Finding Text
FEDERAL AWARDS
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Section 8 Housing Choice Vouchers Program
Federal Assistance Listing Numbers: 14.871
Noncompliance – E. Eligibility - Tenant Files
Non Compliance Material to the Financial Statements: No
Significant Deficiency in Internal Control over Compliance for Eligibility
Criteria:
Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy,
require the tenant and other family member to provide necessary information, documentation, and
releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These
files are required to be maintained and available for examination at the time of audit.
Condition:
Based upon inspection of the Agency’s files and on discussion with management, there were
discrepancies noted on the HUD-50058's.
Context:
Of a sample size of twenty one (21) tenant files, we noted the following:
• Income was miscalculated on the HUD-50058 form in one (1) file
Our sample size is statistically valid.
Known Questioned Costs: $304
Cause:
There is a significant deficiency in internal controls over the compliance for the eligibility type of
compliance related to the maintenance of tenant files. The Agency has not properly considered,
designed, implemented, maintained and monitored a system of internal controls that reasonably assures
the program is in compliance. Effect:
The Section 8 Housing Choice Vouchers Program is in non-compliance with the eligibility type of
compliance related to the maintenance of tenant files.
Recommendation:
We recommend the Agency design and implement internal control procedures that will reasonably
assure compliance with the Uniform Guidance and the compliance supplement.
Agency Response:
The Agency accepts the recommendation of the auditor. The Agency will increase oversight in the
Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are
being followed on a timely basis.