Finding Text
2023-005 Special Tests and Provisions - Waiting List
Moving to Work Demonstration Program AL No. 14.881
Other Matter to be Reported Under the Uniform Guidance
Condition: While testing of applicants that reached the top of the waiting list during the year ended December 31, 2023, the Authority was unable to provide sufficient documentation for one of the applicants to support their position on the list.
Criteria: 24 CFR 960.202 requires internal controls to be in place to ensure proper procedures are being followed to be in compliance with HUD requirements regarding waiting list applicant selection.
Context: The auditor selected the 40 applicants that had reached the top of the waiting list, which we consider to be a statistically valid sample size. The auditor reviewed the applicant’s file and support to ensure that proper procedures for selection from the waiting list are being followed and that the Authority is in compliance with HUD requirements regarding waiting list selection.
Cause: The Authority experienced staffing and operational challenges during the onset of COVID-19 and did not have the available staff to follow the established internal controls to ensure proper compliance with all regulations. This resulted in the Authority not maintaining the appropriate documentation to adequately provide information required by federal regulations so the waiting list could be monitored for proper compliance.
Effect: The Authority does not have adequate controls in place to ensure they are in compliance with HUD requirements regarding the waiting list applicant selection process.
Questioned Costs: Unknown.
Auditor Recommendations: The Authority should reevaluate their established procedures and controls in place to ensure full compliance in regards to waiting list selection process and document retention requirements.
Management Response: See Corrective Action Plan.