Finding 387195 (2023-001)

2023‐001 Department of Housing and Urban Development Federal Financial Assistance Listing/CFDA #14.195 and #14.182 Section 8 Housing Assistance Payments Program and Section 8 New Construction and Substantial Rehabilitation Reporting Significant Deficiency in Internal Control over Compliance Criteria: Management should have an internal control system in place designed to provide for the retention and review of required documents as defined in the grant agreement and compliance supplement. Condition: In our testing of 60 waitlist applicants for the Project Based Section 8 program, there was one instance where the required documentation for the applicant was not available by the property manager. Cause: The documentation was not filed or retained. Effect: All documents are not retained. Questioned Costs: None Context/Sampling: A nonstatistical sample of 60 out of a population greater than 250 waitlist applicants were selected. Repeat Finding from Prior Years: No Recommendation: Management and those charged with governance should analyze the current control system and make the decision whether to accept the degree of risk associated with this condition around document retention and review or implement enhanced controls. Views of Responsible Officials: Management agrees with the finding.