Finding Text
Criteria- Uniform Guidance (2 CFR §200.303) requires recipients offecleral awards to establish and maintain effective internal controls over compliance. Specifically, 24 CFR §982.201 and related program requirements for the Moving to Work Demonstration Program (Assistance Listing Number 14.881) specific to the Section 8 Housing Choice Voucher Program mandate: 1. Documentation • of eligibility (including citizenship/immigration status and income verification). 2. Signed lease agreements between the tenant and owner. 3. Rent reasonableness determinations for all units, 4. Hoμsing Quality Standards (HQS) inspections must be documented prior to lease-up and annually thereafter. 5. Recertifications (HUD-50058) and authorizations to release information (HUD-9886) must be on file. Condition - During testing of 22 participant files, we were unable to verify compliance with key program requirements due to missing documentation as detailed below: Deficiency Number of Files Affected Missing signed lease agreement Missing proof of citizenship/eligible immigration status 1 out of22 1 out of22 Cause - The Authority did not maintain adequate documentation in participant files. Effect - The absence of required documentation increases the risk of non-compliance with HUD regulations, which may result in findings during HUD reviews or audits and possible loss of HUD funding or sanctions if deficiencies are not corrected. Questioned Costs - Due to missing documentation, the allowability of housing assistance payments for the impacted participants cannot be determined. Repeat Finding - This is not a repeat finding. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Recommendation - To address the deficiencies identified in the HCV Program tenant files, we recommend that the Authority implement comprehensive measures to strengthen compliance and improve internal controls. First, the Authority should conduct a full review of all tenant files to identify and resolve missing documentation, using a standardized checklist to ensure all required documents are included in each file.· Management's Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation. Please see below for action taken. (b) Action taken - The Authority will obtain the necessary documentation at the time of the next annual recertification.