Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency.
Criteria
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 (24 CFR section 5.601
et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Additionally, as a condition of
admission or continued occupancy, the Authority must require the tenant and other family
members to provide necessary information, documentation, and releases for the PHA to verify
income eligibility (24 CFR sections 5.230, 5.609, and 982.516).
Condition
We tested compliance with the Authority’s eligibility in 40 tenant files and found that one tenant’s
housing assistance payment was calculated incorrectly resulting in an incorrect HAP amount
paid. Additionally, we noted one tenant file in which proof of citizenship was not maintained and
two tenant files that did not have a signed lease agreement by the required parties.
Questioned Costs
None.
Context
We reviewed a sample of 40 of the Authority’s 491 tenant files for eligibility requirements.
Effect
HAP payments could have been paid to a tenant who was not eligible to receive the payments
or tenants may not be provided the proper housing assistance in accordance with their income
and eligibility factors.
Cause
Lack of controls and oversight during the year.
Repeat Finding
2022-007
Recommendation
We recommend the Authority reviews their procedures of tenant file reviews to ensure all
calculations are correct and appropriate documents are included.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency.
Criteria
The Uniform Guidance requires all entities that expend in excess of $750,000 to file audited
financial statements and a Data Collection Form within 9 months of year-end.
Condition
The Authority’s December 31, 2023 audited financial statements and associated Data Collection
Form were not filed with the Federal Audit Clearinghouse within 9 months of the Authority’s
year-end.
Questioned Costs
None.
Context
N/A
Effect
The Authority is not in compliance with Uniform Guidance requirements.
Cause
The financial statements were not completed within the 9-month window which delayed the
submissions to the Federal Audit Clearinghouse.
Repeat Finding
See 2022-008.
Recommendation
We recommend the Authority ensures reconciliations are prepared in a timely manner to allow
for an efficient audit process.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency.
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit
meets Housing Quality Standards (HQS) (24 CFR section 982.405(b)).
Condition
We tested compliance with the Authority’s HQS in 40 tenant files and found one instance in
which a biennial inspection had not been performed.
Questioned Costs
None.
Context
We reviewed a sample of 40 of the Authority’s 491 tenant files for HQS Inspection requirements.
Effect
HAP payments may be made to a tenant living in a unit that does not meet Housing Quality
Standards.
Cause
Lack of oversight and control procedures.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews their control procedures over HQS Inspections to ensure
that inspections are being performed as required.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency.
Criteria
For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct
any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS
deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner
does not correct the cited HQS deficiencies within the specified correction period, the PHA must
stop (abate) HAPs beginning no later than the first of the month following the specified
correction period or must terminate the HAP contract (24 CFR sections 982.158(d) and
982.404).
Condition
We tested compliance with the Authority’s HQS Enforcement on 12 failed inspections and noted
one failed inspection was not followed-up on and HAP was not abated. During our testing of 40
tenant files, we also noted two instances of failed inspections that were not followed-up on and
HAP was not abated.
Questioned Costs
None.
Context
We reviewed a sample of 12 of the Authority’s 120 failed inspections during 2023 for HQS
Enforcement requirements.
Effect
HAP payments could be paid to a tenant where they should not be due to insufficient clearing of
HQS inspection deficiencies.
Cause
Lack of oversight and control procedures.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review their procedures for tracking failed inspections to ensure
that all failed inspections are being followed-up and cleared within the required timeframe.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency.
Criteria
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 (24 CFR section 5.601
et seq.) (24 CFR sections 982.201, 982.515, and 982.516). Additionally, as a condition of
admission or continued occupancy, the Authority must require the tenant and other family
members to provide necessary information, documentation, and releases for the PHA to verify
income eligibility (24 CFR sections 5.230, 5.609, and 982.516).
Condition
We tested compliance with the Authority’s eligibility in 40 tenant files and found that one tenant’s
housing assistance payment was calculated incorrectly resulting in an incorrect HAP amount
paid. Additionally, we noted one tenant file in which proof of citizenship was not maintained and
two tenant files that did not have a signed lease agreement by the required parties.
Questioned Costs
None.
Context
We reviewed a sample of 40 of the Authority’s 491 tenant files for eligibility requirements.
Effect
HAP payments could have been paid to a tenant who was not eligible to receive the payments
or tenants may not be provided the proper housing assistance in accordance with their income
and eligibility factors.
Cause
Lack of controls and oversight during the year.
Repeat Finding
2022-007
Recommendation
We recommend the Authority reviews their procedures of tenant file reviews to ensure all
calculations are correct and appropriate documents are included.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency.
Criteria
The Uniform Guidance requires all entities that expend in excess of $750,000 to file audited
financial statements and a Data Collection Form within 9 months of year-end.
Condition
The Authority’s December 31, 2023 audited financial statements and associated Data Collection
Form were not filed with the Federal Audit Clearinghouse within 9 months of the Authority’s
year-end.
Questioned Costs
None.
Context
N/A
Effect
The Authority is not in compliance with Uniform Guidance requirements.
Cause
The financial statements were not completed within the 9-month window which delayed the
submissions to the Federal Audit Clearinghouse.
Repeat Finding
See 2022-008.
Recommendation
We recommend the Authority ensures reconciliations are prepared in a timely manner to allow
for an efficient audit process.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency.
Criteria
The PHA must inspect the unit leased to a family at least biennially to determine if the unit
meets Housing Quality Standards (HQS) (24 CFR section 982.405(b)).
Condition
We tested compliance with the Authority’s HQS in 40 tenant files and found one instance in
which a biennial inspection had not been performed.
Questioned Costs
None.
Context
We reviewed a sample of 40 of the Authority’s 491 tenant files for HQS Inspection requirements.
Effect
HAP payments may be made to a tenant living in a unit that does not meet Housing Quality
Standards.
Cause
Lack of oversight and control procedures.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority reviews their control procedures over HQS Inspections to ensure
that inspections are being performed as required.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.
Federal Program
U.S. Department of Housing and Urban Development AL #14.871 – Significant Deficiency.
Criteria
For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct
any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS
deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner
does not correct the cited HQS deficiencies within the specified correction period, the PHA must
stop (abate) HAPs beginning no later than the first of the month following the specified
correction period or must terminate the HAP contract (24 CFR sections 982.158(d) and
982.404).
Condition
We tested compliance with the Authority’s HQS Enforcement on 12 failed inspections and noted
one failed inspection was not followed-up on and HAP was not abated. During our testing of 40
tenant files, we also noted two instances of failed inspections that were not followed-up on and
HAP was not abated.
Questioned Costs
None.
Context
We reviewed a sample of 12 of the Authority’s 120 failed inspections during 2023 for HQS
Enforcement requirements.
Effect
HAP payments could be paid to a tenant where they should not be due to insufficient clearing of
HQS inspection deficiencies.
Cause
Lack of oversight and control procedures.
Repeat Finding
Not a repeat finding.
Recommendation
We recommend the Authority review their procedures for tracking failed inspections to ensure
that all failed inspections are being followed-up and cleared within the required timeframe.
Views of Responsible Officials
Management recognizes the deficiency and plans to implement the auditor’s recommendation.