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: VA001, 2021 Award Period: 1/1/2021-12/31/2021 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Of the 29 files tested for new tenants: - 1 instance where the voucher provided was not signed and dated by the tenant and the Authority - 1 instance where the sample selected could not be tested because the Authority could not locate the information. Of the 22 files tested for waitlist pulls: - 1 instance where the file was not stored and was missing documentation of the reasoning behind the applicant’s denial into the program, all correspondences between the Authority and the applicant, and the letter notifying applicant of selection. Questioned costs: Unable to determine Context: Of the 29 and 22 files tested for new tenants and waitlist pulls, respectively, 2 files contained exceptions. Cause: The Authority failed to implement the internal controls designed to ensure compliance with waitlist requirements were met. Effect: The Authority is not in compliance with federal regulations regarding waitlist requirements determined by HUD. Errors could result in incorrect HAP payments. Recommendation: We recommend the Authority review its internal controls over the waiting list process to ensure all documentation is maintained at the time each applicant enters and is pulled from the waiting list. Views of responsible officials: There is no disagreement with the audit finding.