Audit 300281

ALN 14.871 – Section 8 Housing Choice Vouchers Program – Eligibility Condition and Criteria: In accordance with HUD requirements, the Authority is required to maintain compliance with various Housing Choice Voucher (HCV) program compliance requirements identified in the Uniform Guidance. The applicable compliance provisions include Tenant Eligibility, Rent Reasonableness, and HQS Enforcement. During our audit, it was determined that internal control deficiencies over compliance existed in the Authority’s HCV eligibility process. The Authority's internal controls over their eligibility process are deficient as the Authority's staff failed to produce adequate tenant file documentation. In 21 of the 25 tenant files tested, Housing Assistance Payments reported on form HUD-50058 did not match the amount reported on the Authority's Housing Assistance Payments Register for the period being tested. Amount of Questioned Costs: None.. Context: The Authority’s management failed to ensure tenant file information was accurate and properly presented in the documentation provided. Cause: The Authority's management and staff who are responsible for the HCV eligibility, rent reasonableness, and enforcement of HQS failed inspections process did not implement adequate internal controls, resulting in the Authority not being able to produce adequate documentation in a timely manner. Effect: Some of the Authority’s tenants were not and/or potentially are not receiving the correct amount of Housing Assistance Payments, which in turn, can cause the tenant's portion of rent payments owed to the landlords to be incorrect. Some of these tenants may still be receiving an erroneous Housing Assistance Payment and could be paying the wrong amount to the landlords until the staff and management can perform interim reexaminations or annual reexaminations. Auditor’s Recommendation: We recommend the Authority review the internal controls over eligibility and the applicable special tests and provisions of the Housing Choice Voucher program to maintain proper compliance with HUD’s rules and regulations. The Authority needs to ensure that employees are fully and adequately trained in performing the procedures necessary to maintain proper compliance. The staff and management should continue to obtain training through related training seminars and classes, and to monitor HUD news and notices for any new guidance or changes to the public housing industry. The Authority should also strengthen their monitoring controls to improve the detection and correction of misstatements by ensuring that any errors, discrepancies, or instances of noncompliance are detected and corrected in a timely manner. Grantee Response: Management acknowledges the finding and is following the auditor’s recommendation.

ALN 14.871 – Section 8 Housing Choice Vouchers Program – Eligibility Condition and Criteria: In accordance with HUD requirements, the Authority is required to maintain compliance with various Housing Choice Voucher (HCV) program compliance requirements identified in the Uniform Guidance. The applicable compliance provisions include Tenant Eligibility, Rent Reasonableness, and HQS Enforcement. During our audit, it was determined that internal control deficiencies over compliance existed in the Authority’s HCV eligibility process. The Authority's internal controls over their eligibility process are deficient as the Authority's staff failed to produce adequate tenant file documentation. In 21 of the 25 tenant files tested, Housing Assistance Payments reported on form HUD-50058 did not match the amount reported on the Authority's Housing Assistance Payments Register for the period being tested. Amount of Questioned Costs: None.. Context: The Authority’s management failed to ensure tenant file information was accurate and properly presented in the documentation provided. Cause: The Authority's management and staff who are responsible for the HCV eligibility, rent reasonableness, and enforcement of HQS failed inspections process did not implement adequate internal controls, resulting in the Authority not being able to produce adequate documentation in a timely manner. Effect: Some of the Authority’s tenants were not and/or potentially are not receiving the correct amount of Housing Assistance Payments, which in turn, can cause the tenant's portion of rent payments owed to the landlords to be incorrect. Some of these tenants may still be receiving an erroneous Housing Assistance Payment and could be paying the wrong amount to the landlords until the staff and management can perform interim reexaminations or annual reexaminations. Auditor’s Recommendation: We recommend the Authority review the internal controls over eligibility and the applicable special tests and provisions of the Housing Choice Voucher program to maintain proper compliance with HUD’s rules and regulations. The Authority needs to ensure that employees are fully and adequately trained in performing the procedures necessary to maintain proper compliance. The staff and management should continue to obtain training through related training seminars and classes, and to monitor HUD news and notices for any new guidance or changes to the public housing industry. The Authority should also strengthen their monitoring controls to improve the detection and correction of misstatements by ensuring that any errors, discrepancies, or instances of noncompliance are detected and corrected in a timely manner. Grantee Response: Management acknowledges the finding and is following the auditor’s recommendation.