Finding Text
Finding 2022-004: Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Continuum of Care Program Federal Catalog Numbers: 14.267 Noncompliance ? S. Special Tests and Provisions ? Reasonable Rental Rates 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 71 units. Of a sample size of twenty-one (21) tenant files, the following was noted: HUD 50058 annual recertification was missing in 1 file Income Verification was missing in 2 files Our sample size is statistically valid. Known Questioned Costs: $30,581. 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 assures the program is in compliance. Effect: The Continuum of Care Program is in non-compliance with the eligibility type of compliance related to the maintenance of tenant files. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement. Authority Response: The Authority has created and continues to improve a new central document management/retention and tracking system. Also, the Authority is improving its procurement system efficiency/trackability with the addition of the OpenGov procurement platform along with instituting Purchase Requests/Purchase Orders. The Authority is also reaching out to other agencies for best practices, guidance, and support. Finally, the Authority is retaining a consultant to evaluate the Authority?s current systems compared to other agencies/general best practices, and to make recommendations for further changes/improvements where necessary.