Audit Report - Multifamily 9% Housing Tax Credit Application and Awards processes

¾¾¾¾¾December 11, 2007 To the Audit Committee and Governing Board of the Texas Department of Housing and Community Affairs Re: Internal Audit Report on the 9% Competitive Housing Tax Credit Program – Compliance Review of the Application and Award Processes The Internal Audit Division has completed its audit on the application and award processes for the Department’s 9% Competitive Housing Tax Credit Program. Generally, the application and award functions of the 9% Competitive Housing Tax Credit Program ensure that applications meet the criteria for awards and that awards are given to the most competitive applications in each region. Errors that should have resulted in deficiencies were identified in five of the seven application files tested, however, we did not identify any applications that should not have been awarded tax credits since the deficiencies could have been corrected. We noted opportunities for the Department to strengthen the application and award processes by: ensuring two complete, independent reviews of each application, confirming that responses to administrative deficiencies are complete and correct, linking or referencing the responses to the original documents to facilitate the application review process, ensuring that all Qualified Allocation Plan and Rules (QAP) requirements are captured on the review sheets used in assessing the applications, and posting all of the required application log ...