Finding Text
2024-001 – HCV Eligibility
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: GA006, 2024
Award Period: July 1, 2023 to June 30, 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, income support must fall under one of the acceptable verification methods and full-time student statuses must have third party verification or a documented review.
Condition: During the testing of 40 Moving to Work Demonstration Program Housing Voucher Cluster tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, there was 1 instance where the Authority was unable to provide third-party verification for full-time student status as well as reported and excluded income for the tenants and dependents.
Questioned costs: N/A
Context: Out of 40 files, 1 file did not contain required documentation as noted above.
Cause: The Authority failed to provide adequate support to ensure compliance with HUD regulations as well as its administrative policy.
Effect: The Authority does not have adequate procedures in place to ensure that the files maintain adequate support.
Repeat Finding: No
Recommendation: We recommend management to implement controls over in-house and external housing specialists to ensure all documents are obtained by tenants and maintained in the tenant files.
Views of responsible officials: There is no disagreement with the audit finding.