Finding 1073723 (2023-001)

2023 – 001: Eligibility Federal Agency: Housing Choice Voucher Program Federal Program Name: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.871 Federal Award Identification Number and Year: WI201VO2023 Award Period: January 1, 2023 – December 31, 2023 Type of Finding:  Significant Deficiency in Internal Control over Compliance  Other Matters Criteria or specific requirement: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: During our testing, we noted the City did not complete the Enterprise Income Verification (EIV) in accordance with the stated criteria. Questioned Costs: Known - Undeterminable| Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, one (1) file failed to maintain documentation of compliance with the requirements as stated in the criteria section of this finding. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The City’s system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition selection of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the requirements of the stated criteria. Repeat Finding: No Recommendation: We recommend that the City review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the stated criteria. Views of responsible officials and planned corrective action: There is no disagreement with the audit finding.