FAC Explorer

Finding 571009 (2024-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-07-10
Audit: 361950
Organization: Home Forward (OR)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Home Forward lacks adequate internal controls to ensure that only eligible low-income families receive assistance, leading to a material weakness in compliance.
  • Impacted Requirements: Eligibility criteria from the 1937 Housing Act were not met, with 15 out of 40 tenant files showing significant documentation issues.
  • Recommended Follow-Up: Home Forward should enhance monitoring controls to ensure timely recertifications and accurate income documentation.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Moving to Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: OR002VOW - 2024 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Eligibility Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: 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))). Condition: The Authority did not have adequate internal controls designed to ensure that eligibility requirements were met. Questioned costs: Unable to determine Context: Testing of 40 tenant files for eligibility noted 15 files with exceptions: • 10 files were missing documentation needed to support and recalculate total income. • 5 files where the examination was not processed within the regulatory period. Cause: Home Forward did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: Home Forward is not in compliance with federal regulations regarding eligibility. Tenant rent may have been miscalculated due to using stale/inaccurate information in the rent calculation. Repeat Finding: Yes, finding 2023-002. Previously reported as a significant deficiency in internal control over compliance. Recommendation: We recommend that Home Forward reviews the controls in place to ensure that recertifications are performed timely and the income is supported. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Moving to Work Demonstration Program – Assistance Listing No. 14.881 Recommendation: We recommend that Home Forward reviews the controls in place to ensure that recertifications are performed timely and the income is supported. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Prior to COVID, we had software controls in place that did not allow staff to override the next re-exam dates. We removed those restrictions during COVID. Since this audit finding we have now put those controls back in place. We also have training scheduled to discuss income calculations and to reiterate processes related to review schedules. The training will focus on correct income calculation procedures and documentation and will highlight maintaining effect dates for reviews when they are not completed on time due to resident failure to provide documentation. Name(s) of the contact person(s) responsible for corrective action: Elise Anderson (software controls) and Suzanne Couttouw (income/ exam date training) Planned completion date for corrective action plan: • Software controls back in place 6/1/2025 • Income Calculation training 7/16/2025

Categories

Eligibility Material Weakness Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1147451 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.881 Moving to Work Demonstration Program $138.16M
14.871 Section 8 Housing Choice Vouchers $50.46M
14.871 Emergency Housing Vouchers $8.98M
14.267 Continuum of Care Program $6.96M
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.34M
14.879 Section 8 Mainstream Vouchers $3.13M
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $2.00M
21.023 Emergency Rental Assistance Program $1.71M
14.896 Family Self-Sufficiency Program $849,503
14.191 Multifamily Housing Service Coordinators $437,884
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $203,234
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $186,611
14.866 Demolition and Revitalization of Severely Distressed Public Housing $131,099
97.024 Emergency Food and Shelter National Board Program $61,153
93.778 Medical Assistance Program/grants to States for Medicaid $33,718
32.011 Affordable Connectivity Outreach Grant Program $21,622