Finding Text
Tenant Eligibility Requirements. Federal Program: Public and Indian Housing, Federal Assistance Listing No. 14.850. Criteria or specific requirement: Eligibility requirements in accordance with 24 CFR 960 relating to admission to, and occupancy of, public housing. Condition: The audit identified exceptions in tenant files exams relating to waiting list, income verification, and executed Forms 9886. Context: The audit identified one rent calculation errors, five waiting list exceptions, and one file not containing an executed Form 9886 from a sample 23 tenants reviewed. Effect: The errors noted are due to lack of supporting documentation. Cause: Weakness in internal controls over tenant’s annual certifications relating to proper documentation and calculation of rent. Identification as a repeat finding: This is a repeat finding (See 2022-003). Recommendation for Corrective Actions: Establish procedures for management review and supervision over tenant’s annual certifications. Specific internal control procedures should be implemented to ensure, for both family income examinations and reexaminations, documentation in the family file of (1) waiting list documentation; (2) properly executed rent choice documentation; (3) utility allowance schedule annually and (4) other factors that affect the determination of adjusted income or income- based rent in accordance with CFR section 960. Views of Responsible Officials and Planned Corrective Actions: We will review tenant’s files for the deficiencies identified above and implement new internal control procedures to correct these conditions. We will also provide increased supervision and training over this area. We anticipate a complete resolution of this type of error by February 29, 2024.