Finding 1218296 (2025-001)

Material Weakness Repeat Finding
Requirement
ELN
Questioned Costs
-
Year
2025
Accepted
2026-06-24
Audit: 404539
Organization: Miami-Dade Aviation Department (FL)
Auditor: COHNREZNICK LLP

AI Summary

  • Core Issue: Miami-Dade Housing and Community Development Department is not meeting federal requirements for participant file management, leading to compliance risks.
  • Impacted Requirements: Issues include untimely annual recertifications, improper income calculations, missing documentation, and inadequate inspection records.
  • Recommended Follow-Up: Implement enhanced quality control measures and timely processing improvements to ensure accurate documentation and compliance with HUD regulations.

Finding Text

Finding No. 2025-001; Eligibility; Reporting; Special Tests and Provisions - Material Weakness Name of Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster (Section 8 Housing Choice Vouchers Program; Mainstream Voucher Program) Assistance Listing Number: 14.871; 14.879 Federal Award Identification Number and Year: FL005 2025 Criteria: In accordance with Uniform Guidance, internal controls are required to be in place to ensure compliance with federal requirements and to maintain complete and accurate participant files as noted in 24 CFR 5.233, 982.151, 982.405(d), and 982.516. Condition and Context: Our testing of 60 participant files and 40 failed inspections noted the following:  Annual recertifications were not completed timely for 9 of 60 participant selections.  Annual income was improperly calculated on 1 of 60 participant selections.  No support provided for HAP Contract and Tennant Addendum for 19 of 60 participant selections.  No electronic income verification was done within the required timeframe for 10 of 60 participant selections.  No abatement of HAP for 3 of 40 failed inspections.  Utility allowance improperly input or not provided for 1 of 60 participant files.  Missing inspections for 3 of 60 participant files. Effect or Potential Effect: Miami-Dade Housing and Community Development Department is not in compliance with federal requirements regarding Eligibility, Reporting, and Special Tests and Provisions. Cause: Certain documentation was not maintained and not able to be provided in accordance with Miami-Dade Housing and Community Development Department’s policies and procedures. Questioned Costs: Unknown. Identification as a Repeat Finding: This finding is not a repeat finding. Recommendation: Miami-Dade Housing and Community Development Department should maintain complete and accurate participant files to ensure compliance with federal requirements. Views of Responsible Official(s) and Planned Corrective Actions: The Department has taken immediate corrective action to address the deficiencies identified in the files audited. All noted discrepancies are being reviewed and are in the process of being corrected, and revised Form HUD-50058 submissions will be completed and transmitted, where required. The Department maintains established procedures, systems, and internal controls designed to support compliance with applicable HUD requirements. To further strengthen these controls, enhancements are currently underway to improve the timeliness of processing activities, ensure accurate and thorough income verification, and enforce proper application of abatements. Additionally, the Department is implementing more robust quality control (QC) measures to verify that all required documentation is consistently obtained, reviewed, and retained. To reinforce oversight, the Department is expanding its existing QC and Housing and Community Development (HCD) review processes. This includes the implementation of a front-line supervisory review of a representative sample of recertifications prior to the submission of Form HUD-50058. This added layer of review is intended to proactively identify and correct potential errors, ensuring accuracy, completeness, and full regulatory compliance.

Corrective Action Plan

Action Taken: The Department has taken immediate corrective action to address the deficiencies identified in the files audited. All noted discrepancies are being reviewed and are in the process of being corrected, and revised Form HUD-50058 submissions will be completed and transmitted, where required. The Department maintains established procedures, systems, and internal controls designed to support compliance with applicable HUD requirements. To further strengthen these controls, enhancements are currently underway to improve the timeliness of processing activities, ensure accurate and thorough income verification, and enforce proper application of abatements. Additionally, the Department is implementing more robust quality control (QC) measures to verify that all required documentation is consistently obtained, reviewed, and retained. To reinforce oversight, the Department is expanding its existing QC and Housing and Community Development (HCD) review processes. This includes the implementation of a front-line supervisory review of a representative sample of recertifications prior to the submission of Form HUD-50058. This added layer of review is intended to proactively identify and correct potential errors, ensuring accuracy, completeness, and full regulatory compliance. If the Department of Housing and Urban Development has questions regarding this plan, please call Nathan Kogon, Director at (786) 469-4120. The process to start correcting the issue discussed above is currently underway, and significant progress is expected for the next fiscal year end audit.

Categories

HUD Housing Programs Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1218294 2025-001
    Material Weakness Repeat
  • 1218295 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC HOUSING OPERATING FUND $40.51M
14.872 PUBLIC HOUSING CAPITAL FUND $30.27M
14.218 COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS $22.92M
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $14.00M
14.879 MAINSTREAM VOUCHERS $12.45M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $9.30M
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $4.01M
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $3.97M
14.249 SECTION 8 MODERATE REHABILITATION SINGLE ROOM OCCUPANCY $1.34M
14.228 COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII $1.08M
14.231 EMERGENCY SOLUTIONS GRANT PROGRAM $900,402
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $234,874
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $224,077