Audit 22621

PART II. FINDINGS ? FINANCIAL STATEMENTS AUDIT 2022-001 ? Section 8 Housing Assistance Payments Program CFDA Number: 14.195, Section 8 Housing Assistance Payments Program Compliance Requirement: Eligibility Condition and Criteria: Under the compliance portion of the program, the PHA must verify the eligibility by documenting inspections, as appropriate. Of the 40 tenant files reviewed during the audit, eleven (11) did not contain an annual inspection. Type of Finding: Significant Deficiency Cause: The internal control structure was not adequate to prevent these deficiencies. Effect: Units were not inspected on a timely basis. Questioned Costs: None known. Auditors? Recommendation: We recommend that the Housing Authority strengthen its internal controls to ensure inspections are conducted on an annual basis. Corrective Action Plan: See attached response from Executive Director on page 42.

2022-002 ? Housing Choice Vouchers Program Tenant Files CFDA Number: 14.871, Housing Choice Vouchers Compliance Requirement: Eligibility Condition and Criteria: As part of the process of obtaining eligibility, documentation of items such as income verification, deductions from annual income, HUD Form 9886, Authorization for the Release of Information are required to be in the file, among other required forms. During the current year audit, 40 tenant files were reviewed. Of the 40 tenant files reviewed, the following was noted: 1) Four (4) files did not have recertification paperwork for the Housing Assistance Payment (HAP) that was selected for audit. 2) Two (2) files did not contain the required 3rd-party income verification. 3) The Utility Allowance Schedule did not match HUD Form 50058 in three (3) files. 4) Two (2) files did not contain HUD Form 9886. Type of Finding: Significant Deficiency Cause: The Internal Control Structure was not adequate to prevent these deficiencies. Effect: Required documentation was not located in the tenant files. Questioned Costs: None known. Auditors? Recommendations: We recommend that the Housing Authority strengthen its internal controls to ensure proper documentation in included in the tenant files. Corrective Action Plan: See attached response from the Executive Director on page 42.

PART II. FINDINGS ? FINANCIAL STATEMENTS AUDIT 2022-001 ? Section 8 Housing Assistance Payments Program CFDA Number: 14.195, Section 8 Housing Assistance Payments Program Compliance Requirement: Eligibility Condition and Criteria: Under the compliance portion of the program, the PHA must verify the eligibility by documenting inspections, as appropriate. Of the 40 tenant files reviewed during the audit, eleven (11) did not contain an annual inspection. Type of Finding: Significant Deficiency Cause: The internal control structure was not adequate to prevent these deficiencies. Effect: Units were not inspected on a timely basis. Questioned Costs: None known. Auditors? Recommendation: We recommend that the Housing Authority strengthen its internal controls to ensure inspections are conducted on an annual basis. Corrective Action Plan: See attached response from Executive Director on page 42.

2022-002 ? Housing Choice Vouchers Program Tenant Files CFDA Number: 14.871, Housing Choice Vouchers Compliance Requirement: Eligibility Condition and Criteria: As part of the process of obtaining eligibility, documentation of items such as income verification, deductions from annual income, HUD Form 9886, Authorization for the Release of Information are required to be in the file, among other required forms. During the current year audit, 40 tenant files were reviewed. Of the 40 tenant files reviewed, the following was noted: 1) Four (4) files did not have recertification paperwork for the Housing Assistance Payment (HAP) that was selected for audit. 2) Two (2) files did not contain the required 3rd-party income verification. 3) The Utility Allowance Schedule did not match HUD Form 50058 in three (3) files. 4) Two (2) files did not contain HUD Form 9886. Type of Finding: Significant Deficiency Cause: The Internal Control Structure was not adequate to prevent these deficiencies. Effect: Required documentation was not located in the tenant files. Questioned Costs: None known. Auditors? Recommendations: We recommend that the Housing Authority strengthen its internal controls to ensure proper documentation in included in the tenant files. Corrective Action Plan: See attached response from the Executive Director on page 42.