Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Voucher Cluster
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: LA003, 2023
Award Period: 10/1/22-9/30/23
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: HUD-50058, Family Report (OMB No. 2577-0083) – The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA’s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158).
Condition: During testing, it was noted that the Authority did not have adequate internal controls designed to ensure compliance with reporting requirements regarding submissions of HUD-50058’s into the PIC system for 2 out of 40 files tested.
Questioned Costs: None
Context: During testing of a sample of 60 HUD 50058 forms, it was noted that 2 files did not comply with compliance requirements.
1 HUD-50058 form was not submitted into the PIC system within the regulatory period of 90 days.
1 HUD-50058 form was submitted into the PIC system, however, it returned with a fatal error that was not corrected by the housing authority.
Cause: The Authority did not have internal controls to ensure compliance with the reporting requirements over submitting the required forms into the PIC system.
Effect: The Authority is not in compliance with federal regulations regarding the submission of the HUD-50058 to PIC. The inaccurate data could potentially effect determination of HAP funding.
Repeat Finding: The finding is a repeat of a finding in the immediately prior year. Prior year finding number was 2022-005.
Recommendation: We recommend that the person assigned to submit the 50058s to PIC assures a quality control review is performed on the submissions to ensure timely and accurate reporting.
Views of Responsible Officials: There is no disagreement with the audit finding. Following CLA’s recommendation, SVP of Housing Choice will audit a random sample of 50058 submissions to PIC each month to ensure that all submissions are accurate in PIC. Additionally, the Agency is transitioning to Yardi software which should eliminate many of the submission issues caused by current enterprise software.