Finding 1228059 (2025-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-08-27

AI Summary

  • Core Issue: The Authority has a significant deficiency in internal controls, leading to errors and delays in submitting HUD-50058 forms to the PIC system.
  • Impacted Requirements: Compliance with HUD regulations requires timely and accurate electronic submissions of HUD-50058 forms for various tenant changes.
  • Recommended Follow-Up: Designate a responsible individual to oversee the accurate and timely input of HUD-50058 data into the PIC system.

Finding Text

HVC PIC Submissions Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: NE 001; 2025 Award Period: January 1, 2025 – December 31, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: HUD-50058, Family Report (OMB No. 2577-0083) – The PHA is required to submit this form electronically to HUD each time the PHA completes an issuance, admission, annual reexamination, interim reexamination, portability move-in, expiration, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). Condition: Out of 60 HUD-50058’s tested for PIC submissions, 8 HUD-50058 PIC uploads contained errors or were not uploaded timely. Questioned Costs: The timeliness of submitting HUD-50058’s into the PIC system does not have an impact on the HAP calculation. Context: During the testing of 60 tenant files for PIC submissions, the following exceptions were noted: • 2 instances where the HUD-50058 could not be located in the PIC system. • 6 instances where PIC was not submitted within 90 days of the effective date. Cause: The Authority failed to submit accurate information into the PIC system within 90 days of the effective date of the HUD-50058. Effect: The Authority is not in compliance with federal regulations regarding PIC submission requirements determined by HUD. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding number was 2024-003. Recommendation: We recommend that the Authority designate an individual to ensure accurate HUD-50058 information is input into the PIC system timely. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Housing Voucher Cluster – Assistance Listing No. 14.871 and 14.879 – PIC Submissions Recommendation: We recommend that the Authority designate an individual to ensure accurate HUD-50058 information is input into the PIC system timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Authority will designate an individual responsible for monitoring HUD-50058 submissions and ensuring information is entered into the PIC system accurately and within required timeframes. Management will review the submission process and implement follow-up procedures to reduce the risk of untimely or unsupported PIC submissions. Name of the contact person responsible for corrective action: Philisa Smith, HCV Director Planned completion date for corrective action plan: December 31, 2026

Categories

HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1228054 2025-002
    Material Weakness Repeat
  • 1228055 2025-002
    Material Weakness Repeat
  • 1228056 2025-002
    Material Weakness Repeat
  • 1228057 2025-003
    Material Weakness Repeat
  • 1228058 2025-003
    Material Weakness Repeat
  • 1228060 2025-004
    Material Weakness Repeat
  • 1228061 2025-004
    Material Weakness Repeat
  • 1228062 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.872 PUBLIC HOUSING CAPITAL FUND $9.96M
14.850 PUBLIC HOUSING OPERATING FUND $7.97M
14.889 CHOICE NEIGHBORHOODS IMPLEMENTATION GRANTS $2.12M
14.879 MAINSTREAM VOUCHERS $899,053
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $892,496
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $366,603
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $149,710
14.856 LOWER INCOME HOUSING ASSISTANCE PROGRAM SECTION 8 MODERATE REHABILITATION $81,798