Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Titles: Section 8 Housing Choice Vouchers Program,
Federal Catalog Numbers: 14.871
Material Noncompliance
Non Compliance Material to the Financial Statements: Yes
Material Weakness in Internal Control over Compliance
Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit.
Context: Of a sample size of forty-five (45) tenant files, the following information was unavailable for examination at the time of audit:
(2) Lead Based Paint forms
(1) Original Application
(2) Verification of Income
(1) Verification of Assets
(1) Annual HQS Inspection form
(1) HUD Form 9887 Consent to Release Information
(1) HUD Form 50058. Our sample size is statistically valid. Cause: There is a material weakness in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance.
Effect: The Section 8 Housing Choice Voucher Program is in material non-compliance with the eligibility type of compliance requirements of the program.
Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
View of Responsible Officials and Corrective Actions: The Authority accepts the recommendation of the auditor. The Authority will increase oversight in the Section 8 Housing Choice Vouchers Program to ensure that established internal control policies are being followed on a timely basis.