Finding 571930 (2024-004)

2024 - 004 Recertification of Tenant Eligibility and Assistance; Agency: U.S. Department of Housing and Urban Development (HUD); Assistance Listing Number: 14.181; Program: Supportive Housing for Persons with Disabilities; Criteria: HUD requires that controls are implemented to ensure tenant eligibility with HUD requirements.; Condition: Management did not complete reviews of tenant file applications and recertifications during a portion of the year to ensure compliance with HUD eligibility requirements.; Cause: Staff turnover and shortages resulted in the review procedure not being completed.; Effect: The lack of effective review procedures could have resulted in the Project having tenants that did not meet the eligibility requirements. All tenants tested during the audit were eligible to participate in the program.; Questioned Costs: The amount of questioned costs cannot be determined.; Context: We tested 4 of 16 tenant files noting that one of the tenant’s recertifications was not completed by the time required.; Recommendation: We recommend management implement timely review of all tenant files after they have been prepared to ensure all participants in the program meet the eligibility requirements.; Management's Response: Management agrees with the finding.