Finding Text
FINDING NO. 2022-001: INEFFECTIVE OPERATION OF INTERNAL CONTROLS BY MANAGEMENT Management did not conduct recertifications of the Project?s tenants during the ?scal year under audit. CRITERIA: According to the HUD Handbook 4350.3, owners must conduct a recertification of family income and composition at least annually by the tenant?s recertification anniversary date. Owners must then recompute the tenants' rents and assistance payments, if applicable, based on the information gathered. If a new recerti?cation is not submitted within 15 months of the previous year?s recertification anniversary date, HUD will terminate assistance payments. CAUSE OF CONDITION: Management had dif?culties setting up the OneSite Leasing software in order to conduct the recertifications in a timely manner. RECOMMENDATION: Auditor recommends management review HUD Handbook 4350.3 and put proper internal controls in place to ensure recerti?cations are completed as required by HUD.