Audit 360131

2024-001 Federal Agency: U. S. Department of Housing and Urban Development Federal program: New Construction and Substantial Rehabilitation Section 8 Program ALN: 14.182 Award Period: 10/1/23-9/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: None Context: Testing of 25 tenant files identified an exception in 5 files as follows: • 1 file did not contain proper documentation of the Section 214 Declaration of Citizenship Status forms. • 4 files did not contain proper verification that a birth certificate was obtained for all members of the household. Cause: The Agency did not follow their eligibility intake procedures properly. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: No Recommendation: I recommend that the Authority continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.

2024-002 Federal Agency: U. S. Department of Housing and Urban Development Federal program: Housing Choice Voucher ALN: 14.871 Award Period: 10/1/23-9/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: $0 Context: Testing of 25 tenant files identified an exception in 2 files as follows: • 1 file contained an application that was not signed by the Head of Household. • 1 file did not contain proper verification of identification of a member of the household. Cause: The Agency did not obtain the required rent reasonableness comparison upon intake. The Agency also did not obtain all required signatures on certain forms. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.

2024-001 Federal Agency: U. S. Department of Housing and Urban Development Federal program: New Construction and Substantial Rehabilitation Section 8 Program ALN: 14.182 Award Period: 10/1/23-9/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: None Context: Testing of 25 tenant files identified an exception in 5 files as follows: • 1 file did not contain proper documentation of the Section 214 Declaration of Citizenship Status forms. • 4 files did not contain proper verification that a birth certificate was obtained for all members of the household. Cause: The Agency did not follow their eligibility intake procedures properly. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: No Recommendation: I recommend that the Authority continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.

2024-002 Federal Agency: U. S. Department of Housing and Urban Development Federal program: Housing Choice Voucher ALN: 14.871 Award Period: 10/1/23-9/30/24 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: $0 Context: Testing of 25 tenant files identified an exception in 2 files as follows: • 1 file contained an application that was not signed by the Head of Household. • 1 file did not contain proper verification of identification of a member of the household. Cause: The Agency did not obtain the required rent reasonableness comparison upon intake. The Agency also did not obtain all required signatures on certain forms. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: None Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.