Finding Text
Finding reference number: 2023-002
Assistance Listing (Federal award identification number and year): Section 8 Housing
Assistance Program, Assistance Listing. No. 14.195, IL060061003, 2011
Auditor non-compliance code: N. Special Tests and Provisions
Finding resolution status: Cleared
Universe population size: 70 resident files
Sample size information: 7 resident files.
Statistically valid sample: Yes.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $0
Statement of condition 2023-002: During the year ended December 31, 2023, two resident files
at Liberty Lake selected for testing under HUD Consolidated Audit Guide contained improper income
or asset verification information in the completed resident certification.
Criteria: In accordance with the HAP Contract and HUD Handbook 4350.3, the Agent must certify and
recertify residents and update other applicable forms in accordance with HUD regulations and
contractual requirements.
Effect: Liberty Lake is not in compliance with the terms of the HAP Contract or HUD Handbook 4350.3.
Residents may receive an improper amount of rental assistance under the HAP Contract.
Cause: The Agent did not utilize proper third-party verification documents when completing resident
certifications.
Recommendation: The Agent should submit corrected resident certifications and implement
additional policies to ensure future resident certifications are completed accurately.
Management's response: The Agent agrees with the finding and recommendation. The Agent has
processed corrected resident certifications and is in the process of implementing additional training
for employees responsible for resident certifications.