Audit 319579

2023-001 – ALN 14.871 – Housing Voucher Cluster – Eligibility Condition and Criteria: During our audit, it was determined that significant deficiencies in internal controls existed over the Authority’s Housing Voucher Cluster eligibility process being compliant with HUD regulatory requirements. As landlords begin participating in the HCV program of the Housing Authority, the Housing Authority should request and obtain specific documentation to ensure the legitimacy of the landlord. This documentation includes W-9 tax form, a voided check to set up direct deposit, and an IRS form showing the federal employer identification number. The Authority was unable to provide any adequate landlord documentation for landlords tested to prove the legitimacy of the landlord. The Authority also did not utilize effective controls to ensure relevant documentation is requested and filed for all landlords participating in the HCV program. Amount of Questioned Costs: None Context: While testing tenant files for eligibility, we selected a sample of these tenant files to test landlord documentation to ensure each landlord was legitimate including a W-9, voided check to set up direct deposit, and an IRS form showing the federal employer identification number. The Authority was unable able to locate the necessary landlord information for all of the landlords selected. Due to the Authority not being able to locate all of the requested files, we believe this is due to an internal control deficiency. Cause: The Authority did not utilize adequate internal controls over the HCV program as there is a lack of sufficient documentation to prove the legitimacy of the landlord. Additionally, the files where the Authority obtains information for landlords has not been adequately or consistently monitored and updated. Effect or Potential Effect: Some of the landlords participating in the HCV program may not be legitimate landlords. Auditor’s Recommendation: We recommend the Authority obtain all landlord documentation, including a W-9, a voided check to set up direct deposit, and an IRS form showing the federal employer identification number, for all landlords participating in the Housing Authority's HCV program. The Authority should utilize effective controls to ensure relevant documentation is requested and obtained for all landlords participating in the HCV program. Grantee Response: Management acknowledges the finding and will follow the auditor's recommendations

2023-001 – ALN 14.871 – Housing Voucher Cluster – Eligibility Condition and Criteria: During our audit, it was determined that significant deficiencies in internal controls existed over the Authority’s Housing Voucher Cluster eligibility process being compliant with HUD regulatory requirements. As landlords begin participating in the HCV program of the Housing Authority, the Housing Authority should request and obtain specific documentation to ensure the legitimacy of the landlord. This documentation includes W-9 tax form, a voided check to set up direct deposit, and an IRS form showing the federal employer identification number. The Authority was unable to provide any adequate landlord documentation for landlords tested to prove the legitimacy of the landlord. The Authority also did not utilize effective controls to ensure relevant documentation is requested and filed for all landlords participating in the HCV program. Amount of Questioned Costs: None Context: While testing tenant files for eligibility, we selected a sample of these tenant files to test landlord documentation to ensure each landlord was legitimate including a W-9, voided check to set up direct deposit, and an IRS form showing the federal employer identification number. The Authority was unable able to locate the necessary landlord information for all of the landlords selected. Due to the Authority not being able to locate all of the requested files, we believe this is due to an internal control deficiency. Cause: The Authority did not utilize adequate internal controls over the HCV program as there is a lack of sufficient documentation to prove the legitimacy of the landlord. Additionally, the files where the Authority obtains information for landlords has not been adequately or consistently monitored and updated. Effect or Potential Effect: Some of the landlords participating in the HCV program may not be legitimate landlords. Auditor’s Recommendation: We recommend the Authority obtain all landlord documentation, including a W-9, a voided check to set up direct deposit, and an IRS form showing the federal employer identification number, for all landlords participating in the Housing Authority's HCV program. The Authority should utilize effective controls to ensure relevant documentation is requested and obtained for all landlords participating in the HCV program. Grantee Response: Management acknowledges the finding and will follow the auditor's recommendations