Finding 1156569 (2024-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: The Authority failed to submit accurate HUD-50058 forms to the PIC system on time, with 14 out of 40 submissions containing errors or delays.
  • Impacted Requirements: Compliance with HUD regulations requires timely and accurate electronic submissions of the HUD-50058 Family Report for various tenant changes.
  • Recommended Follow-Up: Designate a responsible individual to oversee the accurate and timely input of HUD-50058 information into the PIC system.

Finding Text

HVC PIC Submissions Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: NE 001; 2024 Award Period: January 1, 2024 – December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: HUD-50058, Family Report (OMB No. 2577-0083) – The PHA is required to submit this form electronically to HUD each time the PHA completes an issuance, admission, annual reexamination, interim reexamination, portability move-in, expiration, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition: Out of 40 HUD-50058’s tested for PIC submissions, 14 HUD-50058 PIC uploads contained errors or were not uploaded timely. Questioned costs: None Context: During the testing of 40 tenant files for PIC submissions, the following exceptions were noted: - 1 instance where the HUD-50058 PIC upload could not be located - 2 instances where the HAP amount on the HUD-50058 in PIC did not match the HAP amount of HUD-50058 tested in the tenant file - 14 instances where the HUD-50058 was not uploaded into PIC within 90 days of the effective date. Cause: The Authority failed to implement internal controls designed to ensure accurate HUD-50058 information is submitted into the PIC system within 90 days of effective date. Effect: The Authority is not in compliance with federal regulations regarding PIC submission requirements determined by HUD. Repeat Finding: No Recommendation: We recommend the Authority to designate an individual to ensure accurate HUD-50058 information is inputted into the PIC system timely. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

U.S. Department of Housing and Urban Development 2024-003 Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 – PIC Submissions Recommendation: We recommend the Authority to designate an individual to ensure accurate HUD-50058 information is inputted into the PIC system timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will increase oversight in the Section 8 Housing Choice Voucher program to ensure that established internal control policies are being followed. HUD-50058s are transmitted monthly. Some transmissions have PIC errors while other files that are submitted late due to annual recertification completion. The Authority has plans in place to ensure quality control and resubmission of any errors and to improve timely annual completion and submission. Name(s) of the contact person(s) responsible for corrective action: Philisa Smith, HCV Director Planned completion date for corrective action plan: December 31, 2026

Categories

HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1156560 2024-002
    Material Weakness Repeat
  • 1156561 2024-002
    Material Weakness Repeat
  • 1156562 2024-003
    Material Weakness Repeat
  • 1156563 2024-003
    Material Weakness Repeat
  • 1156564 2024-004
    Material Weakness Repeat
  • 1156565 2024-004
    Material Weakness Repeat
  • 1156566 2024-005
    Material Weakness Repeat
  • 1156567 2024-005
    Material Weakness Repeat
  • 1156568 2024-002
    Material Weakness Repeat
  • 1156570 2024-004
    Material Weakness Repeat
  • 1156571 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $45.76M
14.850 Public Housing Operating Fund $9.16M
14.872 Public Housing Capital Fund $8.37M
14.U01 Emergency Housing Vouchers $1.05M
14.889 Choice Neighborhoods Implementation Grants $859,424
14.879 Mainstream Vouchers $856,912
14.896 Family Self-Sufficiency Program $525,853
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $236,893
14.870 Resident Opportunity and Supportive Services - Service Coordinators $209,647
14.239 Home Investment Partnerships Program $205,659