Audit 300304

2023-001 – ELIGIBILITY Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) The PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (24 CFR 982.516) CONDITION As a result of our audit procedures, we identified the following exceptions in our testing:  Ten (10) instances of income, asset, or medical miscalculation or insufficient verification  One (1) instances of incorrect payment standard CAUSE The Authority experienced turnover in the administrative department. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 40 from a population of 153. This was not a statistically valid sample. REPEAT FINDING Repeat of finding 2022-001. RECOMMENDATION We recommend the Authority provide training for the performance of reexamination procedures.

2023-002 – SPECIAL TESTS & PROVISIONS: RENT REASONABLENESS Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 – Housing Voucher Cluster CRITERIA The PHA may not approve a lease until the PHA determines that the initial rent to an owner is a reasonable rent. (2) The PHA must redetermine the reasonable rent: (i) Before any increase in the rent to an owner; (ii) If there is a 10 percent decrease in the published FMR in effect 60 days before the contract anniversary (for the unit size rented by the family) as compared with the FMR in effect 1 year before the contract anniversary. (iii) If directed by HUD. The PHA may also redetermine the reasonable rent at any other time. At all times during the assisted tenancy, the rent to owner may not exceed the reasonable rent as most recently determined or redetermined by the PHA. (24 CFR 982.507) CONDITION We identified 10 instances in which the Authority was required to perform an assessment to determine if the rent requested by the landlord is reasonable. In all ten, the Authority did not perform this rent reasonableness assessment. CAUSE The Authority experienced turnover in the administrative department. EFFECT The Authority cannot ensure that HAP payments to landlords were reasonable. QUESTIONED COSTS Likely questioned costs - $2,281,311. CONTEXT We selected a sample of 40 vouchers from a population of 153. This was not a statistically valid sample. REPEAT FINDING Repeat of finding 2022-002 RECOMMENDATION We recommend the Authority develop and implement a recertification checklist to accompany the tenant file to ensure all required documentation is obtained and rent reasonableness procedures are performed

2023-001 – ELIGIBILITY Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871 – Housing Voucher Cluster CRITERIA PHA responsibility for reexamination and verification. (1) The PHA must conduct a reexamination of family income and composition at least annually. (2) The PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and (iv) Other factors that affect the determination of adjusted income. (24 CFR 982.516) CONDITION As a result of our audit procedures, we identified the following exceptions in our testing:  Ten (10) instances of income, asset, or medical miscalculation or insufficient verification  One (1) instances of incorrect payment standard CAUSE The Authority experienced turnover in the administrative department. EFFECT The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 40 from a population of 153. This was not a statistically valid sample. REPEAT FINDING Repeat of finding 2022-001. RECOMMENDATION We recommend the Authority provide training for the performance of reexamination procedures.

2023-002 – SPECIAL TESTS & PROVISIONS: RENT REASONABLENESS Material Weakness/Material Noncompliance U.S. Department of Housing and Urban Development CFDA #: 14.871 – Housing Voucher Cluster CRITERIA The PHA may not approve a lease until the PHA determines that the initial rent to an owner is a reasonable rent. (2) The PHA must redetermine the reasonable rent: (i) Before any increase in the rent to an owner; (ii) If there is a 10 percent decrease in the published FMR in effect 60 days before the contract anniversary (for the unit size rented by the family) as compared with the FMR in effect 1 year before the contract anniversary. (iii) If directed by HUD. The PHA may also redetermine the reasonable rent at any other time. At all times during the assisted tenancy, the rent to owner may not exceed the reasonable rent as most recently determined or redetermined by the PHA. (24 CFR 982.507) CONDITION We identified 10 instances in which the Authority was required to perform an assessment to determine if the rent requested by the landlord is reasonable. In all ten, the Authority did not perform this rent reasonableness assessment. CAUSE The Authority experienced turnover in the administrative department. EFFECT The Authority cannot ensure that HAP payments to landlords were reasonable. QUESTIONED COSTS Likely questioned costs - $2,281,311. CONTEXT We selected a sample of 40 vouchers from a population of 153. This was not a statistically valid sample. REPEAT FINDING Repeat of finding 2022-002 RECOMMENDATION We recommend the Authority develop and implement a recertification checklist to accompany the tenant file to ensure all required documentation is obtained and rent reasonableness procedures are performed