errors and issues of noncompliance in the future.
Auditor noncompliance code – S – Internal Control Deficiencies
Reporting views of responsible officials - Management understands the importance of the matter and the
issues that arise if tenant files are not properly maintained. The circumstances surrounding the documents
that were not provided were reviewed, and a procedural change has been implemented.
Concur or do not concur with this finding - Concur
Agree or disagree with auditor recommendations – Agree
Completion date or proposed completion date – December 18, 2024
Actions taken or planned on the finding – The Organization will implement procedures to ensure the
management agent maintains complete tenant files.