Maxton Housing AuthorityLocal Government

Section III - Federal Award Findings and Questioned Costs Finding 2024-002 Significant Deficiency in internal control over Compliance Federal Agency: U. S. Department of Housing and Urban Development Federal program: Section 8 Project Based Cluster ALN: 14.182/14.195 Award Period: 1/1/24-12/31/24 Criteria: 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. . Statement of Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: N/A 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 form. Cause: The Agency did not perform the recertification in accordance with their stated policies. . Effect: The Authority is not in compliance with requirements regarding eligibility and tenant recertifications, which could result in incorrect total tenant payments for rent. Identification of a repeat finding: No Recommendation: I recommend that the Agency 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 recertification procedure and will continue to review recertifications.