Finding Text
Finding 2023-002 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 Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance - E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Eligibility Criteria: Tenant Files. 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, there were documents that were unavailable for examination at the time of audit. Context: Of a sample size of seventy one (71) tenant files, the following information was unavailable for examination at the time of audit: ï‚· Citizenship declaration forms were missing in fourteen (14) files ï‚· Consent to release information forms were missing in three (3) files ï‚· Lead based paint form was missing in one (1) file ï‚· Copy of signed leases were missing in two (2) files ï‚· HUD-50058 annual recertification forms were missing in eleven (11) files ï‚· Verification of income and assets were missing in thirteen (13) files ï‚· One (1) file was missing in its entirety Our sample size is statistically valid. Known Questioned Costs: $368,358 Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: The Section 8 Housing Choice Vouchers, Mainstream Vouchers and Emergency Housing Voucher Programs are in material non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.