Finding Text
U.S. Department of Housing and Urban Development - CFDA #14.871
Section 8 Housing Choice Vouchers
Applicable Federal Award Number and Year – Section 8 Housing Choice Vouchers - 2023
Activities Allowed or Unallowed, Allowable Costs and Cost Principles, Eligibility, Special Tests and Provisions – Housing Quality Standards Inspections
Significant Deficiency in Internal Control over Compliance and Immaterial Instance of Noncompliance
Criteria – The Program requires the Authority to determine eligibility of participants of the program through annual and interim review of participant information. In addition, the Authority must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS).
Condition – The Authority was not able to locate one of the participant files that we selected for testing.
Questioned Costs – None Reported.
Context/Sampling – A non-statistical sample of 40 participants were selected for testing, of which 1 participant file could not be located, thus an additional 21 participants were selected for testing to bring the total to 60 tested. 1 out of the 61 participant files was not able to be located.
Effect – Failure to implement and maintain a proper control process could result in incorrect eligibility determinations for individuals that are being re-examined and no longer eligible.
Cause – During 2023, the Housing Choice Voucher Department moved physical locations. Also, during this time, all the historical paper files were being scanned for digital storage. During this process, paperwork for one of the participants’ re-certification and inspection were misplaced and not able to be located during audit fieldwork.
Repeat Finding from Prior Year – No.
Recommendation – The Authority should implement internal controls to ensure that all participant files are maintained.
Views of Responsible Officials – Management agrees with the finding.