Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Moving to Work Demonstration
Assistance Listing Number: 14.881
Federal Award Identification Number and Year: OR002VOW - 2024
Award Period: January 1, 2024 – December 31, 2024
Compliance Requirement: Eligibility
Type of Finding:
• Material Weakness in Internal Control over Compliance
• Material Noncompliance (Modified Opinion)
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 did not have adequate internal controls designed to ensure that eligibility requirements were met.
Questioned costs: Unable to determine
Context: Testing of 40 tenant files for eligibility noted 15 files with exceptions:
• 10 files were missing documentation needed to support and recalculate total income.
• 5 files where the examination was not processed within the regulatory period.
Cause: Home Forward did not sufficiently monitor controls to ensure compliance with eligibility requirements.
Effect: Home Forward 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: Yes, finding 2023-002. Previously reported as a significant deficiency in internal control over compliance.
Recommendation: We recommend that Home Forward reviews the controls in place to ensure that recertifications are performed timely and the income is supported.
Views of responsible officials: There is no disagreement with the audit finding.