Finding Text
Information on Universe Population Size: Population size was 16 files.
Sample Size Information: Five tenant files were tested.
Identification of Repeat Finding: Repeat finding. See 2022-002.
Criteria: HUD requires that third party verification, confirmations and back up documentation for tenant annual re-certifications be maintained in the files. Additionally, HUD requires certain tenant forms and signatures to be kept in the tenant files.
Condition: Some tenant files were missing required documents.
Cause: Oversight by property manager.
Effect: Auditor could not verify the tenant income and expense amounts in the annual re-certifications at the time of testing.
Context: Auditor selected tenant files to test the tenant income and allowable expenses and noted several files in which the EIV forms were not present for income verification and/or income and/or expenses could not be recalculated due to lack of back-up documentation.
Recommendation: A procedure be implemented to ensure that the Project remains in compliance with its regulatory agreement and all required documentation is present in the files.