Finding Text
Waiting List Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879/14.EHV Federal Award Identification Number and Year: VA901; 2024-2025 Award Period: July 1, 2024 through June 30, 2025 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) 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. (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). When a family has been selected from the waiting list, the PHA must notify the family (24 CFR 982.544(a)). Each family member, regardless of age, must submit the following evidence to the responsible entity: For U.S. citizens or U.S. nationals, the evidence consists of a signed declaration of U.S. citizenship or U.S. nationality. The responsible entity may request verification of the declaration by requiring presentation of a United States passport or other appropriate documentation, as specified in HUD guidance. (24 CFR 5.508) Condition/Context: During our testing of 74 tenant files for waiting list requirements, we noted the following in 18 files: - 1 out of 74 files did not include documentation that the Authority notified the applicant that their name had reached the top of the waiting list. - 5 out of 74 files did not include documentation confirming that the applicants were admitted to the program in accordance with the applicant selection policies found within the Administrative Plan. - 7 out of 74 files contained instances where the application date per the waiting list did not agree to the date per the application. - 2 out of 74 files did not include a signed Declaration 214 for all members of the household. - 1 out of 74 files did not include a copy of the executed voucher. - 1 out of 74 files did not include a copy of the signed HAP contract. - 1 out of 74 files could not be tested, as support was not provided. Questioned costs: None Cause: Waiting list administration and applicant selection processes were conducted at the local agency level. While policies were established in the Administrative Plan, documentation practices varied across LHAs, particularly regarding referrals for special purpose vouchers. Controls to verify documentation at the point of selection were not consistently standardized across agencies. As a result, certain required documents were either incomplete or not retained in a manner sufficient for audit verification. Effect: The lack of internal controls over the waiting list requirements could result in individuals not being selected or housed in accordance with the Authority’s and HUD’s requirements. Repeat Finding: This finding is a repeat finding in the immediate prior year. Prior year finding number was 2024-005. Recommendation: We recommend the Authority review its Agent’s internal controls over the waiting list process to ensure all documentation is maintained at the time each applicant is selected from the waiting list and that applicants are added to the waitlist accurately. We recommend the Authority implements uniform documentation standards and requirements across all local housing agencies (LHAs) and agents of the Authority. Views of responsible officials: There is no disagreement with the audit finding.