Finding 960892 (2023-001)

Section III – Federal Award Findings and Questioned Costs Finding: 2023-001 Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public and Indian Housing CFDA #: 14.850 Award Period: 7/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: None Context: Testing of 25 tenant files identified an exception in 1 file as follows: • 1 file did not contain proper documentation of the Section 214 Declaration of Citizenship Status form. Cause: The Agency did not follow their eligibility intake procedures properly. Effect: The Authority is not in compliance with requirements regarding eligibility. Repeat Finding: No Recommendation: I recommend that the Authority continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications. We have taken the necessary action to obtain these documents.