Audit 322663

2023-001 – Eligibility - Moving to Work Demonstration Program - 14.881 Material Weakness and Material Noncompliance Statement of Condition and Criteria Participant files were missing, incomplete or insufficient to substantiate eligibility determinations. PHA’s are required to maintain and retain documentation in accordance with federal document retention policies to substantiate the ongoing eligibility of participants. Cause Lack of effective oversight of certification procedures conducted at site offices, including outside contracted management agencies. In addition, conversion to electronic workpaper retention, as well as system conversions resulting in loss of data. Effect or Potential Effect Potential overpayment of housing assistance. Question Costs Not determined. Context A sample of 45 files were selected to audit program eligibility from a population of 2,766. The test found 16 files did not pass audit inspection due to missing significant supporting documentation to support the calculation of housing assistance. Our sample was not a statistically valid sample. Recommendation We recommend the Authority centralize eligibility determinations to assist with enforcement and quality control review of program procedures. This would include removing responsibilities from both external and internally managed sites to better align staff and program responsibilities. Management’s Response Management agrees with the finding and corrective action is in progress as detailed in the Corrective Action Plan.

2023-002 – Eligibility – Moving to Work Demonstration Program - 14.881 Significant Deficiency and Reportable Noncompliance Statement of Condition and Criteria Annual recertifications were not completed in a timely manner. PHA’s are required to determine income eligibility, calculate participant rent and housing assistance payments on an annual basis. Cause Staff turnover along with ineffective tracking and finalization of eligibility determinations. Effect or Potential Effect Overpayment of Housing Assistance Payments due to late processing of annual recertifications. Question Costs Known questioned costs totaled $2,390. Context A sample of 45 files were selected to audit program eligibility from a population of 2,796. The test found 26 files noted late annual recertifications. Of which, seven files required additional housing assistance to be disbursed due to sufficient participant notice requirements. Our sample was not a statistically valid sample. Recommendation We recommend the Authority reassess staff workload and review document workflow to ensure tasks are carried out through completion. Management’s Response Management agrees with the finding and corrective action is in progress as detailed in the Corrective Action Plan.

2023-001 – Eligibility - Moving to Work Demonstration Program - 14.881 Material Weakness and Material Noncompliance Statement of Condition and Criteria Participant files were missing, incomplete or insufficient to substantiate eligibility determinations. PHA’s are required to maintain and retain documentation in accordance with federal document retention policies to substantiate the ongoing eligibility of participants. Cause Lack of effective oversight of certification procedures conducted at site offices, including outside contracted management agencies. In addition, conversion to electronic workpaper retention, as well as system conversions resulting in loss of data. Effect or Potential Effect Potential overpayment of housing assistance. Question Costs Not determined. Context A sample of 45 files were selected to audit program eligibility from a population of 2,766. The test found 16 files did not pass audit inspection due to missing significant supporting documentation to support the calculation of housing assistance. Our sample was not a statistically valid sample. Recommendation We recommend the Authority centralize eligibility determinations to assist with enforcement and quality control review of program procedures. This would include removing responsibilities from both external and internally managed sites to better align staff and program responsibilities. Management’s Response Management agrees with the finding and corrective action is in progress as detailed in the Corrective Action Plan.

2023-002 – Eligibility – Moving to Work Demonstration Program - 14.881 Significant Deficiency and Reportable Noncompliance Statement of Condition and Criteria Annual recertifications were not completed in a timely manner. PHA’s are required to determine income eligibility, calculate participant rent and housing assistance payments on an annual basis. Cause Staff turnover along with ineffective tracking and finalization of eligibility determinations. Effect or Potential Effect Overpayment of Housing Assistance Payments due to late processing of annual recertifications. Question Costs Known questioned costs totaled $2,390. Context A sample of 45 files were selected to audit program eligibility from a population of 2,796. The test found 26 files noted late annual recertifications. Of which, seven files required additional housing assistance to be disbursed due to sufficient participant notice requirements. Our sample was not a statistically valid sample. Recommendation We recommend the Authority reassess staff workload and review document workflow to ensure tasks are carried out through completion. Management’s Response Management agrees with the finding and corrective action is in progress as detailed in the Corrective Action Plan.