Finding Text
Finding 2024-001 Significant Deficiency: Special Reporting - Compliance and Control Finding ALN 14.871 – Section 8 Housing Choice Vouchers Federal Agency: U.S. Department of Housing and Urban Development (HUD) Pass-Through Entity: N/A - Direct Award Criteria Or Specific Requirement: HUD requires Public Housing Authorities (PHAs) to submit a Form HUD-50058 within 60 days whenever a family ends participation in the program or moves out of the PHA’s jurisdiction under portability. Condition: During our review, it was noted that the Authority’s existing controls were not consistently applied as intended, resulting in an instance of non-compliance with the reporting requirements. Cause: 1 instance was identified where a Form HUD-50058 was not submitted within the required 60-day timeframe following the participant’s exit from the program. Effect: The delay in submission may increase the risk that noncompliance with federal reporting requirements could go undetected, potentially affecting the accuracy of compliance monitoring. Questioned Costs: None. Context: A sample of 16 participants that exited out of the program identified 1 instance where the Authority did not submit the required Form HUD-50058 to HUD within the established timeframe for the participant who exited the program. Identification As A Repeat Finding: The finding has been repeated from prior year finding 2023-001. Recommendation: We recommend that management evaluate their existing control over the timely submission of the HUD-50058 upon a participant’s exit of the program, and consider implementing additional controls such as contacting a sample of landlords each month to verify whether tenants at that location have not vacated their units without notifying the Authority. Views Of Responsible Officials: The Authority will implement a standardized documentation process for move-out reviews and create a digital log that records the date of review, the reviewer's name, and the outcome of each review. The Authority will ensure all documentation is easily accessible for future audits and internal reviews. Additionally, the Authority will establish a monthly process to contact a sample of 3-5 landlords, provide these landlords with a current tenant listing for their properties, request verification of occupancy status for each listed tenant, and document all responses and follow up on any discrepancies identified. The Authority will strengthen our move-out tracking procedures to ensure timely submission of Form HUD-50058, implement a system of alerts or reminders to prompt staff when 50058 submissions are due and conduct regular internal audits to verify the timeliness of 50058 submissions. Lastly, the Authority will provide comprehensive training to all relevant staff on the new documentation and verification processes.