Finding 1076240 (2023-001)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-09-30

AI Summary

  • Core Issue: Participant files lack necessary documentation to prove eligibility for the Moving to Work program.
  • Impacted Requirements: Federal document retention policies are not being followed, leading to potential overpayments.
  • Recommended Follow-Up: Centralize eligibility determinations to improve oversight and ensure compliance with program procedures.

Finding Text

2023-001 – Eligibility - Moving to Work Demonstration Program - 14.881 Material Weakness and Material Noncompliance Statement of Condition and Criteria Participant files were missing, incomplete or insufficient to substantiate eligibility determinations. PHA’s are required to maintain and retain documentation in accordance with federal document retention policies to substantiate the ongoing eligibility of participants. Cause Lack of effective oversight of certification procedures conducted at site offices, including outside contracted management agencies. In addition, conversion to electronic workpaper retention, as well as system conversions resulting in loss of data. Effect or Potential Effect Potential overpayment of housing assistance. Question Costs Not determined. Context A sample of 45 files were selected to audit program eligibility from a population of 2,766. The test found 16 files did not pass audit inspection due to missing significant supporting documentation to support the calculation of housing assistance. Our sample was not a statistically valid sample. Recommendation We recommend the Authority centralize eligibility determinations to assist with enforcement and quality control review of program procedures. This would include removing responsibilities from both external and internally managed sites to better align staff and program responsibilities. Management’s Response Management agrees with the finding and corrective action is in progress as detailed in the Corrective Action Plan.

Categories

Eligibility HUD Housing Programs Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 499798 2023-001
    Material Weakness
  • 499799 2023-002
    Significant Deficiency
  • 1076241 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.881 Moving to Work Demonstration Program $26.98M
14.871 Section 8 Housing Choice Vouchers $1.71M
14.896 Family Self-Sufficiency Program $211,176
14.879 Mainstream Vouchers $189,688