2023 – 001 Housing Choice Voucher Program Annual HQS Inspections
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Per 24 CFR 982.405(a) and in accordance with the HCVP Administration Plan, completed HQS inspections must be completed within two years of the HUD-50058 effective date listed on the HUD-50058.
Condition: During our testing, we noted the Authority did not complete the Annual HQS inspections in an adequate time frame.
Questioned Costs: Unknown.
Context: In a statistically valid sample, during our testing of 60 files selected for Annual HQS Inspection Testing, we noted the following: 1 out of 60 Annual HQS inspections was not completed within two years of the HUD-50058 effective date listed on the HUD-50058.
Cause: Per discussion with Aida Nunez, Director of Housing Management, scheduling conflicts between the inspectors and tenants resulted in untimely HQS inspections.
Effect: The Authority is not in compliance with program requirements over Annual HQS inspections.
Repeat Finding: Not a repeat.
Recommendation: We recommend the Authority review their procedures for performing Annual HQS inspections in a timely manner.
Views of responsible officials: There is no disagreement with the audit finding.
2023 – 001 Housing Choice Voucher Program Annual HQS Inspections
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Per 24 CFR 982.405(a) and in accordance with the HCVP Administration Plan, completed HQS inspections must be completed within two years of the HUD-50058 effective date listed on the HUD-50058.
Condition: During our testing, we noted the Authority did not complete the Annual HQS inspections in an adequate time frame.
Questioned Costs: Unknown.
Context: In a statistically valid sample, during our testing of 60 files selected for Annual HQS Inspection Testing, we noted the following: 1 out of 60 Annual HQS inspections was not completed within two years of the HUD-50058 effective date listed on the HUD-50058.
Cause: Per discussion with Aida Nunez, Director of Housing Management, scheduling conflicts between the inspectors and tenants resulted in untimely HQS inspections.
Effect: The Authority is not in compliance with program requirements over Annual HQS inspections.
Repeat Finding: Not a repeat.
Recommendation: We recommend the Authority review their procedures for performing Annual HQS inspections in a timely manner.
Views of responsible officials: There is no disagreement with the audit finding.
2023 – 002 Housing Choice Voucher Program Reasonable Rent Testing – New Tenants
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Per the Authority’s HCVP administrative plan, application require the completion of rent determination through use of automated database, showing 3 comparable rents for units located in the same area, with similar amenities, size, and condition for rent reasonableness. The rent determination form must be properly entered into the HDS system prior the HUD 50058 effective date.
Condition: During our testing of 24 files for Reasonable Rent – New Tenants requirements. criteria, we noted the following: 2 of 24 files had rent determination forms that were not approved in the HDS system until after the HUD 50058 effective date.
Questioned Costs: Unknown.
Context: In a statistically valid sample, during our testing of 24 files for Reasonable Rent – New Tenants criteria, we noted the following: 2 of 24 files had rent determinations processed after their effective date.
Cause: The Authority does not have controls in place to ensure it is meeting Reasonable Rent – New Tenants requirements set by HUD.
Effect: The Authority is not in compliance with their administrative plan regarding Reasonable Rent – New Tenants requirements.
Repeat Finding: Not a repeat.
Recommendation: We recommend the Authority review their procedures for performing. Reasonable Rent – New Tenants requirements.
Views of responsible officials: There is no disagreement with the audit finding.
2023 – 002 Housing Choice Voucher Program Reasonable Rent Testing – New Tenants
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Per the Authority’s HCVP administrative plan, application require the completion of rent determination through use of automated database, showing 3 comparable rents for units located in the same area, with similar amenities, size, and condition for rent reasonableness. The rent determination form must be properly entered into the HDS system prior the HUD 50058 effective date.
Condition: During our testing of 24 files for Reasonable Rent – New Tenants requirements. criteria, we noted the following: 2 of 24 files had rent determination forms that were not approved in the HDS system until after the HUD 50058 effective date.
Questioned Costs: Unknown.
Context: In a statistically valid sample, during our testing of 24 files for Reasonable Rent – New Tenants criteria, we noted the following: 2 of 24 files had rent determinations processed after their effective date.
Cause: The Authority does not have controls in place to ensure it is meeting Reasonable Rent – New Tenants requirements set by HUD.
Effect: The Authority is not in compliance with their administrative plan regarding Reasonable Rent – New Tenants requirements.
Repeat Finding: Not a repeat.
Recommendation: We recommend the Authority review their procedures for performing. Reasonable Rent – New Tenants requirements.
Views of responsible officials: There is no disagreement with the audit finding.
2023 – 003 Housing Choice Voucher Program –Eligibility and HAP Payment Testing
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matters
Criteria or specific requirement:
Per 24 CFR Part 908 and 24 CFR section 982.158, the Authority is required to electronically submit the HUD-50058 form to HUD each time they complete an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family.
Per 24 CFR section 982.158 and 24 CFR Part 982, Subpart K, PHA 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.
Per 24 CFR section 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.
Condition: During our testing of 60 tenant files for eligibility criteria, we noted the following: 4 of 60 tenant files had incorrectly calculated incomes. 2 of 60 tenant files missing proper 3rd party asset verification. 1 of 60 tenant files was not able to be located in the PIC system.
Questioned Costs: $2,233
Context:
• In a statistically valid sample, during our testing of 60 tenant files for eligibility criteria, we noted the following: 4 of 60 tenant files had incorrectly calculated incomes. 2 of 60 tenant files missing proper 3rd party asset verification. 1 of 60 tenant files was not able to be located in the PIC system.
Cause: The authority does not have controls in place to ensure it is meeting Eligibility and HAP Payment Testing requirements set by HUD.
Effect: The authority is not in compliance with HUD guidelines over eligibility or HAP payments.
Repeat Finding: Repeat finding, 2022-003.
Section III – Findings and Questioned Costs – Major Federal Programs (Continued)
2023 – 003 Housing Choice Voucher Program –Eligibility and HAP Payment Testing (Continued)
Recommendation: We recommend the Authority review their process for maintaining third party verification of income, for uploading data to PIC, and for recalculating household income.
Views of responsible officials: There is no disagreement with the audit finding.
2023 – 003 Housing Choice Voucher Program –Eligibility and HAP Payment Testing
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matters
Criteria or specific requirement:
Per 24 CFR Part 908 and 24 CFR section 982.158, the Authority is required to electronically submit the HUD-50058 form to HUD each time they complete an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family.
Per 24 CFR section 982.158 and 24 CFR Part 982, Subpart K, PHA 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.
Per 24 CFR section 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.
Condition: During our testing of 60 tenant files for eligibility criteria, we noted the following: 4 of 60 tenant files had incorrectly calculated incomes. 2 of 60 tenant files missing proper 3rd party asset verification. 1 of 60 tenant files was not able to be located in the PIC system.
Questioned Costs: $2,233
Context:
• In a statistically valid sample, during our testing of 60 tenant files for eligibility criteria, we noted the following: 4 of 60 tenant files had incorrectly calculated incomes. 2 of 60 tenant files missing proper 3rd party asset verification. 1 of 60 tenant files was not able to be located in the PIC system.
Cause: The authority does not have controls in place to ensure it is meeting Eligibility and HAP Payment Testing requirements set by HUD.
Effect: The authority is not in compliance with HUD guidelines over eligibility or HAP payments.
Repeat Finding: Repeat finding, 2022-003.
Section III – Findings and Questioned Costs – Major Federal Programs (Continued)
2023 – 003 Housing Choice Voucher Program –Eligibility and HAP Payment Testing (Continued)
Recommendation: We recommend the Authority review their process for maintaining third party verification of income, for uploading data to PIC, and for recalculating household income.
Views of responsible officials: There is no disagreement with the audit finding.
2023 – 001 Housing Choice Voucher Program Annual HQS Inspections
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Per 24 CFR 982.405(a) and in accordance with the HCVP Administration Plan, completed HQS inspections must be completed within two years of the HUD-50058 effective date listed on the HUD-50058.
Condition: During our testing, we noted the Authority did not complete the Annual HQS inspections in an adequate time frame.
Questioned Costs: Unknown.
Context: In a statistically valid sample, during our testing of 60 files selected for Annual HQS Inspection Testing, we noted the following: 1 out of 60 Annual HQS inspections was not completed within two years of the HUD-50058 effective date listed on the HUD-50058.
Cause: Per discussion with Aida Nunez, Director of Housing Management, scheduling conflicts between the inspectors and tenants resulted in untimely HQS inspections.
Effect: The Authority is not in compliance with program requirements over Annual HQS inspections.
Repeat Finding: Not a repeat.
Recommendation: We recommend the Authority review their procedures for performing Annual HQS inspections in a timely manner.
Views of responsible officials: There is no disagreement with the audit finding.
2023 – 001 Housing Choice Voucher Program Annual HQS Inspections
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Per 24 CFR 982.405(a) and in accordance with the HCVP Administration Plan, completed HQS inspections must be completed within two years of the HUD-50058 effective date listed on the HUD-50058.
Condition: During our testing, we noted the Authority did not complete the Annual HQS inspections in an adequate time frame.
Questioned Costs: Unknown.
Context: In a statistically valid sample, during our testing of 60 files selected for Annual HQS Inspection Testing, we noted the following: 1 out of 60 Annual HQS inspections was not completed within two years of the HUD-50058 effective date listed on the HUD-50058.
Cause: Per discussion with Aida Nunez, Director of Housing Management, scheduling conflicts between the inspectors and tenants resulted in untimely HQS inspections.
Effect: The Authority is not in compliance with program requirements over Annual HQS inspections.
Repeat Finding: Not a repeat.
Recommendation: We recommend the Authority review their procedures for performing Annual HQS inspections in a timely manner.
Views of responsible officials: There is no disagreement with the audit finding.
2023 – 002 Housing Choice Voucher Program Reasonable Rent Testing – New Tenants
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Per the Authority’s HCVP administrative plan, application require the completion of rent determination through use of automated database, showing 3 comparable rents for units located in the same area, with similar amenities, size, and condition for rent reasonableness. The rent determination form must be properly entered into the HDS system prior the HUD 50058 effective date.
Condition: During our testing of 24 files for Reasonable Rent – New Tenants requirements. criteria, we noted the following: 2 of 24 files had rent determination forms that were not approved in the HDS system until after the HUD 50058 effective date.
Questioned Costs: Unknown.
Context: In a statistically valid sample, during our testing of 24 files for Reasonable Rent – New Tenants criteria, we noted the following: 2 of 24 files had rent determinations processed after their effective date.
Cause: The Authority does not have controls in place to ensure it is meeting Reasonable Rent – New Tenants requirements set by HUD.
Effect: The Authority is not in compliance with their administrative plan regarding Reasonable Rent – New Tenants requirements.
Repeat Finding: Not a repeat.
Recommendation: We recommend the Authority review their procedures for performing. Reasonable Rent – New Tenants requirements.
Views of responsible officials: There is no disagreement with the audit finding.
2023 – 002 Housing Choice Voucher Program Reasonable Rent Testing – New Tenants
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or specific requirement: Per the Authority’s HCVP administrative plan, application require the completion of rent determination through use of automated database, showing 3 comparable rents for units located in the same area, with similar amenities, size, and condition for rent reasonableness. The rent determination form must be properly entered into the HDS system prior the HUD 50058 effective date.
Condition: During our testing of 24 files for Reasonable Rent – New Tenants requirements. criteria, we noted the following: 2 of 24 files had rent determination forms that were not approved in the HDS system until after the HUD 50058 effective date.
Questioned Costs: Unknown.
Context: In a statistically valid sample, during our testing of 24 files for Reasonable Rent – New Tenants criteria, we noted the following: 2 of 24 files had rent determinations processed after their effective date.
Cause: The Authority does not have controls in place to ensure it is meeting Reasonable Rent – New Tenants requirements set by HUD.
Effect: The Authority is not in compliance with their administrative plan regarding Reasonable Rent – New Tenants requirements.
Repeat Finding: Not a repeat.
Recommendation: We recommend the Authority review their procedures for performing. Reasonable Rent – New Tenants requirements.
Views of responsible officials: There is no disagreement with the audit finding.
2023 – 003 Housing Choice Voucher Program –Eligibility and HAP Payment Testing
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matters
Criteria or specific requirement:
Per 24 CFR Part 908 and 24 CFR section 982.158, the Authority is required to electronically submit the HUD-50058 form to HUD each time they complete an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family.
Per 24 CFR section 982.158 and 24 CFR Part 982, Subpart K, PHA 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.
Per 24 CFR section 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.
Condition: During our testing of 60 tenant files for eligibility criteria, we noted the following: 4 of 60 tenant files had incorrectly calculated incomes. 2 of 60 tenant files missing proper 3rd party asset verification. 1 of 60 tenant files was not able to be located in the PIC system.
Questioned Costs: $2,233
Context:
• In a statistically valid sample, during our testing of 60 tenant files for eligibility criteria, we noted the following: 4 of 60 tenant files had incorrectly calculated incomes. 2 of 60 tenant files missing proper 3rd party asset verification. 1 of 60 tenant files was not able to be located in the PIC system.
Cause: The authority does not have controls in place to ensure it is meeting Eligibility and HAP Payment Testing requirements set by HUD.
Effect: The authority is not in compliance with HUD guidelines over eligibility or HAP payments.
Repeat Finding: Repeat finding, 2022-003.
Section III – Findings and Questioned Costs – Major Federal Programs (Continued)
2023 – 003 Housing Choice Voucher Program –Eligibility and HAP Payment Testing (Continued)
Recommendation: We recommend the Authority review their process for maintaining third party verification of income, for uploading data to PIC, and for recalculating household income.
Views of responsible officials: There is no disagreement with the audit finding.
2023 – 003 Housing Choice Voucher Program –Eligibility and HAP Payment Testing
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Choice Voucher Program
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: PA004 (various funding increments active during period 7/1/22-6/30/23)
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matters
Criteria or specific requirement:
Per 24 CFR Part 908 and 24 CFR section 982.158, the Authority is required to electronically submit the HUD-50058 form to HUD each time they complete an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family.
Per 24 CFR section 982.158 and 24 CFR Part 982, Subpart K, PHA 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.
Per 24 CFR section 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.
Condition: During our testing of 60 tenant files for eligibility criteria, we noted the following: 4 of 60 tenant files had incorrectly calculated incomes. 2 of 60 tenant files missing proper 3rd party asset verification. 1 of 60 tenant files was not able to be located in the PIC system.
Questioned Costs: $2,233
Context:
• In a statistically valid sample, during our testing of 60 tenant files for eligibility criteria, we noted the following: 4 of 60 tenant files had incorrectly calculated incomes. 2 of 60 tenant files missing proper 3rd party asset verification. 1 of 60 tenant files was not able to be located in the PIC system.
Cause: The authority does not have controls in place to ensure it is meeting Eligibility and HAP Payment Testing requirements set by HUD.
Effect: The authority is not in compliance with HUD guidelines over eligibility or HAP payments.
Repeat Finding: Repeat finding, 2022-003.
Section III – Findings and Questioned Costs – Major Federal Programs (Continued)
2023 – 003 Housing Choice Voucher Program –Eligibility and HAP Payment Testing (Continued)
Recommendation: We recommend the Authority review their process for maintaining third party verification of income, for uploading data to PIC, and for recalculating household income.
Views of responsible officials: There is no disagreement with the audit finding.