Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2024 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Eligibility Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). For both family income examinations and reexaminations, obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). The Authority must 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). Condition: The Authority was unable to provide adequate supporting documentation and evidence of internal control over compliance for eligibility requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 6 out of 60 files tested for eligibility requirements. The Authority was unable to provide supporting documentation that 5 tenants were recertified timely. The Authority was unable to provide 1 file. Cause: The Authority did not maintain supporting documentation within the tenant file and did not complete all recertifications in accordance with eligibility requirements. Effect: The Authority is not in compliance with eligibility requirements. Repeat Finding: Yes, finding 2023-001. Recommendation: We recommend that the Authority implements controls to ensure the tenant files include all required documentation at the time of recertification. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2024 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Reporting – PIH Information Center (PIC) Reporting Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Authority is required to submit the HUD-50058 electronically to HUD via the PIH Information Center (PIC) each time the Authority completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family (24 CFR Part 908). Condition: The Authority did not satisfy PIC reporting requirements in accordance with 24 CFR Part 908. Questioned costs: Unable to determine. Context: Exceptions noted in 7 out of 60 recertifications. In 4 instances, the Housing Assistance Payment per the HUD-50058 did not agree to the PIC system. In 3 instances, the recertification was not located in the PIC system. Cause: The Authority did not identify recertifications that failed to upload to the PIC system. Effect: The Authority is not in compliance with PIC reporting requirements. Repeat Finding: Yes, finding 2023-002. Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2024 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Special Tests and Provisions – Reasonable Rent Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: The Authority must determine that the rent to owner is reasonable at the time of initial leasing. Also, the PHA must determine reasonable rent during the term of the contract before any increase in the rent to owner. The PHA must maintain records to document the basis for the determination that rent to owner is a reasonable rent (initially and during the term of the Housing Assistance Payment (HAP) contract) (24 CFR sections 982.4, 982.54(d)(15), 982.158(f)(7), and 982.507). Condition: The Authority did not perform rent reasonableness procedures in accordance with program compliance requirements. Questioned costs: Unable to determine. Context: Exceptions noted in 5 out of 12 files tested for reasonable rent requirements. Adequate supporting documentation was not maintained. Exceptions noted in 1 out of 60 new tenants. The file was not able to be located. Cause: The Authority did not maintain documentation utilized to determine rent reasonableness. Effect: The Authority is not in compliance with rent reasonableness requirements. Repeat Finding: Yes, finding 2023-003. Recommendation: We recommend that the Authority implements controls to ensure that documentation is maintained in accordance with rent reasonableness requirements. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2024 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Special Tests and Provisions – Housing Quality Standards (HQS) Enforcement Type of Finding: - Material Weakness in Internal Control over Compliance - Material Noncompliance (Modified Opinion) Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority 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 Authority approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority did not require HQS deficiencies to be corrected within the required timeframe. The Authority did not abate units that failed to correct HQS deficiencies within the required timeframe. Questioned costs: Unable to determine. Context: Exceptions were noted in 14 out of 60 failed inspections. The Authority did not properly abate HAP for 11 out of 60 failed inspections. Adequate supporting documentation was not provided for 3 files. Cause: The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: Yes, finding 2023-004. Recommendation: We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2024 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Special Tests and Provisions – Housing Assistance Payment (HAP) Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition: The Authority did not ensure the HAP per the HUD-50058 was properly reflected in the HAP contract and HAP register. Questioned costs: Unable to determine. Context: Exceptions were noted in 5 out of 40 tenant files. 12u of the HUD-50058 did not agree to the HAP contract and HAP register for 4 files. 1 file was unable to be located. Cause: The Authority did not ensure that the HUD-50058, HAP contract, and HAP register agree. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure the HAP agrees between the HUD-50058, HAP contract, and HAP register. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: MO002VO - 2024 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Special Tests and Provisions – Selection from the Waiting List - New Tenants Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. Except as provided in 24 CFR section 982.203 Special admission (nonwaiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: The Authority was unable to provide support for 1 new tenant. Questioned costs: Unable to determine. Context: Exceptions were noted in 1 out of 40 files. Cause: The file was unable to be located. Effect: The Authority is not in compliance with new tenant admission requirements. Repeat Finding: No Recommendation: We recommend the Authority implements controls to ensure all files are maintained and available for audit. Views of responsible officials: There is no disagreement with the audit finding.