Finding Text
U.S. Department of Housing and Urban Development – CFDA #14.871
Housing Choice Vouchers
Applicable Federal Award Number and Year – HCV2024
Eligibility
Significant Deficiency in Internal Control over Compliance and Immaterial Instance of
Noncompliance
Criteria: The Authority is required to determine income eligibility and calculate the tenant’s rent
payment using the documentation from third party verification in accordance with 24 CFR Part 5
Subpart F.
Condition: During our testing, we noted one file that the incorrect income was calculated and
used on the form, however, the error did not cause a change in the tenant assistance payment.
Cause: The Authority’s internal controls related to maintaining proper files were not operating
as designed and was an oversight by staff.
Effect: Weaknesses in internal control over compliance could result in the Authority failing to
comply with eligibility requirements.
Questioned Costs: N/A
Context/Sampling: We tested 60 files from the population of over 250.
Repeat Finding from Prior Year: No.
Recommendation: We recommend that the Authority establish controls to ensure that all the
proper income is being calculated and used on the form to calculate HAP.
View of Responsible Officials: Management agrees with the finding.