Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Assistance Listing Number: 14.871 & 14.879 Passed Through: Direct Award Pass Through Number: N/A Compliance Requirement Affected: Special Provisions Award Period: 2022 Type of Finding: Material Weakness in Internal Control over Compliance. Criteria or Specific Requirement: Title 2 U.S. Code of Federal Regulations ? 200.303 states the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. OMB Compliance Supplement ? Special Provisions. Condition/Context: During testing of the Housing Voucher Cluster, it was noted that there was no review over certain special provisions required by the program. No internal review process is in place. Questioned Costs: Not applicable. Possible Effect: The lack of internal controls over special provisions could result in inaccurate reimbursement requests or providing to ineligible tenants. Cause: The Authority has only one individual working with the special provisions. Repeat Finding: Yes, 2021-003 Recommendation: We recommend that the Authority design and implement internal controls over special provisions. Other provisions, such as reasonable rent, housing quality standards inspections, and HQS enforcement, should be reviewed by someone independent of the initial preparation/inspection. Views of Responsible Officials and Planned Corrective Action: There is no disagreement with the audit finding.