Finding Text
2023-001 – Eligibility - Tenant File Documentation (Repeated from Prior Year)
Finding Type. Immaterial noncompliance; Significant deficiency in internal control over compliance (Eligibility)
Federal program
U.S. Department of Housing and Urban Development
· Supportive Housing for the Elderly (ALN# 14.157)
Criteria. Under Section 202 of the National Housing Act of 1959, Project management is responsible for performing an examination of and obtaining support for items of income, assets, and expenses, for proper calculation of tenant assistance payments for applying residents and annual recertification and calculation of such information thereafter, and for obtaining signed and properly completed forms.
Condition. Out of a sample of 8 tenant files, we noted:
1) One out of eight instances where a tenant EIV was not run within 90 days of move in;
2) One out of eight instances where a tenant's saving and checking accounts were not verified by a third party;
3) One out of eight instances where the incorrect balance was used to determine the tenant's checking account balance;
4) Two out of eight instances where a copy of the tenant's security deposit was not maintained in the tenant file;
Cause. Management does not appear to have sufficient internal control procedures in place to properly implement all of HUD's program requirements.
Effect. As a result of this condition, certain tenant files did not contain all required supporting documentation.
Questioned Costs. No costs are required to be questioned as a result of this finding, inasmuch as no unallowable expenditures were noted.
Recommendation. We recommend management strengthen their current policies and follow a documented review process for all new and existing resident files and ensure that this review occurs on a timely basis. Further, we recommend management ensure all proper supporting documentation is maintained in the residents' files.
View of Responsible Officials. Management agrees with this comment and has prepared a corrective action plan.