Finding 1114525 (2024-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-03-27

AI Summary

  • Core Issue: The Authority failed to follow internal controls for tenant eligibility, leading to incomplete documentation in tenant files.
  • Impacted Requirements: Compliance with 24 CFR 982-516, which mandates accurate tenant files and proper documentation for U.S. citizenship and income verification.
  • Recommended Follow-Up: The Agency should conduct monthly reviews of tenant recertifications to ensure all eligibility and documentation requirements are met.

Finding Text

Section III – Federal Award Findings and Questioned Costs Finding 2024-001 Federal Agency: U. S. Department of Housing and Urban Development Federal Agency: Federal program: Housing Choice Voucher ALN #: 14.871 Award Period: 7/1/23-6/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: $0 Context: Testing of 25 tenant files identified an exception in the files as follows: • 2 tenant files did not contain properly signed Form 214 certifying U.S. citizenship or proper immigration status for all household members as required. • 1 tenant file did not contain a signed Form 9886 Release of Information authorizing the housing authority to request income documentation from various sources for one member of the household that was over 18. Cause: The Agency did not obtain the required documents upon intake. The Agency also did not obtain all required signatures on certain forms. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.

Categories

HUD Housing Programs Eligibility Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 538083 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $6.12M
14.896 Family Self-Sufficiency Program $50,494