Finding Text
2023-001 Eligibility
Public and Indian Housing Program - AL No. 14.850
Significant deficiency in internal control
Other matter required to be reported in accordance with Uniform Guidance
Condition: Out of an approximate population of 2,083 tenants, 44 tenant files were tested and the following deficiencies were noted:
• 1 file was missing the support packet for the fiscal year 2023 recertification including but not limited to income support, third party verification, and flat rent sheet,
• 3 files had late recertifications,
• 2 files were missing support of inspection,
• 1 file was missing tenant wage support, and
• 1 file was missing a valid 9886 form.
Context: The auditor haphazardly selected 44 tenant files out of the population, which is considered to be a statistically valid sample. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files.
Criteria: The Authority’s Admissions and Continued Occupancy Policy (“ACOP”) and 24 CFR 960.259 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files.
Cause: The Authority experienced staffing turnover and did not have the available staff to fully implement the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to complete a tenant file.
Effect: The Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided.
Questioned Costs: None.
Auditor’s Recommendations: The Authority should consider reevaluating their established procedures and controls in place to ensure full compliance in regards to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample.
View of Responsible Officials: See Corrective Action Plan.