Finding 971754 (2023-001)

-
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-04-30

AI Summary

  • Core Issue: The Corporation did not provide enough documentation to confirm that two participants were admitted from the waiting list in the correct order.
  • Impacted Requirements: HUD mandates that admissions must follow the waiting list order and require proper documentation to support this process.
  • Recommended Follow-Up: Ensure that documentation practices are improved to maintain clear records of applicant selection order by the completion date of December 31, 2023.

Finding Text

Finding Type - Immaterial noncompliance with major program requirements. Title and Assistance Listing Number of Federal Program - 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects. Finding Resolution Status - None. Information on Universe and Population Size - The Corporation had 14 move ins during the period under audit. Sample Size Information - A sample size of 2 was selected for verification that individuals were selected for admission from the waiting list in the appropriate order. Identification of Repeat Finding and Finding Reference Number - N/A. Criteria - HUD requires the Corporation select participants from the waiting list in accordance with its admission policies and maintain documentation which shows that, at the time of admission, the participant was selected in the appropriate order based on their position on the waiting list. Statement of Condition - The Corporation was unable to provide sufficient documentation to verify that two of the participants selected for admission was selected in the appropriate order based on their position on the waiting list. Cause - The Corporation failed to maintain sufficient documentation as to why applicants positioned ahead of the samples were not selected for admission prior to our samples. Effect or Potential Effect - The Corporation was unable to sufficiently support that the applicants were selected from the waiting list in the appropriate order in accordance with admission policies. Auditor Noncompliance Code - Z Other Recommendation - Appropriate documentation should be maintained regarding the order of selection of applicants from the waiting list. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management acknowledges the lack of sufficient supporting documentation and has taken measures to improve their documentation process surrounding the selection of applicants from the waiting list. Response Indicator - Agree. Completion Date - December 31, 2023. Response - Management has taken measures to improve their documentation process surrounding the selection of applicants from the waiting list.

Categories

HUD Housing Programs Procurement, Suspension & Debarment

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $16.92M
14.195 Section 8 Housing Assistance Payments Program $1.49M
14.195 Covid-19 - Section 8 Housing Assistance Payments Program $4,298