U.S. Department of Housing and Urban Development – CFDA #14.871
Housing Choice Vouchers
Applicable Federal Award Number and Year – HCV2024
Eligibility
Significant Deficiency in Internal Control over Compliance and Immaterial Instance of
Noncompliance
Criteria: The Program requires the Authority to obtain signatures on release forms from all
persons in the household over 18 years of age.
Condition: During our testing, we noted two files that were missing signatures from one of the
household members over the age of 18.
Cause: The Authority’s internal controls related to maintaining proper files were not operating
as designed and was an oversight by staff.
Effect: Weaknesses in internal control over compliance could result in the Authority failing to
comply with eligibility requirements.
Questioned Costs: N/A
Context/Sampling: We tested 60 files from the population of over 250.
Repeat Finding from Prior Year: No.
Recommendation: We recommend that the Authority establish controls to ensure that all
persons over 18 years of age sign the proper forms.
View of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development – CFDA #14.871
Housing Choice Vouchers
Applicable Federal Award Number and Year – HCV2024
Eligibility
Significant Deficiency in Internal Control over Compliance and Immaterial Instance of
Noncompliance
Criteria: The Authority is required to 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.
Condition: During our testing, we noted one file that the incorrect income was calculated and
used on the form, however, the error did not cause a change in the tenant assistance payment.
Cause: The Authority’s internal controls related to maintaining proper files were not operating
as designed and was an oversight by staff.
Effect: Weaknesses in internal control over compliance could result in the Authority failing to
comply with eligibility requirements.
Questioned Costs: N/A
Context/Sampling: We tested 60 files from the population of over 250.
Repeat Finding from Prior Year: No.
Recommendation: We recommend that the Authority establish controls to ensure that all the
proper income is being calculated and used on the form to calculate HAP.
View of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development – CFDA #14.871
Housing Choice Vouchers
Applicable Federal Award Number and Year – HCV2024
HQS Enforcement
Significant Deficiency in Internal Control over Compliance
Criteria: The Authority is to maintain a copy of all HQS inspections and re-inspections of failed
inspections.
Condition: During our testing, we noted one file that the passed re-inspection was not in the
tenant file, however, we were able to substantiate that the re-inspection was completed and
passed within the allowed time through their software system.
Cause: The Authority’s internal controls related to maintaining proper files were not operating
as designed and the inspection report was misplaced or filed incorrectly.
Effect: Weaknesses in internal control over compliance could result in the Authority failing to
comply with eligibility requirements.
Questioned Costs: N/A
Context/Sampling: We tested 26 files from the population of 152 total failed inspections during
the fiscal year.
Repeat Finding from Prior Year: No.
Recommendation: We recommend that the Authority establish controls to ensure that all the
proper documents be filed in the tenant files.
View of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development – CFDA #14.155
Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects
Applicable Federal Award Number and Year – HUD loan under Section 207/223(f), HUD Project
No. 101-11316
Allowable Costs/Allowable Activities
Significant Deficiency in Internal Control over Compliance and Immaterial Instance of
Noncompliance
Criteria: As required by the HUD regulatory agreement, expenses charged to the project
operations, whether for management agent services or other expenses, must be reasonable,
typical, necessary and show a clear benefit to the tenants of the property.
Condition: During our testing of cash disbursements, we identified unallowable expenditures
charged to the project for staff treats and staff bonus pay.
Cause: The Authority’s internal controls related to reviewing charges allocated to the project
were not operating as designed and was an oversight by staff.
Effect: The project was charged for and paid unallowable expenses.
Questioned Costs: $344
Context/Sampling: A non-statistical sample of 60 disbursements were selected for testing, which
accounted for $103,023 out of the total $2,889,933 disbursement population.
Repeat Finding from Prior Year: No.
Recommendation: We recommend that the Authority establish controls to ensure that all costs
charged to the project are for allowable costs.
View of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development – CFDA #14.871
Housing Choice Vouchers
Applicable Federal Award Number and Year – HCV2024
Eligibility
Significant Deficiency in Internal Control over Compliance and Immaterial Instance of
Noncompliance
Criteria: The Program requires the Authority to obtain signatures on release forms from all
persons in the household over 18 years of age.
Condition: During our testing, we noted two files that were missing signatures from one of the
household members over the age of 18.
Cause: The Authority’s internal controls related to maintaining proper files were not operating
as designed and was an oversight by staff.
Effect: Weaknesses in internal control over compliance could result in the Authority failing to
comply with eligibility requirements.
Questioned Costs: N/A
Context/Sampling: We tested 60 files from the population of over 250.
Repeat Finding from Prior Year: No.
Recommendation: We recommend that the Authority establish controls to ensure that all
persons over 18 years of age sign the proper forms.
View of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development – CFDA #14.871
Housing Choice Vouchers
Applicable Federal Award Number and Year – HCV2024
Eligibility
Significant Deficiency in Internal Control over Compliance and Immaterial Instance of
Noncompliance
Criteria: The Authority is required to 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.
Condition: During our testing, we noted one file that the incorrect income was calculated and
used on the form, however, the error did not cause a change in the tenant assistance payment.
Cause: The Authority’s internal controls related to maintaining proper files were not operating
as designed and was an oversight by staff.
Effect: Weaknesses in internal control over compliance could result in the Authority failing to
comply with eligibility requirements.
Questioned Costs: N/A
Context/Sampling: We tested 60 files from the population of over 250.
Repeat Finding from Prior Year: No.
Recommendation: We recommend that the Authority establish controls to ensure that all the
proper income is being calculated and used on the form to calculate HAP.
View of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development – CFDA #14.871
Housing Choice Vouchers
Applicable Federal Award Number and Year – HCV2024
HQS Enforcement
Significant Deficiency in Internal Control over Compliance
Criteria: The Authority is to maintain a copy of all HQS inspections and re-inspections of failed
inspections.
Condition: During our testing, we noted one file that the passed re-inspection was not in the
tenant file, however, we were able to substantiate that the re-inspection was completed and
passed within the allowed time through their software system.
Cause: The Authority’s internal controls related to maintaining proper files were not operating
as designed and the inspection report was misplaced or filed incorrectly.
Effect: Weaknesses in internal control over compliance could result in the Authority failing to
comply with eligibility requirements.
Questioned Costs: N/A
Context/Sampling: We tested 26 files from the population of 152 total failed inspections during
the fiscal year.
Repeat Finding from Prior Year: No.
Recommendation: We recommend that the Authority establish controls to ensure that all the
proper documents be filed in the tenant files.
View of Responsible Officials: Management agrees with the finding.
U.S. Department of Housing and Urban Development – CFDA #14.155
Mortgage Insurance for the Purchase or Refinance of Existing Multifamily Housing Projects
Applicable Federal Award Number and Year – HUD loan under Section 207/223(f), HUD Project
No. 101-11316
Allowable Costs/Allowable Activities
Significant Deficiency in Internal Control over Compliance and Immaterial Instance of
Noncompliance
Criteria: As required by the HUD regulatory agreement, expenses charged to the project
operations, whether for management agent services or other expenses, must be reasonable,
typical, necessary and show a clear benefit to the tenants of the property.
Condition: During our testing of cash disbursements, we identified unallowable expenditures
charged to the project for staff treats and staff bonus pay.
Cause: The Authority’s internal controls related to reviewing charges allocated to the project
were not operating as designed and was an oversight by staff.
Effect: The project was charged for and paid unallowable expenses.
Questioned Costs: $344
Context/Sampling: A non-statistical sample of 60 disbursements were selected for testing, which
accounted for $103,023 out of the total $2,889,933 disbursement population.
Repeat Finding from Prior Year: No.
Recommendation: We recommend that the Authority establish controls to ensure that all costs
charged to the project are for allowable costs.
View of Responsible Officials: Management agrees with the finding.