Finding Text
Finding 2025-002 Significant Deficiency: Reporting - Compliance and Control Finding ALN 14.871 and 14.879 - Housing Voucher Cluster: Section 8 Housing Choice Vouchers Federal Agency: U.S. Department of Housing and Urban Development (HUD) Pass-Through Entity: N/A - Direct Award Criteria Or Specific Requirement: HUD requires Public Housing Authorities (PHAs) to submit Form HUD-50058 within 60 days whenever a family ends participation in the program, moves out of the PHA’s jurisdiction under portability, or transfers from one assisted unit to another (unit-to-unit move). The form must be submitted within 60 days of the participant’s termination, exit from the program, or unit transfer. Condition: The Authority did not submit the required form within the designated timeframe, nor did the existing control operate as intended to prevent the error from occurring. Cause: The control in place did not ensure timely submission of the HUD-50058. Effect: The possibility exists that noncompliance with federal requirements could go undetected regarding compliance relating to direct and material compliance requirements. Questioned Costs: None. Context: Of the 40 participants tested, 4 participants that exited the program or moved units did not have the HUD-50058 submitted within the required 60 day timeframe. Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management evaluate their existing control over the timely submission of the HUD-50058 upon a participant’s exit of the program, and consider implementing additional controls such as a review of a schedule of participants who exited the program monthly to ensure all required submissions to HUD take place on time. Views Of Responsible Officials: Section 8 Housing Choice Voucher Program staff will conduct a monthly review of participant exits, portability actions, and unit transfers as a standing agenda item during regular operational meetings to ensure all required HUD-50058 submissions are completed within HUD’s required 60-day timeframe. Any outstanding submissions identified through the review will be addressed promptly and documented by responsible program staff.