Audit 369754

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Program Assistance Listing Number: 14.881 Federal Award Identification Number and Year: MDO002VO-2024 Award Period: 1/1/2024-12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition: 80 files were selected from a population of MTW-HCV & LRPH. 3 files contained 5 errors. Questioned costs: $10,231 instances of deficiencies: - For 1 of 80 files tested we were unable to determine that recertifications were performed timely. - For 1 of 80 files tested the authority was unable to provide the documentation for the tenant required for testing. - For 1 of 80 files tested we were not provided with third party income support, or the Personal Declaration of Continued Occupancy Application. - For 1 of 80 files tested there was a variance between the rent received per the rent roll and the tenant rent per the HUD 50058. - For 1 of 80 files tested there was no signed Personal Declaration and Continued Occupancy Application form. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: Not a repeat finding. Recommendation: We recommend that HABC staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: HOPE VI Cluster Assistance Listing Number: 14.889 Federal Award Identification Number and Year: MD3B002CNG122 Award Period: 1/1/2024-12/31/2024 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria or specific requirement: Under the requirements of the Federal Funding Accountability and Transparency Act (FFATA) (Pub. L. No. 109-282), as amended by Section 6202 of Pub. L. No. 110- 252, hereafter referred as the “Transparency Act” that are codified in 2 CFR Part 170, recipients (i.e., direct recipients) of grants or cooperative agreements are required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). Condition: FFATA reporting was not completed for the Choice Neighborhood Implementation program's subcontractors. Questioned costs: None Context: FFATA reporting was not completed for the subcontractors. Cause: The Authority did not sufficiently monitor controls to ensure compliance with FFATA reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding FFATA reporting. Repeat Finding: Not a repeat finding. Recommendation: We recommend that HABC staff review the controls in place to ensure that required FFATA reporting documentation is complete, accurate, and available for audit. Views of responsible officials: There is no disagreement with the audit finding.