FAC Explorer

Audit 291313

FY End
2022-06-30
Total Expended
$88.27M
Findings
12
Programs
8
Organization: Housing Authority of the Birmingham District (AL)
Year: 2022 Accepted: 2024-02-20
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
369784 2022-002 Significant Deficiency - E
369785 2022-002 Significant Deficiency - E
369786 2022-002 Significant Deficiency - E
369787 2022-003 Significant Deficiency - N
369788 2022-003 Significant Deficiency - N
369789 2022-003 Significant Deficiency - N
946226 2022-002 Significant Deficiency - E
946227 2022-002 Significant Deficiency - E
946228 2022-002 Significant Deficiency - E
946229 2022-003 Significant Deficiency - N
946230 2022-003 Significant Deficiency - N
946231 2022-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.850 Public and Indian Housing $31.64M - 0
14.872 Public Housing Capital Fund $9.88M - 0
14.879 Mainstream Vouchers $710,775 Yes 2
14.871 Section 8 Housing Choice Vouchers $500,982 Yes 2
14.195 Section 8 Housing Assistance Payments Program $478,478 - 0
14.870 Resident Opportunity and Supportive Services - Service Coordinators $225,081 - 0
14.877 Public Housing Family Self-Sufficiency Under Resident Opportunity and Supportive Services $99,359 - 0
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $66,290 - 0

Contacts

Name Title Type
K3S3C1WXVFA7 Melanie Baker Auditee
2058641492 Lance Schmidt Auditor
No contacts on file

Notes to SEFA

Title: PROGRAM REVENUE AND EXPENSES Accounting Policies: BASIS OF PRESENTATION The Schedule of Expenditures of Federal Awards includes the federal award activity of the Authority under programs of the federal government for the year ended June 30, 2022. The information on this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Because the Schedule presents only a selected portion of operations of the Authority, it is not intended to and does not present the financial net position, changes in net position, or cash flows of the Authority. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For loans, the value of noncash awards expended is equal to the amount of loan proceeds expended plus the year-end balance of loans from previous years for which the federal government imposes continuing compliance requirements. De Minimis Rate Used: N Rate Explanation: The Authority has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Housing Choice Voucher Cluster The Authority received $45,873,594 in federal funding for the Section 8 Housing Choice Voucher Program (CFDA 14.871), Mainstream Voucher (CFDA 14.879), and Emergency Housing Vouchers (CFDA 14.871), during the year. The Authority reported $46,635,913 in expenses on a full accrual basis for the Housing Choice Voucher Cluster during the year, which were paid with federal and non-federal funds. The Authority did not report any Port-In expenses during the fiscal year. Public and Indian Housing The Authority received $31,640,750 in federal funding for the Public and Indian Housing Program (CFDA 14.850) during the year. The Authority reported $41,457,832 in expenses on a full accrual basis for the Public and Indian Housing Program during the year. Expenses were paid for by current year HUD funding, tenant rent, other sources of Public Housing revenue, and prior year reserves.

Finding Details

Finding 2022-002
Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 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). 4. 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 the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following items: Number of Instances -- Finding 1 -- Recertification not performed timely 1 -- No evidence of passing the annual inspection Questioned Costs: $10,569 Context: Of the 40 tenant files tested, 2 tenant files contained the errors as noted above. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure recertifications and units are inspected timely. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the recertifications and 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
Finding 2022-002
Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 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). 4. 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 the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following items: Number of Instances -- Finding 1 -- Recertification not performed timely 1 -- No evidence of passing the annual inspection Questioned Costs: $10,569 Context: Of the 40 tenant files tested, 2 tenant files contained the errors as noted above. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure recertifications and units are inspected timely. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the recertifications and 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
Finding 2022-002
Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 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). 4. 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 the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following items: Number of Instances -- Finding 1 -- Recertification not performed timely 1 -- No evidence of passing the annual inspection Questioned Costs: $10,569 Context: Of the 40 tenant files tested, 2 tenant files contained the errors as noted above. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure recertifications and units are inspected timely. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the recertifications and 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
Finding 2022-003
Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance 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 1 -- The Authority maintained a terminated unit as active Quality Control Inspections Number of Instances -- Finding 1 -- The quality control inspections were not conducted in accordance with the Authority’s administrative policy along with HUD regulations. Per the Authority’s administrative plan, the leased housing manager will re-inspect a minimum of 5% of the total number of Section 8 units under HAP contract to ensure that inspections are being performed in compliance with HQS standards. The Authority failed to meet the Authority and HUD’s minimum number of files required to be tested for quality control inspections. Questioned Costs: None Context: Of the 40 tenant files tested, 1 tenant file contained the errors as noted above. Based on the Housing Authority’s policy, management should have performed approximately 262 QC inspections but only performed 19 for the year ended June 30, 2022. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure the inspection processes are following the Authority’s administrative policy. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the inspection processes to ensure the policies set in place in the Authorities administrative plan are being followed. Views of responsible officials: There is no disagreement.
Finding 2022-003
Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance 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 1 -- The Authority maintained a terminated unit as active Quality Control Inspections Number of Instances -- Finding 1 -- The quality control inspections were not conducted in accordance with the Authority’s administrative policy along with HUD regulations. Per the Authority’s administrative plan, the leased housing manager will re-inspect a minimum of 5% of the total number of Section 8 units under HAP contract to ensure that inspections are being performed in compliance with HQS standards. The Authority failed to meet the Authority and HUD’s minimum number of files required to be tested for quality control inspections. Questioned Costs: None Context: Of the 40 tenant files tested, 1 tenant file contained the errors as noted above. Based on the Housing Authority’s policy, management should have performed approximately 262 QC inspections but only performed 19 for the year ended June 30, 2022. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure the inspection processes are following the Authority’s administrative policy. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the inspection processes to ensure the policies set in place in the Authorities administrative plan are being followed. Views of responsible officials: There is no disagreement.
Finding 2022-003
Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance 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 1 -- The Authority maintained a terminated unit as active Quality Control Inspections Number of Instances -- Finding 1 -- The quality control inspections were not conducted in accordance with the Authority’s administrative policy along with HUD regulations. Per the Authority’s administrative plan, the leased housing manager will re-inspect a minimum of 5% of the total number of Section 8 units under HAP contract to ensure that inspections are being performed in compliance with HQS standards. The Authority failed to meet the Authority and HUD’s minimum number of files required to be tested for quality control inspections. Questioned Costs: None Context: Of the 40 tenant files tested, 1 tenant file contained the errors as noted above. Based on the Housing Authority’s policy, management should have performed approximately 262 QC inspections but only performed 19 for the year ended June 30, 2022. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure the inspection processes are following the Authority’s administrative policy. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the inspection processes to ensure the policies set in place in the Authorities administrative plan are being followed. Views of responsible officials: There is no disagreement.
Finding 2022-002
Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 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). 4. 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 the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following items: Number of Instances -- Finding 1 -- Recertification not performed timely 1 -- No evidence of passing the annual inspection Questioned Costs: $10,569 Context: Of the 40 tenant files tested, 2 tenant files contained the errors as noted above. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure recertifications and units are inspected timely. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the recertifications and 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
Finding 2022-002
Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 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). 4. 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 the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following items: Number of Instances -- Finding 1 -- Recertification not performed timely 1 -- No evidence of passing the annual inspection Questioned Costs: $10,569 Context: Of the 40 tenant files tested, 2 tenant files contained the errors as noted above. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure recertifications and units are inspected timely. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the recertifications and 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
Finding 2022-002
Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021, to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 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). 4. 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 the testing of the Housing Choice Voucher Program tenant files, certain special provision compliance deficiencies were noted. Of the tenant files provided, auditor noted the following items: Number of Instances -- Finding 1 -- Recertification not performed timely 1 -- No evidence of passing the annual inspection Questioned Costs: $10,569 Context: Of the 40 tenant files tested, 2 tenant files contained the errors as noted above. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure recertifications and units are inspected timely. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the recertifications and 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
Finding 2022-003
Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance 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 1 -- The Authority maintained a terminated unit as active Quality Control Inspections Number of Instances -- Finding 1 -- The quality control inspections were not conducted in accordance with the Authority’s administrative policy along with HUD regulations. Per the Authority’s administrative plan, the leased housing manager will re-inspect a minimum of 5% of the total number of Section 8 units under HAP contract to ensure that inspections are being performed in compliance with HQS standards. The Authority failed to meet the Authority and HUD’s minimum number of files required to be tested for quality control inspections. Questioned Costs: None Context: Of the 40 tenant files tested, 1 tenant file contained the errors as noted above. Based on the Housing Authority’s policy, management should have performed approximately 262 QC inspections but only performed 19 for the year ended June 30, 2022. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure the inspection processes are following the Authority’s administrative policy. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the inspection processes to ensure the policies set in place in the Authorities administrative plan are being followed. Views of responsible officials: There is no disagreement.
Finding 2022-003
Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance 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 1 -- The Authority maintained a terminated unit as active Quality Control Inspections Number of Instances -- Finding 1 -- The quality control inspections were not conducted in accordance with the Authority’s administrative policy along with HUD regulations. Per the Authority’s administrative plan, the leased housing manager will re-inspect a minimum of 5% of the total number of Section 8 units under HAP contract to ensure that inspections are being performed in compliance with HQS standards. The Authority failed to meet the Authority and HUD’s minimum number of files required to be tested for quality control inspections. Questioned Costs: None Context: Of the 40 tenant files tested, 1 tenant file contained the errors as noted above. Based on the Housing Authority’s policy, management should have performed approximately 262 QC inspections but only performed 19 for the year ended June 30, 2022. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure the inspection processes are following the Authority’s administrative policy. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the inspection processes to ensure the policies set in place in the Authorities administrative plan are being followed. Views of responsible officials: There is no disagreement.
Finding 2022-003
Federal Agency: Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: AL001, 2022 Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance 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 1 -- The Authority maintained a terminated unit as active Quality Control Inspections Number of Instances -- Finding 1 -- The quality control inspections were not conducted in accordance with the Authority’s administrative policy along with HUD regulations. Per the Authority’s administrative plan, the leased housing manager will re-inspect a minimum of 5% of the total number of Section 8 units under HAP contract to ensure that inspections are being performed in compliance with HQS standards. The Authority failed to meet the Authority and HUD’s minimum number of files required to be tested for quality control inspections. Questioned Costs: None Context: Of the 40 tenant files tested, 1 tenant file contained the errors as noted above. Based on the Housing Authority’s policy, management should have performed approximately 262 QC inspections but only performed 19 for the year ended June 30, 2022. Cause: The Authority failed to provide adequate monitoring and oversight to ensure compliance with HUD rules and regulations, as well as their administrative policy. Effect: The Authority does not have adequate procedures in place to ensure the inspection processes are following the Authority’s administrative policy. Repeat Finding: No Recommendation: We recommend management should designate one person to oversee the inspection processes to ensure the policies set in place in the Authorities administrative plan are being followed. Views of responsible officials: There is no disagreement.