Finding 779 (2023-003)

Public and Indian Housing AL #14.850 Material Weakness Internal Control Over Compliance Eligibility Checklists 2023-003 Condition: The Commission uses internal control checklists to demonstrate compliance with the various eligibility requirements. During audit fieldwork, we identified two instances in which the checklists were used, but steps related to background checks were not complete. In addition, there was no documentation maintained to prove these checks were performed. Criteria: All eligibility requirements must be verified prior to determining tenant eligibility. Cause: The Commission has experienced turnover in public housing positions. Effect: Tenants may have been allowed to participate in the program without being eligible. Context: We identified 2 instances of incomplete eligibility checklists in our testing of 40 tenants from a population of 575 tenants. The sample was a statistically valid sample. Repeat of Prior Year Finding: No Auditor’s Recommendation: We recommend the Commission provide further training for program staff and implement periodic reviews of tenant files to ensure internal control processes are followed and eligibility documentation is maintained. View of Management: Management agrees with the finding. A response can be found in the Corrective Action Plan.