Finding Text
2024 – 008 – PBRA/MOD – Vacant Units
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Section 8 Project-Based Cluster
Assistance Listing Number: 14.195/14.856
Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/23 - 6/30/24)
Award Period: July 1, 2023 through June 30, 2024
Type of Finding:
-Significant Deficiency in Internal Control over Compliance
-Other Matters
Criteria: The PHA or owner must reduce claims for assistance on vacant units under certain circumstances. However, there are instances where special claims are allowed for vacancy losses, unpaid rent, and tenant damages on eligible units (24 CFR sections 880.611, 881.601, 882.411, 882.808(f), 883.701, 884.106, 886.109, and 886.309).
Condition: During our testing, we noted the Commission did not have adequate internal controls designed to ensure claims for assistance were terminated.
Questioned costs: $15,963
Context:
Testing of 11 tenant files revealed the following 2 exceptions:
- 2 files where claims for assistance were not properly terminated
Cause: The Commission does not have internal controls in place to ensure it is meeting program requirements over vacant units.
Effect: The Commission is not in compliance with program requirements over vacant units.
Repeat Finding: Not a repeat finding.
Recommendation: The Commission should implement processes to ensure that claims for assistance are properly terminated.
View of Responsible Officials: There is no disagreement with the audit finding.