Audit 323357

Material Weakness 2023-002 Eligibility Federal Program U.S. Department of Housing and Urban Development AL #14.871 Grant Award No. ND044-Housing Choice Vouchers Grant Award Year 2023 Questioned Costs None. Criteria In accordance with 24 CFR sections 982.201, 982.515 and 982.516, the Authority must have proper supporting documentation to determine income eligibility and tenant’s rent payment. Condition During our testing of seventeen tenant files, we found five files where supporting documentation for annual income or expense was missing, eleven files where a quality control worksheet was missing, and two files where proof of citizenship and social security number documentation was missing. Context We reviewed 17 tenant files out of a total of 170 unique participants for 2023. Effect Authority may be providing assistance to tenants that no longer qualify or may be charging incorrect rental rate per approved policies. Cause Proper eligibility documentation is not being prepared and maintained in all tenant files. Repeat Finding Not a repeat finding. Recommendation We recommend tenant files should be maintained in an orderly fashion and all required documentation should be kept in the appropriate file. Each file should also contain a checklist that contains separate line items for each compliance requirement. Views of Responsible Officials Management will continue to emphasize to staff that applicable regulations and policies be followed to ensure compliance. All files will include a checklist for required documentation and be reviewed by a supervisor.

Significant Deficiency 2023-003 Depository Agreements Federal Program U.S. Department of Housing and Urban Development AL #14.871 Grant Award No. ND044-Housing Choice Vouchers Grant Award Year 2023 Questioned Costs None. Criteria The Authority must have valid depository agreements in place for all financial institutions where HUD funds are held. Condition It was noted during our audit that the Authority did not have a valid depository agreement in place with the financial institution that hold the Authority’s HUD deposits. Context We tested to determine if valid depository agreements were in place for the financial institution utilized by the Authority. Effect Lack of safeguards over federal funds and no third-party rights over those funds for HUD. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority follow its policy and have valid depository agreements with all financial institutions that hold federal funds. Views of Responsible Officials Management recognizes this oversight and will ensure depository agreements are in place.

Material Weakness 2023-002 Eligibility Federal Program U.S. Department of Housing and Urban Development AL #14.871 Grant Award No. ND044-Housing Choice Vouchers Grant Award Year 2023 Questioned Costs None. Criteria In accordance with 24 CFR sections 982.201, 982.515 and 982.516, the Authority must have proper supporting documentation to determine income eligibility and tenant’s rent payment. Condition During our testing of seventeen tenant files, we found five files where supporting documentation for annual income or expense was missing, eleven files where a quality control worksheet was missing, and two files where proof of citizenship and social security number documentation was missing. Context We reviewed 17 tenant files out of a total of 170 unique participants for 2023. Effect Authority may be providing assistance to tenants that no longer qualify or may be charging incorrect rental rate per approved policies. Cause Proper eligibility documentation is not being prepared and maintained in all tenant files. Repeat Finding Not a repeat finding. Recommendation We recommend tenant files should be maintained in an orderly fashion and all required documentation should be kept in the appropriate file. Each file should also contain a checklist that contains separate line items for each compliance requirement. Views of Responsible Officials Management will continue to emphasize to staff that applicable regulations and policies be followed to ensure compliance. All files will include a checklist for required documentation and be reviewed by a supervisor.

Significant Deficiency 2023-003 Depository Agreements Federal Program U.S. Department of Housing and Urban Development AL #14.871 Grant Award No. ND044-Housing Choice Vouchers Grant Award Year 2023 Questioned Costs None. Criteria The Authority must have valid depository agreements in place for all financial institutions where HUD funds are held. Condition It was noted during our audit that the Authority did not have a valid depository agreement in place with the financial institution that hold the Authority’s HUD deposits. Context We tested to determine if valid depository agreements were in place for the financial institution utilized by the Authority. Effect Lack of safeguards over federal funds and no third-party rights over those funds for HUD. Cause Lack of controls and oversight during the year. Repeat Finding Not a repeat finding. Recommendation We recommend the Authority follow its policy and have valid depository agreements with all financial institutions that hold federal funds. Views of Responsible Officials Management recognizes this oversight and will ensure depository agreements are in place.