Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – L. Reporting - Special Reporting Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Reporting Criteria: Special Reporting. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority's files and on discussion with management, the Authority included income that was outdated during their annual reexamination. Context: There are approximately one thousand five hundred twenty six (1,526) units. Of a sample size of twenty eight (28) tenant files, two (2) tenants' annual recertification (HUD-50058 form) included income that was outdated. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency in internal controls over the compliance for the reporting type of compliance related to special reporting. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that assures the program is in compliance. Effect: The Housing Voucher Cluster is in non-compliance with the reporting type of compliance related to special reporting. Recommendation: We recommend the Authority design and implement internal control procedures that will assure compliance with the Uniform Guidance and the compliance supplement.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that were not inspected within the biennial inspection period of two (2) years. Additionally, there were units that failed inspections that did not pass reinspection within 30 days without penalty. Context: There are approximately one thousand five hundred twenty six (1,526) units. Of a sample size of twenty eight (28) files, one (1) biennial inspection, was not completed in a timely manner. Additionally, there are approximately two hundred eighteen (218) units with failed inspections. Of a sample size of twenty two (22) units with failed inspections, two (2) units did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency for the Housing Voucher Cluster in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed biennial HQS inspections in compliance with program requirements. Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of compliance related to HQS inspections. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers and Mainstream Vouchers Programs Federal Catalog Numbers: 14.871 and 14.879 Noncompliance – N. Special Tests and Provisions - Selection from the Waiting List Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Selection from the Waiting List. The PHA must have written policies in its Section 8 Administrative Plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting 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 (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Housing Voucher Cluster programs were either selected from the wait list in an order or housed through the special admission criteria that is in accordance with the Authority’s Section 8 Administrative Plan Context: There are approximately thirty eight (38) new move-ins. Of a sample size of four (4) files, one (1) move-in could not be determined to be housed in proper order from the Authority's wait list or housed through the special admission criteria. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency for the Housing Voucher Cluster in internal controls over the compliance for the special tests and provisions type of compliance related to selection from the waiting list. The Authority has not properly housed applicants in compliance with program requirements. Effect: The Housing Voucher Cluster is in non-compliance with the special tests and provisions type of compliance related to selection from the waiting list. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.
authority over the Authority to perform their duties in an ethical manner. As such, HUD's programs contain specific prohibitions with respect to conflicts of interest. Per Section 19 of the Annual Contributions Contract ("ACC") for the Public and Indian Housing program, neither the Authority nor any of its contractors or their subcontractors may enter into any contract subcontract, or arrangement in connection with a project under this ACC in which any of the following classes of people have an interest, direct or indirect, during his or her tenure or for one year thereafter: 1. Any present or former member or office of the governing body of the Authority, or any member of the officer's immediate family. 2. Any employee of the Authority who formulates policy or who influences decisions with respect to the projects, or any member of the employee's immediate family, or the employee's partner. 3. Any public official, member of the local governing body, or State or local legislator, who exercises functions or responsibilities with respect to the projects or the HA. In addition, any member of these classes of persons must disclose the member's interest or prospective interest to the Authority and HUD. The term "immediate family" means the spouse, mother, father, brother, sister, or child of a covered class member. Condition: Based upon discussions with management and review of invoices selected for cash disbursement testing, there were two (2) vendors in which there was a conflict of interest violating Section 19 of the ACC. Context: As part of the cash disbursements testing, we selected a sample of invoices that were paid during the audit period. Based on review of those invoices, there were two (2) vendors in which there was a conflict of interest violating Section 19 of the ACC. Known Questioned Costs: $78,716 Cause: The Authority did not comply with Section 19 of the ACC as it relates to conflicts of interest for the Public and Indian Housing program. Effect: The Authority's non-compliance with Section 19 of the ACC as it relates to conflicts of interest for the Public and Indian Housing program. Recommendation: We recommend the Authority update their Personnel Policy to include conflicts of interest as described in Section 19 of the ACC and design and implement internal control procedures that will reasonably assure compliance with Section 19 of the ACC as it related to conflicts of interest.