Finding 962085 (2023-003)

Federal Agency: U.S. Department of Treasury Federal Program Name: Housing Assistance Fund Program Assistance Listing Number: 21.026 Federal Award Identification Number and Year: Various Award Period: 7/1/2022 – 6/30/2023 Type of Finding: • Material Weakness in Internal Control over Compliance, Material Noncompliance (Qualified Opinion) Criteria or specific requirement: Per the compliance supplement, agencies may provide Housing Assistance Fund Program (“HAF”) funds only to a homeowner with respect to qualified expenses related to the dwelling that is such homeowner’s primary residence. In order to substantiate the disbursement of funds, debt verification is required to be obtained from the vendor to ensure the applicant is delinquent on the qualified expense and to confirm the amount. Condition: During our testing, 13 of 40 participants did not have the required debt verification documentation in their case file. Questioned costs: Unknown Context: In a statistically valid sample, we noted that 13 of 40 HAF participant files were missing a debt verification form in their case file. The form exists as a way to document the participant’s residence. Cause: The subcontractor who administered the HAF program through February 2023 was unable to provide debt verification for all of the applicant files processed by the subcontractor. Effect: There is not definitive proof that HAF disbursement was in accordance with policy nor accurate. Repeat Finding: Not a repeat finding. Recommendation: We recommend that PHFA review their procedures around the debt verification during the HAF program application process. Views of responsible officials: There is no disagreement with the audit finding.