Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: MD015VO - 2023
Award Period: July 1, 2022 – June 30, 2023
Compliance Requirement: Special Tests and Provisions – Selection from the Waiting List (New Tenants)
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: The Authority must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and Authority documentation must show that the Authority follows these policies when selecting applicants for admission from the waiting list. Except as provided in 24 CFR section 982.203 Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the Authority notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207).
Condition: The Authority was unable to provide adequate supporting documentation and evidence of internal control over compliance for new tenants.
Questioned costs: Unable to determine.
Context: Exceptions were noted in 5 out of 40 files tested for new tenants:
• The selection letter was missing for 1 sample.
• A copy of the signed voucher was not provided for 5 samples.
• The housing assistance payment contract was not duly executed for 2 files.
Cause: The Authority did not follow the established procedures in its Housing Choice Voucher Administrative Plan.
Effect: The Authority is not in compliance with new tenant admission requirements.
Repeat Finding: Yes, see finding 2022-003.
Recommendation: We recommend the Authority review their process and internal controls for new tenants to ensure compliance with HUD requirements and their administrative plan.
Views of responsible officials: There is no disagreement with the audit finding.