Finding 1156624 (2024-002)

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

AI Summary

  • Core Issue: The Authority failed to meet PIC reporting requirements, resulting in a material weakness in internal controls and noncompliance.
  • Impacted Requirements: The Authority must submit HUD-50058 forms for various family changes as mandated by 24 CFR Part 908.
  • Recommended Follow-Up: Implement controls to ensure all HUD-50058 recertifications are properly uploaded to the PIC system.

Finding Text

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: MO002VO - 2024 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Reporting – PIH Information Center (PIC) Reporting Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Authority is required to submit the HUD-50058 electronically to HUD via the PIH Information Center (PIC) each time the Authority completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family (24 CFR Part 908). Condition: The Authority did not satisfy PIC reporting requirements in accordance with 24 CFR Part 908. Questioned costs: Unable to determine. Context: Exceptions noted in 7 out of 60 recertifications. In 4 instances, the Housing Assistance Payment per the HUD-50058 did not agree to the PIC system. In 3 instances, the recertification was not located in the PIC system. Cause: The Authority did not identify recertifications that failed to upload to the PIC system. Effect: The Authority is not in compliance with PIC reporting requirements. Repeat Finding: Yes, finding 2023-002. Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Housing Voucher Cluster-Assistance Listing No. No. 14.871 and 14.879 Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HAKC will monitor the monthly SEMAP Indicator report and monitor the PIC dashboard to ensure all 50058 errors are corrected and uploaded in a timely manner. HAKC will also pull the ADHOC from PIC to verify the records. HAKC will continue working with the HUD PIC coach monthly to correct all errors. HAKC will complete the initial process and complete ongoing compliance reviews. Name(s) of the contact person(s) responsible for corrective action: Lisa Earnest, Director of Housing Choice Voucher Program Planned completion date for corrective action plan: 4/30/2026

Categories

HUD Housing Programs Material Weakness Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1156619 2024-001
    Material Weakness Repeat
  • 1156620 2024-001
    Material Weakness Repeat
  • 1156621 2024-001
    Material Weakness Repeat
  • 1156622 2024-002
    Material Weakness Repeat
  • 1156623 2024-002
    Material Weakness Repeat
  • 1156625 2024-003
    Material Weakness Repeat
  • 1156626 2024-003
    Material Weakness Repeat
  • 1156627 2024-003
    Material Weakness Repeat
  • 1156628 2024-004
    Material Weakness Repeat
  • 1156629 2024-004
    Material Weakness Repeat
  • 1156630 2024-004
    Material Weakness Repeat
  • 1156631 2024-005
    Material Weakness Repeat
  • 1156632 2024-005
    Material Weakness Repeat
  • 1156633 2024-005
    Material Weakness Repeat
  • 1156634 2024-006
    Material Weakness Repeat
  • 1156635 2024-006
    Material Weakness Repeat
  • 1156636 2024-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $7.96M
14.872 Public Housing Capital Fund $6.95M
14.871 Section 8 Housing Choice Vouchers $1.61M
14.879 Mainstream Vouchers $1.34M
14.889 Choice Neighborhoods Implementation Grants $966,409
14.892 Choice Neighborhoods Planning Grants $299,776
14.896 Family Self-Sufficiency Program $262,734
14.870 Resident Opportunity and Supportive Services - Service Coordinators $131,762