Finding Text
Finding 2024-021
U.S. Department of Housing and Urban Development (HUD)
AL No. 14.881 Moving to Work Demonstration
Material Weakness in Internal Controls over Compliance for Eligibility
Repeat Finding: Yes; 2023-002
Condition:
• For 11 out of 60 beneficiaries selected for eligibility, the redetermination did not occur within the biennial time period.
• For 8 out of 60 beneficiaries selected for eligibility, we were unable to recalculate annual family income listed in the tenant file based up the support provided by management.
• For 4 out of 60 beneficiaries selected for eligibility, we were not provided a HUD-50058.
Criteria:
Beneficiaries must be "low-income families," as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))).
Questioned Costs
Unknown.
Cause
The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements.
Effect
The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using incorrect information in the rent calculation. Tenant recertifications were not shown to be performed on a timely basis.
Recommendation
We recommend that DCHA staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit.
Auditee Response and Corrective Action Plan:
Management agrees with the finding. Refer to the corrective action plan on current findings in this report.
Auditor’s Conclusion:
Finding remains as stated.