Finding 2022 ? 001 ? Eligibility Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The Authority must complete form HUD-50058 for each Housing Choice Voucher (HCV) and Mainstream Voucher tenant. Form HUD-50058 is used to determine a tenant?s eligibility and also determine the tenants? portion of rent and the Authority?s portion of the rent. Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230). The PHA must do the following: (1) 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 (24 CFR sections 5.230, 5.609, and 982.516). (2) 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 (24 CFR section 982.516). (3) Determine income eligibility and calculate the tenant?s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). (5) 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 (24 CFR section 982.516). Condition: During testing of tenant files, certain eligibility and reporting compliance deficiencies were noted as summarized below: Number of Instances Finding 11 Where the Authority was unable to provide a tenant file to review Section III ? Findings and Questioned Costs ? Major Federal Programs (Continued) Finding 2022 ? 001 ? Eligibility Of the files the Authority was able to provide. The files contained the following compliance deficiencies: Number of Instances Finding 46 Where the file was missing the Section 214 Declaration for family members 46 Where the income, assets, or expenses calculated on the 50058 was not supported 46 Where the Authority did not review the information on an annual basis 38 Where the file was missing the HUD-9886 authorization form 37 Where the file was missing the Authority general release form 23 Where the HAP information from the 50058 did not agree to support 23 Where the HAP Contract could not be verified to supporting documents 45 Where the Housing Choice Voucher?s tenant file was missing the preparer checklist that is utilized as an internal control to ensure all required elements are in the tenant file Questioned costs: Undeterminable. Context: Out of 60 housing choice vouchers and mainstream tenant files tested, 56 tenant files contained errors as noted above. The sample was a statistically valid sample. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative plan. Effect: The Authority is not in compliance with federal regulations regarding eligibility requirements and the calculation of the rent and verification of the tenant?s income. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-001, 2018-001, 2019-001, 2020-001, and 2021-001. Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and unit the compliance deficiencies have been corrected. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 002 ? HQS Enforcements and Annual HQS Inspections Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). In addition, all HCV units are required to be inspected annually. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Failed HQS Inspections Number of Instances Finding 3 Where the passed inspection reports were missing and could not verify if the payments were properly abated for the units. 19 Where the Authority did not properly abate HAP after the second failed inspection and/or the tenants passed inspection reports and dates were missing and could not verify if the payments were properly abated for the units. Annual HQS Inspections Number of Instances Finding 23 Where the annual inspection was not performed in a timely manner, the Authority failed to enforce regulation, or the inspection was unable to be located Questioned costs: $94,160 Context: Out of 60 failed inspections tested, 22 inspections contained errors as noted above. Out of 60 annual inspections, tested 23 inspections contained errors as noted above. Cause: The Authority does not have adequate procedures in place to ensure units are inspected timely or to ensure that units with housing quality standard deficiencies are not paid housing assistance payments. Effect: The Authority is not in compliance with federal regulations regarding minimum housing quality standards and was paying housing assistance for units that did not meet these standards. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-002, 2018-002, 2019-002, 2020-002, and 2021-002. Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 003 ? Rent Reasonableness Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract: (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Number of Instances Finding 21 Where the rent reasonableness was not performed prior to the effective date 13 Where the Go Section 8 form for rent reasonableness could not be provided 7 Where the 50058 form was missing for the rent reasonableness performed. 10 Where the Go Section 8 form was not signed 7 Where the auditor cannot review the previous 50058 to verify if the rent increase was processed on current transaction. Questioned costs: Undeterminable Context: During our testing, we reviewed 120 tenant files that required a rent reasonableness; 29 tenant files contained errors as noted above with multiple tenant files containing more than one error. The sample was a statistically valid sample. Cause: The Authority failed to determine the reasonableness of the rent being charged before the effective date of the tenant file or failed to properly maintain the applicable forms to support the rent reasonableness performed. Effect: The Authority is not in compliance with federal regulations regarding the determination of reasonable rent. Inaccurate data could cause Authority to be paying an unfair rent to a landlord. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-003, 2018-003, 2019-003, 2020-003, and 2021-003. Recommendation: We recommend that the Authority designate an individual to review tenant files to determine if a rent reasonableness has been performed. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 004 ? Selection from the Waiting List Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Expect as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. ?Selection from the waiting list generally occurs when the PHA notifies a family whose names reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Waiting List New Tenants Number of Instances Finding 2 Where the Authority was unable to provide a tenant file to review Of the files the Authority was able to provide. The files contained the following compliance deficiencies: Number of Instances Finding 11 Where the tenant was not admitted correctly into the program with accordance into the admin plan due to either the original application and/or acceptance/referral letter was missing. 2 Where the tenant file did not contain the tenant?s original application 10 Where the tenant file did not contain the letter notifying them that they had been accepted into the Housing Choice Voucher Program 1 Where a referral letter was missing for a special program Tenant Selected from the Waiting List Number of Instances Finding 34 Where the status of the applicant was showing "selected" since 2022, noting the Authority's lack of maintenance of the Waiting List 34 Where the Authority provided status on the open items report, but failed to provide supporting documentation or actions taken. Questioned costs: Undeterminable Context: Out of 60 new tenant files tested, 13 contained the errors noted above. Out of 60 tenants selected from the waiting list files tested, 34 files contained the errors noted above. The sample was a statistically valid sample. Finding 2021 ? 004 ? Selection from the Waiting List (Continued) Cause: The Authority failed to provide adequate monitoring and oversight of their waiting list to ensure compliance with HUD rules and regulations as well as their administrative policy. Effect: The Authority may have tenants on the waiting list that are not eligible for an HCVP voucher, are no longer interested in the HCVP housing, or have moved away. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2018-008, 2019-007, 2020-005, and 2021-004. Recommendation: We recommend that the Authority designate an individual to maintain the waiting list and track all correspondence with potential tenants. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 005 ? PIC Reporting Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Noncompliance (Other Matters) Criteria or specific requirement: The PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA?s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). (24 CFR sections 982.158(d) and 982.405(b)). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that special reporting requirements were being met. Number of Instances Finding 11 Where the HUD-50058 form was not uploaded to PIC at all 13 Where the HUD-50058 was not uploaded timely or errors were not corrected timely Questioned costs: Undeterminable Context: During our testing, we reviewed 60 HUD-50058 PIC uploads, 24 of which contained errors as noted above. The sample was a statistically valid sample. Cause: The Authority does not have adequate internal controls designed to ensure that special reporting requirements were being met. Effect: The Authority is not in compliance with program requirements over special report requirements surrounding timely HUD-50058 submission. Repeat Finding: No Recommendation: The Authority should implement processes to ensure HUD-50058 submissions are completed timely. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 001 ? Eligibility Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The Authority must complete form HUD-50058 for each Housing Choice Voucher (HCV) and Mainstream Voucher tenant. Form HUD-50058 is used to determine a tenant?s eligibility and also determine the tenants? portion of rent and the Authority?s portion of the rent. Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230). The PHA must do the following: (1) 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 (24 CFR sections 5.230, 5.609, and 982.516). (2) 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 (24 CFR section 982.516). (3) Determine income eligibility and calculate the tenant?s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). (5) 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 (24 CFR section 982.516). Condition: During testing of tenant files, certain eligibility and reporting compliance deficiencies were noted as summarized below: Number of Instances Finding 11 Where the Authority was unable to provide a tenant file to review Section III ? Findings and Questioned Costs ? Major Federal Programs (Continued) Finding 2022 ? 001 ? Eligibility Of the files the Authority was able to provide. The files contained the following compliance deficiencies: Number of Instances Finding 46 Where the file was missing the Section 214 Declaration for family members 46 Where the income, assets, or expenses calculated on the 50058 was not supported 46 Where the Authority did not review the information on an annual basis 38 Where the file was missing the HUD-9886 authorization form 37 Where the file was missing the Authority general release form 23 Where the HAP information from the 50058 did not agree to support 23 Where the HAP Contract could not be verified to supporting documents 45 Where the Housing Choice Voucher?s tenant file was missing the preparer checklist that is utilized as an internal control to ensure all required elements are in the tenant file Questioned costs: Undeterminable. Context: Out of 60 housing choice vouchers and mainstream tenant files tested, 56 tenant files contained errors as noted above. The sample was a statistically valid sample. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative plan. Effect: The Authority is not in compliance with federal regulations regarding eligibility requirements and the calculation of the rent and verification of the tenant?s income. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-001, 2018-001, 2019-001, 2020-001, and 2021-001. Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and unit the compliance deficiencies have been corrected. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 002 ? HQS Enforcements and Annual HQS Inspections Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). In addition, all HCV units are required to be inspected annually. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Failed HQS Inspections Number of Instances Finding 3 Where the passed inspection reports were missing and could not verify if the payments were properly abated for the units. 19 Where the Authority did not properly abate HAP after the second failed inspection and/or the tenants passed inspection reports and dates were missing and could not verify if the payments were properly abated for the units. Annual HQS Inspections Number of Instances Finding 23 Where the annual inspection was not performed in a timely manner, the Authority failed to enforce regulation, or the inspection was unable to be located Questioned costs: $94,160 Context: Out of 60 failed inspections tested, 22 inspections contained errors as noted above. Out of 60 annual inspections, tested 23 inspections contained errors as noted above. Cause: The Authority does not have adequate procedures in place to ensure units are inspected timely or to ensure that units with housing quality standard deficiencies are not paid housing assistance payments. Effect: The Authority is not in compliance with federal regulations regarding minimum housing quality standards and was paying housing assistance for units that did not meet these standards. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-002, 2018-002, 2019-002, 2020-002, and 2021-002. Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 003 ? Rent Reasonableness Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract: (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Number of Instances Finding 21 Where the rent reasonableness was not performed prior to the effective date 13 Where the Go Section 8 form for rent reasonableness could not be provided 7 Where the 50058 form was missing for the rent reasonableness performed. 10 Where the Go Section 8 form was not signed 7 Where the auditor cannot review the previous 50058 to verify if the rent increase was processed on current transaction. Questioned costs: Undeterminable Context: During our testing, we reviewed 120 tenant files that required a rent reasonableness; 29 tenant files contained errors as noted above with multiple tenant files containing more than one error. The sample was a statistically valid sample. Cause: The Authority failed to determine the reasonableness of the rent being charged before the effective date of the tenant file or failed to properly maintain the applicable forms to support the rent reasonableness performed. Effect: The Authority is not in compliance with federal regulations regarding the determination of reasonable rent. Inaccurate data could cause Authority to be paying an unfair rent to a landlord. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-003, 2018-003, 2019-003, 2020-003, and 2021-003. Recommendation: We recommend that the Authority designate an individual to review tenant files to determine if a rent reasonableness has been performed. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 004 ? Selection from the Waiting List Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Expect as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. ?Selection from the waiting list generally occurs when the PHA notifies a family whose names reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Waiting List New Tenants Number of Instances Finding 2 Where the Authority was unable to provide a tenant file to review Of the files the Authority was able to provide. The files contained the following compliance deficiencies: Number of Instances Finding 11 Where the tenant was not admitted correctly into the program with accordance into the admin plan due to either the original application and/or acceptance/referral letter was missing. 2 Where the tenant file did not contain the tenant?s original application 10 Where the tenant file did not contain the letter notifying them that they had been accepted into the Housing Choice Voucher Program 1 Where a referral letter was missing for a special program Tenant Selected from the Waiting List Number of Instances Finding 34 Where the status of the applicant was showing "selected" since 2022, noting the Authority's lack of maintenance of the Waiting List 34 Where the Authority provided status on the open items report, but failed to provide supporting documentation or actions taken. Questioned costs: Undeterminable Context: Out of 60 new tenant files tested, 13 contained the errors noted above. Out of 60 tenants selected from the waiting list files tested, 34 files contained the errors noted above. The sample was a statistically valid sample. Finding 2021 ? 004 ? Selection from the Waiting List (Continued) Cause: The Authority failed to provide adequate monitoring and oversight of their waiting list to ensure compliance with HUD rules and regulations as well as their administrative policy. Effect: The Authority may have tenants on the waiting list that are not eligible for an HCVP voucher, are no longer interested in the HCVP housing, or have moved away. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2018-008, 2019-007, 2020-005, and 2021-004. Recommendation: We recommend that the Authority designate an individual to maintain the waiting list and track all correspondence with potential tenants. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 005 ? PIC Reporting Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Noncompliance (Other Matters) Criteria or specific requirement: The PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA?s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). (24 CFR sections 982.158(d) and 982.405(b)). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that special reporting requirements were being met. Number of Instances Finding 11 Where the HUD-50058 form was not uploaded to PIC at all 13 Where the HUD-50058 was not uploaded timely or errors were not corrected timely Questioned costs: Undeterminable Context: During our testing, we reviewed 60 HUD-50058 PIC uploads, 24 of which contained errors as noted above. The sample was a statistically valid sample. Cause: The Authority does not have adequate internal controls designed to ensure that special reporting requirements were being met. Effect: The Authority is not in compliance with program requirements over special report requirements surrounding timely HUD-50058 submission. Repeat Finding: No Recommendation: The Authority should implement processes to ensure HUD-50058 submissions are completed timely. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 001 ? Eligibility Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The Authority must complete form HUD-50058 for each Housing Choice Voucher (HCV) and Mainstream Voucher tenant. Form HUD-50058 is used to determine a tenant?s eligibility and also determine the tenants? portion of rent and the Authority?s portion of the rent. Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230). The PHA must do the following: (1) 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 (24 CFR sections 5.230, 5.609, and 982.516). (2) 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 (24 CFR section 982.516). (3) Determine income eligibility and calculate the tenant?s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). (5) 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 (24 CFR section 982.516). Condition: During testing of tenant files, certain eligibility and reporting compliance deficiencies were noted as summarized below: Number of Instances Finding 11 Where the Authority was unable to provide a tenant file to review Section III ? Findings and Questioned Costs ? Major Federal Programs (Continued) Finding 2022 ? 001 ? Eligibility Of the files the Authority was able to provide. The files contained the following compliance deficiencies: Number of Instances Finding 46 Where the file was missing the Section 214 Declaration for family members 46 Where the income, assets, or expenses calculated on the 50058 was not supported 46 Where the Authority did not review the information on an annual basis 38 Where the file was missing the HUD-9886 authorization form 37 Where the file was missing the Authority general release form 23 Where the HAP information from the 50058 did not agree to support 23 Where the HAP Contract could not be verified to supporting documents 45 Where the Housing Choice Voucher?s tenant file was missing the preparer checklist that is utilized as an internal control to ensure all required elements are in the tenant file Questioned costs: Undeterminable. Context: Out of 60 housing choice vouchers and mainstream tenant files tested, 56 tenant files contained errors as noted above. The sample was a statistically valid sample. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative plan. Effect: The Authority is not in compliance with federal regulations regarding eligibility requirements and the calculation of the rent and verification of the tenant?s income. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-001, 2018-001, 2019-001, 2020-001, and 2021-001. Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and unit the compliance deficiencies have been corrected. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 002 ? HQS Enforcements and Annual HQS Inspections Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). In addition, all HCV units are required to be inspected annually. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Failed HQS Inspections Number of Instances Finding 3 Where the passed inspection reports were missing and could not verify if the payments were properly abated for the units. 19 Where the Authority did not properly abate HAP after the second failed inspection and/or the tenants passed inspection reports and dates were missing and could not verify if the payments were properly abated for the units. Annual HQS Inspections Number of Instances Finding 23 Where the annual inspection was not performed in a timely manner, the Authority failed to enforce regulation, or the inspection was unable to be located Questioned costs: $94,160 Context: Out of 60 failed inspections tested, 22 inspections contained errors as noted above. Out of 60 annual inspections, tested 23 inspections contained errors as noted above. Cause: The Authority does not have adequate procedures in place to ensure units are inspected timely or to ensure that units with housing quality standard deficiencies are not paid housing assistance payments. Effect: The Authority is not in compliance with federal regulations regarding minimum housing quality standards and was paying housing assistance for units that did not meet these standards. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-002, 2018-002, 2019-002, 2020-002, and 2021-002. Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 003 ? Rent Reasonableness Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract: (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Number of Instances Finding 21 Where the rent reasonableness was not performed prior to the effective date 13 Where the Go Section 8 form for rent reasonableness could not be provided 7 Where the 50058 form was missing for the rent reasonableness performed. 10 Where the Go Section 8 form was not signed 7 Where the auditor cannot review the previous 50058 to verify if the rent increase was processed on current transaction. Questioned costs: Undeterminable Context: During our testing, we reviewed 120 tenant files that required a rent reasonableness; 29 tenant files contained errors as noted above with multiple tenant files containing more than one error. The sample was a statistically valid sample. Cause: The Authority failed to determine the reasonableness of the rent being charged before the effective date of the tenant file or failed to properly maintain the applicable forms to support the rent reasonableness performed. Effect: The Authority is not in compliance with federal regulations regarding the determination of reasonable rent. Inaccurate data could cause Authority to be paying an unfair rent to a landlord. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-003, 2018-003, 2019-003, 2020-003, and 2021-003. Recommendation: We recommend that the Authority designate an individual to review tenant files to determine if a rent reasonableness has been performed. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 004 ? Selection from the Waiting List Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Expect as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. ?Selection from the waiting list generally occurs when the PHA notifies a family whose names reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Waiting List New Tenants Number of Instances Finding 2 Where the Authority was unable to provide a tenant file to review Of the files the Authority was able to provide. The files contained the following compliance deficiencies: Number of Instances Finding 11 Where the tenant was not admitted correctly into the program with accordance into the admin plan due to either the original application and/or acceptance/referral letter was missing. 2 Where the tenant file did not contain the tenant?s original application 10 Where the tenant file did not contain the letter notifying them that they had been accepted into the Housing Choice Voucher Program 1 Where a referral letter was missing for a special program Tenant Selected from the Waiting List Number of Instances Finding 34 Where the status of the applicant was showing "selected" since 2022, noting the Authority's lack of maintenance of the Waiting List 34 Where the Authority provided status on the open items report, but failed to provide supporting documentation or actions taken. Questioned costs: Undeterminable Context: Out of 60 new tenant files tested, 13 contained the errors noted above. Out of 60 tenants selected from the waiting list files tested, 34 files contained the errors noted above. The sample was a statistically valid sample. Finding 2021 ? 004 ? Selection from the Waiting List (Continued) Cause: The Authority failed to provide adequate monitoring and oversight of their waiting list to ensure compliance with HUD rules and regulations as well as their administrative policy. Effect: The Authority may have tenants on the waiting list that are not eligible for an HCVP voucher, are no longer interested in the HCVP housing, or have moved away. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2018-008, 2019-007, 2020-005, and 2021-004. Recommendation: We recommend that the Authority designate an individual to maintain the waiting list and track all correspondence with potential tenants. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 005 ? PIC Reporting Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Noncompliance (Other Matters) Criteria or specific requirement: The PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA?s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). (24 CFR sections 982.158(d) and 982.405(b)). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that special reporting requirements were being met. Number of Instances Finding 11 Where the HUD-50058 form was not uploaded to PIC at all 13 Where the HUD-50058 was not uploaded timely or errors were not corrected timely Questioned costs: Undeterminable Context: During our testing, we reviewed 60 HUD-50058 PIC uploads, 24 of which contained errors as noted above. The sample was a statistically valid sample. Cause: The Authority does not have adequate internal controls designed to ensure that special reporting requirements were being met. Effect: The Authority is not in compliance with program requirements over special report requirements surrounding timely HUD-50058 submission. Repeat Finding: No Recommendation: The Authority should implement processes to ensure HUD-50058 submissions are completed timely. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 001 ? Eligibility Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The Authority must complete form HUD-50058 for each Housing Choice Voucher (HCV) and Mainstream Voucher tenant. Form HUD-50058 is used to determine a tenant?s eligibility and also determine the tenants? portion of rent and the Authority?s portion of the rent. Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230). The PHA must do the following: (1) 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 (24 CFR sections 5.230, 5.609, and 982.516). (2) 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 (24 CFR section 982.516). (3) Determine income eligibility and calculate the tenant?s rent payment using the documentation from third party verification in accordance with 24 CFR Part 5 Subpart F (24 CFR section 5.601 et seq.) (24 CFR sections 982.201, 982.515, and 982.516). (5) 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 (24 CFR section 982.516). Condition: During testing of tenant files, certain eligibility and reporting compliance deficiencies were noted as summarized below: Number of Instances Finding 11 Where the Authority was unable to provide a tenant file to review Section III ? Findings and Questioned Costs ? Major Federal Programs (Continued) Finding 2022 ? 001 ? Eligibility Of the files the Authority was able to provide. The files contained the following compliance deficiencies: Number of Instances Finding 46 Where the file was missing the Section 214 Declaration for family members 46 Where the income, assets, or expenses calculated on the 50058 was not supported 46 Where the Authority did not review the information on an annual basis 38 Where the file was missing the HUD-9886 authorization form 37 Where the file was missing the Authority general release form 23 Where the HAP information from the 50058 did not agree to support 23 Where the HAP Contract could not be verified to supporting documents 45 Where the Housing Choice Voucher?s tenant file was missing the preparer checklist that is utilized as an internal control to ensure all required elements are in the tenant file Questioned costs: Undeterminable. Context: Out of 60 housing choice vouchers and mainstream tenant files tested, 56 tenant files contained errors as noted above. The sample was a statistically valid sample. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative plan. Effect: The Authority is not in compliance with federal regulations regarding eligibility requirements and the calculation of the rent and verification of the tenant?s income. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-001, 2018-001, 2019-001, 2020-001, and 2021-001. Recommendation: We recommend management should designate one person to review a sample of the files that have been recertified each month, to determine if the tenant files were prepared in accordance with internal policies and unit the compliance deficiencies have been corrected. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 002 ? HQS Enforcements and Annual HQS Inspections Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must abate HAP payments beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family?s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). In addition, all HCV units are required to be inspected annually. The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Failed HQS Inspections Number of Instances Finding 3 Where the passed inspection reports were missing and could not verify if the payments were properly abated for the units. 19 Where the Authority did not properly abate HAP after the second failed inspection and/or the tenants passed inspection reports and dates were missing and could not verify if the payments were properly abated for the units. Annual HQS Inspections Number of Instances Finding 23 Where the annual inspection was not performed in a timely manner, the Authority failed to enforce regulation, or the inspection was unable to be located Questioned costs: $94,160 Context: Out of 60 failed inspections tested, 22 inspections contained errors as noted above. Out of 60 annual inspections, tested 23 inspections contained errors as noted above. Cause: The Authority does not have adequate procedures in place to ensure units are inspected timely or to ensure that units with housing quality standard deficiencies are not paid housing assistance payments. Effect: The Authority is not in compliance with federal regulations regarding minimum housing quality standards and was paying housing assistance for units that did not meet these standards. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-002, 2018-002, 2019-002, 2020-002, and 2021-002. Recommendation: We recommend management should designate one person to oversee the inspection process to ensure that all inspections are being performed in a timely manner. Furthermore, management should ensure no HAP payments are issued for units that have not passed HQS housing inspections. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 003 ? Rent Reasonableness Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The PHA must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract: (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a five percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the HAP contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Number of Instances Finding 21 Where the rent reasonableness was not performed prior to the effective date 13 Where the Go Section 8 form for rent reasonableness could not be provided 7 Where the 50058 form was missing for the rent reasonableness performed. 10 Where the Go Section 8 form was not signed 7 Where the auditor cannot review the previous 50058 to verify if the rent increase was processed on current transaction. Questioned costs: Undeterminable Context: During our testing, we reviewed 120 tenant files that required a rent reasonableness; 29 tenant files contained errors as noted above with multiple tenant files containing more than one error. The sample was a statistically valid sample. Cause: The Authority failed to determine the reasonableness of the rent being charged before the effective date of the tenant file or failed to properly maintain the applicable forms to support the rent reasonableness performed. Effect: The Authority is not in compliance with federal regulations regarding the determination of reasonable rent. Inaccurate data could cause Authority to be paying an unfair rent to a landlord. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2017-003, 2018-003, 2019-003, 2020-003, and 2021-003. Recommendation: We recommend that the Authority designate an individual to review tenant files to determine if a rent reasonableness has been performed. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 004 ? Selection from the Waiting List Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Other Matters Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Expect as provided in 24 CFR section 982.203 (Special admission (non-waiting list)), all families admitted to the program must be selected from the waiting list. ?Selection from the waiting list generally occurs when the PHA notifies a family whose names reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: During the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted as summarized below: Waiting List New Tenants Number of Instances Finding 2 Where the Authority was unable to provide a tenant file to review Of the files the Authority was able to provide. The files contained the following compliance deficiencies: Number of Instances Finding 11 Where the tenant was not admitted correctly into the program with accordance into the admin plan due to either the original application and/or acceptance/referral letter was missing. 2 Where the tenant file did not contain the tenant?s original application 10 Where the tenant file did not contain the letter notifying them that they had been accepted into the Housing Choice Voucher Program 1 Where a referral letter was missing for a special program Tenant Selected from the Waiting List Number of Instances Finding 34 Where the status of the applicant was showing "selected" since 2022, noting the Authority's lack of maintenance of the Waiting List 34 Where the Authority provided status on the open items report, but failed to provide supporting documentation or actions taken. Questioned costs: Undeterminable Context: Out of 60 new tenant files tested, 13 contained the errors noted above. Out of 60 tenants selected from the waiting list files tested, 34 files contained the errors noted above. The sample was a statistically valid sample. Finding 2021 ? 004 ? Selection from the Waiting List (Continued) Cause: The Authority failed to provide adequate monitoring and oversight of their waiting list to ensure compliance with HUD rules and regulations as well as their administrative policy. Effect: The Authority may have tenants on the waiting list that are not eligible for an HCVP voucher, are no longer interested in the HCVP housing, or have moved away. Repeat Finding: This is a repeat finding from previous years. The finding numbers are 2018-008, 2019-007, 2020-005, and 2021-004. Recommendation: We recommend that the Authority designate an individual to maintain the waiting list and track all correspondence with potential tenants. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022 ? 005 ? PIC Reporting Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Award Period: October 1, 2021 to September 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Noncompliance (Other Matters) Criteria or specific requirement: The PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection The PHA is required to submit this form electronically to HUD each time the PHA completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family. The PHA must also submit the Family Report when a family ends participation in the program or moves out of the PHA?s jurisdiction under portability (24 CFR Part 908 and 24 CFR section 982.158). (24 CFR sections 982.158(d) and 982.405(b)). Condition: During our testing, we noted the Authority did not have adequate internal controls designed to ensure that special reporting requirements were being met. Number of Instances Finding 11 Where the HUD-50058 form was not uploaded to PIC at all 13 Where the HUD-50058 was not uploaded timely or errors were not corrected timely Questioned costs: Undeterminable Context: During our testing, we reviewed 60 HUD-50058 PIC uploads, 24 of which contained errors as noted above. The sample was a statistically valid sample. Cause: The Authority does not have adequate internal controls designed to ensure that special reporting requirements were being met. Effect: The Authority is not in compliance with program requirements over special report requirements surrounding timely HUD-50058 submission. Repeat Finding: No Recommendation: The Authority should implement processes to ensure HUD-50058 submissions are completed timely. Views of responsible officials: There is no disagreement with the audit finding.