Audit 316948

Section III – Federal Award Findings and Questioned Costs 2023-001 Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public and Indian Housing ALN #: 14.871 Award Period: 1/1/23-12/31/23 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: $0 Context: Testing of 25 tenant files identified an exception in the files as follows: • 1 tenant file contained an application that was not signed by the Head of Household. • 1 tenant file did not contain a lease agreement between the tenant and the housing authority. • 10 tenant files did not contain properly signed Form 214 certifying U.S. citizenship or proper immigration status for all household members as required. • 1 tenant file did not contain a signed Form 9886 Release of Information authorizing the housing authority to request income documentation from various sources for one member of the household that was over 18. • 1 tenant file did not contain evidence of a current annual recertification for the audit period. Cause: The Agency did not obtain the required documents upon intake. The Agency also did not obtain all required signatures on certain forms. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications

Section III – Federal Award Findings and Questioned Costs 2023-001 Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public and Indian Housing ALN #: 14.871 Award Period: 1/1/23-12/31/23 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: $0 Context: Testing of 25 tenant files identified an exception in the files as follows: • 1 tenant file contained an application that was not signed by the Head of Household. • 1 tenant file did not contain a lease agreement between the tenant and the housing authority. • 10 tenant files did not contain properly signed Form 214 certifying U.S. citizenship or proper immigration status for all household members as required. • 1 tenant file did not contain a signed Form 9886 Release of Information authorizing the housing authority to request income documentation from various sources for one member of the household that was over 18. • 1 tenant file did not contain evidence of a current annual recertification for the audit period. Cause: The Agency did not obtain the required documents upon intake. The Agency also did not obtain all required signatures on certain forms. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications