Finding Text
Section III – Major Federal Award Program Findings and Questioned Costs Finding Reference 2025-006 Federal Agency: U.S. Department of Housing and Urban Development Program: Housing Voucher Cluster Section 8 Housing Choice Vouchers (ALN 14.871) Compliance Requirement: Special Tests and Provisions – Selection from the Waiting List (N) Type of Finding: Significant Deficiency in Internal Controls (SD), Instance of Noncompliance (NC) Statement of Condition: During our audit procedures over the waiting list and participant selection process, including our review of the PHA’s policies and a sample of participants admitted to the program during fiscal year 2024-2025, as well as a sample of applicants, we identified that one eligible applicant was not properly considered for admission in accordance with the PHA’s selection policies. Criteria: 24 CFR 982.54 (c) states that the PHA must administer the program in accordance with the PHA Administrative Plan. Chapter 3, Section 3.6 of the PHA’s Administrative Plan states that when vouchers become available, VBHA will reassess eligibility of applicants on the official Waiting List. The applicants are required to submit documents. Eligible applicants are selected from the waiting list according by current status preference and then based on date and time of application. Section 3.18 states that after the verification process is completed, VBHA will make a final determination of eligibility. Cause of Condition: The condition appears to have resulted from a breakdown in internal controls related to the administration of the waiting list and applicant selection process. Effect of Condition: An applicant was not provided with the opportunity to be admitted to the program after complying with the required documentation to determine eligibility. Recommendation: We recommend the Program Administrators to strengthen its internal controls in the management of the waiting list in order to comply with the Administration Plan Policies. Questioned Costs: None. Prior Year Findings: No. Views of Responsible Officials and Planned Corrective Actions: We concur with the findings. For the delay in issuance of participant voucher we will issue a voucher for the participant as soon as the next voucher becomes available, in accordance with the program’s budget allocation. The participant has been assigned priority status and will be served immediately once funding permits. Checklists will be implemented and staff retraining will be performed to ensure all documents are included. Monthly monitoring schedules will be established by the compliance officer. Forms will be reviewed by the administrative assistant before submission. To strengthen internal controls, manuals will be updated and training will be provided. Staff will validate income and eligibility documentation prior to approval and mandatory training sessions will be conducted on a quarterly basis. Implementation Date: Fiscal Year 2025-2026. Responsible Person: Héctor L. Rosado Calderón Federal Program’s Director