Finding Text
2021-002- Missing Reports (MW, NC}
Federal Program Title:
Federal Catalog Number:
Federal Agency:
Pass-Through Entity:
Federal Award Number and Year:
Category of Finding:
Section 8 Housing Choice Vouchers
14.871
U.S. Department of Housing and Urban Development
Not applicable
CA-071 - 2021
Reporting
Criteria: The Office of Management and Budget 2021 Compliance Supplement states that the following
reports are required to be submitted to the U.S. Department of Housing and Urban Development.
HUD-52681-B, Voucher for Payment of Annual Contributions and Operating Statement (0MB No.
2577-0169). The PHA submits this form monthly to HUD electronically via the VMS. Congress has
instructed HUD to use VMS data to determine renewal funding levels. HUD also uses VMS data for
other funding, monitoring, and SEMAP-related decisions. HUD relies on the audit of the key line items
below to determine the reasonableness of the data submitted for the purposes of calculating funding
under the program.
Financial Reports (0MB No. 2535-0107)-Financial Assessment Subsystem, FASS-PH. The Uniform
Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based
unaudited and audited financial information electronically to HUD. The FASS-PH system is one of
HU D's main monitoring and oversight systems for the HCVP.
HUD-52648, SEMAP Certification - PHAs with jurisdiction in metropolitan Fair Market Rent areas have
the option of submitting data to HUD with their annual SEMAP certifications on the percent of their tenantbased
Section 8 families with children who live in and who have moved during the PHA fiscal year to low
poverty census tracts in the PHA's principal operating area. Submission of this information with the
SEMAP certification makes the PHA eligible for bonus points under SEMAP (24 CFR section 985.3(h)).
HUD 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low-Income
Persons (0MB No. 2529-0043) - Each recipient that administers covered public and Indian housing
assistance, regardless of the amount expended, and each recipient that administers covered housing
and community development assistance in excess of $200,000 in a program year, must submit HUD
60002 information using the automated Section 3 Performance Evaluation and Registry System
(SPEARS) (24 CFR sections 135.3(a)(1) and 135.90).
HUD-50058, Family Report (0MB No. 2577-0083) - The PHA is required to submit this form electronically
to HUD each time the PHA completes an admission, annual reexamination, interim reexamination,
portability move-in, or other change of unit for a family. The PHA must also submit the Family Report
when a family ends participation in the program or moves out of the PHA's jurisdiction under portability
(24 CFR Part 908 and 24 CFR section 982.158).
Condition: We were unable to obtain the following reports: HUD-52681-B, FASS-PH, and HUD-52648.
Cause: Turnover of staff in the Housing Authority and delay in recruitment. Lack of internal control over
the retention of program reports.
Effect or Potential Effect: The City is facing sanctions from the Office of Inspector General (OIG) with
a reduced Section 8 Management Assessment Program (SEMAP) rating from High Performer to
Standard Performer. A reduced rating may result in HUD withholding additional grant funds or offset the
Housing Choice Voucher (HCV) administrative fees.
Questioned Cost: None.
(MW) - Material Weakness (SD) - Significant Deficiency (NC) - Noncompliance
-12-
Context: The Housing Authority did not provide required reports.
Statistical Sampling Validity: Not applicable.
Repeat of a Prior-Year Finding: 2020-001, 2019-005, 2018-007
Recommendation: We recommend the City establish policies and procedures that will ensure the
retention of program documents.
Management Response and Corrective Action Plan
City's Response: The City concurs with the recommendation.
Corrective Action Plan: The City Controller's Office drafted a grants policy that is currently under
review by City Management. Community development staff will ensure a succession plan is in
place for any staff turnover and for report preparation compliance.
Planned Implementation Date: December 31, 2024
Responsible Person(s): City Manager, Community Development Director, and City Controller