Audit 369513

Eligibility – Moving to Work Demonstration Program - 14.881 Significant Deficiency Statement of Condition and Criteria The audit noted instances of late recertifications. PHA’s are required to determine income eligibility, calculate participant rent and housing assistance payments in accordance with approved MTW plan and HUD Regulations. Cause Ineffective software / program tracking of recertification dates. Effect or Potential Effect Potential overpayment of Housing Assistance Payments. Context A sample of 40 files were selected to audit program eligibility from a population of 1,976. The test found 5 files noted recertifications performed late. Recommendation We recommend the Authority continue its work in addressing staff workload and review document workflow to ensure tasks are carried out on schedule. Management’s Response Management agrees with the finding and corrective action was completed as detailed in the Corrective Action Plan.

Allowable Activities – Moving to Work Demonstration Program - 14.881 Significant Deficiency Statement of Condition and Criteria The Authority does not appropriately evaluate and settle inter-program balances on a periodic basis. The Authority is required to implement and utilize HUD program funds in accordance with activities approved in the annual MTW plan. Cause Interfund transactions are not routinely assessed for appropriateness, other than reconciliation between programs. Balances are not settled to cash transactions and non-reciprocal transactions (operating transfers) are not identified in the accounting system. Effect or Potential Effect Potential ineligible use of MTW funds due to non-MTW program cash flow shortfalls. In addition, the lack of operating transfer recording impedes the tracking of MTW funds on hand. Context The audit noted that no operating transfers were recorded by the Authority despite multiple material, permanent uses of HUD MTW Funds. The Authority purchased multiple buildings, and such financing was treated as an interfund transaction rather than operating transfers. Recommendation We recommend the Authority evaluate and update the system coding of interfund transactions to assist with periodic settlement of balances. In addition, operating transfers should be identified and differentiated from the routine, reciprocal transactions and treated according to their purpose to assist with management of cash balances. Management’s Response Management agrees with the finding and corrective action was completed as detailed in the Corrective Action Plan.