Finding Text
2023 – 002 – Section 8 Project-Based Cluster Eligibility
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Project-Based Cluster
Assistance Listing Number: 14.249/14.182/14.195
Federal Award Identification Number and Year: VA003, 2022-2023
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: In accordance with Title 24 of the Code of Federal Regulations parts 880 through 883, only eligible individuals should participate in the program and there should be evidence of eligibility determinations. The Authority has established a move-in and re-examination checklist to be used during the eligibility determination process to ensure that all required documents are maintained in the tenant’s file.
Condition/Context: During our testing of five files for Eligibility requirements, we noted that one file did not contain the completed move-in or re-examination checklist.
Questioned costs: None
Cause: The Authority has had turnover in the staffing who perform eligibility determinations, resulting in eligibility determinations being performed by less experienced and trained staff.
Effect: The Authority did not follow the internal controls designed to ensure compliance with Eligibility requirements.
Repeat Finding: Yes, prior year finding 2022-002
Recommendation: We recommend the Authority reinforce the individuals completing eligibility determinations with additional training and supervision as well as re-emphasize the controls and procedures that should be followed when completing the determinations.
Views of responsible officials: There is no disagreement with the audit finding.