Core Issue: Missing tenant signatures on move-in and move-out inspection reports indicate a significant deficiency in internal controls.
Impacted Requirements: Inspection reports must be signed by both the tenant and the housing manager to meet compliance standards.
Recommended Follow-Up: Ensure all inspection reports are signed by tenants and review policies to prevent future oversights.
Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 223(f) Mortgage Insurance for the Purchase or Refinance of Existing
Multifamily Housing Projects
Assistance Listing Number: 14.155
Federal Award Identification Number and Year: MN46T851010-23Z-2017
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: N/A
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Inspection reports should be signed both the tenant and the housing
manager.
Condition: One move-in and one move-out inspection report was missing the tenant’s signature.
Questioned costs: None
Cause: Management oversight as part of the unit inspection process for move-ins and move-outs.
Effect: No effect on the financial statements.
Repeat Finding: No
Recommendation: The Project should ensure that all inspection reports are signed by the tenant.
Views of responsible officials: Management will review policies and procedures to ensure
compliance is met going forward.
Categories
Internal Control / Segregation of DutiesProcurement, Suspension & DebarmentHUD Housing ProgramsSignificant Deficiency