Finding 1161299 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-10-23
Audit: 371221
Organization: Sarasota Housing Authority (FL)

AI Summary

  • Core Issue: The Authority miscalculated tenant income on the HUD-50058 form during annual recertification, affecting compliance with reporting requirements.
  • Impacted Requirements: The PHA must ensure accurate income verification and maintain proper documentation as per 24 CFR sections 5.230, 5.609, and 982.516.
  • Recommended Follow-Up: Enhance internal control procedures to improve oversight and ensure compliance with Uniform Guidance and reporting standards.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers, and Emergency Housing Vouchers Programs Assistance Listing Number: 14.871, 14.879, and 14.EHV Noncompliance – L. Reporting - Special Reporting Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Reporting Criteria: Special Reporting. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority's files and on discussion with management, the Authority included miscalculated income on the tenants' HUD-50058 form during their annual reexamination. Context: There are approximately one thousand nine hundred twenty two (1,922) Housing Voucher Cluster units. Of a sample size of thirty two (32) tenant files, one (1) tenants' annual recertification (HUD-50058 form) included income that was miscalculated. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: An error was made in the calculation of Social Security income that was included on the tenant's submitted HUD-50058 form. Effect: The Housing Voucher Cluster is in non-compliance with the reporting type of compliance related to special reporting. Recommendation: We recommend the Authority modify their internal control procedures to increase oversight and assure compliance with the Uniform Guidance and the compliance supplement.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action: The Authority agrees with the recommendation of the auditor and has processed the required correction to the tenant’s HUD-50058 form. The Authority will increase oversight in the Housing Voucher Cluster to ensure that established internal control policies are being followed accurately and on a timely basis. William Russell, Chief Executive Officer, will be responsible to implement this corrective action by March 31, 2026.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1161298 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $29.78M
14.879 MAINSTREAM VOUCHERS $2.19M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.50M
14.872 PUBLIC HOUSING CAPITAL FUND $1.39M
14.182 SECTION 8 NEW CONSTRUCTION AND SUBSTANTIAL REHABILITATION $1.37M
14.850 PUBLIC AND INDIAN HOUSING $747,752
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $56,892
14.870 RESIDENT OPPORTUNITY AND SUPPORTIVE SERVICES - SERVICE COORDINATORS $15,398