Finding 51563 (2022-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-07-10

AI Summary

  • Core Issue: Missing documentation for criminal background checks, citizenship declarations, and "Debts Owed" forms in case files raises compliance concerns.
  • Impacted Requirements: Violations of federal regulations regarding internal controls and documentation for housing assistance eligibility.
  • Recommended Follow-Up: Implement additional procedures to ensure all necessary documentation is collected and maintained for compliance.

Finding Text

2022-002 Eligibility ? Source Documentation Prior Year Finding Number: N/A Repeat Finding Since: N/A Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Material Weakness and Modified Opinion Federal Agency: U.S. Department of Housing and Urban Development Program: 14.871 Section 8 Housing Choice Vouchers 14.879 Mainstream Vouchers Award Number and Year: Assistance Listing Number Award Number Year 14.871 MN163VO/MN163AF 2022 14.871 MN163EP/MN163EI/MN163ES/MN163EF/MN163EH 2022 14.879 MN163DV/MN163F 2022 Pass-Through Agency: N/A ? Direct Criteria: Title 2 U.S. Code of Federal Regulations ? 200.303 states that 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. Per Title 24 U.S. Code of Federal Regulations ? 982.553(a)(2), each member over the age of 18 is subject to a criminal background check prior to admission into the program. In addition, Title 24 U.S. Code of Federal Regulations ? 5.508 states that for each family member who contends that he or she is a U.S. citizen or a noncitizen with eligible immigration status, the family must submit to the responsible entity a written declaration, signed under penalty of perjury, by which the family member declares whether he or she is a U.S. citizen or a noncitizen with eligible immigration status (Section 214 Form). For each child, the declaration must be signed by an adult residing in the assisted dwelling unit who is responsible for the child. Public Housing Authorities are required by Notice PIH 2010-19 to provide the ?Debts Owed to Public Housing Agencies and Terminations? notice to all applicants and program participants over the age of 18, and all such individuals, are required to acknowledge receipt of the notice by signature located on the notice itself. Condition: A sample of 40 case files were reviewed, and the following issues were identified: ? Seven case files were missing documentation or evidence that a criminal background check was performed for one or more adult members of the household. ? Two case files were missing a family member on the Status 214 Citizenship Form. ? Four case files were missing the "Debts Owed" form for one or more adult members of the household. Questioned Costs: None. Context: HousingPro is the system used by the Metropolitan Council Housing Redevelopment Authority to calculate the monthly Housing Assistance Payments for the Housing Choice Voucher program participants and to document and support eligibility determinations. Proper input of information into the system and documentation retention is an important function to ensure accurate and proper eligibility determination and calculations of Housing Assistance Payments. The deviations identified did not impact eligibility or result in an incorrect level of benefit amount. The sample size was based on guidance from Chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Errors in eligibility-determining factors increases the risk that a program participant will receive benefits when they are not eligible or are paid at an incorrect benefit amount. Cause: Personnel entering case information into HousingPro did not ensure necessary documentation was completed and/or maintained. Recommendation: We recommend that the Metropolitan Council implement additional procedures to provide reasonable assurance that all necessary documentation is maintained supporting compliance with federal regulations. View of Responsible Official: Concur.

Categories

HUD Housing Programs Eligibility Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 51562 2022-002
    Material Weakness
  • 51564 2022-002
    Material Weakness
  • 51565 2022-002
    Material Weakness
  • 628004 2022-002
    Material Weakness
  • 628005 2022-002
    Material Weakness
  • 628006 2022-002
    Material Weakness
  • 628007 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
20.500 Federal Transit_capital Investment Grants $303.69M
20.507 Covid-19 Federal Transit_formula Grants $154.37M
20.507 Federal Transit_formula Grants $40.68M
66.458 Capitalization Grants for Clean Water State Revolving Funds $36.69M
20.525 State of Good Repair Grants Program $19.26M
20.526 Buses and Bus Facilities Formula, Competitive, and Low Or No Emissions Programs $3.34M
14.879 Mainstream Vouchers $2.36M
20.205 Highway Planning and Construction $900,359
20.509 Covid-19 Formula Grants for Rural Areas and Tribal Transit Program $818,025
97.036 Covid-19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $624,604
14.871 Section 8 Housing Choice Vouchers - Emergency Housing Vouchers $464,495
14.241 Housing Opportunities for Persons with Aids $464,285
14.871 Section 8 Housing Choice Vouchers $171,777
20.500 Covid-19 Federal Transit_capital Investment Grants $125,167
20.514 Public Transportation Research $20,000