Finding Text
2022 ? 003: Income Verification Federal Agency: Housing Choice Voucher Program Federal Program Name: U.S. Department of Housing and Urban Development Assistance Listing Number: 14.871 Federal Award Identification Number and Year: WI201VO2021 Award Period: January 1, 2021 ? December 31, 2021 Type of Finding: ? Internal Control, Significant Deficiency ? Other Matters Criteria or specific requirement: Income reported on the tenant assistance application was verified by the leasing specialist by obtaining 3rd party verification of annual income. (3rd party verification includes direct confirmation from an employer, at least 3 paystubs, EIV report (required for 10/09 and later), SS award letter, printouts from Dept of Social Services for TANF, child support, etc.) (24 CFR 985.516). Condition: During our testing, we noted the City failed to comply with the requirements to document completion of the stated in the criteria section of this finding. Questioned Costs: Known - None; Likely - Undeterminable Context: From a sample of forty (40) program participant files selected for testing, two (2) files did not maintain evidence of completion of income verification in accordance with the stated criteria. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The City's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria. Repeat Finding: No Recommendation: We recommend that the City review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.