Supportive Housing for Persons With Disabilities ? Assistance Listing No. 14.181 Criteria or Specific Requirement: As per 24 CFR 891.410 Selection and Admission of Tenants, the owner must reexamine the income and composition of the household at least every 12 months. Upon verification of the information, the Owner must make appropriate adjustments in the total tenant payment in accordance with federal regulations and must determine whether the household unit size is still appropriate. Condition: Upon performing testing over tenant rent and eligibility, we noted that annual recertifications were not completed timely. Questioned costs: None Context: Annual recertifications for 3 out of 5 tenants tested were not performed. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over timely completion of tenant annual recertifications. Effect: Untimely performance of required annual recertifications could affect the household?s eligibility for project rental assistance payments. Repeat Finding: Yes Recommendation: We recommend that all required annual recertifications be completed timely. Views of Responsible Officials: There is no disagreement with the audit finding. Action taken in response to finding: Sponsor has requested a meeting with senior property management team to discuss lack of transparency with problems in this area. We are in the process of obtaining a current list of clients and their recertification dates. We will monitor monthly and follow up with management company and help from case managers to work with tenants to provide the needed information. Property management has new hires in the pipeline that should be up and running no later than 4/1/2023 to help mitigate the issues. Name of the contact person responsible for corrective action: Angela Westwood, CFO Planned completion date for corrective action plan: Immediately