Audit 394437

Section III – Federal Award Findings and Questioned Costs 2025-001 Federal Agency:U. S. Department of Housing and Urban Development Federal program:N/C S/R Section 8 Program ALN: 14.182 Award Period: 7/1/24-6/30/25 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement:24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: $0 Context: Testing of 25 tenant files identified an exception in the files as follows: • 3 tenant files did not contain a current application. • 1 tenant file did not contain proof of proper identification of one member of the household. Cause: The Agency did not obtain all required documents upon intake. Effect:The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: Yes Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions:Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.