Audit 322548

Finding 2023-001 Significant Deficiency: Special Reporting - Control Finding ALN 14.871 - Housing Voucher Cluster: Section 8 Housing Choice Vouchers Federal Agency: U.S. Department of Housing and Urban Development (HUD) Pass-Through Entity: N/A - Direct Award Criteria Or Specific Requirement: HUD requires Public Housing Authorities (PHA) to submit a Form HUD-50058 each time a family ends participation in the program or moves out of the PHA’s jurisdiction under portability within 60 days of the participants termination or exit of the program. Condition: The Authority’s existing control was implemented but not documented as designed. Cause: There was not documented proof of review of tenant terminations to ensure that all Form HUD-50058’s were submitted within the acceptable time frame of compliance. Effect: The possibility exists that noncompliance with federal requirements could go undetected regarding compliance relating to direct and material compliance requirements. Questioned Costs: None. Context: The Authority could not provide proof of monthly review of tenant move outs that is performed to ensure all compliance requirements were met. Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management evaluate their existing control over the timely submission of the HUD-50058 upon a participant’s exit of the program, and consider implementing additional controls such as contacting a sample of landlords each month to verify whether tenants at that location have not vacated their units without notifying the Authority.Views Of Responsible Officials: The Authority will implement a standardized documentation process for move-out reviews and create a digital log that records the date of review, the reviewer's name, and the outcome of each review. The Authority will ensure all documentation is easily accessible for future audits and internal reviews. Additionally the Authority will establish a monthly process to contact a sample of 3-5 landlords, provide these landlords with a current tenant listing for their properties, request verification of occupancy status for each listed tenant, and document all responses and follow up on any discrepancies identified. The Authority will strengthen our move-out tracking procedures to ensure timely submission of Form HUD-50058, implement a system of alerts or reminders to prompt staff when 50058 submissions are due and conduct regular internal audits to verify the timeliness of 50058 submissions. Lastly, the Authority will provide comprehensive training to all relevant staff on the new documentation and verification processes.

Finding 2023-002 Significant Deficiency: Special Reporting - Control Finding ALN 14.871 - Housing Voucher Cluster: Section 8 Housing Choice Vouchers Federal Agency: U.S. Department of Housing and Urban Development (HUD) Pass-Through Entity: N/A - Direct Award Criteria Or Specific Requirement: HUD requires Public Housing Authorities (PHA) to have designed and implemented internal controls over compliance to ensure that the PHA remains in compliance. Condition: The Authority did not review Housing Quality Inspections (HQS) reports prior to submission to the PIH Information Center, nor did the submissions take place from January through July of 2023. Cause: The control in place did not ensure submission of accurate HQS information to HUD, resulting in a low score on the SEMAP submission. Effect: The possibility exists that noncompliance with federal requirements could go undetected regarding compliance relating to direct and material compliance requirements. Questioned Costs: None. Context: The Authority could not provide proof of review or proof of submission of HQS reports to the PIH Information Center for the period of January to July 2023.Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management evaluate their existing control over HQS inspections and ensure that timely submissions to HUD are performed throughout the year. Views Of Responsible Officials: A new documentation protocol will be established to provide clear proof that this process is occurring regularly. This will include date-stamped review logs and signatures from responsible staff members. We will institute a monthly review of 3 to 5 initial failed inspections. The Authority will conduct refresher training for all relevant staff to ensure they understand the importance of this process and their role in maintaining it. The Authority will implement an automated reminder system to alert staff when reviews and submissions are due and internal quarterly reviews will be conducted to ensure compliance with this process and to identify any potential issues early.

Finding 2023-001 Significant Deficiency: Special Reporting - Control Finding ALN 14.871 - Housing Voucher Cluster: Section 8 Housing Choice Vouchers Federal Agency: U.S. Department of Housing and Urban Development (HUD) Pass-Through Entity: N/A - Direct Award Criteria Or Specific Requirement: HUD requires Public Housing Authorities (PHA) to submit a Form HUD-50058 each time a family ends participation in the program or moves out of the PHA’s jurisdiction under portability within 60 days of the participants termination or exit of the program. Condition: The Authority’s existing control was implemented but not documented as designed. Cause: There was not documented proof of review of tenant terminations to ensure that all Form HUD-50058’s were submitted within the acceptable time frame of compliance. Effect: The possibility exists that noncompliance with federal requirements could go undetected regarding compliance relating to direct and material compliance requirements. Questioned Costs: None. Context: The Authority could not provide proof of monthly review of tenant move outs that is performed to ensure all compliance requirements were met. Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management evaluate their existing control over the timely submission of the HUD-50058 upon a participant’s exit of the program, and consider implementing additional controls such as contacting a sample of landlords each month to verify whether tenants at that location have not vacated their units without notifying the Authority.Views Of Responsible Officials: The Authority will implement a standardized documentation process for move-out reviews and create a digital log that records the date of review, the reviewer's name, and the outcome of each review. The Authority will ensure all documentation is easily accessible for future audits and internal reviews. Additionally the Authority will establish a monthly process to contact a sample of 3-5 landlords, provide these landlords with a current tenant listing for their properties, request verification of occupancy status for each listed tenant, and document all responses and follow up on any discrepancies identified. The Authority will strengthen our move-out tracking procedures to ensure timely submission of Form HUD-50058, implement a system of alerts or reminders to prompt staff when 50058 submissions are due and conduct regular internal audits to verify the timeliness of 50058 submissions. Lastly, the Authority will provide comprehensive training to all relevant staff on the new documentation and verification processes.

Finding 2023-002 Significant Deficiency: Special Reporting - Control Finding ALN 14.871 - Housing Voucher Cluster: Section 8 Housing Choice Vouchers Federal Agency: U.S. Department of Housing and Urban Development (HUD) Pass-Through Entity: N/A - Direct Award Criteria Or Specific Requirement: HUD requires Public Housing Authorities (PHA) to have designed and implemented internal controls over compliance to ensure that the PHA remains in compliance. Condition: The Authority did not review Housing Quality Inspections (HQS) reports prior to submission to the PIH Information Center, nor did the submissions take place from January through July of 2023. Cause: The control in place did not ensure submission of accurate HQS information to HUD, resulting in a low score on the SEMAP submission. Effect: The possibility exists that noncompliance with federal requirements could go undetected regarding compliance relating to direct and material compliance requirements. Questioned Costs: None. Context: The Authority could not provide proof of review or proof of submission of HQS reports to the PIH Information Center for the period of January to July 2023.Identification As A Repeat Finding: Not applicable. Recommendation: We recommend that management evaluate their existing control over HQS inspections and ensure that timely submissions to HUD are performed throughout the year. Views Of Responsible Officials: A new documentation protocol will be established to provide clear proof that this process is occurring regularly. This will include date-stamped review logs and signatures from responsible staff members. We will institute a monthly review of 3 to 5 initial failed inspections. The Authority will conduct refresher training for all relevant staff to ensure they understand the importance of this process and their role in maintaining it. The Authority will implement an automated reminder system to alert staff when reviews and submissions are due and internal quarterly reviews will be conducted to ensure compliance with this process and to identify any potential issues early.