Finding 26296 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2022-12-29

AI Summary

  • Core Issue: There are discrepancies between the HUD form 50058 and the HAP register, leading to incorrect payments to landlords.
  • Impacted Requirements: Compliance with 24 CFR section 982.158 regarding accurate monthly housing assistance payments.
  • Recommended Follow-Up: Enhance internal controls and train staff; implement quarterly audits to ensure compliance with established procedures.

Finding Text

Finding 2022-002: Significant Deficiency in Internal Control over Compliance Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871 Compliance Requirement: Special Tests and Provisions Criteria: Under 24 CFR section 982.158, public housing authorities must pay monthly housing assistance payments ("HAP") that agrees to the HUD form 50058. Condition: There were discrepancies between the HUD form 50058 and the HAP register. Context: For 2 of 40 HAP selected for testing, there were discrepancies between the HUD form 50058 and the HAP register. Cause: The Authority's internal controls in place did not identify the discrepancies between the HUD form 50058 and the HAP register. Effect: Payments to landlords were incorrect as a result of the discrepancies. Questioned Costs: $303 Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its internal controls to ensure discrepancies do not exist between HUD form 50058 and the HAP register. Views of Responsible Officials: HCV staff will be trained on established procedures. The HCV Manager will conduct quarterly file audits (selecting samples randomly) to ensure that staff members are following established procedures.

Categories

Questioned Costs HUD Housing Programs Significant Deficiency Special Tests & Provisions Internal Control / Segregation of Duties

Other Findings in this Audit

  • 26291 2022-001
    Significant Deficiency
  • 26292 2022-002
    Significant Deficiency
  • 26293 2022-001
    Significant Deficiency
  • 26294 2022-002
    Significant Deficiency
  • 26295 2022-001
    Significant Deficiency
  • 602733 2022-001
    Significant Deficiency
  • 602734 2022-002
    Significant Deficiency
  • 602735 2022-001
    Significant Deficiency
  • 602736 2022-002
    Significant Deficiency
  • 602737 2022-001
    Significant Deficiency
  • 602738 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.34M
14.850 Public and Indian Housing $1.63M
14.872 Public Housing Capital Fund $533,674
14.871 Covid-19 Housing Choice Vouchers $136,005
14.850 Covid-19 Public and Indian Housing $52,413
14.871 Emergency Housing Vouchers $51,662