Finding 1090565 (2024-001)

Award Period: July 1, 2023, to June 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance and conditions of the Federal award. Criteria or specific requirement: According to §200.303 Internal Controls of 2 CFR Part 200, the non‐Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non‐Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: Income thresholds in Onesite on form HUD-50059 were not updated to the current year very low-income limits published by HUD for the County of Monterey. Questioned costs: None noted. Context: The dicrepancy in the maximum income limit was identified during our testing of tenant rent eligibility. The variance between the correct income limit and the form HUD-50059 income limit used to determine tenants’ eligibility is immaterial. Cause: Management oversight and lack of clarity on the party responsible for updating the income limits in Onesite. Effect: Noncompliance results in possible exclusion of eligible applicants as the income limits increased from prior year.rent eligibility. The variance between the correct income limit and the form HUD-50059 income limit used to determine tenants’ eligibility is immaterial.