Audit 363604

2024-001 ALN 14.871 – Housing Voucher Cluster – Eligibility Condition and Criteria: During our audit, it was determined that significant deficiencies in internal controls existed over the Authority’s Housing Voucher Cluster eligibility process being compliant with HUD regulatory requirements. Housing Assistance payments on 50058 reports should agree to the corresponding HAP register. EIV reports should be ran at least once annually and ran within 120 days for new admissions. Utility allowances reported on the 50058 reports should agree to the Authority's utility allowance calculated sheets. Housing Assistance Payment Contracts should be maintained in the tenant file. HUD form 9886 should be maintained in the tenant file and signed by the tenant annually. Support for income, expenses, and deductions should be maintained in the tenant file. Rent reasonableness determinations should be performed for new admissions. HQS inspections should be performed in accordance with the Authority's policies. Housing Assistance payments on 50058 reports did not agree to the corresponding HAP register. EIV reports were not ran at least once annually and ran within 120 days for new admissions. Utility allowances reported on the 50058 reports did not agree to the Authority's utility allowance calculated sheets. Housing Assistance Payment Contracts were not maintained in the tenant file. HUD form 9886 was not maintained in the tenant files and signed by the tenant annually. Support for income, expenses, and deductions were not maintained in the tenant files. Rent reasonableness determinations were not performed for new admissions. HQS inspections were not performed in accordance with the Authority's policies. Amount of Questioned Costs: None Context: Of the 20 tenant files tested for eligibility, we noted the following exceptions: • 2/20 Housing Assistance payments on 50058 reports did not agree to the corresponding HAP register. • 15/20 EIV reports were not ran at least once annually and ran within 120 days for new admissions. • 12/20 Utility allowances reported on the 50058 reports did not agree to the Authority's utility allowance calculated sheets. • 14/20 Housing Assistance Payment Contracts were not maintained in the tenant file. • 3/20 HUD form 9886 was not maintained in the tenant files and signed by the tenant annually. • 4/20 Support for income, expenses, and deductions were not maintained in the tenant files. • 4/20 Rent reasonableness determinations were not performed for new admissions. • 5/20 HQS inspections were not performed in accordance with the Authority's policies. • 1/20 The Authority was unable to provide any documentation from the tenant file Cause: The Authority under prior management did not utilize adequate internal controls over the HCV program as there is a lack of sufficient documentation that was evident in the prior year and continued over to the current audit period. Effect: Adequate supporting documentation was not maintained in the file. Auditor’s Recommendation: We recommend the Authority implement controls to address all the exceptions noted above. This includes reconciling 50058 reports to HAP registers, reminders to run EIV reports when necessary, reconciling 50058 reports to utility allowance calculation sheets, maintaining HAP contracts, signed HUD 9886 forms, and support for income, expenses, and deductions in the tenant file, and performing rent reasonableness determinations and HQS inspections when necessary/required. Grantee Response: The Executive Director agrees with the finding and will follow the Auditor's recommendation

2024-002 ALN 14.850 – Public Housing Operating Fund – Eligibility Condition and Criteria: During our audit, it was determined that significant deficiencies in internal controls existed over the Authority’s Public Housing Operating Fund Program eligibility process being compliant with HUD regulatory requirements. EIV reports should be ran within 120 days of move-in for new admissions to the program. An EIV report should be ran and maintained in the tenant's file at least once annually in order to meet HUD's documentation requirements. The Authority must document in the file that tenants were offered the choice of flat rent or income-based rent. The Authority did not maintain EIV reports in the tenant files. Therefore, no evidence of the EIV report being ran exists. The Authority's internal controls failed to identify one tenant that did not have an offer of flat rent versus income-based rent documented in the file. Amount of Questioned Costs: None Context: Of the 20 tenant files tested for eligibility, evidence of the EIV report being ran within 120 days of move-in date for the one of the new admissions tested was not present. In addition, 5 tenant files did not have evidence of an EIV report being ran at least once annually. In addition, one tenant file tested did not have an offer of flat rent versus income-based rent documented in the file. Cause: The Authority did not utilize adequate internal controls under prior management over the Public Housing Operating Fund program as there is a lack of sufficient documentation. Effect: Adequate supporting documentation was not maintained in the file. Auditor’s Recommendation: We recommend the Authority implement controls to run the EIV report within 120 days of move-in for new admissions and at least once annually for all other tenants. The Authority needs to maintain these EIV reports in the tenant files. The Authority should utilize effective controls to ensure relevant documentation is maintained in the Public Housing Operating Fund program tenant files. Grantee Response: The Executive Director agrees with the finding and will follow the Auditor's recommendation.

2024-001 ALN 14.871 – Housing Voucher Cluster – Eligibility Condition and Criteria: During our audit, it was determined that significant deficiencies in internal controls existed over the Authority’s Housing Voucher Cluster eligibility process being compliant with HUD regulatory requirements. Housing Assistance payments on 50058 reports should agree to the corresponding HAP register. EIV reports should be ran at least once annually and ran within 120 days for new admissions. Utility allowances reported on the 50058 reports should agree to the Authority's utility allowance calculated sheets. Housing Assistance Payment Contracts should be maintained in the tenant file. HUD form 9886 should be maintained in the tenant file and signed by the tenant annually. Support for income, expenses, and deductions should be maintained in the tenant file. Rent reasonableness determinations should be performed for new admissions. HQS inspections should be performed in accordance with the Authority's policies. Housing Assistance payments on 50058 reports did not agree to the corresponding HAP register. EIV reports were not ran at least once annually and ran within 120 days for new admissions. Utility allowances reported on the 50058 reports did not agree to the Authority's utility allowance calculated sheets. Housing Assistance Payment Contracts were not maintained in the tenant file. HUD form 9886 was not maintained in the tenant files and signed by the tenant annually. Support for income, expenses, and deductions were not maintained in the tenant files. Rent reasonableness determinations were not performed for new admissions. HQS inspections were not performed in accordance with the Authority's policies. Amount of Questioned Costs: None Context: Of the 20 tenant files tested for eligibility, we noted the following exceptions: • 2/20 Housing Assistance payments on 50058 reports did not agree to the corresponding HAP register. • 15/20 EIV reports were not ran at least once annually and ran within 120 days for new admissions. • 12/20 Utility allowances reported on the 50058 reports did not agree to the Authority's utility allowance calculated sheets. • 14/20 Housing Assistance Payment Contracts were not maintained in the tenant file. • 3/20 HUD form 9886 was not maintained in the tenant files and signed by the tenant annually. • 4/20 Support for income, expenses, and deductions were not maintained in the tenant files. • 4/20 Rent reasonableness determinations were not performed for new admissions. • 5/20 HQS inspections were not performed in accordance with the Authority's policies. • 1/20 The Authority was unable to provide any documentation from the tenant file Cause: The Authority under prior management did not utilize adequate internal controls over the HCV program as there is a lack of sufficient documentation that was evident in the prior year and continued over to the current audit period. Effect: Adequate supporting documentation was not maintained in the file. Auditor’s Recommendation: We recommend the Authority implement controls to address all the exceptions noted above. This includes reconciling 50058 reports to HAP registers, reminders to run EIV reports when necessary, reconciling 50058 reports to utility allowance calculation sheets, maintaining HAP contracts, signed HUD 9886 forms, and support for income, expenses, and deductions in the tenant file, and performing rent reasonableness determinations and HQS inspections when necessary/required. Grantee Response: The Executive Director agrees with the finding and will follow the Auditor's recommendation

2024-002 ALN 14.850 – Public Housing Operating Fund – Eligibility Condition and Criteria: During our audit, it was determined that significant deficiencies in internal controls existed over the Authority’s Public Housing Operating Fund Program eligibility process being compliant with HUD regulatory requirements. EIV reports should be ran within 120 days of move-in for new admissions to the program. An EIV report should be ran and maintained in the tenant's file at least once annually in order to meet HUD's documentation requirements. The Authority must document in the file that tenants were offered the choice of flat rent or income-based rent. The Authority did not maintain EIV reports in the tenant files. Therefore, no evidence of the EIV report being ran exists. The Authority's internal controls failed to identify one tenant that did not have an offer of flat rent versus income-based rent documented in the file. Amount of Questioned Costs: None Context: Of the 20 tenant files tested for eligibility, evidence of the EIV report being ran within 120 days of move-in date for the one of the new admissions tested was not present. In addition, 5 tenant files did not have evidence of an EIV report being ran at least once annually. In addition, one tenant file tested did not have an offer of flat rent versus income-based rent documented in the file. Cause: The Authority did not utilize adequate internal controls under prior management over the Public Housing Operating Fund program as there is a lack of sufficient documentation. Effect: Adequate supporting documentation was not maintained in the file. Auditor’s Recommendation: We recommend the Authority implement controls to run the EIV report within 120 days of move-in for new admissions and at least once annually for all other tenants. The Authority needs to maintain these EIV reports in the tenant files. The Authority should utilize effective controls to ensure relevant documentation is maintained in the Public Housing Operating Fund program tenant files. Grantee Response: The Executive Director agrees with the finding and will follow the Auditor's recommendation.