Finding 638053 (2022-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-23

AI Summary

  • Core Issue: Annual tenant recertifications were not completed on time for 3 out of 5 tenants, violating federal requirements.
  • Impacted Requirements: Compliance with 24 CFR 891.410, which mandates annual income and household composition reviews.
  • Recommended Follow-Up: Ensure timely completion of all required annual recertifications to maintain eligibility for rental assistance.

Finding Text

2022 ? 002 Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Listing Number: 14.181 Award Period: 2022 Type of Finding: Material Weakness in Internal Control over Compliance 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.

Categories

Eligibility Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 61607 2022-002
    Material Weakness Repeat
  • 61608 2022-003
    Material Weakness
  • 61609 2022-004
    Significant Deficiency
  • 61610 2022-005
    Significant Deficiency
  • 61611 2022-002
    Material Weakness Repeat
  • 61612 2022-003
    Material Weakness
  • 61613 2022-004
    Significant Deficiency
  • 61614 2022-005
    Significant Deficiency
  • 638049 2022-002
    Material Weakness Repeat
  • 638050 2022-003
    Material Weakness
  • 638051 2022-004
    Significant Deficiency
  • 638052 2022-005
    Significant Deficiency
  • 638054 2022-003
    Material Weakness
  • 638055 2022-004
    Significant Deficiency
  • 638056 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $125,784