Finding Text
Section III – Federal Award Findings and Questioned Costs 2023-001 Federal Agency: U. S. Department of HUD Federal program: Public and Indian Housing ALN#: 14.850 Award Period: 07/1/22-6/30/23 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 880 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 2 files as follows: • 1 file did not contain evidence of income verification for the audit period. • 1 file did not contain all required Section 214 documentation for verification of U.S Citizenship. Cause: The Authority did not obtain all required documentation during the intake procedures. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None 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.