Finding 22704 (2022-002)

Finding: 2022-002 Federal Agency: U. S. Department of Housing and Urban Development Federal program: N/C S/R Section 8 Program ALN #: 14.182 Award Period: 7/1/21-6/30/22 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Statement of Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: N/A Context: Testing of 25 files identified an exception in 2 files as follows: ? 2 file did not contain proper documentation of the Section 214 Declaration of Citizenship Status form. ? 1 file did not have a Release of Information form signed by all required members of the household. Form 9886 is used by HUD to obtain consent to verify income. ? 2 files did not contain evidence of income verification. ? 1 file did not contain a social security card or EIV verification for the head of household. ? 1 file did not contain evidence of an annual recertification. Cause: The Agency did not follow their eligibility intake procedures properly. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: No Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.