Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Supportive Housing for Persons With Disabilities
Assistance Listing Number: 14.181
Federal Award Identification Number and Year: 121-HD098-NP-CMI - 2024
Pass-Through Agency: N/A
Award Period: July 1, 2023, to June 30, 2024
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: According to §200.303 Internal Controls of 2 CFR Part 200, the
non-Federal entity must establish and maintain effective internal control over the Federal award that
provides reasonable assurance that the non-Federal entity is managing the Federal award in
compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
Condition: Income thresholds in Onesite on form HUD-50059 were not updated to the current year
very low-income limits published by HUD for the County of Monterey.
Questioned costs: None noted.
Context: The dicrepancy in the maximum income limit was identified during our testing of tenant rent
eligibility. The variance between the correct income limit and the form HUD-50059 income limit used to
determine tenants’ eligibility is immaterial.
Cause: Management oversight and lack of clarity on the party responsible for updating the income
limits in One Site.
Effect: Noncompliance results in possible exclusion of eligible applicants as the income limits
increased from prior year.
Repeat Finding: N/A