Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster – Program Documentation (Significant Deficiency) Assistance Listing Number: 14.871
Federal Award Identification Number and Year: OR005 – 2024
Award Period: January 1, 2024 – December 31, 2024
Compliance Requirement: Special Tests and Provisions – Eligibility
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: (1) According to the Authority's internal procedures, case managers are to complete a checklist to keep in tenant file any time a new computation is created, be that for an annual, interim, or special reexamination. This must be signed and dated by the completing caseworker.
(2) According to the compliance supplement for the Housing Voucher Cluster, "The PHA must do the following: (1) As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230).
Condition: The Authority did not have adequate internal controls designed to ensure that all proper documentation was signed.
Special Tests:
-Eligibility
Context: During our testing over eligibility, auditor noted 3 of the 40 selections tested had missing signed documentation that the Authority had to have the tenant sign in accordance with the Authority’s internal procedures and compliance supplement for Housing Voucher Cluster program.
Questioned costs: None
Cause: The Authority did not have adequate internal controls designed to ensure it is meeting eligibility requirements set by HUD.
Effect: The Authority is not in compliance with program requirements over eligibility.
Recommendation: We recommend the Authority implement processes to ensure that all proper documentation is being maintained during the process for every tenant.
Views of Responsible Officials: There is no disagreement with the audit finding.