Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Moving to Work Demonstration Program
Assistance Listing Number: 14.881
Federal Award Identification Number and Year: NV001VO - 2024
Award Period: July 1, 2023 – June 30, 2024
Compliance Requirement: Eligibility
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))).
Condition: The Authority was unable to provide adequate income supporting documentation.
Questioned costs: Unable to determine.
Context: Exceptions were noted in 5 out of 40 files tested for eligibility requirements. For 2 of the 40 files tested for public housing eligibility, the tenants change in income was not updated in the HUD-50058. For 3 of 40 files tested for public housing eligibility, a portion of the tenant’s income was not supported by 3rd party documentation.
Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements.
Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using stale/inaccurate information in the rent calculation.
Repeat Finding: No.
Recommendation: We recommend that Reno Housing Authority reviews the controls in place to ensure that income entered into the HUD-50058 is accurate and supported through 3rd party verification.