Audit 359338

Finding 2024-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files - Noncompliance & Significant Deficiency Housing Choice Voucher Program – ALN #14.871 Condition & Cause: We reviewed forty (40) tenant files for compliance across multiple areas and found ten (10) files to be noncompliant. We specifically noted the following: • Seven (7) files were lacking evidence of HUD forms 50058. Authority software stated an action had occurred but the supporting 50058 could not be provided. • One (1) file contained a late annual reexamination • Two (2) files contained missing income verification with one file in this sample also missing evidence of an annual inspection Criteria: The Code of Federal Regulations, the Housing Authority Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files. Effect: Failure to properly verify and calculate annual income, maintain required documentation, and complete timely reexaminations can result in a misstatement of HAP expense leading to improper funding for the HCV program. Misstatements of HAP may also cause an undue financial burden to the participant, which goes against the mission of the Agency. Persistent noncompliance can result in increased scrutiny from regulatory agencies and a decrease in vouchers or program funding. Recommendation: We recommend that the Agency conduct a tenant file audit of existing tenants in the HCV program to determine the extent of any additional misstatements of HAP expense. We also recommend that the Agency increase their monitoring and quality control review of the HCV program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Our experience with agencies that increase monitoring and review of the files is that there are dramatically decreased error rates. Questioned Costs: N/A Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.

Finding 2024-002 – Continuum of Care Tenant Files – Eligibility – Internal Control over Tenant Files – Noncompliance and Significant Deficiency Continuum of Care Program - subsidy ALN #14.267 Condition & Cause: We selected a sample of five (5) files for review. We noted the following errors of noncompliance: • Two (2) files which contained delays in processing End of Participations (EoP) • Three (3) files which did not contain evidence of an EIV in the file. Of these files two (2) also contained untimely reexaminations which in turn caused the rent register to match actions effective in calendar year 2022. Lastly of these files one (1) contained an income miscalculation Criteria: The Code of Federal Regulations 24 part 578, the Housing Authority’s Admin Plan, and specific HUD guidelines in documenting and maintaining the Continuum of Care tenant files. Effect: Failure to conduct timely recertifications and to properly calculate HAP can result in a misstatement of HAP expense leading to improper funding for the CoC program. Misstatements of HAP may also cause an undue financial burden to the participant, which goes against the mission of the Agency. Additionally, noncompliance can result in a decrease of vouchers or loss of program funding. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Continuum of Care program. We also recommend that the Agency increase their monitoring and review of the Continuum of Care program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: None Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.

Finding 2024-001 – Housing Choice Voucher Tenant Files – Eligibility – Internal Control over Tenant Files - Noncompliance & Significant Deficiency Housing Choice Voucher Program – ALN #14.871 Condition & Cause: We reviewed forty (40) tenant files for compliance across multiple areas and found ten (10) files to be noncompliant. We specifically noted the following: • Seven (7) files were lacking evidence of HUD forms 50058. Authority software stated an action had occurred but the supporting 50058 could not be provided. • One (1) file contained a late annual reexamination • Two (2) files contained missing income verification with one file in this sample also missing evidence of an annual inspection Criteria: The Code of Federal Regulations, the Housing Authority Administrative Plan and specific HUD guidelines in documenting and maintaining Housing Choice Voucher tenant files. Effect: Failure to properly verify and calculate annual income, maintain required documentation, and complete timely reexaminations can result in a misstatement of HAP expense leading to improper funding for the HCV program. Misstatements of HAP may also cause an undue financial burden to the participant, which goes against the mission of the Agency. Persistent noncompliance can result in increased scrutiny from regulatory agencies and a decrease in vouchers or program funding. Recommendation: We recommend that the Agency conduct a tenant file audit of existing tenants in the HCV program to determine the extent of any additional misstatements of HAP expense. We also recommend that the Agency increase their monitoring and quality control review of the HCV program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Our experience with agencies that increase monitoring and review of the files is that there are dramatically decreased error rates. Questioned Costs: N/A Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.

Finding 2024-002 – Continuum of Care Tenant Files – Eligibility – Internal Control over Tenant Files – Noncompliance and Significant Deficiency Continuum of Care Program - subsidy ALN #14.267 Condition & Cause: We selected a sample of five (5) files for review. We noted the following errors of noncompliance: • Two (2) files which contained delays in processing End of Participations (EoP) • Three (3) files which did not contain evidence of an EIV in the file. Of these files two (2) also contained untimely reexaminations which in turn caused the rent register to match actions effective in calendar year 2022. Lastly of these files one (1) contained an income miscalculation Criteria: The Code of Federal Regulations 24 part 578, the Housing Authority’s Admin Plan, and specific HUD guidelines in documenting and maintaining the Continuum of Care tenant files. Effect: Failure to conduct timely recertifications and to properly calculate HAP can result in a misstatement of HAP expense leading to improper funding for the CoC program. Misstatements of HAP may also cause an undue financial burden to the participant, which goes against the mission of the Agency. Additionally, noncompliance can result in a decrease of vouchers or loss of program funding. Recommendation: We recommend that the Agency conduct a thorough tenant file audit of existing tenants in the Continuum of Care program. We also recommend that the Agency increase their monitoring and review of the Continuum of Care program files to determine whether occupancy specialists need additional training or procedures added to ensure compliance. Questioned Costs: None Repeat Finding: Yes Was sampling statistically valid? Yes Views of responsible officials: The PHA agrees with the results of the audit and recommendations.