Finding Text
2022-003 Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public and Indian Housing ALN #: 14.850 Award Period: 10/1/19-9/30/20 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Statement of Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: None Context: Testing of 25 tenant files identified an exception in 2 files as follows: ? 1 file had a lease agreement that was not signed by all adult household members. ? 5 files did not contain proper documentation of the Section 214 Declaration of Citizenship Status form. ? 1 file did not have documentation of any income verification by the housing authority. ? 4 files did not have a Release of Information that is required to obtain certain personal information, signed by all adult members of the household. ? 3 files did not contain documentation of the required access to the tenant?s EIV. Cause: The Authority did not follow their eligibility intake procedures properly. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: No Recommendation: I recommend that the Authority continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.