Finding Text
Federal Agency: Housing and Urban Development
Federal Program Name: Moving to Work Demonstration Program
Assistance Listing Number: 14.881
Federal Award Identification Number and Year: FL009, 2024
Award Period: April 1, 2023 to March 31, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Beneficiaries must be “low-income families,” as defined in Section
3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC
1437f (note))).
Per the Authority's administrative plan a family’s income determines eligibility for assistance and is also used to calculate the family’s payment and the WPBHA’s subsidy. The WPBHA will use the policies and methods described in "Annual Income" chapter to ensure that only eligible families receive assistance and that no family pays more or less than its obligation under the regulations.
Condition: During the testing of the Moving to Work Demonstration Program housing choice voucher tenant files, certain eligibility compliance deficiencies were noted. Of the tenant file provided, auditor noted 2 instances where the Authority incorrectly calculated income that was reported on the HUD- 50058.
Questioned costs: $2,623
Context: Out of 40 files, 2 files contained errors as noted above.
Cause: The Authority failed to report the correct annual income to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate procedures in place to ensure that the annual income reported on the HUD-50058 was calculated correctly.
Repeat Finding: No
Recommendation: We recommend management should designate one person to ensure that income is correctly calculated and housing specialists have adequate training on income calculations in accordance with HUD and the Authority's administrative plan.
Views of responsible officials: There is no disagreement with the audit finding.