Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Section 8 Project-Based Cluster
Assistance Listing Number: 14.195/14.856
Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/22 - 6/30/23)
Award Period: July 1, 2022 through June 30, 2023
Type of Finding:
Significant Deficiency in Internal Control over Compliance.
Other Matters.
Criteria: The PHA is required to submit the HUD-50058 and HUD-50059(Family Report) 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 to HUD’s Public Housing Information Center (PIC) or the Tenant Rental Assistance Certification Program (TRACS). 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 our testing, we noted the Authority did not have adequate internal controls designed to ensure that HUD-50058 and HUD-50059 reporting requirements were being met. As a result, a HUD-50058 and HUD-50059 were not submitted timely.
Questioned costs: Unknown
Context:
Testing of 40 tenant files for special reporting revealed that 2 files had the following exceptions:
- 1 file failed to correct a fatal error after initial submission. As a result, the HUD-50058 was not showing as reported in PIC.
- Management failed to follow up on 1 file due to TRACS creating a termination for late processing of reexamination.
Cause: The Commission does not have internal controls in place to ensure it is meeting TRACS submissions eligibility requirements set by HUD. The Commission failed to correct the fatal error in PIC due to staffing vacancies.
Effect: The Commission is not in compliance with program requirements over PIC/TRACS Reporting.
Repeat Finding: Not a repeat.
Recommendation: The Commission should implement processes to ensure that fatal errors occurring during PIC/TRACS submissions are corrected in a timely manner.
View of Responsible Officials: There is no disagreement with the audit finding.