Finding 980586 (2023-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-06-28
Audit: 310932
Organization: Park City Communities, INC (CT)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: Tenant files are missing required documentation, including signed rent adjustment letters and income verification forms.
  • Impacted Requirements: Compliance with HUD regulations on tenant eligibility documentation.
  • Recommended Follow-Up: Park City should enhance internal processes to ensure all necessary documents are collected and stored properly.

Finding Text

2023-002 - Eligibility: Public Housing Operating Fund (FALN #14.850) Criteria HUD regulations of Annual Income (24 CFR § 5.609), Eligible Family Status (24 CFR § 5.403), Citizenship and Eligible Immigrant Status (24 CFR § 5.506) and Disclosure of Social Security Numbers (24 CFR § 5.216) require the collection and retention of certain tenant information to document the eligibility determination for each recipient. Condition The results of our testing indicated that certain items were unable to be located in the file, as follows: • In two instances, the rent adjustment letter was not signed by tenant. • In five instances, the rent adjustment letter for the audit year was missing. • In four instances, the income verification form was missing. Questioned Costs Not determinable. Context We selected a sample of 60 files for review. Our sample was a statistically valid sample. Effect or Possible Effect The tenant file documentation was incomplete. Cause The cause is unknown. Identification as a Repeat Finding This finding is not a repeat finding. Recommendation We recommend that Park City improve its internal processes to ensure tenant files contain the required documentation. Park City's Response Rent Adjustment Letters Park City has implemented the requirement that all residents are to complete and sign their annual recertification forms within thirty days of receipt. This policy aims to streamline our administrative processes and ensure that all resident information remains up to date. Also, as PCC transitions to Rent Café for recertifications, we anticipate this will make the process easier for residents and staff. Income Verification Forms Park City requires all income verification forms and re-examination documents to be scanned and securely stored in Yardi, our new digital management system. Storing documents digitally helps us maintain compliance with regulatory requirements by ensuring that all records are accurately maintained and readily available for audits and inspections.

Categories

HUD Housing Programs Eligibility

Other Findings in this Audit

  • 404143 2023-001
    Material Weakness Repeat
  • 404144 2023-002
    Material Weakness
  • 404145 2023-001
    Material Weakness Repeat
  • 980585 2023-001
    Material Weakness Repeat
  • 980587 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $17.17M
14.872 Public Housing Capital Fund $7.34M
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $993,832
14.871 Section 8 Housing Choice Vouchers $540,536
14.870 Resident Opportunity and Supportive Services - Service Coordinators $194,168
14.896 Family Self-Sufficiency Program $14,226