Finding Text
Finding No. 2025 - 001: Federal Agency: Department of Housing and Urban Development ("HUD") Federal Program Title: Moving to Work Demonstration Program (HCVP Only) Federal Assistance Listing Number: 14.881 Award Period: January 1, 2025 through December 31, 2025 Pass-through Entity: Housing Authority of Baltimore City Federal Award Identification Number and Year: MD06URD021294 Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Condition/Context A sample of 40 tenant files tested found that 2 files did not have HUD-50058 data uploaded to the PIH Information Center ("PIC") in a timely manner. Our sample was a statistically valid sample. Questioned Costs N/A Criteria Per the agreement between BRHP and the Housing Authority of Baltimore City, BRHP shall create an Administrative Plan for the program. Per BRHP's Program Administrative Plan, tenant information must be uploaded to the PIC system for each HUD-50058 report completed no later than 60 calendar days from the effective date of any action recorded on the form HUD-50058. Cause In one case, an interim recertification was conducted with an effective date of May 1, 2025, and it was approved on July 1, 2025, with the approver believing it was at the 60-day mark. Unfortunately, that delay led to the late submission to PIC. In the other case, a request for interim recertification was submitted followed by two additional interim recertification requests. During the review process, additional sources of income were identified. BRHP requested additional documentation from the tenant, which caused a delay in processing which was compounded by the two additional interim recertification requests being submitted by the tenant. Effect or Potential Effect The delay in uploading information to the PIC system may result in inaccurate reporting to HUD which is used for funding purposes. Identification of a Repeat Finding This is a repeat finding from the immediate previous audit, Finding No. 2024-001. Recommendations We recommend that BRHP follow its internal policy of reporting to HUD on a weekly basis. Views of the Responsible Officials Management conducts weekly reviews of all pending submissions. Going forward, if any files approach or exceed the 60-day submission threshold, the effective date will be revised as necessary, and any associated costs will be absorbed to ensure that clients are held harmless.