Finding 635143 (2022-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-06-27

AI Summary

  • Core Issue: The Authority is not following HUD regulations for tenant eligibility and rent calculations, leading to multiple documentation gaps.
  • Impacted Requirements: Key documents missing include signed leases, income verifications, citizenship forms, and annual rent determination forms.
  • Recommended Follow-Up: Establish proper procedures for tenant verification and rent calculations, and implement a review process to catch errors early.

Finding Text

2022-002 Internal Controls over Documentation in Tenant Files (Eligibility) Criteria: HUD regulations require that the Authority perform certain prescribed verification procedures and obtain the required documentation to assure that tenants qualify for low income housing and that the amount of rent charged to tenants are calculated according to HUD rules and regulations. Condition: The authority had the following noncompliance instances out of the 17 tenant files selected for testing: ? 1 file did not have the appropriate annual recertification performed ? 5 files did not contain a signed lease by the tenant ? 10 files did have any income verifications performed ? 3 files did not contain appropriate verification of social security numbers of household members ? 4 files did not contain a current Form 9886 ? 4 files did not have the signed citizenship forms ? 17 files did not have the annual rent determination forms ? 15 files did not have the appropriate lead based paint acknowledgement forms Questioned Costs: None. Effect: The Authority is not in compliance with applicable HUD regulations regarding tenant eligibility and rent calculations. Cause: The Authority does not have proper procedures in place related to tenant certification and does not have a review procedure in place to detect errors timely. Recommendation: The Authority should establish proper procedures to insure that the Authority is in compliance with HUD rules for verification of tenant information and calculation of tenant rent. In addition, the Authority should implement review procedures in order to detect errors timely. Management Response: We will implement controls and procedures to ensure proper verification of tenant information and rent calculations are performed. We will also implement a review process to detect errors timely.

Categories

Eligibility HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 58700 2022-001
    Material Weakness
  • 58701 2022-002
    Material Weakness
  • 635142 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $755,059
14.872 Public Housing Capital Fund $358,569