Audit 337522

Finding 2024-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program Assisted Listing Number: 14.188 Noncompliance – L. Reporting - Special Reporting Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance and Noncompliance for Reporting Criteria: The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, the Authority miscalculated income reported on tenants' HUD-50058 forms at time of annual reexamination. Context: Of a sample size of twenty one (21) tenant files, two (2) tenants' HUD-50058 forms included income that was miscalculated during their annual reexamination. Our sample size is statistically valid. Known Questioned Costs: $35,640 Cause: There is a material weakness in internal controls over the compliance for the reporting type of compliance related to special reporting as HUD 50058 forms were not reviewed by a supervisor prior to execution. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: Tenant rent and housing assistance subsidy could have been icorrectly calculated. the Moving to Work Demonstration Program is in material non-compliance with the reporting type of compliance related to special reporting. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.

Finding 2024-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Moving to Work Demonstration Program Assisted Listing Number: 14.188 Noncompliance – L. Reporting - Special Reporting Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance and Noncompliance for Reporting Criteria: The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, the Authority miscalculated income reported on tenants' HUD-50058 forms at time of annual reexamination. Context: Of a sample size of twenty one (21) tenant files, two (2) tenants' HUD-50058 forms included income that was miscalculated during their annual reexamination. Our sample size is statistically valid. Known Questioned Costs: $35,640 Cause: There is a material weakness in internal controls over the compliance for the reporting type of compliance related to special reporting as HUD 50058 forms were not reviewed by a supervisor prior to execution. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: Tenant rent and housing assistance subsidy could have been icorrectly calculated. the Moving to Work Demonstration Program is in material non-compliance with the reporting type of compliance related to special reporting. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.