Finding Text
2022-004 Declarations of Trust Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 / 14.879 Federal Award Identification Number and Year: MO004; 2022 Award Period: January 1, 2022 through December 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or Specific Requirement: A current Declaration of Trust (DOT), in a form acceptable to HUD, must be recorded against all public housing property owned by PHAs (or private entities for public housing developed under 24 CFR part 905, subpart F) that has been acquired, developed, maintained, or assisted with funds from the US Housing Act of 1937. Condition: During our testing, we noted the Authority did not have adequate internal controls to ensure they were in compliance with special tests - declaration of trust requirements. Questioned Costs: None Context: During our testing, we noted the Authority did not have a declaration of trust on file for 1 public housing project out of 4. Cause: The Declaration of Trust has been mislocated as this property is over 40 years old. Effect: The Authority is not following compliance requirements regarding special tests ? declaration of trusts. Repeat Finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding numbers were 2021-005 and 2020-001. Recommendation: The Authority should ensure they have all required documentation on file to ensure they are in compliance with HUD requirements regarding declaration of trusts. Views of Responsible Officials: There is no disagreement with the audit finding.