Program: Public Housing Capital Fund
Requirement: When expending capital funds the Authority cannot expend nonfederal funds first to pay the applicable bills and then use Capital Funds to reimburse themselves (Capital Fund Handbook).
Condition: During review of capital fund cash management procedures it was determined that the Authority was using non-federal funds to pay for Capital Fund expenditures and then drawing Capital Funds to reimburse itself.
Cause: The Authority does not have the appropriate internal controls in place to ensure that Cash Management procedures are done in accordance with HUD requirements.
Effect: Capital Fund cash management draws are not being completed in accordance with the Capital Fund Handbook requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: New deficiency in the current year.
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that Cash Management draws are being done in accordance with the HUD Capital Fund Handbook.
Management’s Response: In response to these findings, the Authority has reviewed and revised its Capital Fund cash management procedures to ensure full compliance with the Capital Fund Handbook. The updated procedures have been reviewed in collaboration with both the Housing Project Manager and the Housing Program Manager. Invoices will be organized to fulfil the monthly obligation and paid within three days of the fund draw. To prevent recurrence and ensure ongoing compliance, the Authority will hold monthly meetings to review project timelines and cash flow needs. Communication frequency will increase during complex, multi-phase projects to support effective oversight and coordination. Furthermore, updated policy and payment procedures will be clearly communicated to all current and future vendors to ensure alignment with federal regulations. These corrective actions reflect the Authority’s commitment to improved financial oversight and adherence to all applicable funding regulations.
Program: Housing Vouchers Cluster
Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements.
Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections.
Cause: The Authority does not have the appropriate internal controls in place to ensure that HQS inspection and enforcement requirements are being implemented and followed.
Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: 2023-001
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections.
Management’s Response: Monthly reports for failed inspections were set up in May of 2024 in response to the previous year’s finding. While these reports were helpful, they did not fully resolve the issue. Two additional changes have since been implemented: 1) Staffing changes including the removal of one Specialist that had a high frequency of missed follow-ups and the addition of a “Lead” Housing Specialist; 2) The Lead Housing Specialist is now receiving all-staff monthly reports on failed HQS inspections to ensure that follow-up is not only completed by completed timely. We expect a drastic improvement in this category.
Program: Housing Vouchers Cluster
Requirement: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published fair market rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is reasonable (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: During review of Housing Voucher new admission and recertification tenant files it was found that reasonable rent tests were not being done on the majority of the new applications and tenant recertifications.
Cause: The Authority does not have the appropriate internal controls in place to ensure that Reasonable Rent tests are being documented in completed in accordance with HUD requirements.
Effect: Without Reasonable Rent tests being completed, the Authority is not in compliance with HUD’s new admission and recertification requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: New deficiency in the current year.
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that Reasonable Rent tests are completed and documented on all new admissions and tenant recertifications that require them.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.
Program: Housing Vouchers Cluster
Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements.
Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections.
Cause: The Authority does not have the appropriate internal controls in place to ensure that HQS inspection and enforcement requirements are being implemented and followed.
Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: 2023-001
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections.
Management’s Response: Monthly reports for failed inspections were set up in May of 2024 in response to the previous year’s finding. While these reports were helpful, they did not fully resolve the issue. Two additional changes have since been implemented: 1) Staffing changes including the removal of one Specialist that had a high frequency of missed follow-ups and the addition of a “Lead” Housing Specialist; 2) The Lead Housing Specialist is now receiving all-staff monthly reports on failed HQS inspections to ensure that follow-up is not only completed by completed timely. We expect a drastic improvement in this category.
Program: Housing Vouchers Cluster
Requirement: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published fair market rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is reasonable (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: During review of Housing Voucher new admission and recertification tenant files it was found that reasonable rent tests were not being done on the majority of the new applications and tenant recertifications.
Cause: The Authority does not have the appropriate internal controls in place to ensure that Reasonable Rent tests are being documented in completed in accordance with HUD requirements.
Effect: Without Reasonable Rent tests being completed, the Authority is not in compliance with HUD’s new admission and recertification requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: New deficiency in the current year.
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that Reasonable Rent tests are completed and documented on all new admissions and tenant recertifications that require them.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.
Program: Housing Vouchers Cluster
Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements.
Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections.
Cause: The Authority does not have the appropriate internal controls in place to ensure that HQS inspection and enforcement requirements are being implemented and followed.
Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: 2023-001
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections.
Management’s Response: Monthly reports for failed inspections were set up in May of 2024 in response to the previous year’s finding. While these reports were helpful, they did not fully resolve the issue. Two additional changes have since been implemented: 1) Staffing changes including the removal of one Specialist that had a high frequency of missed follow-ups and the addition of a “Lead” Housing Specialist; 2) The Lead Housing Specialist is now receiving all-staff monthly reports on failed HQS inspections to ensure that follow-up is not only completed by completed timely. We expect a drastic improvement in this category.
Program: Housing Vouchers Cluster
Requirement: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published fair market rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is reasonable (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: During review of Housing Voucher new admission and recertification tenant files it was found that reasonable rent tests were not being done on the majority of the new applications and tenant recertifications.
Cause: The Authority does not have the appropriate internal controls in place to ensure that Reasonable Rent tests are being documented in completed in accordance with HUD requirements.
Effect: Without Reasonable Rent tests being completed, the Authority is not in compliance with HUD’s new admission and recertification requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: New deficiency in the current year.
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that Reasonable Rent tests are completed and documented on all new admissions and tenant recertifications that require them.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.
Program: Public Housing Capital Fund
Requirement: When expending capital funds the Authority cannot expend nonfederal funds first to pay the applicable bills and then use Capital Funds to reimburse themselves (Capital Fund Handbook).
Condition: During review of capital fund cash management procedures it was determined that the Authority was using non-federal funds to pay for Capital Fund expenditures and then drawing Capital Funds to reimburse itself.
Cause: The Authority does not have the appropriate internal controls in place to ensure that Cash Management procedures are done in accordance with HUD requirements.
Effect: Capital Fund cash management draws are not being completed in accordance with the Capital Fund Handbook requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: New deficiency in the current year.
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that Cash Management draws are being done in accordance with the HUD Capital Fund Handbook.
Management’s Response: In response to these findings, the Authority has reviewed and revised its Capital Fund cash management procedures to ensure full compliance with the Capital Fund Handbook. The updated procedures have been reviewed in collaboration with both the Housing Project Manager and the Housing Program Manager. Invoices will be organized to fulfil the monthly obligation and paid within three days of the fund draw. To prevent recurrence and ensure ongoing compliance, the Authority will hold monthly meetings to review project timelines and cash flow needs. Communication frequency will increase during complex, multi-phase projects to support effective oversight and coordination. Furthermore, updated policy and payment procedures will be clearly communicated to all current and future vendors to ensure alignment with federal regulations. These corrective actions reflect the Authority’s commitment to improved financial oversight and adherence to all applicable funding regulations.
Program: Housing Vouchers Cluster
Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements.
Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections.
Cause: The Authority does not have the appropriate internal controls in place to ensure that HQS inspection and enforcement requirements are being implemented and followed.
Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: 2023-001
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections.
Management’s Response: Monthly reports for failed inspections were set up in May of 2024 in response to the previous year’s finding. While these reports were helpful, they did not fully resolve the issue. Two additional changes have since been implemented: 1) Staffing changes including the removal of one Specialist that had a high frequency of missed follow-ups and the addition of a “Lead” Housing Specialist; 2) The Lead Housing Specialist is now receiving all-staff monthly reports on failed HQS inspections to ensure that follow-up is not only completed by completed timely. We expect a drastic improvement in this category.
Program: Housing Vouchers Cluster
Requirement: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published fair market rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is reasonable (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: During review of Housing Voucher new admission and recertification tenant files it was found that reasonable rent tests were not being done on the majority of the new applications and tenant recertifications.
Cause: The Authority does not have the appropriate internal controls in place to ensure that Reasonable Rent tests are being documented in completed in accordance with HUD requirements.
Effect: Without Reasonable Rent tests being completed, the Authority is not in compliance with HUD’s new admission and recertification requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: New deficiency in the current year.
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that Reasonable Rent tests are completed and documented on all new admissions and tenant recertifications that require them.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.
Program: Housing Vouchers Cluster
Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements.
Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections.
Cause: The Authority does not have the appropriate internal controls in place to ensure that HQS inspection and enforcement requirements are being implemented and followed.
Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: 2023-001
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections.
Management’s Response: Monthly reports for failed inspections were set up in May of 2024 in response to the previous year’s finding. While these reports were helpful, they did not fully resolve the issue. Two additional changes have since been implemented: 1) Staffing changes including the removal of one Specialist that had a high frequency of missed follow-ups and the addition of a “Lead” Housing Specialist; 2) The Lead Housing Specialist is now receiving all-staff monthly reports on failed HQS inspections to ensure that follow-up is not only completed by completed timely. We expect a drastic improvement in this category.
Program: Housing Vouchers Cluster
Requirement: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published fair market rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is reasonable (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: During review of Housing Voucher new admission and recertification tenant files it was found that reasonable rent tests were not being done on the majority of the new applications and tenant recertifications.
Cause: The Authority does not have the appropriate internal controls in place to ensure that Reasonable Rent tests are being documented in completed in accordance with HUD requirements.
Effect: Without Reasonable Rent tests being completed, the Authority is not in compliance with HUD’s new admission and recertification requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: New deficiency in the current year.
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that Reasonable Rent tests are completed and documented on all new admissions and tenant recertifications that require them.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.
Program: Housing Vouchers Cluster
Requirement: Housing Quality Standards Inspections and enforcement must be done in accordance with HUD requirements.
Condition: HQS Inspections were not completed timely and HUD HQS enforcement standards were not followed for tenants that failed HQS re-inspections.
Cause: The Authority does not have the appropriate internal controls in place to ensure that HQS inspection and enforcement requirements are being implemented and followed.
Effect: HQS inspections, tenant enforcement and abatement are not being done in accordance with HUD requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: 2023-001
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that HQS inspections and re-inspections are completed in accordance with HUD requirements. Furthermore to take prompt action on tenant enforcement and/or landlord abatement for failed re-inspections.
Management’s Response: Monthly reports for failed inspections were set up in May of 2024 in response to the previous year’s finding. While these reports were helpful, they did not fully resolve the issue. Two additional changes have since been implemented: 1) Staffing changes including the removal of one Specialist that had a high frequency of missed follow-ups and the addition of a “Lead” Housing Specialist; 2) The Lead Housing Specialist is now receiving all-staff monthly reports on failed HQS inspections to ensure that follow-up is not only completed by completed timely. We expect a drastic improvement in this category.
Program: Housing Vouchers Cluster
Requirement: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the Authority must determine reasonable rent during the term of the contract (a) before any increase in the rent to owner, and (b) at the HAP contract anniversary if there is a 10 percent decrease in the published fair market rent in effect 60 days before the HAP contract anniversary. The PHA must maintain records to document the basis for the determination that rent to owner is reasonable (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507).
Condition: During review of Housing Voucher new admission and recertification tenant files it was found that reasonable rent tests were not being done on the majority of the new applications and tenant recertifications.
Cause: The Authority does not have the appropriate internal controls in place to ensure that Reasonable Rent tests are being documented in completed in accordance with HUD requirements.
Effect: Without Reasonable Rent tests being completed, the Authority is not in compliance with HUD’s new admission and recertification requirements.
Questioned Cost: Not applicable.
Information: Sampling was statistically valid and a systemic problem.
Prior Year Finding: New deficiency in the current year.
Recommendation: It is recommended that the Authority implements and applies the appropriate controls to ensure that Reasonable Rent tests are completed and documented on all new admissions and tenant recertifications that require them.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.
Management’s Response: An evaluation has been completed to determine the gaps in staff training on this topic. For the staff struggling with this area, step-by-step instruction has been provided and on-going weekly mentoring with the Program Manager initiated. Significant improvement in this category is anticipated.