Finding Text
2022 ? 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: HOME Investment Partnerships Program Assistance Listing Number: 14.239 Federal Award Identification Number and Year: Various Pass-Through Agency: Various Pass-Through Number(s): Various Award Period: Various Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The HOME program has income targeting requirements. Only low-income or very low-income persons, as defined in 24 CFR section 92.2, can receive housing assistance (24 CFR section 92.1). Therefore, the participating jurisdiction must determine if each family is income eligible by determining the family?s annual income, including all persons in the household, as provided for in 24 CFR section 92.203. Participating jurisdictions must maintain records for each family assisted (24 CFR section 92.508). Condition: ? Two out of three full certifications with 3rd party verification of information required by the HOME program sampled were not completed ? Two out of ten certifications due during FY22 were not completed as of the date of fieldwork ? Controls over timely and accurate completion of certifications for four out of ten files tested were not found ? Controls over timely completion of re-certifications for four out of seven files tested were not found Questioned costs: None Section III ? Findings and Questioned Costs ? Major Federal Programs (Continued) Context: Ten tenant files were selected for testing - three new move-ins and seven recertifications Cause: Timely completion and review of certifications were not completed. Effect: The auditor noted no instances ineligible tenants; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Repeat Finding: No Recommendation: We recommend that policies and procedures are implemented to ensure required certifications are completed and reviewed in a timely manner as required by HOME regulations. Views of responsible officials: There is no disagreement with the audit finding.