Finding Text
2022-001 Eligibility U.S. Department of HUD - Public and Indian Housing AL 14.850 Significant Deficiency in Internal Controls Condition: Out of a total applicant population of approximately 420 tenants, 40 applicants were tested and the following deficiencies were noted: ? 1 file had a late annual recertification ? 2 files had missing or incorrect 214 declaration documents, ? 1 file was missing permanent historical documents, ? 1 file was missing a signed flat rent option sheet, ? 2 files were had missing or unsigned 9886 release of information form, and ? 1 file had incorrectly calculated tenant income.Context: The auditor randomly selected 40 tenant files out of the population, which is considered to be a statistically valid sample. The auditor reviewed the tenant files and support to ensure that proper procedure are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority?s ACOP and 24 CFR 960.259 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files. Effect: The Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Cause: The Authority experienced staffing turnover and did not have the available staff to fully implement the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to complete a tenants file. Auditor Recommendations: The Authority should continue to train staff on the established procedures and controls in place to ensure full compliance in regards to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor?s sample. Management Response: See the Corrective Action Plan in this report.