Finding Text
U.S. Department of Housing and Urban Development ‐ CFDA #14.182 / 14.856
Section 8 Project‐based Cluster
Applicable Federal Award Number and Year – Section 8 Project‐based Cluster ‐ 2021
Reporting
Significant Deficiency in Internal Control over Compliance
Criteria – The Program requires the Authority to submit reports HUD‐52663, Requisition for Partial Payment of Annual Contributions, which is submitted quarterly, and HUD‐52681, Voucher for Payment of Annual Contributions and Operating Statement, which is submitted annually.
Condition – The Authority was not able to provide us with signed and dated copies for all the original HUD‐52663 and HUD‐52681 reports submitted for 2021. In addition, the Authority did not timely submit revised HUD‐52663 and HUD‐52681 reports after the Authority had received notification from certain landlords who were opting out of the Mod Rehab program in 2021.
Questioned Costs – None Reported.
Context/Sampling – N/A.
Effect – Failure to implement and maintain a proper control process resulted in improper funding from HUD and having to repay HUD for the overpayments.
Cause – The Authority has experienced significant staff turnover and the Authority’s controls are currently not adequately designed and operating.
Repeat Finding from Prior Year – No.
Recommendation – The Authority should implement controls to ensure that amended reports are submitted timely to HUD and that copies of all reports that have been submitted are maintained.
Views of Responsible Officials – Management agrees with the finding.