Finding Text
2024-001 Eligibility
Moving to Work Demonstration Program AL No. 14.881
Significant deficiency in internal control
Other Matter to be Reported Under the Uniform Guidance
Condition: Out of an approximate population of 4,700 of Section 8 Housing Choice Voucher and 220 Low Rent Public Housing tenants the following deficiencies were noted:
Section 8 Housing Choice Voucher (a total of 40 tenants selected for testing):
• Four files did not have annual recertifications performed during the year available,
• Four files did not use the correct utility allowance,
• One file did not have support necessary to verify income adjustments,
• One file did not use the correct payment standard,
• One file did not have support necessary to verify income exemptions,
• Six files did not have documentation necessary to verify the reported income,
• Seven files did not have a 214 declaration for a member of the household, and
• Two files did not have documentation necessary to verify custody of dependent
Low Rent Public Housing (a total of 20 tenants selected for testing):
• One file did not contain a flat rent options form,
• Two files did not have documentation necessary to verify the reported income,
• One file did not have a 214 declaration for a member of the household,
• One file did not have support necessary to verify income adjustments,
• Two files did not have 9886 release of information from within 15 months of the annual recertification, and
• Two files did not have an internal control document
Criteria: The Commission’s ACOP, Administrative Plan, 24 CFR 960.259, and 24 CFR 982.516 require internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files.
Context: The auditor randomly selected tenant files out of the population from each program as outlined, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Commission is in compliance with HUD requirements regarding timely, complete, and accurate tenant files.
Cause: The Commission does not have adequate systems and controls in place to ensure all eligibility requirements are being followed.
Effect: The Commission is not in compliance with all of the HUD requirements regarding eligibility and tenant recertification which could result in incorrect amount of rental assistance being provided.
Questioned Costs: Unknown.
Auditor Recommendations: The Commission should reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Commission needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample.
Management Response: See Corrective Action Plan.