Finding Text
2023-001 Eligibility – Source Documentation
Prior Year Finding Number: 2022-002
Year of Finding Origination: 2022
Type of Finding: Internal Control Over Compliance and Compliance
Severity of Deficiency: Significant Deficiency and Other Matter
Federal Agency: U.S. Department of Housing and Urban Development
Program: 14.871 Section 8 Housing Choice Vouchers
14.879 Mainstream Vouchers
Award Number and Year:
Assistance Listing Number Award Number Year
14.871 MN163VO/MN163AF 2023
14.871 MN163EP/MN163EI/MN163ES/MN163EF/MN163EH 2023
14.871 MPHA 22.059 2023
14.879 MN163DV/MN163F 2023
Pass-Through Agency: N/A – Direct
Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Per Title 24 U.S. Code of Federal Regulations § 982.553(a)(2), each member over the age of 18 is subject to a criminal background check prior to admission into the program.
In addition, Public Housing Authorities are required by Notice PIH 2010-19 to provide the “Debts Owed to Public Housing Agencies and Terminations” notice to all applicants and program participants over the age of 18, and all such individuals are required to acknowledge receipt of the notice by signature located on the notice itself.
Condition: A sample of 40 case files was reviewed, and the following issues were identified:
• three case files were missing documentation or evidence that a criminal background check was performed for one or more adult members of the household.
• one case file was missing the "Debts Owed" form for one adult member of the household.
Questioned Costs: None.
Context: HousingPro is the system used by the Metropolitan Council Housing Redevelopment Authority to calculate the monthly Housing Assistance Payments for the Housing Choice Voucher program participants and to document and support eligibility determinations. Proper input of information into the system and documentation retention are important functions to ensure accurate and proper eligibility determination and calculations of Housing Assistance Payments. The deviations identified did not impact eligibility or result in an incorrect level of benefit amount.
The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Effect: Errors in eligibility-determining factors increase the risk that program participants will receive benefits when they are not eligible or are paid at an incorrect benefit amount.
Cause: Personnel entering case information into HousingPro did not ensure necessary documentation was completed and/or maintained.
Recommendation: We recommend that the Metropolitan Council implement additional procedures to provide reasonable assurance that all necessary documentation is maintained supporting compliance with federal regulations.
View of Responsible Official: Concur.