Audit 306400

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria The PHA 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 During our testing of fifteen tenant files, we found one file where Housing Assistance Payment was incorrect. Cause Proper eligibility documentation is not being prepared and maintained in all tenant files. Questioned Costs Not material Context We reviewed a sample of 14 tenant files out of a total of 132 tenants. Effect The Authority may be providing assistance to tenants that no longer qualify or may be charging incorrect rental rate per approved policies. Recommendation We recommend tenant files should be maintained in an orderly fashion and all required documentation should be kept in the appropriate file. Each file should also contain a checklist that contains separate line items for each eligibility requirement. Repeat Finding This is a repeat finding of 2021-003 Views of Responsible Officials Management will continue to educate new staff and make sure they understand the importance of compliance with all policies. We will continue to emphasize the importance of documentation and reviewing checklists to improve our processes.

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria The Uniform Guidance requires all entities that expend in excess of $750,000 to file audited financial statements within 9 months of year-end. Condition The Authority’s June 30, 2022 audited financial statements were not filed with the Federal Audit Clearinghouse within nine months of the Authority’s year-end. Cause Reconciliations were not performed in a timely manner to allow for all auditing procedures to be performed in time to submit the report within the prescribed requirements. Questioned Costs None Context N/A Effect The Authority is not in compliance with Uniform Guidance requirements. Recommendation We recommend that the Authority ensure records are reconciled and available for audit within a timely manner after fiscal year end. Repeat Finding This is a repeat finding of 2021-004 Views of Responsible Officials Management recognizes the deficiency and is working with HUD officials and a fee account.

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria The Program required the Authority to determine that the rent to the owner is reasonable at the time of initial leasing and during the term of the contract (a) before any increases in the rent to owner and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. Condition It was noted during testing of tenant files that one file did not have a rent reasonableness calculation for the increase in rent. Cause Turnover of staff and lack of controls. Questioned Costs Undeterminable Context We selected a sample of fourteen tenants out of a total of 132 tenants. Effect The rent may not be reasonable. Recommendation We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure required documentation is available to support the rent to owner. Repeat Finding This is not a repeat finding. Views of Responsible Officials Management will continue to educate new staff and make sure they understand the importance of compliance with all policies. We will continue to emphasize the importance of documentation and reviewing checklists to improve our processes.

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria The Authority must have policies for selecting applicants for admission from the waiting list. (24 CFR sections 982.201 through 982.207). Condition We were unable to determine if the Authority was following its policies when selecting applicants for admission from the waiting list. Cause The software used by the Authority was unable to provide historical detail to test selections from the waiting list at a point in time. The list was able to show when the applicants applied and when they were accepted but could not pull a list as of certain dates to confirm the priorities were followed when making selections from the waitlist. Question Costs N/A Context We were not able to test to make sure that applicants were pulled from the waiting list in the proper order due to not being able to get waiting lists as of a certain date. Effect The Authority may have not been following its written policies and procedures over the waiting list. Recommendation We recommend that the Authority work with its software provider to ensure proper documentation of the waiting list is maintained and can be tested. Until that occurs, we recommend the Authority maintain a separate system to track activity that includes adequate notes. Repeat Finding This is a repeat finding of 2021-006 Views of Responsible Officials Management recognizes the deficiency and is working with HUD officials and a fee account.

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria The Authority is required to inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control reinspections. The Authority must prepare a unit reinspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition The Authority was not able to provide documentation of quality control re-inspections that they performed during the year. In addition, we noted six instances of tenants that did not have documentation of annual inspections performed within the current fiscal year. Cause The current quality control re-inspections steps are not currently being followed since no reinspection report is being prepared. Controls were also not operating effectively to ensure timely annual inspections. Questioned Costs N/A Context The Authority was not able to provide documentation showing that the quality control reinspections had been performed. We tested a sample of fifteen files to review for annual inspections out of a total of 142 vouchers used. Effect We are unable to determine if the Authority has performed quality control re-inspections due to having no supporting documentation. The policy for annual inspections was not followed. Recommendation We recommend that the Authority keeps documentation of the quality control re-inspections and annual inspections that are performed during the year. Repeat Finding This is a repeat finding of 2021-007. Views of Responsible Officials Management recognizes the deficiency and is working with HUD officials and a fee account.

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria For units under HAP contract that fail to meet Housing Quality Standards (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. (24 CFR sections 982.158(d) and 982.404) Condition The Authority was unable to provide a listing of units with failed HQS inspections and documentation showing the units were reinspected within the proper time frame. Cause The current record keeping of units that do not meet HQS requirements and the subsequent documentation of corrections to these deficiencies is inadequate. Question Costs N/A Context The Authority was not able to provide a listing of units that had failed HQS inspections and then subsequent documentation showing that the deficiencies were attended to within the specified time frame. Effect We are unable to determine if the Authority is properly documenting failed HQS inspections and following up on the deficiencies. Recommendation We recommend that the Authority keeps documentation of units that do not meet the HQS requirements and the subsequent documentation showing that the deficiencies were attended to within the specified time requirements stated. Repeat Finding This is a repeat finding of 2021-008. Views of Responsible Officials Management recognizes the deficiency and is working with HUD officials and a fee account.

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria The PHA 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 During our testing of fifteen tenant files, we found one file where Housing Assistance Payment was incorrect. Cause Proper eligibility documentation is not being prepared and maintained in all tenant files. Questioned Costs Not material Context We reviewed a sample of 14 tenant files out of a total of 132 tenants. Effect The Authority may be providing assistance to tenants that no longer qualify or may be charging incorrect rental rate per approved policies. Recommendation We recommend tenant files should be maintained in an orderly fashion and all required documentation should be kept in the appropriate file. Each file should also contain a checklist that contains separate line items for each eligibility requirement. Repeat Finding This is a repeat finding of 2021-003 Views of Responsible Officials Management will continue to educate new staff and make sure they understand the importance of compliance with all policies. We will continue to emphasize the importance of documentation and reviewing checklists to improve our processes.

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria The Uniform Guidance requires all entities that expend in excess of $750,000 to file audited financial statements within 9 months of year-end. Condition The Authority’s June 30, 2022 audited financial statements were not filed with the Federal Audit Clearinghouse within nine months of the Authority’s year-end. Cause Reconciliations were not performed in a timely manner to allow for all auditing procedures to be performed in time to submit the report within the prescribed requirements. Questioned Costs None Context N/A Effect The Authority is not in compliance with Uniform Guidance requirements. Recommendation We recommend that the Authority ensure records are reconciled and available for audit within a timely manner after fiscal year end. Repeat Finding This is a repeat finding of 2021-004 Views of Responsible Officials Management recognizes the deficiency and is working with HUD officials and a fee account.

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria The Program required the Authority to determine that the rent to the owner is reasonable at the time of initial leasing and during the term of the contract (a) before any increases in the rent to owner and (b) at the HAP contract anniversary if there is a 5 percent decrease in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. Condition It was noted during testing of tenant files that one file did not have a rent reasonableness calculation for the increase in rent. Cause Turnover of staff and lack of controls. Questioned Costs Undeterminable Context We selected a sample of fourteen tenants out of a total of 132 tenants. Effect The rent may not be reasonable. Recommendation We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure required documentation is available to support the rent to owner. Repeat Finding This is not a repeat finding. Views of Responsible Officials Management will continue to educate new staff and make sure they understand the importance of compliance with all policies. We will continue to emphasize the importance of documentation and reviewing checklists to improve our processes.

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria The Authority must have policies for selecting applicants for admission from the waiting list. (24 CFR sections 982.201 through 982.207). Condition We were unable to determine if the Authority was following its policies when selecting applicants for admission from the waiting list. Cause The software used by the Authority was unable to provide historical detail to test selections from the waiting list at a point in time. The list was able to show when the applicants applied and when they were accepted but could not pull a list as of certain dates to confirm the priorities were followed when making selections from the waitlist. Question Costs N/A Context We were not able to test to make sure that applicants were pulled from the waiting list in the proper order due to not being able to get waiting lists as of a certain date. Effect The Authority may have not been following its written policies and procedures over the waiting list. Recommendation We recommend that the Authority work with its software provider to ensure proper documentation of the waiting list is maintained and can be tested. Until that occurs, we recommend the Authority maintain a separate system to track activity that includes adequate notes. Repeat Finding This is a repeat finding of 2021-006 Views of Responsible Officials Management recognizes the deficiency and is working with HUD officials and a fee account.

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria The Authority is required to inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the Authority must conduct quality control reinspections. The Authority must prepare a unit reinspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition The Authority was not able to provide documentation of quality control re-inspections that they performed during the year. In addition, we noted six instances of tenants that did not have documentation of annual inspections performed within the current fiscal year. Cause The current quality control re-inspections steps are not currently being followed since no reinspection report is being prepared. Controls were also not operating effectively to ensure timely annual inspections. Questioned Costs N/A Context The Authority was not able to provide documentation showing that the quality control reinspections had been performed. We tested a sample of fifteen files to review for annual inspections out of a total of 142 vouchers used. Effect We are unable to determine if the Authority has performed quality control re-inspections due to having no supporting documentation. The policy for annual inspections was not followed. Recommendation We recommend that the Authority keeps documentation of the quality control re-inspections and annual inspections that are performed during the year. Repeat Finding This is a repeat finding of 2021-007. Views of Responsible Officials Management recognizes the deficiency and is working with HUD officials and a fee account.

Federal Program U.S. Department of Housing and Urban Development AL #14.871 – Material Weakness Criteria For units under HAP contract that fail to meet Housing Quality Standards (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. (24 CFR sections 982.158(d) and 982.404) Condition The Authority was unable to provide a listing of units with failed HQS inspections and documentation showing the units were reinspected within the proper time frame. Cause The current record keeping of units that do not meet HQS requirements and the subsequent documentation of corrections to these deficiencies is inadequate. Question Costs N/A Context The Authority was not able to provide a listing of units that had failed HQS inspections and then subsequent documentation showing that the deficiencies were attended to within the specified time frame. Effect We are unable to determine if the Authority is properly documenting failed HQS inspections and following up on the deficiencies. Recommendation We recommend that the Authority keeps documentation of units that do not meet the HQS requirements and the subsequent documentation showing that the deficiencies were attended to within the specified time requirements stated. Repeat Finding This is a repeat finding of 2021-008. Views of Responsible Officials Management recognizes the deficiency and is working with HUD officials and a fee account.