Finding 1145870 (2024-022)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-06-30

AI Summary

  • Core Issue: There are significant gaps in internal controls over compliance for eligibility, with repeated failures to conduct timely redeterminations and verify income.
  • Impacted Requirements: Compliance with federal regulations for eligibility verification, including documentation of income and asset assessments, is not being met.
  • Recommended Follow-Up: DCHA should enhance monitoring controls to ensure all eligibility documentation is complete, accurate, and readily available for audits.

Finding Text

Finding 2024-022 U.S. Department of Housing and Urban Development (HUD) AL No. 14.871/14.879 Housing Voucher Cluster Material Weakness in Internal Controls over Compliance for Eligibility Repeat Finding: Yes; 2023-003 Condition: • For 13 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period. • For 2 out of 60 beneficiaries selected for eligibility, we did not observe 3rd party verification of reported income. Criteria For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Questioned Costs Unknown. 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 or HAP may have been miscalculated due to using incorrect information in the recalculations. Tenant recertifications were not shown to be performed on a timely basis. Recommendation We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Auditee Response and Corrective Action Plan: Management agrees with the finding. Refer to the corrective action plan on current findings in this report. Auditor’s Conclusion: Finding remains as stated.

Categories

HUD Housing Programs Eligibility Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 569417 2024-021
    Material Weakness Repeat
  • 569418 2024-021
    Material Weakness Repeat
  • 569419 2024-021
    Material Weakness Repeat
  • 569420 2024-022
    Material Weakness Repeat
  • 569421 2024-023
    Material Weakness Repeat
  • 569422 2024-024
    Material Weakness Repeat
  • 569423 2024-025
    Material Weakness Repeat
  • 569424 2024-022
    Material Weakness Repeat
  • 569425 2024-023
    Material Weakness Repeat
  • 569426 2024-024
    Material Weakness Repeat
  • 569427 2024-025
    Material Weakness Repeat
  • 569428 2024-022
    Material Weakness Repeat
  • 569429 2024-023
    Material Weakness Repeat
  • 569430 2024-024
    Material Weakness Repeat
  • 569431 2024-025
    Material Weakness Repeat
  • 1145859 2024-021
    Material Weakness Repeat
  • 1145860 2024-021
    Material Weakness Repeat
  • 1145861 2024-021
    Material Weakness Repeat
  • 1145862 2024-022
    Material Weakness Repeat
  • 1145863 2024-023
    Material Weakness Repeat
  • 1145864 2024-024
    Material Weakness Repeat
  • 1145865 2024-025
    Material Weakness Repeat
  • 1145866 2024-022
    Material Weakness Repeat
  • 1145867 2024-023
    Material Weakness Repeat
  • 1145868 2024-024
    Material Weakness Repeat
  • 1145869 2024-025
    Material Weakness Repeat
  • 1145871 2024-023
    Material Weakness Repeat
  • 1145872 2024-024
    Material Weakness Repeat
  • 1145873 2024-025
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.881 Mtw Housing Choice Voucher $252.23M
14.881 Mtw Operations $66.72M
14.881 Mtw Capital Fund $25.79M
14.871 Emergency Housing Voucher $18.72M
14.871 Section 8 Housing Vouchers (non-Mtw) $18.17M
18.879 Mainstream Voucher $2.07M
14.856 Section 8 Moderate Rehabilitiation Housing Assistance $1.76M
14.249 Section 8 Single Room Occupancy Housing Assistance $1.72M
14.870 Residential Opportunity and Supportive Services $359,352