2023-003 – ELIGIBILITY
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.871/14.879 – 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
The Authority did not provide tenant files for 6 tenants selected.
CAUSE
The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs.
EFFECT
The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments.
QUESTIONED COSTS
None noted.
CONTEXT
We selected a sample of 40 from a population of 243. This was not a statistically valid sample.
REPEAT FINDING
See finding 2022-003.
RECOMMENDATION
We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. We recommend the Authority provide training for the performance of reexamination procedures.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.
2023-003 – ELIGIBILITY
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.871/14.879 – 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
The Authority did not provide tenant files for 6 tenants selected.
CAUSE
The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs.
EFFECT
The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments.
QUESTIONED COSTS
None noted.
CONTEXT
We selected a sample of 40 from a population of 243. This was not a statistically valid sample.
REPEAT FINDING
See finding 2022-003.
RECOMMENDATION
We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. We recommend the Authority provide training for the performance of reexamination procedures.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.
023-004 – REPORTING: PERFORMANCE REPORTING
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.871/14.879 – Housing Voucher Cluster
CRITERIA
24 CFR § 985 – The Section 8 Management Assessment Program (SEMAP) is designed to assess whether the Section 8 tenant-based assistance programs operate to help eligible families afford decent rental units at the correct subsidy cost. SEMAP also establishes a system for HUD to measure the Authority’s performance in key Section 8 program areas and to assign performance ratings. The method for selecting the Authority’s quality control sample must leave a clear audit trail that can be used to verify that the Authority’s quality control sample was drawn in an unbiased manner.
CONDITION
The Authority was not able to provide the supporting documentation used to conduct the SEMAP assessment.
CAUSE
The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs.
EFFECT
The Authority incorrectly conducted the SEMAP certification and potentially incorrectly reported the performance rating.
QUESTIONED COSTS
None noted.
CONTEXT
The Authority conducts the SEMAP assessment on an annual basis.
REPEAT FINDING
See finding 2022-005.
RECOMMENDATION
The Authority should ensure that adequate supporting documentation is retained on a go forward basis.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.
023-004 – REPORTING: PERFORMANCE REPORTING
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.871/14.879 – Housing Voucher Cluster
CRITERIA
24 CFR § 985 – The Section 8 Management Assessment Program (SEMAP) is designed to assess whether the Section 8 tenant-based assistance programs operate to help eligible families afford decent rental units at the correct subsidy cost. SEMAP also establishes a system for HUD to measure the Authority’s performance in key Section 8 program areas and to assign performance ratings. The method for selecting the Authority’s quality control sample must leave a clear audit trail that can be used to verify that the Authority’s quality control sample was drawn in an unbiased manner.
CONDITION
The Authority was not able to provide the supporting documentation used to conduct the SEMAP assessment.
CAUSE
The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs.
EFFECT
The Authority incorrectly conducted the SEMAP certification and potentially incorrectly reported the performance rating.
QUESTIONED COSTS
None noted.
CONTEXT
The Authority conducts the SEMAP assessment on an annual basis.
REPEAT FINDING
See finding 2022-005.
RECOMMENDATION
The Authority should ensure that adequate supporting documentation is retained on a go forward basis.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.
023-005 – ELIGIBILITY
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.850 – Public and Indian Housing
CRITERIA
For both family income examinations and reexamination, obtain and document in the family file third-party verification of (1) reported family annual income (2) the value of assets (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR Section 960.259).
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.) (24CFR sections 960.253, 960.255, 960.259).
CONDITION
As a result of our audit, we identified the following exceptions in our testing:
Fourteen (14) instances of income, asset or medical expense miscalculation or insufficient verification.
Fifteen (15) instances of untimely reexamination.
CAUSE
The Authority’s system of internal controls over the participant recertification process was not sufficient to meet the requirements established by HUD.
EFFECT
Redetermination of tenant’s rent was not performed in accordance with HUD regulations. As a result, tenants may have paid more or less in rent than they should have paid.
QUESTIONED COSTS
None noted.
CONTEXT
We selected a sample of 40 from a population of 243. This was not a statistically valid sample.
REPEAT FINDING
See finding 2022-006.
RECOMMENDATION
We recommend that the Authority develop and implement a recertification checklist to accompany the tenant file to ensure all required documentation is obtained.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.
2023-006 – PROCUREMENT
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.850 – Public and Indian Housing
ALN #: 14.872 – Public Housing Capital Fund
CRITERIA
Any contract not exceeding $20,000 made in accordance with the small purchase procedures. Contract requirements shall not be artificially divided so as to constitute a small purchase. For small purchases over $2,000, but not greater than $20,000 no less than three offerors shall be solicited to submit price quotations. (Gloversville Housing Authority Procurement Policy)
CONDITION
We examined a sample of 9 vendors, (5 Public and Indian Housing and 4 Public Housing Capital Fund), used for goods and services during fiscal year 2023 and identified 9 instances where the Authority did not follow their procurement policy or did not retain sufficient supporting documentation.
CAUSE
The Authority’s internal control over procurement was not effective at identifying the need for competitive procurement in instances where frequently recurring transactions resulted in aggregate purchase in excess of competitive procurement thresholds.
EFFECT
The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority.
QUESTIONED COSTS
Estimated questioned costs of $1,050,569 representing the total payments to these 9 vendors.
CONTEXT
We selected a sample of 9 from a population of approximately 43 vendors paid in excess of the micro-purchase threshold. This was not a statistically valid sample.
REPEAT FINDING
See finding 2022-007.
RECOMMENDATION
We recommend that the Authority improve its monitoring of contracts and periodically assess the procurement implications of cumulative payments to frequently used vendors.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan
2023-006 – PROCUREMENT
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.850 – Public and Indian Housing
ALN #: 14.872 – Public Housing Capital Fund
CRITERIA
Any contract not exceeding $20,000 made in accordance with the small purchase procedures. Contract requirements shall not be artificially divided so as to constitute a small purchase. For small purchases over $2,000, but not greater than $20,000 no less than three offerors shall be solicited to submit price quotations. (Gloversville Housing Authority Procurement Policy)
CONDITION
We examined a sample of 9 vendors, (5 Public and Indian Housing and 4 Public Housing Capital Fund), used for goods and services during fiscal year 2023 and identified 9 instances where the Authority did not follow their procurement policy or did not retain sufficient supporting documentation.
CAUSE
The Authority’s internal control over procurement was not effective at identifying the need for competitive procurement in instances where frequently recurring transactions resulted in aggregate purchase in excess of competitive procurement thresholds.
EFFECT
The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority.
QUESTIONED COSTS
Estimated questioned costs of $1,050,569 representing the total payments to these 9 vendors.
CONTEXT
We selected a sample of 9 from a population of approximately 43 vendors paid in excess of the micro-purchase threshold. This was not a statistically valid sample.
REPEAT FINDING
See finding 2022-007.
RECOMMENDATION
We recommend that the Authority improve its monitoring of contracts and periodically assess the procurement implications of cumulative payments to frequently used vendors.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan
2023-003 – ELIGIBILITY
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.871/14.879 – 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
The Authority did not provide tenant files for 6 tenants selected.
CAUSE
The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs.
EFFECT
The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments.
QUESTIONED COSTS
None noted.
CONTEXT
We selected a sample of 40 from a population of 243. This was not a statistically valid sample.
REPEAT FINDING
See finding 2022-003.
RECOMMENDATION
We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. We recommend the Authority provide training for the performance of reexamination procedures.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.
2023-003 – ELIGIBILITY
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.871/14.879 – 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
The Authority did not provide tenant files for 6 tenants selected.
CAUSE
The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs.
EFFECT
The Authority is potentially incorrectly calculating and adjusting tenant rent and housing assistance payments.
QUESTIONED COSTS
None noted.
CONTEXT
We selected a sample of 40 from a population of 243. This was not a statistically valid sample.
REPEAT FINDING
See finding 2022-003.
RECOMMENDATION
We recommend the Authority’s management take an active role in reviewing their policies and monitoring the Authority’s compliance with those policies. We recommend the Authority provide training for the performance of reexamination procedures.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.
023-004 – REPORTING: PERFORMANCE REPORTING
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.871/14.879 – Housing Voucher Cluster
CRITERIA
24 CFR § 985 – The Section 8 Management Assessment Program (SEMAP) is designed to assess whether the Section 8 tenant-based assistance programs operate to help eligible families afford decent rental units at the correct subsidy cost. SEMAP also establishes a system for HUD to measure the Authority’s performance in key Section 8 program areas and to assign performance ratings. The method for selecting the Authority’s quality control sample must leave a clear audit trail that can be used to verify that the Authority’s quality control sample was drawn in an unbiased manner.
CONDITION
The Authority was not able to provide the supporting documentation used to conduct the SEMAP assessment.
CAUSE
The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs.
EFFECT
The Authority incorrectly conducted the SEMAP certification and potentially incorrectly reported the performance rating.
QUESTIONED COSTS
None noted.
CONTEXT
The Authority conducts the SEMAP assessment on an annual basis.
REPEAT FINDING
See finding 2022-005.
RECOMMENDATION
The Authority should ensure that adequate supporting documentation is retained on a go forward basis.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.
023-004 – REPORTING: PERFORMANCE REPORTING
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.871/14.879 – Housing Voucher Cluster
CRITERIA
24 CFR § 985 – The Section 8 Management Assessment Program (SEMAP) is designed to assess whether the Section 8 tenant-based assistance programs operate to help eligible families afford decent rental units at the correct subsidy cost. SEMAP also establishes a system for HUD to measure the Authority’s performance in key Section 8 program areas and to assign performance ratings. The method for selecting the Authority’s quality control sample must leave a clear audit trail that can be used to verify that the Authority’s quality control sample was drawn in an unbiased manner.
CONDITION
The Authority was not able to provide the supporting documentation used to conduct the SEMAP assessment.
CAUSE
The Authority did not properly oversee the administration of the Housing Choice Voucher and Mainstream Voucher programs.
EFFECT
The Authority incorrectly conducted the SEMAP certification and potentially incorrectly reported the performance rating.
QUESTIONED COSTS
None noted.
CONTEXT
The Authority conducts the SEMAP assessment on an annual basis.
REPEAT FINDING
See finding 2022-005.
RECOMMENDATION
The Authority should ensure that adequate supporting documentation is retained on a go forward basis.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.
023-005 – ELIGIBILITY
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.850 – Public and Indian Housing
CRITERIA
For both family income examinations and reexamination, obtain and document in the family file third-party verification of (1) reported family annual income (2) the value of assets (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR Section 960.259).
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.) (24CFR sections 960.253, 960.255, 960.259).
CONDITION
As a result of our audit, we identified the following exceptions in our testing:
Fourteen (14) instances of income, asset or medical expense miscalculation or insufficient verification.
Fifteen (15) instances of untimely reexamination.
CAUSE
The Authority’s system of internal controls over the participant recertification process was not sufficient to meet the requirements established by HUD.
EFFECT
Redetermination of tenant’s rent was not performed in accordance with HUD regulations. As a result, tenants may have paid more or less in rent than they should have paid.
QUESTIONED COSTS
None noted.
CONTEXT
We selected a sample of 40 from a population of 243. This was not a statistically valid sample.
REPEAT FINDING
See finding 2022-006.
RECOMMENDATION
We recommend that the Authority develop and implement a recertification checklist to accompany the tenant file to ensure all required documentation is obtained.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.
2023-006 – PROCUREMENT
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.850 – Public and Indian Housing
ALN #: 14.872 – Public Housing Capital Fund
CRITERIA
Any contract not exceeding $20,000 made in accordance with the small purchase procedures. Contract requirements shall not be artificially divided so as to constitute a small purchase. For small purchases over $2,000, but not greater than $20,000 no less than three offerors shall be solicited to submit price quotations. (Gloversville Housing Authority Procurement Policy)
CONDITION
We examined a sample of 9 vendors, (5 Public and Indian Housing and 4 Public Housing Capital Fund), used for goods and services during fiscal year 2023 and identified 9 instances where the Authority did not follow their procurement policy or did not retain sufficient supporting documentation.
CAUSE
The Authority’s internal control over procurement was not effective at identifying the need for competitive procurement in instances where frequently recurring transactions resulted in aggregate purchase in excess of competitive procurement thresholds.
EFFECT
The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority.
QUESTIONED COSTS
Estimated questioned costs of $1,050,569 representing the total payments to these 9 vendors.
CONTEXT
We selected a sample of 9 from a population of approximately 43 vendors paid in excess of the micro-purchase threshold. This was not a statistically valid sample.
REPEAT FINDING
See finding 2022-007.
RECOMMENDATION
We recommend that the Authority improve its monitoring of contracts and periodically assess the procurement implications of cumulative payments to frequently used vendors.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan
2023-006 – PROCUREMENT
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.850 – Public and Indian Housing
ALN #: 14.872 – Public Housing Capital Fund
CRITERIA
Any contract not exceeding $20,000 made in accordance with the small purchase procedures. Contract requirements shall not be artificially divided so as to constitute a small purchase. For small purchases over $2,000, but not greater than $20,000 no less than three offerors shall be solicited to submit price quotations. (Gloversville Housing Authority Procurement Policy)
CONDITION
We examined a sample of 9 vendors, (5 Public and Indian Housing and 4 Public Housing Capital Fund), used for goods and services during fiscal year 2023 and identified 9 instances where the Authority did not follow their procurement policy or did not retain sufficient supporting documentation.
CAUSE
The Authority’s internal control over procurement was not effective at identifying the need for competitive procurement in instances where frequently recurring transactions resulted in aggregate purchase in excess of competitive procurement thresholds.
EFFECT
The Authority has not ensured that it is receiving the most competitive prices or rates for services that have been procured, which may have resulted in unnecessary additional costs to the Authority.
QUESTIONED COSTS
Estimated questioned costs of $1,050,569 representing the total payments to these 9 vendors.
CONTEXT
We selected a sample of 9 from a population of approximately 43 vendors paid in excess of the micro-purchase threshold. This was not a statistically valid sample.
REPEAT FINDING
See finding 2022-007.
RECOMMENDATION
We recommend that the Authority improve its monitoring of contracts and periodically assess the procurement implications of cumulative payments to frequently used vendors.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan