Finding Text
FINDING NO. 2023-002: INEFFECTIVE OPERATION OF INTERNAL CONTROLS BY MANAGEMENT Management conducted recertification of the Project’s tenants; however, cannot locate any tenant files for the fiscal year under audit. CRITERIA: According to HUD Handbook 4350.3, owners must conduct a recertification of family income and composition at least annually by the tenant’s recertification anniversary date. Owners then must recompute the tenants’ rents and assistance payments, if applicable, based on the infomiation gathered. Owners must also keep all tenant file and recertification documentation as required by HUD. CAUSE OF CONDITION: Management did not have systems in place to ensure tenant files and recertification documentation were kept in accordance with HUD requirements. RECOMMENDATION: Auditor recommends management review HUD Handbook 4350.3 and put proper internal controls in place to ensure tenant files are in compliance with HUD and kept in accordance with HUD requirements.