Audit 1490

Section 8 Housing Choice Vouchers AL #14.871 Significant Deficiency Internal Control Over Compliance Incorrect Voucher Payment Standards 2023-001 Condition: The Commission enters approved voucher payment standards into their property management software, which automatically populates default values in tenant certifications. Caseworkers have had the ability to override default values for the number of bedrooms exceeding the defaults entered. During audit fieldwork, we identified five instances of overrides not being applied correctly to tenants, which caused errors in housing assistant payment (HAP) calculations. Criteria: Overrides should be verified prior to calculating HAP. Cause: The Commission has experienced turnover in Section 8 caseworker positions. The Commission did not have an internal control system in place to limit caseworkers’ ability to perform overrides or require approval of overrides. Effect: Housing assistance payments were calculated incorrectly due to improper voucher payment standard values being used. Context: In our testing of the entire population of 10 overrides made during the year, there were 3 instances of HAP underpayment, totaling $2,711, or instances in which the tenant overpaid, and 2 instances of HAP underpayment, totaling $368, or instances in which the tenant underpaid. The control deficiency and incorrect HAP calculations did not result in a material impact on the program and did not reach the threshold for reporting questioned costs. Repeat of Prior Year Finding: No Auditor’s Recommendation: We recommend implementing an internal control for approval of any system override to ensure they are appropriately applied. View of Management: Management agrees with the finding. A response can be found in the Corrective Action Plan.

Section 8 Housing Choice Vouchers AL #14.871 Material Weakness Internal Control Over Compliance Rent Reasonableness 2023-002 Condition: During audit fieldwork, we identified three instances in which there was no rent reasonableness documentation maintained to verify that the rent reasonableness comparison was performed prior to issuing housing assistance payments. Criteria: Rent reasonableness comparisons are required prior to issuing housing assistance payments. Cause: The Commission has experienced turnover in Section 8 caseworker positions. The Commission did not document the determination of rent reasonableness prior to issuing housing assistance payments. Effect: Housing assistance payments could have been paid on units when rent charged was not first determined to be reasonable. Context: We identified 3 instances of rent reasonableness documentation not maintained in our testing of rent comparisons for 70 tenants during the year from a population of 1,576 tenants. Nonstatistical sampling and haphazard sample selection was used. After the fact documentation was provided to show that rent charged was reasonable. The control deficiency and incorrect HAP calculations did not result in a material impact on the program and did not reach the threshold for reporting questioned costs. Repeat of Prior Year Finding: No Auditor’s Recommendation: We recommend the Commission provide further training for program staff and implement periodic reviews of tenant files to ensure rent reasonableness documentation is maintained appropriately. View of Management: Management agrees with the finding. A response can be found in the Corrective Action Plan.

Public and Indian Housing AL #14.850 Material Weakness Internal Control Over Compliance Eligibility Checklists 2023-003 Condition: The Commission uses internal control checklists to demonstrate compliance with the various eligibility requirements. During audit fieldwork, we identified two instances in which the checklists were used, but steps related to background checks were not complete. In addition, there was no documentation maintained to prove these checks were performed. Criteria: All eligibility requirements must be verified prior to determining tenant eligibility. Cause: The Commission has experienced turnover in public housing positions. Effect: Tenants may have been allowed to participate in the program without being eligible. Context: We identified 2 instances of incomplete eligibility checklists in our testing of 40 tenants from a population of 575 tenants. The sample was a statistically valid sample. Repeat of Prior Year Finding: No Auditor’s Recommendation: We recommend the Commission provide further training for program staff and implement periodic reviews of tenant files to ensure internal control processes are followed and eligibility documentation is maintained. View of Management: Management agrees with the finding. A response can be found in the Corrective Action Plan.

Section 8 Housing Choice Vouchers AL #14.871 Significant Deficiency Internal Control Over Compliance Incorrect Voucher Payment Standards 2023-001 Condition: The Commission enters approved voucher payment standards into their property management software, which automatically populates default values in tenant certifications. Caseworkers have had the ability to override default values for the number of bedrooms exceeding the defaults entered. During audit fieldwork, we identified five instances of overrides not being applied correctly to tenants, which caused errors in housing assistant payment (HAP) calculations. Criteria: Overrides should be verified prior to calculating HAP. Cause: The Commission has experienced turnover in Section 8 caseworker positions. The Commission did not have an internal control system in place to limit caseworkers’ ability to perform overrides or require approval of overrides. Effect: Housing assistance payments were calculated incorrectly due to improper voucher payment standard values being used. Context: In our testing of the entire population of 10 overrides made during the year, there were 3 instances of HAP underpayment, totaling $2,711, or instances in which the tenant overpaid, and 2 instances of HAP underpayment, totaling $368, or instances in which the tenant underpaid. The control deficiency and incorrect HAP calculations did not result in a material impact on the program and did not reach the threshold for reporting questioned costs. Repeat of Prior Year Finding: No Auditor’s Recommendation: We recommend implementing an internal control for approval of any system override to ensure they are appropriately applied. View of Management: Management agrees with the finding. A response can be found in the Corrective Action Plan.

Section 8 Housing Choice Vouchers AL #14.871 Material Weakness Internal Control Over Compliance Rent Reasonableness 2023-002 Condition: During audit fieldwork, we identified three instances in which there was no rent reasonableness documentation maintained to verify that the rent reasonableness comparison was performed prior to issuing housing assistance payments. Criteria: Rent reasonableness comparisons are required prior to issuing housing assistance payments. Cause: The Commission has experienced turnover in Section 8 caseworker positions. The Commission did not document the determination of rent reasonableness prior to issuing housing assistance payments. Effect: Housing assistance payments could have been paid on units when rent charged was not first determined to be reasonable. Context: We identified 3 instances of rent reasonableness documentation not maintained in our testing of rent comparisons for 70 tenants during the year from a population of 1,576 tenants. Nonstatistical sampling and haphazard sample selection was used. After the fact documentation was provided to show that rent charged was reasonable. The control deficiency and incorrect HAP calculations did not result in a material impact on the program and did not reach the threshold for reporting questioned costs. Repeat of Prior Year Finding: No Auditor’s Recommendation: We recommend the Commission provide further training for program staff and implement periodic reviews of tenant files to ensure rent reasonableness documentation is maintained appropriately. View of Management: Management agrees with the finding. A response can be found in the Corrective Action Plan.

Public and Indian Housing AL #14.850 Material Weakness Internal Control Over Compliance Eligibility Checklists 2023-003 Condition: The Commission uses internal control checklists to demonstrate compliance with the various eligibility requirements. During audit fieldwork, we identified two instances in which the checklists were used, but steps related to background checks were not complete. In addition, there was no documentation maintained to prove these checks were performed. Criteria: All eligibility requirements must be verified prior to determining tenant eligibility. Cause: The Commission has experienced turnover in public housing positions. Effect: Tenants may have been allowed to participate in the program without being eligible. Context: We identified 2 instances of incomplete eligibility checklists in our testing of 40 tenants from a population of 575 tenants. The sample was a statistically valid sample. Repeat of Prior Year Finding: No Auditor’s Recommendation: We recommend the Commission provide further training for program staff and implement periodic reviews of tenant files to ensure internal control processes are followed and eligibility documentation is maintained. View of Management: Management agrees with the finding. A response can be found in the Corrective Action Plan.