Finding 1217335 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-06-11

AI Summary

  • Core Issue: There are significant deficiencies in internal controls over eligibility for the HOME program, leading to potential assistance being given to ineligible participants.
  • Impacted Requirements: Compliance with federal regulations requires maintaining documentation of income eligibility and conducting secondary reviews, which were not adequately performed.
  • Recommended Follow-up: Management needs to establish controls to ensure all eligibility documentation is collected and that a secondary review process is documented for all applications.

Finding Text

FINDING 2025‐002—ELIGIBILITY—SIGNIFICANT DEFICIENCY IN INTERNAL CONTROLS OVER COMPLIANCE AND NONCOMPLIANCE FEDERAL PROGRAM: Home Investment Partnerships Program (HOME) ASSISTANCE LISTING NUMBER: 14.239 YEAR(S): 2025 FEDERAL AGENCY: Department Of Housing and Urban Development (HUD) PASS‐THROUGH AGENCIES: Idaho Housing and Finance Association Criteria - Only low income or very low-income persons, as defined in 24 CFR section 92.2, can receive housing assistance (24 CFR section 92.1). Therefore, the entity must determine if each family is income eligible by determining the family’s annual income, including all persons in the household, as provided for in 24 CFR section 92.203. The entity must maintain records for each family assisted (24 CFR section 92.508). Condition/Context – From 32 selections of a management prepared listing of participants who received housing or utility assistance, management could not provide documentation verifying eligibility, nor the dollar value provided to, 2 of the samples. Further, 4 out of the 32 selections had an initial intake case manager signature on the application, however there was no evidence that a secondary review of eligibility was performed. Cause - Management has not designed and implemented a control to ensure all eligibility documentation is maintained for program participants; further, management did not perform or retain evidence of a secondary review of participant eligibility. Effect - Assistance could be provided to participants who were ineligible, reducing the amount of funding available for eligible participants. Questioned Cost - Could not be determined. Management was unable to verify whether the 2 selections that had missing documentation received any assistance from the federal awards. Recommendation - Management should design a control to ensure all the documentation is maintained for the applicants regarding their application status and further ensure documentation is maintained evidencing that a secondary review was performed over all applications. View of Responsible Officials - See Corrective Action Plan.

Corrective Action Plan

Finding 2025-002- Eligibility- Significant Deficiency in Internal Controls over Compliance and Non-Compliance Federal Program: Home Investment Partnerships Program (HOME) Assistance Listing Number: 14.239 Year(s): 2025 Federal Agency: Department of Housing and Urban Development (HUD) Pass-Through Agencies: Idaho Housing and Finance Association Responsible Party: Jeanne Stromberg, Major - Divisional Finance Secretary-Cascade Division 916-501-6374 RESPONSE: Management will implement a review and approval process to ensure all documentation for applications is maintained in the file and that all applications that are eligible tor participation are properly approved. Effective Date: November 2026

Categories

Eligibility HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 1217328 2025-001
    Material Weakness Repeat
  • 1217329 2025-001
    Material Weakness Repeat
  • 1217330 2025-001
    Material Weakness Repeat
  • 1217331 2025-001
    Material Weakness Repeat
  • 1217332 2025-002
    Material Weakness Repeat
  • 1217333 2025-002
    Material Weakness Repeat
  • 1217334 2025-002
    Material Weakness Repeat
  • 1217336 2025-003
    Material Weakness Repeat
  • 1217337 2025-003
    Material Weakness Repeat
  • 1217338 2025-003
    Material Weakness Repeat
  • 1217339 2025-003
    Material Weakness Repeat
  • 1217340 2025-004
    Material Weakness Repeat
  • 1217341 2025-004
    Material Weakness Repeat
  • 1217342 2025-004
    Material Weakness Repeat
  • 1217343 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.267 CONTINUUM OF CARE PROGRAM $793,175
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $184,762
94.006 AMERICORPS $158,628
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $98,776
64.024 VA HOMELESS PROVIDERS GRANT AND PER DIEM PROGRAM $67,513
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $40,000
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $19,719
93.671 FAMILY VIOLENCE PREVENTION AND SERVICES/DOMESTIC VIOLENCE SHELTER AND SUPPORTIVE SERVICES $17,769
10.551 SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $15,141
16.588 VIOLENCE AGAINST WOMEN FORMULA GRANTS $9,503
16.575 CRIME VICTIM ASSISTANCE $8,287
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $8,004
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $6,829
45.129 PROMOTION OF THE HUMANITIES FEDERAL/STATE PARTNERSHIP $1,670