Audit 36899

2022-001 Eligibility: Public Housing Tenant Files Public and Indian Housing Program ? CFDA Number 14.850 Material Weakness in Internal Control, Material Noncompliance Condition: Out of a total tenant population of 120, 12 files were selected for testing. Exceptions were noted as follows: ? 6 files where the annual re-examination was not performed within 12 months. ? 2 files where the annual income for the tenant was not calculated correctly, resulting in the monthly rent for the tenant being $204 too low in one case and $23 too low in the other. Criteria: 24 CFR 960.257 requires the Authority to conduct a re-examination of family income and composition at least annually and must make appropriate adjustments in the rent after consultation with the family and upon verification of the information. Questioned Costs: None. Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant re-examinations, which could result in incorrect total tenant payments for rent. Cause: During the year, the Authority changed when it would perform annual re-examinations to be the anniversary of the month the tenant was first admitted to the program. In implementing this change, the Authority failed to timely recognize that this would result in some tenants not having a re-examination within twelve months. Auditor?s Recommendation: The above-mentioned change will only result in non-timely annual re-examinations for some tenants for one time, and will effectively correct itself in future years. Nonetheless, the Authority should review all annual re-examinations for all tenants and immediately perform annual re-examinations for any remaining tenants that have not already had their next re-examination. Views of Responsible Officials of the Auditee: The Authority agrees with the finding and has taken corrective action. See the ?Action Taken? on the Corrective Action Plan.

2022-001 Eligibility: Public Housing Tenant Files Public and Indian Housing Program ? CFDA Number 14.850 Material Weakness in Internal Control, Material Noncompliance Condition: Out of a total tenant population of 120, 12 files were selected for testing. Exceptions were noted as follows: ? 6 files where the annual re-examination was not performed within 12 months. ? 2 files where the annual income for the tenant was not calculated correctly, resulting in the monthly rent for the tenant being $204 too low in one case and $23 too low in the other. Criteria: 24 CFR 960.257 requires the Authority to conduct a re-examination of family income and composition at least annually and must make appropriate adjustments in the rent after consultation with the family and upon verification of the information. Questioned Costs: None. Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant re-examinations, which could result in incorrect total tenant payments for rent. Cause: During the year, the Authority changed when it would perform annual re-examinations to be the anniversary of the month the tenant was first admitted to the program. In implementing this change, the Authority failed to timely recognize that this would result in some tenants not having a re-examination within twelve months. Auditor?s Recommendation: The above-mentioned change will only result in non-timely annual re-examinations for some tenants for one time, and will effectively correct itself in future years. Nonetheless, the Authority should review all annual re-examinations for all tenants and immediately perform annual re-examinations for any remaining tenants that have not already had their next re-examination. Views of Responsible Officials of the Auditee: The Authority agrees with the finding and has taken corrective action. See the ?Action Taken? on the Corrective Action Plan.

2022-001 Eligibility: Public Housing Tenant Files Public and Indian Housing Program ? CFDA Number 14.850 Material Weakness in Internal Control, Material Noncompliance Condition: Out of a total tenant population of 120, 12 files were selected for testing. Exceptions were noted as follows: ? 6 files where the annual re-examination was not performed within 12 months. ? 2 files where the annual income for the tenant was not calculated correctly, resulting in the monthly rent for the tenant being $204 too low in one case and $23 too low in the other. Criteria: 24 CFR 960.257 requires the Authority to conduct a re-examination of family income and composition at least annually and must make appropriate adjustments in the rent after consultation with the family and upon verification of the information. Questioned Costs: None. Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant re-examinations, which could result in incorrect total tenant payments for rent. Cause: During the year, the Authority changed when it would perform annual re-examinations to be the anniversary of the month the tenant was first admitted to the program. In implementing this change, the Authority failed to timely recognize that this would result in some tenants not having a re-examination within twelve months. Auditor?s Recommendation: The above-mentioned change will only result in non-timely annual re-examinations for some tenants for one time, and will effectively correct itself in future years. Nonetheless, the Authority should review all annual re-examinations for all tenants and immediately perform annual re-examinations for any remaining tenants that have not already had their next re-examination. Views of Responsible Officials of the Auditee: The Authority agrees with the finding and has taken corrective action. See the ?Action Taken? on the Corrective Action Plan.

2022-001 Eligibility: Public Housing Tenant Files Public and Indian Housing Program ? CFDA Number 14.850 Material Weakness in Internal Control, Material Noncompliance Condition: Out of a total tenant population of 120, 12 files were selected for testing. Exceptions were noted as follows: ? 6 files where the annual re-examination was not performed within 12 months. ? 2 files where the annual income for the tenant was not calculated correctly, resulting in the monthly rent for the tenant being $204 too low in one case and $23 too low in the other. Criteria: 24 CFR 960.257 requires the Authority to conduct a re-examination of family income and composition at least annually and must make appropriate adjustments in the rent after consultation with the family and upon verification of the information. Questioned Costs: None. Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant re-examinations, which could result in incorrect total tenant payments for rent. Cause: During the year, the Authority changed when it would perform annual re-examinations to be the anniversary of the month the tenant was first admitted to the program. In implementing this change, the Authority failed to timely recognize that this would result in some tenants not having a re-examination within twelve months. Auditor?s Recommendation: The above-mentioned change will only result in non-timely annual re-examinations for some tenants for one time, and will effectively correct itself in future years. Nonetheless, the Authority should review all annual re-examinations for all tenants and immediately perform annual re-examinations for any remaining tenants that have not already had their next re-examination. Views of Responsible Officials of the Auditee: The Authority agrees with the finding and has taken corrective action. See the ?Action Taken? on the Corrective Action Plan.