Audit 13310

FY End
2023-06-30
Total Expended
$80.66M
Findings
18
Programs
9
Organization: Detroit Housing Commission (MI)
Year: 2023 Accepted: 2024-01-24

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
9634 2023-001 Material Weakness Yes E
9635 2023-002 Material Weakness Yes E
9636 2023-003 Significant Deficiency - E
9637 2023-001 Material Weakness Yes E
9638 2023-002 Material Weakness Yes E
9639 2023-003 Significant Deficiency - E
9640 2023-001 Material Weakness Yes E
9641 2023-002 Material Weakness Yes E
9642 2023-003 Significant Deficiency - E
586076 2023-001 Material Weakness Yes E
586077 2023-002 Material Weakness Yes E
586078 2023-003 Significant Deficiency - E
586079 2023-001 Material Weakness Yes E
586080 2023-002 Material Weakness Yes E
586081 2023-003 Significant Deficiency - E
586082 2023-001 Material Weakness Yes E
586083 2023-002 Material Weakness Yes E
586084 2023-003 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
14.871 Section 8 Housing Choice Vouchers $49.71M Yes 3
14.850 Public and Indian Housing $17.87M - 0
14.872 Public Housing Capital Fund $11.20M - 0
14.879 Mainstream Vouchers $654,926 Yes 3
14.870 Resident Opportunity and Supportive Services - Service Coordinators $352,408 - 0
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $298,013 - 0
14.895 Jobs-Plus Pilot Initiative $281,008 - 0
17.274 Youthbuild $196,777 - 0
14.871 Covid-19 - Section 8 Housing Choice Vouchers $96,017 Yes 3

Contacts

Name Title Type
GYRAGQ4EUHG9 Luke Joseph Auditee
3138778557 Lisa Vargo Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Detroit Housing Commission (the “Commission”) under programs of the federal government for the year ended June 30, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Commission, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Commission. Expenditures reported in the Schedule are reported on the same basis of accounting as the basic financial statements. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Commission has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Commission has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance.

Finding Details

Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 001 Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income, (2) the value of assets, (3) expenses related to deductions from annual income, and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2023 recertifications. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context 60 tenant files were tested, and the results are as follows: A total of 5 participant files did not include fiscal year 2023 recertifications. Cause and Effect The Commission did not have the proper controls in place to ensure that the tenant recertifications are completed annually for each tenant. Due to the lack of adequate controls, recertifications were not performed and housing assistance payments could be incorrect. Recommendation The Commission should establish procedures to ensure participant recertifications are documented and completed annually. Views of Responsible Officials and Corrective Action Plan Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. On a weekly basis, the department manager will review the certification pipeline to ensure compliance and follow up with the housing specialist to ensure compliance and that set weekly and monthly goals and metrics are met.
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 002 Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income, (2) the value of assets, (3) expenses related to deductions from annual income, and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition Participant files selected for testing did not include complete information to support participant eligibility. Questioned Costs $10,754 Identification of How Questioned Costs Were Computed Questioned costs were computed on the individuals below by identifying overpayments of subsidy charged compared to the appropriate amount. Context A total of 60 tenant files were tested, and the results are as follows: A total of 18 participant files were delinquent recertifications due to management delays and completed after the recertification date. Cause and Effect The Commission did not have the proper controls in place to ensure tenant recertifications are completely timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation The Commission should establish procedures to ensure participant recertification are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. On a weekly basis, the department manager will review the certification pipeline to ensure compliance and follow up with the housing specialist to ensure compliance and that set weekly and monthly goals and metrics are met.
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Significant deficiency Repeat Finding No Criteria Under the Housing Choice Voucher Program, the Commission accepts applications for rental assistance, selects applicants for admission, and issues family vouchers confirming eligibility. The Commission pays the owner of the unit that the family leases a portion of the rent (Housing Assistance Payment HAP) on behalf of the family. Under 24 CFR 5.230, 5.609, and 982.516, the Commission must verify and maintain documents supporting family income eligibility. This process needs to be performed annually. 24 CFR 982.516 (f) requires PHAs to establish procedures that are appropriate and necessary to ensure that income data provided by the applicant or participant families is accurate and complete. Condition Participant files selected for testing did not include complete information to support the participant's income to determine the level of benefits provided. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context A total of 60 tenant files were tested, and the results are as follows: A total of 3 participants lacked income support, and, upon recalculation of income, there was an increase in tenant rent. Cause and Effect The Commission is not completely following the policies and procedures it has in place to ensure proper and timely compliance with regard to tenant rent calculations. The Commission could be charging the incorrect amount of rent or could be housing ineligible tenants. Recommendation The Commission should establish procedures to ensure participant eligibility is accurately calculated and reviewed annually. Periodic internal review of tenant files would help identify errors in a timely manner. Views of Responsible Officials and Planned Corrective Actions The Housing Choice Voucher Program will work towards and maintain program compliance to ensure we are meeting all regulatory requirements. We will do this through staff hiring and restructuring. Ongoing in house and industry training will help staff stay current and skilled on all program rules and updates as it pertains to the HCV Program with monthly and weekly reporting and monitoring. The Commission understands the challenges outlined above, and we have implemented measures to improve, redefine, address, and resolve all items according to HUD best practices. We will continue our ongoing efforts and have measurable goals with set dates and timelines. This will show marked improvement over the next 6-12 months in the following areas: • Reduction of annual recertifications • Increased utilization • Increased PBV potential/new RFP • PIC error corrective actions • Increased landlord outreach/landlord fairs • Customer service improvement/call center staffing • Continued industry training for all HCV housing specialists • HCV department RFP contract proposal
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 001 Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income, (2) the value of assets, (3) expenses related to deductions from annual income, and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2023 recertifications. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context 60 tenant files were tested, and the results are as follows: A total of 5 participant files did not include fiscal year 2023 recertifications. Cause and Effect The Commission did not have the proper controls in place to ensure that the tenant recertifications are completed annually for each tenant. Due to the lack of adequate controls, recertifications were not performed and housing assistance payments could be incorrect. Recommendation The Commission should establish procedures to ensure participant recertifications are documented and completed annually. Views of Responsible Officials and Corrective Action Plan Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. On a weekly basis, the department manager will review the certification pipeline to ensure compliance and follow up with the housing specialist to ensure compliance and that set weekly and monthly goals and metrics are met.
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 002 Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income, (2) the value of assets, (3) expenses related to deductions from annual income, and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition Participant files selected for testing did not include complete information to support participant eligibility. Questioned Costs $10,754 Identification of How Questioned Costs Were Computed Questioned costs were computed on the individuals below by identifying overpayments of subsidy charged compared to the appropriate amount. Context A total of 60 tenant files were tested, and the results are as follows: A total of 18 participant files were delinquent recertifications due to management delays and completed after the recertification date. Cause and Effect The Commission did not have the proper controls in place to ensure tenant recertifications are completely timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation The Commission should establish procedures to ensure participant recertification are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. On a weekly basis, the department manager will review the certification pipeline to ensure compliance and follow up with the housing specialist to ensure compliance and that set weekly and monthly goals and metrics are met.
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Significant deficiency Repeat Finding No Criteria Under the Housing Choice Voucher Program, the Commission accepts applications for rental assistance, selects applicants for admission, and issues family vouchers confirming eligibility. The Commission pays the owner of the unit that the family leases a portion of the rent (Housing Assistance Payment HAP) on behalf of the family. Under 24 CFR 5.230, 5.609, and 982.516, the Commission must verify and maintain documents supporting family income eligibility. This process needs to be performed annually. 24 CFR 982.516 (f) requires PHAs to establish procedures that are appropriate and necessary to ensure that income data provided by the applicant or participant families is accurate and complete. Condition Participant files selected for testing did not include complete information to support the participant's income to determine the level of benefits provided. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context A total of 60 tenant files were tested, and the results are as follows: A total of 3 participants lacked income support, and, upon recalculation of income, there was an increase in tenant rent. Cause and Effect The Commission is not completely following the policies and procedures it has in place to ensure proper and timely compliance with regard to tenant rent calculations. The Commission could be charging the incorrect amount of rent or could be housing ineligible tenants. Recommendation The Commission should establish procedures to ensure participant eligibility is accurately calculated and reviewed annually. Periodic internal review of tenant files would help identify errors in a timely manner. Views of Responsible Officials and Planned Corrective Actions The Housing Choice Voucher Program will work towards and maintain program compliance to ensure we are meeting all regulatory requirements. We will do this through staff hiring and restructuring. Ongoing in house and industry training will help staff stay current and skilled on all program rules and updates as it pertains to the HCV Program with monthly and weekly reporting and monitoring. The Commission understands the challenges outlined above, and we have implemented measures to improve, redefine, address, and resolve all items according to HUD best practices. We will continue our ongoing efforts and have measurable goals with set dates and timelines. This will show marked improvement over the next 6-12 months in the following areas: • Reduction of annual recertifications • Increased utilization • Increased PBV potential/new RFP • PIC error corrective actions • Increased landlord outreach/landlord fairs • Customer service improvement/call center staffing • Continued industry training for all HCV housing specialists • HCV department RFP contract proposal
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 001 Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income, (2) the value of assets, (3) expenses related to deductions from annual income, and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2023 recertifications. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context 60 tenant files were tested, and the results are as follows: A total of 5 participant files did not include fiscal year 2023 recertifications. Cause and Effect The Commission did not have the proper controls in place to ensure that the tenant recertifications are completed annually for each tenant. Due to the lack of adequate controls, recertifications were not performed and housing assistance payments could be incorrect. Recommendation The Commission should establish procedures to ensure participant recertifications are documented and completed annually. Views of Responsible Officials and Corrective Action Plan Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. On a weekly basis, the department manager will review the certification pipeline to ensure compliance and follow up with the housing specialist to ensure compliance and that set weekly and monthly goals and metrics are met.
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 002 Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income, (2) the value of assets, (3) expenses related to deductions from annual income, and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition Participant files selected for testing did not include complete information to support participant eligibility. Questioned Costs $10,754 Identification of How Questioned Costs Were Computed Questioned costs were computed on the individuals below by identifying overpayments of subsidy charged compared to the appropriate amount. Context A total of 60 tenant files were tested, and the results are as follows: A total of 18 participant files were delinquent recertifications due to management delays and completed after the recertification date. Cause and Effect The Commission did not have the proper controls in place to ensure tenant recertifications are completely timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation The Commission should establish procedures to ensure participant recertification are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. On a weekly basis, the department manager will review the certification pipeline to ensure compliance and follow up with the housing specialist to ensure compliance and that set weekly and monthly goals and metrics are met.
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Significant deficiency Repeat Finding No Criteria Under the Housing Choice Voucher Program, the Commission accepts applications for rental assistance, selects applicants for admission, and issues family vouchers confirming eligibility. The Commission pays the owner of the unit that the family leases a portion of the rent (Housing Assistance Payment HAP) on behalf of the family. Under 24 CFR 5.230, 5.609, and 982.516, the Commission must verify and maintain documents supporting family income eligibility. This process needs to be performed annually. 24 CFR 982.516 (f) requires PHAs to establish procedures that are appropriate and necessary to ensure that income data provided by the applicant or participant families is accurate and complete. Condition Participant files selected for testing did not include complete information to support the participant's income to determine the level of benefits provided. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context A total of 60 tenant files were tested, and the results are as follows: A total of 3 participants lacked income support, and, upon recalculation of income, there was an increase in tenant rent. Cause and Effect The Commission is not completely following the policies and procedures it has in place to ensure proper and timely compliance with regard to tenant rent calculations. The Commission could be charging the incorrect amount of rent or could be housing ineligible tenants. Recommendation The Commission should establish procedures to ensure participant eligibility is accurately calculated and reviewed annually. Periodic internal review of tenant files would help identify errors in a timely manner. Views of Responsible Officials and Planned Corrective Actions The Housing Choice Voucher Program will work towards and maintain program compliance to ensure we are meeting all regulatory requirements. We will do this through staff hiring and restructuring. Ongoing in house and industry training will help staff stay current and skilled on all program rules and updates as it pertains to the HCV Program with monthly and weekly reporting and monitoring. The Commission understands the challenges outlined above, and we have implemented measures to improve, redefine, address, and resolve all items according to HUD best practices. We will continue our ongoing efforts and have measurable goals with set dates and timelines. This will show marked improvement over the next 6-12 months in the following areas: • Reduction of annual recertifications • Increased utilization • Increased PBV potential/new RFP • PIC error corrective actions • Increased landlord outreach/landlord fairs • Customer service improvement/call center staffing • Continued industry training for all HCV housing specialists • HCV department RFP contract proposal
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 001 Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income, (2) the value of assets, (3) expenses related to deductions from annual income, and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2023 recertifications. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context 60 tenant files were tested, and the results are as follows: A total of 5 participant files did not include fiscal year 2023 recertifications. Cause and Effect The Commission did not have the proper controls in place to ensure that the tenant recertifications are completed annually for each tenant. Due to the lack of adequate controls, recertifications were not performed and housing assistance payments could be incorrect. Recommendation The Commission should establish procedures to ensure participant recertifications are documented and completed annually. Views of Responsible Officials and Corrective Action Plan Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. On a weekly basis, the department manager will review the certification pipeline to ensure compliance and follow up with the housing specialist to ensure compliance and that set weekly and monthly goals and metrics are met.
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 002 Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income, (2) the value of assets, (3) expenses related to deductions from annual income, and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition Participant files selected for testing did not include complete information to support participant eligibility. Questioned Costs $10,754 Identification of How Questioned Costs Were Computed Questioned costs were computed on the individuals below by identifying overpayments of subsidy charged compared to the appropriate amount. Context A total of 60 tenant files were tested, and the results are as follows: A total of 18 participant files were delinquent recertifications due to management delays and completed after the recertification date. Cause and Effect The Commission did not have the proper controls in place to ensure tenant recertifications are completely timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation The Commission should establish procedures to ensure participant recertification are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. On a weekly basis, the department manager will review the certification pipeline to ensure compliance and follow up with the housing specialist to ensure compliance and that set weekly and monthly goals and metrics are met.
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Significant deficiency Repeat Finding No Criteria Under the Housing Choice Voucher Program, the Commission accepts applications for rental assistance, selects applicants for admission, and issues family vouchers confirming eligibility. The Commission pays the owner of the unit that the family leases a portion of the rent (Housing Assistance Payment HAP) on behalf of the family. Under 24 CFR 5.230, 5.609, and 982.516, the Commission must verify and maintain documents supporting family income eligibility. This process needs to be performed annually. 24 CFR 982.516 (f) requires PHAs to establish procedures that are appropriate and necessary to ensure that income data provided by the applicant or participant families is accurate and complete. Condition Participant files selected for testing did not include complete information to support the participant's income to determine the level of benefits provided. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context A total of 60 tenant files were tested, and the results are as follows: A total of 3 participants lacked income support, and, upon recalculation of income, there was an increase in tenant rent. Cause and Effect The Commission is not completely following the policies and procedures it has in place to ensure proper and timely compliance with regard to tenant rent calculations. The Commission could be charging the incorrect amount of rent or could be housing ineligible tenants. Recommendation The Commission should establish procedures to ensure participant eligibility is accurately calculated and reviewed annually. Periodic internal review of tenant files would help identify errors in a timely manner. Views of Responsible Officials and Planned Corrective Actions The Housing Choice Voucher Program will work towards and maintain program compliance to ensure we are meeting all regulatory requirements. We will do this through staff hiring and restructuring. Ongoing in house and industry training will help staff stay current and skilled on all program rules and updates as it pertains to the HCV Program with monthly and weekly reporting and monitoring. The Commission understands the challenges outlined above, and we have implemented measures to improve, redefine, address, and resolve all items according to HUD best practices. We will continue our ongoing efforts and have measurable goals with set dates and timelines. This will show marked improvement over the next 6-12 months in the following areas: • Reduction of annual recertifications • Increased utilization • Increased PBV potential/new RFP • PIC error corrective actions • Increased landlord outreach/landlord fairs • Customer service improvement/call center staffing • Continued industry training for all HCV housing specialists • HCV department RFP contract proposal
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 001 Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income, (2) the value of assets, (3) expenses related to deductions from annual income, and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2023 recertifications. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context 60 tenant files were tested, and the results are as follows: A total of 5 participant files did not include fiscal year 2023 recertifications. Cause and Effect The Commission did not have the proper controls in place to ensure that the tenant recertifications are completed annually for each tenant. Due to the lack of adequate controls, recertifications were not performed and housing assistance payments could be incorrect. Recommendation The Commission should establish procedures to ensure participant recertifications are documented and completed annually. Views of Responsible Officials and Corrective Action Plan Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. On a weekly basis, the department manager will review the certification pipeline to ensure compliance and follow up with the housing specialist to ensure compliance and that set weekly and monthly goals and metrics are met.
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 002 Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income, (2) the value of assets, (3) expenses related to deductions from annual income, and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition Participant files selected for testing did not include complete information to support participant eligibility. Questioned Costs $10,754 Identification of How Questioned Costs Were Computed Questioned costs were computed on the individuals below by identifying overpayments of subsidy charged compared to the appropriate amount. Context A total of 60 tenant files were tested, and the results are as follows: A total of 18 participant files were delinquent recertifications due to management delays and completed after the recertification date. Cause and Effect The Commission did not have the proper controls in place to ensure tenant recertifications are completely timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation The Commission should establish procedures to ensure participant recertification are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. On a weekly basis, the department manager will review the certification pipeline to ensure compliance and follow up with the housing specialist to ensure compliance and that set weekly and monthly goals and metrics are met.
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Significant deficiency Repeat Finding No Criteria Under the Housing Choice Voucher Program, the Commission accepts applications for rental assistance, selects applicants for admission, and issues family vouchers confirming eligibility. The Commission pays the owner of the unit that the family leases a portion of the rent (Housing Assistance Payment HAP) on behalf of the family. Under 24 CFR 5.230, 5.609, and 982.516, the Commission must verify and maintain documents supporting family income eligibility. This process needs to be performed annually. 24 CFR 982.516 (f) requires PHAs to establish procedures that are appropriate and necessary to ensure that income data provided by the applicant or participant families is accurate and complete. Condition Participant files selected for testing did not include complete information to support the participant's income to determine the level of benefits provided. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context A total of 60 tenant files were tested, and the results are as follows: A total of 3 participants lacked income support, and, upon recalculation of income, there was an increase in tenant rent. Cause and Effect The Commission is not completely following the policies and procedures it has in place to ensure proper and timely compliance with regard to tenant rent calculations. The Commission could be charging the incorrect amount of rent or could be housing ineligible tenants. Recommendation The Commission should establish procedures to ensure participant eligibility is accurately calculated and reviewed annually. Periodic internal review of tenant files would help identify errors in a timely manner. Views of Responsible Officials and Planned Corrective Actions The Housing Choice Voucher Program will work towards and maintain program compliance to ensure we are meeting all regulatory requirements. We will do this through staff hiring and restructuring. Ongoing in house and industry training will help staff stay current and skilled on all program rules and updates as it pertains to the HCV Program with monthly and weekly reporting and monitoring. The Commission understands the challenges outlined above, and we have implemented measures to improve, redefine, address, and resolve all items according to HUD best practices. We will continue our ongoing efforts and have measurable goals with set dates and timelines. This will show marked improvement over the next 6-12 months in the following areas: • Reduction of annual recertifications • Increased utilization • Increased PBV potential/new RFP • PIC error corrective actions • Increased landlord outreach/landlord fairs • Customer service improvement/call center staffing • Continued industry training for all HCV housing specialists • HCV department RFP contract proposal
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 001 Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income, (2) the value of assets, (3) expenses related to deductions from annual income, and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition The Commission did not complete fiscal year 2023 recertifications. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context 60 tenant files were tested, and the results are as follows: A total of 5 participant files did not include fiscal year 2023 recertifications. Cause and Effect The Commission did not have the proper controls in place to ensure that the tenant recertifications are completed annually for each tenant. Due to the lack of adequate controls, recertifications were not performed and housing assistance payments could be incorrect. Recommendation The Commission should establish procedures to ensure participant recertifications are documented and completed annually. Views of Responsible Officials and Corrective Action Plan Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. On a weekly basis, the department manager will review the certification pipeline to ensure compliance and follow up with the housing specialist to ensure compliance and that set weekly and monthly goals and metrics are met.
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding Yes 2022 002 Criteria Under 24 CFR 5.230, 5.609, 982.201, 982.515, 982.516, and 982.516, the Commission must: a. As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility. b. For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income, (2) the value of assets, (3) expenses related to deductions from annual income, and (4) other factors that affect the determination of adjusted income or income based rent. c. Determine income eligibility and calculate the tenant’s rent payment using the documentation from third party verification. d. Select tenants from the HCVP waiting list (see special tests and provisions HCVP waiting list). e. Reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification. Condition Participant files selected for testing did not include complete information to support participant eligibility. Questioned Costs $10,754 Identification of How Questioned Costs Were Computed Questioned costs were computed on the individuals below by identifying overpayments of subsidy charged compared to the appropriate amount. Context A total of 60 tenant files were tested, and the results are as follows: A total of 18 participant files were delinquent recertifications due to management delays and completed after the recertification date. Cause and Effect The Commission did not have the proper controls in place to ensure tenant recertifications are completely timely. Due to the lack of adequate controls, questioned costs for overpayment of subsidy were identified above and the housing assistance payments could be incorrect for tenants. Recommendation The Commission should establish procedures to ensure participant recertification are documented and completed timely. Views of Responsible Officials and Planned Corrective Actions Staff will be retrained on the compliance requirements under the standards of the HCV Program through the oversight of the rental assistance department manager and continued occupancy supervisor. The department manager and supervisor will continue to utilize all Yardi monitoring reports to ensure the department is operating in accordance with industry standards. Reporting will be done and monitored monthly to meet set goals. We know and maintain we will work in accordance with HUD rules and regulations where annual recertification processes are concerned. On a weekly basis, the department manager will review the certification pipeline to ensure compliance and follow up with the housing specialist to ensure compliance and that set weekly and monthly goals and metrics are met.
Assistance Listing Number, Federal Agency, and Program Name Housing Vouchers Cluster 14.871 and 14.879 Federal Award Identification Number and Year Not applicable Pass through Entity Not applicable Finding Type Significant deficiency Repeat Finding No Criteria Under the Housing Choice Voucher Program, the Commission accepts applications for rental assistance, selects applicants for admission, and issues family vouchers confirming eligibility. The Commission pays the owner of the unit that the family leases a portion of the rent (Housing Assistance Payment HAP) on behalf of the family. Under 24 CFR 5.230, 5.609, and 982.516, the Commission must verify and maintain documents supporting family income eligibility. This process needs to be performed annually. 24 CFR 982.516 (f) requires PHAs to establish procedures that are appropriate and necessary to ensure that income data provided by the applicant or participant families is accurate and complete. Condition Participant files selected for testing did not include complete information to support the participant's income to determine the level of benefits provided. Questioned Costs Unknown Identification of How Questioned Costs Were Computed Not applicable Context A total of 60 tenant files were tested, and the results are as follows: A total of 3 participants lacked income support, and, upon recalculation of income, there was an increase in tenant rent. Cause and Effect The Commission is not completely following the policies and procedures it has in place to ensure proper and timely compliance with regard to tenant rent calculations. The Commission could be charging the incorrect amount of rent or could be housing ineligible tenants. Recommendation The Commission should establish procedures to ensure participant eligibility is accurately calculated and reviewed annually. Periodic internal review of tenant files would help identify errors in a timely manner. Views of Responsible Officials and Planned Corrective Actions The Housing Choice Voucher Program will work towards and maintain program compliance to ensure we are meeting all regulatory requirements. We will do this through staff hiring and restructuring. Ongoing in house and industry training will help staff stay current and skilled on all program rules and updates as it pertains to the HCV Program with monthly and weekly reporting and monitoring. The Commission understands the challenges outlined above, and we have implemented measures to improve, redefine, address, and resolve all items according to HUD best practices. We will continue our ongoing efforts and have measurable goals with set dates and timelines. This will show marked improvement over the next 6-12 months in the following areas: • Reduction of annual recertifications • Increased utilization • Increased PBV potential/new RFP • PIC error corrective actions • Increased landlord outreach/landlord fairs • Customer service improvement/call center staffing • Continued industry training for all HCV housing specialists • HCV department RFP contract proposal