Finding 607636 (2022-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: The Authority failed to provide necessary documentation to verify tenant income eligibility, leading to a significant deficiency in internal controls.
  • Impacted Requirements: Compliance with eligibility documentation requirements under 24 CFR sections 5.230, 5.609, and 982.516 was not met.
  • Recommended Follow-Up: Implement controls to ensure all required documentation is included in tenant files during recertification.

Finding Text

2022 ? 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). The Authority must determine income eligibility and calculate the tenant?s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Condition: The Authority was unable to provide adequate supporting documentation and evidence of internal control over compliance for eligibility requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 1 out of 40 files tested for eligibility requirements. The Authority was unable to provide documentation for releases of information or third party verification of reported family annual income, the value of assets, or expenses related to deductions from annual income. The sample was statistically valid. Cause: The Authority did not maintain supporting documentation within the tenant file. Effect: The Authority is not in compliance with eligibility requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the tenant files include all required documentation at the time of recertification. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 31194 2022-001
    Significant Deficiency
  • 31195 2022-002
    Significant Deficiency
  • 31196 2022-003
    Significant Deficiency
  • 31197 2022-004
    Significant Deficiency
  • 31198 2022-005
    Material Weakness
  • 31199 2022-001
    Significant Deficiency
  • 31200 2022-002
    Significant Deficiency
  • 31201 2022-003
    Significant Deficiency
  • 31202 2022-004
    Significant Deficiency
  • 31203 2022-005
    Material Weakness
  • 31204 2022-001
    Significant Deficiency
  • 31205 2022-002
    Significant Deficiency
  • 31206 2022-003
    Significant Deficiency
  • 31207 2022-004
    Significant Deficiency
  • 31208 2022-005
    Material Weakness
  • 607637 2022-002
    Significant Deficiency
  • 607638 2022-003
    Significant Deficiency
  • 607639 2022-004
    Significant Deficiency
  • 607640 2022-005
    Material Weakness
  • 607641 2022-001
    Significant Deficiency
  • 607642 2022-002
    Significant Deficiency
  • 607643 2022-003
    Significant Deficiency
  • 607644 2022-004
    Significant Deficiency
  • 607645 2022-005
    Material Weakness
  • 607646 2022-001
    Significant Deficiency
  • 607647 2022-002
    Significant Deficiency
  • 607648 2022-003
    Significant Deficiency
  • 607649 2022-004
    Significant Deficiency
  • 607650 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $9.36M
14.872 Public Housing Capital Fund $5.17M
14.889 Choice Neighborhoods Implementation Grants $4.79M
14.879 Mainstream Vouchers $805,975
14.871 Section 8 Housing Choice Vouchers $767,658
14.896 Family Self-Sufficiency Program $276,510
14.870 Resident Opportunity and Supportive Services - Service Coordinators $109,504