Finding Text
Federal Agency: Housing and Urban Development
Federal Program Title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871 and 14.879
Federal Award Identification Number and Year: FL063, 2023
Award Period: April 1, 2022 to March 31, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Material
Noncompliance (Modified Opinion)
Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Expect as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. “Selection from the waiting list generally occurs when the PHA notifies a family whose names reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207).
Condition: During the testing of the Housing Choice Voucher Program tenant files, certain selection from the Waiting List deficiencies were noted as summarized below:
Number of Instances Finding
1 The participant was processed as a regular voucher without being placed on the waiting list. The participant is a mainstream referral but there is no documentation that verifies the classification of the participant as mainstream.
4 The HUD-52578b was missing or where the HUD-52578b was not properly signed by the Authority and tenant.
Questioned Costs: $1,898
Context: Of the 25 tenant files tested, 5 tenant files contained the errors as noted above.
Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy.
Effect: The Authority does not have adequate internal controls over compliance with program requirements.
Repeat Finding: No
Recommendation: We recommend management should designate one person to review a sample of the new files entering into the program to determine if files were prepared and processed in accordance with internal policies and compliance requirements.
Views of responsible officials: There is no disagreement.