Audit 28025

FY End
2022-12-31
Total Expended
$82.61M
Findings
30
Programs
7
Year: 2022 Accepted: 2023-09-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
31194 2022-001 Significant Deficiency - E
31195 2022-002 Significant Deficiency - L
31196 2022-003 Significant Deficiency - N
31197 2022-004 Significant Deficiency - N
31198 2022-005 Material Weakness - N
31199 2022-001 Significant Deficiency - E
31200 2022-002 Significant Deficiency - L
31201 2022-003 Significant Deficiency - N
31202 2022-004 Significant Deficiency - N
31203 2022-005 Material Weakness - N
31204 2022-001 Significant Deficiency - E
31205 2022-002 Significant Deficiency - L
31206 2022-003 Significant Deficiency - N
31207 2022-004 Significant Deficiency - N
31208 2022-005 Material Weakness - N
607636 2022-001 Significant Deficiency - E
607637 2022-002 Significant Deficiency - L
607638 2022-003 Significant Deficiency - N
607639 2022-004 Significant Deficiency - N
607640 2022-005 Material Weakness - N
607641 2022-001 Significant Deficiency - E
607642 2022-002 Significant Deficiency - L
607643 2022-003 Significant Deficiency - N
607644 2022-004 Significant Deficiency - N
607645 2022-005 Material Weakness - N
607646 2022-001 Significant Deficiency - E
607647 2022-002 Significant Deficiency - L
607648 2022-003 Significant Deficiency - N
607649 2022-004 Significant Deficiency - N
607650 2022-005 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $9.36M - 0
14.872 Public Housing Capital Fund $5.17M - 0
14.889 Choice Neighborhoods Implementation Grants $4.79M - 0
14.879 Mainstream Vouchers $805,975 Yes 5
14.871 Section 8 Housing Choice Vouchers $767,658 Yes 5
14.896 Family Self-Sufficiency Program $276,510 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $109,504 - 0

Contacts

Name Title Type
HBL6DQ3NT6G8 Yohannes Hirsh Auditee
8169684220 Mandy Merchant Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through, entity identifying numbers are presented where available. The Authority has elected to not use the 10 percent de minimis indirect cost rate as allowed under the UniformGuidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards includes the federal grantactivity of the Housing Authority of Kansas City, Missouri and is presented on the accrual basis of accounting. The information in this 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 (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher Program (HCV), Assistance Listing Number 14.871, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule represents the total amount received directly from HUD and not the total expenditures paid by the Authority.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through, entity identifying numbers are presented where available. The Authority has elected to not use the 10 percent de minimis indirect cost rate as allowed under the UniformGuidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Authority was not a subrecipient of any federal awards and did not pass-through any federal awards to subrecipients.
Title: NONCASH FEDERAL ASSISTANCE Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through, entity identifying numbers are presented where available. The Authority has elected to not use the 10 percent de minimis indirect cost rate as allowed under the UniformGuidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Authority did not receive any noncash Federal assistance for the year ended December 31, 2022.

Finding Details

2022 ? 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). 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). The Authority must 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). Condition: The Authority was unable to provide adequate supporting documentation and evidence of internal control over compliance for eligibility requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 1 out of 40 files tested for eligibility requirements. The Authority was unable to provide documentation for releases of information or third party verification of reported family annual income, the value of assets, or expenses related to deductions from annual income. The sample was statistically valid. Cause: The Authority did not maintain supporting documentation within the tenant file. Effect: The Authority is not in compliance with eligibility requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the tenant files include all required documentation at the time of recertification. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Reporting ? PIH Information Center (PIC) Reporting Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority is required to submit the HUD-50058 electronically to HUD via the PIH Information Center (PIC) each time the Authority completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family (24 CFR Part 908). Condition: The Authority did not satisfy PIC reporting requirements in accordance with 24 CFR Part 908. Questioned costs: Unable to determine. Context: Exceptions noted in 4 out of 40 recertifications. In all instances, the HUD-50058 was unable to be located within the PIC system. The sample was statistically valid. Cause: The Authority did not identify recertifications that failed to upload to the PIC system. Effect: The Authority is not in compliance with PIC reporting requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Assistance Payment (HAP) Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition: The Authority did not ensure the monthly HAP payment agreed between the HUD-50058, HAP contract, and HAP register in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 40 files tested for Housing Assistance Payments. In both instances, the HAP register did not agree to the HUD-50058 and HAP contract. The sample was statistically valid. Cause: The Authority did not identify variances between the HUD-50058, HAP contract, and HAP register. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the HAP paid agrees to the HUD-50058 and HAP contract. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Reasonable Rent Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority 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 before any increase in the rent to owner. 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: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 80 files tested for reasonable rent requirements: ? Documentation for the determination of rent was not maintained for 1 sample. ? The contract rent did not agree to the rent determined reasonable for 1 sample. The sample was statistically valid. Cause: The Authority did not maintain documentation utilized to determine rent reasonableness. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure that documentation is maintained in in accordance with rent reasonableness requirements. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Quality Standards (HQS) Enforcement Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority 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 Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs 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 Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $20,539 were calculated based on the HAP payment for the units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 9 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 2 out of 40 failed inspections. ? The Authority did not properly abate HAP for 7 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). 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). The Authority must 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). Condition: The Authority was unable to provide adequate supporting documentation and evidence of internal control over compliance for eligibility requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 1 out of 40 files tested for eligibility requirements. The Authority was unable to provide documentation for releases of information or third party verification of reported family annual income, the value of assets, or expenses related to deductions from annual income. The sample was statistically valid. Cause: The Authority did not maintain supporting documentation within the tenant file. Effect: The Authority is not in compliance with eligibility requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the tenant files include all required documentation at the time of recertification. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Reporting ? PIH Information Center (PIC) Reporting Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority is required to submit the HUD-50058 electronically to HUD via the PIH Information Center (PIC) each time the Authority completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family (24 CFR Part 908). Condition: The Authority did not satisfy PIC reporting requirements in accordance with 24 CFR Part 908. Questioned costs: Unable to determine. Context: Exceptions noted in 4 out of 40 recertifications. In all instances, the HUD-50058 was unable to be located within the PIC system. The sample was statistically valid. Cause: The Authority did not identify recertifications that failed to upload to the PIC system. Effect: The Authority is not in compliance with PIC reporting requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Assistance Payment (HAP) Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition: The Authority did not ensure the monthly HAP payment agreed between the HUD-50058, HAP contract, and HAP register in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 40 files tested for Housing Assistance Payments. In both instances, the HAP register did not agree to the HUD-50058 and HAP contract. The sample was statistically valid. Cause: The Authority did not identify variances between the HUD-50058, HAP contract, and HAP register. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the HAP paid agrees to the HUD-50058 and HAP contract. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Reasonable Rent Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority 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 before any increase in the rent to owner. 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: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 80 files tested for reasonable rent requirements: ? Documentation for the determination of rent was not maintained for 1 sample. ? The contract rent did not agree to the rent determined reasonable for 1 sample. The sample was statistically valid. Cause: The Authority did not maintain documentation utilized to determine rent reasonableness. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure that documentation is maintained in in accordance with rent reasonableness requirements. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Quality Standards (HQS) Enforcement Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority 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 Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs 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 Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $20,539 were calculated based on the HAP payment for the units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 9 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 2 out of 40 failed inspections. ? The Authority did not properly abate HAP for 7 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). 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). The Authority must 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). Condition: The Authority was unable to provide adequate supporting documentation and evidence of internal control over compliance for eligibility requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 1 out of 40 files tested for eligibility requirements. The Authority was unable to provide documentation for releases of information or third party verification of reported family annual income, the value of assets, or expenses related to deductions from annual income. The sample was statistically valid. Cause: The Authority did not maintain supporting documentation within the tenant file. Effect: The Authority is not in compliance with eligibility requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the tenant files include all required documentation at the time of recertification. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Reporting ? PIH Information Center (PIC) Reporting Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority is required to submit the HUD-50058 electronically to HUD via the PIH Information Center (PIC) each time the Authority completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family (24 CFR Part 908). Condition: The Authority did not satisfy PIC reporting requirements in accordance with 24 CFR Part 908. Questioned costs: Unable to determine. Context: Exceptions noted in 4 out of 40 recertifications. In all instances, the HUD-50058 was unable to be located within the PIC system. The sample was statistically valid. Cause: The Authority did not identify recertifications that failed to upload to the PIC system. Effect: The Authority is not in compliance with PIC reporting requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Assistance Payment (HAP) Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition: The Authority did not ensure the monthly HAP payment agreed between the HUD-50058, HAP contract, and HAP register in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 40 files tested for Housing Assistance Payments. In both instances, the HAP register did not agree to the HUD-50058 and HAP contract. The sample was statistically valid. Cause: The Authority did not identify variances between the HUD-50058, HAP contract, and HAP register. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the HAP paid agrees to the HUD-50058 and HAP contract. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Reasonable Rent Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority 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 before any increase in the rent to owner. 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: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 80 files tested for reasonable rent requirements: ? Documentation for the determination of rent was not maintained for 1 sample. ? The contract rent did not agree to the rent determined reasonable for 1 sample. The sample was statistically valid. Cause: The Authority did not maintain documentation utilized to determine rent reasonableness. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure that documentation is maintained in in accordance with rent reasonableness requirements. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Quality Standards (HQS) Enforcement Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority 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 Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs 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 Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $20,539 were calculated based on the HAP payment for the units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 9 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 2 out of 40 failed inspections. ? The Authority did not properly abate HAP for 7 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). 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). The Authority must 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). Condition: The Authority was unable to provide adequate supporting documentation and evidence of internal control over compliance for eligibility requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 1 out of 40 files tested for eligibility requirements. The Authority was unable to provide documentation for releases of information or third party verification of reported family annual income, the value of assets, or expenses related to deductions from annual income. The sample was statistically valid. Cause: The Authority did not maintain supporting documentation within the tenant file. Effect: The Authority is not in compliance with eligibility requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the tenant files include all required documentation at the time of recertification. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Reporting ? PIH Information Center (PIC) Reporting Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority is required to submit the HUD-50058 electronically to HUD via the PIH Information Center (PIC) each time the Authority completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family (24 CFR Part 908). Condition: The Authority did not satisfy PIC reporting requirements in accordance with 24 CFR Part 908. Questioned costs: Unable to determine. Context: Exceptions noted in 4 out of 40 recertifications. In all instances, the HUD-50058 was unable to be located within the PIC system. The sample was statistically valid. Cause: The Authority did not identify recertifications that failed to upload to the PIC system. Effect: The Authority is not in compliance with PIC reporting requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Assistance Payment (HAP) Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition: The Authority did not ensure the monthly HAP payment agreed between the HUD-50058, HAP contract, and HAP register in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 40 files tested for Housing Assistance Payments. In both instances, the HAP register did not agree to the HUD-50058 and HAP contract. The sample was statistically valid. Cause: The Authority did not identify variances between the HUD-50058, HAP contract, and HAP register. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the HAP paid agrees to the HUD-50058 and HAP contract. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Reasonable Rent Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority 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 before any increase in the rent to owner. 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: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 80 files tested for reasonable rent requirements: ? Documentation for the determination of rent was not maintained for 1 sample. ? The contract rent did not agree to the rent determined reasonable for 1 sample. The sample was statistically valid. Cause: The Authority did not maintain documentation utilized to determine rent reasonableness. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure that documentation is maintained in in accordance with rent reasonableness requirements. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Quality Standards (HQS) Enforcement Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority 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 Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs 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 Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $20,539 were calculated based on the HAP payment for the units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 9 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 2 out of 40 failed inspections. ? The Authority did not properly abate HAP for 7 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). 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). The Authority must 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). Condition: The Authority was unable to provide adequate supporting documentation and evidence of internal control over compliance for eligibility requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 1 out of 40 files tested for eligibility requirements. The Authority was unable to provide documentation for releases of information or third party verification of reported family annual income, the value of assets, or expenses related to deductions from annual income. The sample was statistically valid. Cause: The Authority did not maintain supporting documentation within the tenant file. Effect: The Authority is not in compliance with eligibility requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the tenant files include all required documentation at the time of recertification. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Reporting ? PIH Information Center (PIC) Reporting Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority is required to submit the HUD-50058 electronically to HUD via the PIH Information Center (PIC) each time the Authority completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family (24 CFR Part 908). Condition: The Authority did not satisfy PIC reporting requirements in accordance with 24 CFR Part 908. Questioned costs: Unable to determine. Context: Exceptions noted in 4 out of 40 recertifications. In all instances, the HUD-50058 was unable to be located within the PIC system. The sample was statistically valid. Cause: The Authority did not identify recertifications that failed to upload to the PIC system. Effect: The Authority is not in compliance with PIC reporting requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Assistance Payment (HAP) Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition: The Authority did not ensure the monthly HAP payment agreed between the HUD-50058, HAP contract, and HAP register in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 40 files tested for Housing Assistance Payments. In both instances, the HAP register did not agree to the HUD-50058 and HAP contract. The sample was statistically valid. Cause: The Authority did not identify variances between the HUD-50058, HAP contract, and HAP register. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the HAP paid agrees to the HUD-50058 and HAP contract. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Reasonable Rent Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority 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 before any increase in the rent to owner. 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: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 80 files tested for reasonable rent requirements: ? Documentation for the determination of rent was not maintained for 1 sample. ? The contract rent did not agree to the rent determined reasonable for 1 sample. The sample was statistically valid. Cause: The Authority did not maintain documentation utilized to determine rent reasonableness. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure that documentation is maintained in in accordance with rent reasonableness requirements. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Quality Standards (HQS) Enforcement Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority 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 Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs 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 Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $20,539 were calculated based on the HAP payment for the units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 9 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 2 out of 40 failed inspections. ? The Authority did not properly abate HAP for 7 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Eligibility Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). 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). The Authority must 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). Condition: The Authority was unable to provide adequate supporting documentation and evidence of internal control over compliance for eligibility requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 1 out of 40 files tested for eligibility requirements. The Authority was unable to provide documentation for releases of information or third party verification of reported family annual income, the value of assets, or expenses related to deductions from annual income. The sample was statistically valid. Cause: The Authority did not maintain supporting documentation within the tenant file. Effect: The Authority is not in compliance with eligibility requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the tenant files include all required documentation at the time of recertification. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Reporting ? PIH Information Center (PIC) Reporting Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority is required to submit the HUD-50058 electronically to HUD via the PIH Information Center (PIC) each time the Authority completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family (24 CFR Part 908). Condition: The Authority did not satisfy PIC reporting requirements in accordance with 24 CFR Part 908. Questioned costs: Unable to determine. Context: Exceptions noted in 4 out of 40 recertifications. In all instances, the HUD-50058 was unable to be located within the PIC system. The sample was statistically valid. Cause: The Authority did not identify recertifications that failed to upload to the PIC system. Effect: The Authority is not in compliance with PIC reporting requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Assistance Payment (HAP) Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition: The Authority did not ensure the monthly HAP payment agreed between the HUD-50058, HAP contract, and HAP register in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 40 files tested for Housing Assistance Payments. In both instances, the HAP register did not agree to the HUD-50058 and HAP contract. The sample was statistically valid. Cause: The Authority did not identify variances between the HUD-50058, HAP contract, and HAP register. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure the HAP paid agrees to the HUD-50058 and HAP contract. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Reasonable Rent Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Authority 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 before any increase in the rent to owner. 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: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 2 out of 80 files tested for reasonable rent requirements: ? Documentation for the determination of rent was not maintained for 1 sample. ? The contract rent did not agree to the rent determined reasonable for 1 sample. The sample was statistically valid. Cause: The Authority did not maintain documentation utilized to determine rent reasonableness. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: No. Recommendation: We recommend that the Authority implements controls to ensure that documentation is maintained in in accordance with rent reasonableness requirements. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2022 Award Period: January 1, 2022 ? December 31, 2022 Compliance Requirement: Special Tests and Provisions ? Housing Quality Standards (HQS) Enforcement Type of Finding: ? Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority 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 Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs 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 Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Known questioned costs of $20,539 were calculated based on the HAP payment for the units that should have been abated, multiplied by the number of months where HAP was incorrectly paid. Unable to determine likely questioned costs. Context: Exceptions were noted in 9 out of 40 failed inspections: ? The Authority did not require the owner to correct HQS deficiencies within the required timeframe for 2 out of 40 failed inspections. ? The Authority did not properly abate HAP for 7 out of 40 failed inspections. The sample was statistically valid. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: No. Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.