Finding Text
Finding 2025-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers, and Emergency Housing Vouchers Programs Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance - N. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately two thousand four hundred nineteen (2,419) Housing Voucher Cluster units. Of a sample size of thirty five (35) tenant files, the following information was unavailable for examination at the time of audit: Citizenship declaration forms were missing in six (6) files Lead based paint forms were missing in two (2) files Executed HAP Contract/Tenancy Addendum was missing in one (1) file Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: As a result of the Authority's failure to properly design, implement, maintain, and monitor internal controls over tenant eligibility determinations and file maintenance, there is an increased risk that ineligible participants may be admitted to or retained in the program, eligible participants may receive incorrect assistance, and instances of noncompliance may not be detected or corrected in a timely manner. Consequently, federal funds may be expended for unsupported or ineligible purposes, resulting in potential questioned costs and noncompliance with HUD requirements. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.