Finding Text
2023-004 Asset Supporting Documentation for Family Income Examinations
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA)
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter
Criteria or specific requirement: Per 24 CFR 985.516, the tenant file and application must obtain 3rd party verification of assets.
Condition: During our testing, we noted two tenant files out of 60 files tested were missing the required supporting asset documentation.
Questioned costs: None
Context: From a sample of 60 program participant files selected for testing, two tenants were missing asset documentation.
Cause: The Housing Specialist did not obtain (or retain) the documentation to support the assets listed on Form 50058.
Effect: File did not contain required information per 24 CFR 985.516. A program participant could have been receiving the incorrect amount of HAP.
Repeat Finding: No
Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received.
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.