Finding 1072798 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-10

AI Summary

  • Core Issue: Two resident files had incorrect income or asset verification, violating HUD regulations.
  • Impacted Requirements: Non-compliance with the HAP Contract and HUD Handbook 4350.3 regarding resident certifications.
  • Recommended Follow-Up: Submit corrected certifications and enhance training for staff on proper verification processes.

Finding Text

Finding reference number: 2023-002 Assistance Listing (Federal award identification number and year): Section 8 Housing Assistance Program, Assistance Listing. No. 14.195, IL060061003, 2011 Auditor non-compliance code: N. Special Tests and Provisions Finding resolution status: Cleared Universe population size: 70 resident files Sample size information: 7 resident files. Statistically valid sample: Yes. Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $0 Statement of condition 2023-002: During the year ended December 31, 2023, two resident files at Liberty Lake selected for testing under HUD Consolidated Audit Guide contained improper income or asset verification information in the completed resident certification. Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Agent must certify and recertify residents and update other applicable forms in accordance with HUD regulations and contractual requirements. Effect: Liberty Lake is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3. Residents may receive an improper amount of rental assistance under the HAP Contract. Cause: The Agent did not utilize proper third-party verification documents when completing resident certifications. Recommendation: The Agent should submit corrected resident certifications and implement additional policies to ensure future resident certifications are completed accurately. Management's response: The Agent agrees with the finding and recommendation. The Agent has processed corrected resident certifications and is in the process of implementing additional training for employees responsible for resident certifications.

Categories

HUD Housing Programs Special Tests & Provisions

Other Findings in this Audit

  • 496355 2023-001
    Significant Deficiency Repeat
  • 496356 2023-002
    Significant Deficiency
  • 1072797 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.188 Housing Finance Agencies (hfa) Risk Sharing $15.80M
14.195 Section 8 Housing Assistance Payments Program $1.12M
14.239 Home Investment Partnerships Program $688,217
14.218 Community Development Block Grants/entitlement Grants $311,783