Audit 18756

U.S. Department of Housing and Urban Development ? CFDA #21.027 Coronavirus State and Local Fiscal Recovery Funds Applicable Federal Award Number and Year ? CSLRF / ARPA Funds ? 2022 Reporting Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The Program requires the Authority to prepare and provide quarterly financial status reports to the granting agency. Condition: During our testing over reporting, we noted that quarterly reports were not prepared during 2022. Cause: The Authority?s internal controls related to the reporting requirements were not operating as designed. Effect: Weaknesses in internal control over compliance could result in the Authority failing to comply with reporting requirements. Questioned Costs: N/A Context/Sampling: N/A Repeat Finding from Prior Year: No. Recommendation: We recommend that the Authority establish controls to ensure the proper reporting is prepared and submitted. View of Responsible Officials: Management agrees with the finding.

U.S. Department of Housing and Urban Development ? CFDA #21.027 Coronavirus State and Local Fiscal Recovery Funds Applicable Federal Award Number and Year ? CSLRF / ARPA Funds ? 2022 Reporting Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The Program requires the Authority to prepare and provide quarterly financial status reports to the granting agency. Condition: During our testing over reporting, we noted that quarterly reports were not prepared during 2022. Cause: The Authority?s internal controls related to the reporting requirements were not operating as designed. Effect: Weaknesses in internal control over compliance could result in the Authority failing to comply with reporting requirements. Questioned Costs: N/A Context/Sampling: N/A Repeat Finding from Prior Year: No. Recommendation: We recommend that the Authority establish controls to ensure the proper reporting is prepared and submitted. View of Responsible Officials: Management agrees with the finding.

U.S. Department of Housing and Urban Development ? CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year ? Housing Choice Vouchers ? 2022 Special Tests and Provisions ? HQS Inspections Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The Program requires the Authority to complete an inspection at least biennially to determine if the unit meets HQS standards. Condition: We noted one of the tenants tested for standard inspections did not have biennial HQS inspection scheduled or completed in 2022. Cause: Management oversight. Effect: The lack of controls and experience resulted in a tenant not receiving the required inspection. Questioned Costs: N/A Context/Sampling: For HQS inspections, a non-statistical sample of 40 transactions of over 250 were selected for testing. Repeat Finding from Prior Year: No. Recommendation: The Authority should implement policies and procedures to ensure that all units are inspected at least biennially. View of Responsible Officials: Management agrees with the finding.

U.S. Department of Housing and Urban Development ? CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year ? Housing Choice Vouchers ? 2022 Special Tests and Provisions ? HQS Enforcement Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: For units under a HAP contract that fail to meet HQS requirements, the Authority must require the owner to correct life threatening HQS deficiencies within 24 hours after the inspection and all other HQS deficiencies within 30 calendar days or within a specified Authorityapproved extension. Condition: During our testing of compliance for HQS Enforcement, we identified 2 instances in which life threatening HQS deficiencies were not resolved within 24 hours of the inspection date. Cause: The Authority?s internal controls related to the proper monitoring and tracking of failed inspections and the subsequent passing of those inspections were not operating as designed. Effect: Weaknesses in internal control over compliance could result in the Authority failing to abate HAP payments to landlords as required by HUD. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 23 failed inspections were selected for testing. 2 out of the 23 failed inspections did not have proper documentation. Repeat Finding from Prior Year: No. Recommendation: We recommend that the Authority establish controls to ensure the proper enforcement of life threatening HQS deficiencies View of Responsible Officials: Management agrees with the finding.

U.S. Department of Housing and Urban Development ? CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year ? Housing Choice Vouchers ? 2022 Special Tests and Provisions ? Reasonable Rent Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The Program requires the Authority to determine that rent to owners are reasonable in comparison to rent for other comparable unassisted units at the time of an initial move-in to a unit or during the annual recertification if the rent is increased. Condition: During our testing of compliance for reasonable rent, we identified instances in which the reasonable rent form was not obtained timely. Cause: The Authority?s internal controls related to the proper maintenance of reasonable rent forms were not operating as designed due to lack of education. Effect: Weaknesses in internal control over compliance could result in the Authority failing to comply with reasonable rent requirements. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 13 units that had rent changes were selected for testing. 12 out of the 13 units tested had the reasonable rent forms added at a later time. Repeat Finding from Prior Year: No. Recommendation: We recommend that the Authority establish controls to ensure the proper documentation of reasonable rent is maintained. View of Responsible Officials: Management agrees with the finding.

U.S. Department of Housing and Urban Development ? CFDA #21.027 Coronavirus State and Local Fiscal Recovery Funds Applicable Federal Award Number and Year ? CSLRF / ARPA Funds ? 2022 Reporting Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The Program requires the Authority to prepare and provide quarterly financial status reports to the granting agency. Condition: During our testing over reporting, we noted that quarterly reports were not prepared during 2022. Cause: The Authority?s internal controls related to the reporting requirements were not operating as designed. Effect: Weaknesses in internal control over compliance could result in the Authority failing to comply with reporting requirements. Questioned Costs: N/A Context/Sampling: N/A Repeat Finding from Prior Year: No. Recommendation: We recommend that the Authority establish controls to ensure the proper reporting is prepared and submitted. View of Responsible Officials: Management agrees with the finding.

U.S. Department of Housing and Urban Development ? CFDA #21.027 Coronavirus State and Local Fiscal Recovery Funds Applicable Federal Award Number and Year ? CSLRF / ARPA Funds ? 2022 Reporting Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The Program requires the Authority to prepare and provide quarterly financial status reports to the granting agency. Condition: During our testing over reporting, we noted that quarterly reports were not prepared during 2022. Cause: The Authority?s internal controls related to the reporting requirements were not operating as designed. Effect: Weaknesses in internal control over compliance could result in the Authority failing to comply with reporting requirements. Questioned Costs: N/A Context/Sampling: N/A Repeat Finding from Prior Year: No. Recommendation: We recommend that the Authority establish controls to ensure the proper reporting is prepared and submitted. View of Responsible Officials: Management agrees with the finding.

U.S. Department of Housing and Urban Development ? CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year ? Housing Choice Vouchers ? 2022 Special Tests and Provisions ? HQS Inspections Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The Program requires the Authority to complete an inspection at least biennially to determine if the unit meets HQS standards. Condition: We noted one of the tenants tested for standard inspections did not have biennial HQS inspection scheduled or completed in 2022. Cause: Management oversight. Effect: The lack of controls and experience resulted in a tenant not receiving the required inspection. Questioned Costs: N/A Context/Sampling: For HQS inspections, a non-statistical sample of 40 transactions of over 250 were selected for testing. Repeat Finding from Prior Year: No. Recommendation: The Authority should implement policies and procedures to ensure that all units are inspected at least biennially. View of Responsible Officials: Management agrees with the finding.

U.S. Department of Housing and Urban Development ? CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year ? Housing Choice Vouchers ? 2022 Special Tests and Provisions ? HQS Enforcement Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: For units under a HAP contract that fail to meet HQS requirements, the Authority must require the owner to correct life threatening HQS deficiencies within 24 hours after the inspection and all other HQS deficiencies within 30 calendar days or within a specified Authorityapproved extension. Condition: During our testing of compliance for HQS Enforcement, we identified 2 instances in which life threatening HQS deficiencies were not resolved within 24 hours of the inspection date. Cause: The Authority?s internal controls related to the proper monitoring and tracking of failed inspections and the subsequent passing of those inspections were not operating as designed. Effect: Weaknesses in internal control over compliance could result in the Authority failing to abate HAP payments to landlords as required by HUD. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 23 failed inspections were selected for testing. 2 out of the 23 failed inspections did not have proper documentation. Repeat Finding from Prior Year: No. Recommendation: We recommend that the Authority establish controls to ensure the proper enforcement of life threatening HQS deficiencies View of Responsible Officials: Management agrees with the finding.

U.S. Department of Housing and Urban Development ? CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year ? Housing Choice Vouchers ? 2022 Special Tests and Provisions ? Reasonable Rent Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: The Program requires the Authority to determine that rent to owners are reasonable in comparison to rent for other comparable unassisted units at the time of an initial move-in to a unit or during the annual recertification if the rent is increased. Condition: During our testing of compliance for reasonable rent, we identified instances in which the reasonable rent form was not obtained timely. Cause: The Authority?s internal controls related to the proper maintenance of reasonable rent forms were not operating as designed due to lack of education. Effect: Weaknesses in internal control over compliance could result in the Authority failing to comply with reasonable rent requirements. Questioned Costs: None reported. Context/Sampling: A non-statistical sample of 13 units that had rent changes were selected for testing. 12 out of the 13 units tested had the reasonable rent forms added at a later time. Repeat Finding from Prior Year: No. Recommendation: We recommend that the Authority establish controls to ensure the proper documentation of reasonable rent is maintained. View of Responsible Officials: Management agrees with the finding.