Finding Text
U.S. Department of Housing and Urban Development ‐ CFDA #14.182 / 14.856
Section 8 Project‐based Cluster
Applicable Federal Award Number and Year – Section 8 Project‐based Cluster ‐ 2021
Eligibility
Significant Deficiency in Internal Control over Compliance
Criteria – The Program requires the Authority to determine eligibility of participants of the program through annual and interim review of participant information.
Condition – The Authority could not find the 2021 tenant file for 1 participant. In addition, there was 1 participant file in which the HUD‐50059 form was not signed by either the participant or the Authority.
Questioned Costs – None Reported.
Context/Sampling – A non‐statistical sample of 60 participants were selected for testing. 1 out of the 60 tenant files could not be found. 1 out of the 60 tenant files contained a HUD‐50059 form that was not signed.
Effect – Failure to implement and maintain a proper control process could result in payments to individuals that are not eligible.
Cause – The Authority has experienced significant staff turnover and the Authority’s controls are currently not adequately designed and operating.
Repeat Finding from Prior Year – No.
Recommendation – The Authority should implement controls to ensure that all tenant files are maintained and that all forms are signed by both the participant and the Authority.
Views of Responsible Officials – Management agrees with the finding.