Finding Text
Criteria:
In accordance with various subsections of 24 CFR Section 982, the Authority is required to:
• obtain and review documentation supporting United States of America citizenship;
• execute release and consent form approved by the Authority or the Department of
Housing and Urban Development ("HUD") authorizing any depository or private source
of income, or any Federal, State, or local agency, to furnish or release to HUD such
information as the Authority or HUD determines to be necessary; and
• verify income listed on the HUD Form 50058.
The Authority is required to have controls in place to ensure recertifications are properly and
timely completed.
Condition:
The Authority did not:
• retain documentation supporting United States of America citizenship;
• obtain proper authorization from tenants to release necessary information; and
• obtain supporting documentation for the income listed on the HUD Form 50058.
The control over review and approval of the annual recertifications was not consistently applied
Context:
Of the 40 selections made, the Authority did not:
• retain documentation supporting United States of America citizenship for 10 selections;
• obtain proper authorization from tenants to release necessary information for one
selections; and
• obtain supporting documentation for the income listed on the HUD Form 50058 for three
selections.
In reviewing the tenant files selected, review and approval of the annual recertifications was not
evident in some files.
Effect:
The Authority was unable to demonstrate:
• United States of America citizenship;
• proper authorization from tenants to release necessary information;
• the income listed on the HUD Form 50058 was accurate.
Recertifications could be improperly completed or missed altogether.
Cause:
The Authority's internal controls in place did not prevent the Authority from missing required
documentation, authorization, and income support in its tenant files. The control over review and
approval of the annual recertifications was not properly implemented.
Questioned Costs:
Unknown
Auditor's Recommendation:
The Authority should review and enhance its internal controls to ensure:
• management obtains and reviews documentation supporting United States of America
citizenship;
• tenants provide release forms prior to obtaining necessary documentation;
• management verifies income listed on the HUD Form 50058; and
• recertifications are consistently reviewed and approved.