Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Home Investment Partnerships Program
Assistance Listing Number: 14.239
Federal Award Identification Number and Year: Various
Pass-Through Agency: Department of Community and Economic Development
Pass-Through Number(s): Various
Award Period: 7/1/2022 – 6/30/2023
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Per the compliance supplement, agencies are required to examine the activities and costs of an applicant to the program to determine that they are allowable and therefore can proceed with providing financial assistance.
Condition: During our testing of 8 loan disbursements for allowable costs and activities criteria, we noted that 1 development was missing the completed division sign-off form from the pre-commitment meeting.
Questioned costs: Unknown.
Context: In a statistically valid sample, we noted that 1 of 8 loan disbursements was missing a completed division sign-off form from the pre-commitment meeting in their loan package. The form exists as a way to document that all relevant divisions discussed and confirmed that the applicant was both eligible and allowed to participate in the program.
Cause: The internal control put in place regarding the signing of this form was not followed in the regards to the development not in compliance.
Effect: There is not definitive proof that all necessary divisions reviewed the project application for allowable costs and activities.
Repeat Finding: Not a repeat finding.
Recommendation: We recommend that PHFA review their procedures surrounding the divison sign-off form utilized in the pre-commitment meeting.
Views of responsible officials: There is no disagreement with the audit finding.