Finding Text
U.S. Department of Housing and Urban Development ‐ CFDA #14.850
Public and Indian Housing
Applicable Federal Award Number and Year – Public and Indian Housing ‐ 2022
Eligibility
Material Weakness in Internal Control over Compliance
Criteria – The Program requires the Authority to determine eligibility of participants of the program through annual and interim review of participant information.
Condition – During our testing, we identified an error in the tenant rent calculation for 2 individuals that were not detected by the Authority’s internal controls. In addition, there was no review of any of the rent calculations by another individual.
Questioned Costs – None Reported.
Context/Sampling – A non‐statistical sample of 60 participants were selected for testing. 2 out of the 60 tenant files had an incorrect rent calculation.
Effect – Failure to implement and maintain a proper control process could result in incorrect calculations of income, which could cause errors in eligibility determinations.
Cause – The Authority has experienced significant staff turnover and the Authority’s controls are currently not adequately designed and operating.
Repeat Finding from Prior Year – Yes.
Recommendation – The Authority should implement controls to ensure eligibility requirements are being followed and that there is a review of tenant eligibility calculations by another individual.
Views of Responsible Officials – Management agrees with the finding.