Finding Text
Department of Housing and Urban Development
14.871 Housing Voucher Cluster
Internal Control Finding - Eligibility
Repeat Finding: No
Criteria:
In accordance with 2 CFR §200.303: The non-Federal entity must establish and maintain effective
internal controls 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.
The PHA must have sufficient internal controls in place to ensure the proper administration of
HUD funding.
Condition and Context:
We tested a sample of 25 HAP contracts and found 2 tenants where the tenant affidavit for rental
assistance benefits was not signed by a housing specialist. Therefore, these two selections did not
have evidence that the tenant information was reviewed.
Cause:
The City does not have a proper policy in place to ensure documentation of review procedures.
Effect or Potential Effect:
The City could potentially create a HAP contract with a tenant that is ineligible for rental
assistance.
Questioned Costs:
Unknown.
Recommendation:
We recommend that tenant evaluations and annual re-evaluations are reviewed by a supervisor
prior to creating a HAP contract or renewing an existing contract to ensure tenant files are properly
reviewed and documented.
Views of Responsible Officials:
The City agrees with the finding. See Section V for the corrective action plan.