Audit 327509

Information on the federal program: Federal Award Identification: ALN.881 Moving to Work Demonstration Program, Federal Agency: Department of Housing and Urban Development, Pass-through entity: N/A. Perspective: During our review of tenant files prepared by management, we performed procedures to audit compliance with program regulations and management controls over compliance. Criteria: The Authority must properly design, implement, and maintain effective internal controls to ensure that program participants are qualified and HUD program regulations are followed. The Authority's administrative plan includes specific procedures for obtaining documentation from third parties to support income reported by voucher holders. The administrative plan also defines circumstances when self certification of income by voucher holders is acceptable. Condition: During the auditor's test of complioance for the 2023 audit, it was noted that there was an exception to the Housing Authority's policy regarding when self-certification of income is permissible. It does not appear that verification of income was attempted prior to accepting self-certification of income. Cause: Management's internal review process did not detect these items in a timely manner. Effect: Income may not be properly verified therefore impacting eligibility and housing assistance payments. Questioned Costs: Known questioned costs were below $25,000. Context: A sample of 25 units were selected. One out of 25 included self certification only for income. Upon follow up with management, they acknowledged another seven additional vocher jolders had a similar fact pattern. Identification as a repeat finding: N/A. Recommendation: We recommend the Authority follow the Administartive Plan's criteria for verification of income through third parties and when self certifications are allowable. Views of Responsible Officials: See Corrective Action Plans.

Information on the federal program: Federal Award Identification: ALN.881 Moving to Work Demonstration Program, Federal Agency: Department of Housing and Urban Development, Pass-through entity: N/A. Perspective: During our review of tenant files prepared by management, we performed procedures to audit compliance with program regulations and management controls over compliance. Criteria: The Authority must properly design, implement, and maintain effective internal controls to ensure that program participants are qualified and HUD program regulations are followed. The Authority's administrative plan includes specific procedures for obtaining documentation from third parties to support income reported by voucher holders. The administrative plan also defines circumstances when self certification of income by voucher holders is acceptable. Condition: During the auditor's test of complioance for the 2023 audit, it was noted that there was an exception to the Housing Authority's policy regarding when self-certification of income is permissible. It does not appear that verification of income was attempted prior to accepting self-certification of income. Cause: Management's internal review process did not detect these items in a timely manner. Effect: Income may not be properly verified therefore impacting eligibility and housing assistance payments. Questioned Costs: Known questioned costs were below $25,000. Context: A sample of 25 units were selected. One out of 25 included self certification only for income. Upon follow up with management, they acknowledged another seven additional vocher jolders had a similar fact pattern. Identification as a repeat finding: N/A. Recommendation: We recommend the Authority follow the Administartive Plan's criteria for verification of income through third parties and when self certifications are allowable. Views of Responsible Officials: See Corrective Action Plans.