Finding 51966 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-21

AI Summary

  • Core Issue: The Commission failed to upload accurate tenant information to the PIC system as required by HUD regulations.
  • Impacted Requirements: Compliance with 24 CFR Part 908 and 24 CFR section 982.158 regarding electronic submissions for tenant admissions and changes.
  • Recommended Follow-Up: Management should review and improve their upload procedures to ensure all information is submitted correctly and promptly.

Finding Text

2022-001 ? PIC Uploads Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Choice Voucher Program FALN: 14.871/14.879 Federal Award Identification Number and Year: MD023, 2022 Award Period: 1/1/2022-12/31/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: 24 CFR Part 908 and 24 CFR section 982.158 states that the PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA?s jurisdiction under portability. Condition: We noted that the Commission did not perform uploads of accurate information into the PIC system. Questioned costs: Unable to determine. Context: Testing of 40 HCVP tenants in PIC identified an exception in 7 files. In these instances, the tenant HUD 50058 forms were not uploaded to PIC. Cause: The commission did not return to their information they uploaded when the errors appeared and left them without being properly uploaded. Effect: The Commission is not in compliance with HUD requirements. Repeat finding: No Recommendation: We recommend that management review their procedures for uploads to PIC to confirm the information is uploaded without error. Explanation of disagreement with audit finding: There is no disagreement with the audit finding.

Corrective Action Plan

2022-001 Housing Choice Voucher Program ? FALN No. 14.871 Recommendation: We recommend that management review their procedures for uploads to PIC to confirm the information is uploaded without error. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: HUD PIC errors occurred because data submitted for the FY 2022 Audit Period was not properly reviewed, and errors were not identified and corrected. During the audit period, the HCHC experienced a transition of personnel that included a period during which a third-party contractor led the program. Staff with the responsibility to ensure data integrity also transitioned. Since August 29, 2022, the HCHC has had stable leadership, the PIC submissions process has been changed, and PIC submissions are being reviewed. The following actions have been implemented to help mitigate PIC errors: ? The HCHC uses the HUD Pic Error Dashboard to identify and monitor PIC errors. The PIC Error Dashboard shows a summary view of PIC Fatal errors the HCHC receives when inputting the Form 50058s with reexaminations over 14 months overdue. The reports within the dashboard are updated weekly, and staff has been submitting PIC files every Friday to minimize the number of errors and ensure timely submissions of the 50058s. ? Staff also use the PIC Error Correction Guidebook for the HCV program, which guides identifying and correcting PIC errors and step-by-step instructions on common PIC errors. Name(s) of the contact person(s) responsible for corrective action: Paul Diggs, Director of HCVP Planned completion date for corrective action plan: The new procedures for monitoring and correcting PIC errors are in place. Correcting errors, however, is an ongoing process as the HCHC submits 50058 records weekly. The HCV department started corrective measures in October 2022 to identify and correct outstanding PIC submissions.

Categories

HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 51967 2022-002
    Material Weakness
  • 51968 2022-003
    Material Weakness
  • 51969 2022-004
    Significant Deficiency
  • 51970 2022-001
    Significant Deficiency
  • 51971 2022-002
    Material Weakness
  • 51972 2022-003
    Material Weakness
  • 51973 2022-004
    Significant Deficiency
  • 628408 2022-001
    Significant Deficiency
  • 628409 2022-002
    Material Weakness
  • 628410 2022-003
    Material Weakness
  • 628411 2022-004
    Significant Deficiency
  • 628412 2022-001
    Significant Deficiency
  • 628413 2022-002
    Material Weakness
  • 628414 2022-003
    Material Weakness
  • 628415 2022-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $22.73M
14.879 Mainstream Vouchers $1.19M
21.023 Covid-19 - Emergency Rental Assistance Program $450,587
14.218 Community Development Block Grants/entitlement Grants $326,222
14.241 Housing Opportunities for Persons with Aids $250,315
14.896 Family Self-Sufficiency Program $67,165