Finding Text
Finding 2023-001
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Moving to Work Demonstration Program
Federal Catalog Numbers: 14.881
Noncompliance – E. Eligibility - Tenant Files
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 members 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: Of a sample size of twenty-eight (28) tenant files, the following information was unavailable for examination at the time of audit:
HUD-50058 form was missing in one (1) file
Verification of income and assets was missing in one (1) file
Our sample size is statistically valid.
Known Questioned Costs: $448
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 maintained and monitored a system of internal controls that reasonably assures the program is in compliance.
Effect: The Moving to Work Demonstration 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 reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Authority Response: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Moving to Work Demonstration Program to ensure that established internal control policies are being followed on a timely basis.