Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Section 8 Project-Based Cluster
Assistance Listing Number: 14.195/14.856
Federal Award Identification Number and Year: MD004 (various funding increments active during period 7/1/22 - 6/30/23)
Award Period: July 1, 2022 through June 30, 2023
Type of Finding:
Significant Deficiency in Internal Control over Compliance.
Other Matters.
Criteria: PHA must select participants from the waiting list in accordance with the admission policies in its administrative plan and maintain documentation which shows that, at the time of admission, the family actually met the preference criteria that determined the family’s place on the waiting list. For the Mod Rehab SRO program, eligible individuals may be referred to the PHA for eligibility determination as a result of the owner’s/sponsor’s outreach or through the PHA waiting list (24 CFR sections 880.603, 881.601, 882.514, 882.808(b)(2), 883.701, 884.214, and 886 subparts A and C).
Condition: During our testing, we noted the Commission did not have adequate internal controls designed to ensure tenant permanent files contain waiting list documents. As a result, the Commission is unable to support the admission of the tenant in accordance with the admission policies.
Questioned costs: Unknown
Context:
Testing of 6 tenant files for waiting list documentation revealed that:
- 1 selection could not be supported by documentation.
Cause: The Commission does not have internal controls in place to ensure it is meeting program requirements over new admissions to the program.
Effect: The Commission is not in compliance with program requirements over the waiting list.
Repeat Finding: Not a repeat finding.
Recommendation: The Commission should implement processes to ensure that waiting list documentation is maintained for all tenants.
View of Responsible Officials: There is no disagreement with the audit finding.