Audit 370665

Finding 2024-001: Missing Tenant Information (Material Weakness, Material Noncompliance) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public Housing Operating Fund Federal Assistance Listing Number: 14.850 Compliance Requirement: Eligibility Criteria: Per 2 CFR, PHAs are required to obtain documentation declaring the tenant is eligible to receive federal housing benefits, obtain release forms from tenants to gather necessary information from third parties, and perform annual recertifications of tenant income through HUD Form 50058. Condition: The Authority was unable to provide declarations of eligible status, signed release forms, and annual recertifications. Furthermore, the Authority did not calculate income correctly to determine tenant’s rent amount. Context: Out of the 10 tenant files reviewed, we found the following exceptions:  1 file did not have proper declaration of eligible status  1 file did not have updated signed release forms  5 files did not have income calculated correctly Effect: The Authority was not in compliance with the eligible requirements for the program. Cause: The Authority did not have the proper controls in place to ensure the files were complete and accurate. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the recertifications are performed and the necessary documentation is adequately retained in the Authority’s files. Views of Responsible Officials: The Authority agrees with the finding.

Finding 2024-002: Missing Tenant Information (Material Weakness, Material Noncompliance) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Eligibility, Reporting, Special Tests and Provisions Criteria: Per 2 CFR, PHAs are required to obtain documentation declaring the tenant is eligible to receive federal housing benefits, obtain release forms from tenants to gather necessary information from third parties, perform annual recertifications of tenant income through HUD Form 50058, and perform annual inspections of the units. Condition: The Authority was unable to provide declarations of eligible status, signed release forms, and annual recertifications. Furthermore, the Authority did not calculate income correctly to determine tenant’s rent amount. Context: Out of the 40 tenant files reviewed, we found the following exceptions:  5 files did not have proper declaration of eligible status  2 files did not have updated signed release forms  3 files did not have the annual inspection  11 HUD Form 50058s were not submitted on time  3 files did not have proper utility allowance calculations  3 files did not have income calculated correctly Effect: The Authority was not in compliance with the eligibility, reporting, and special tests and provisions requirements for the program. Cause: The Authority did not have the proper controls in place to ensure the files were complete and accurate. Repeat Finding: The inspection portion of this finding is a repeat finding; the other portions of this finding are not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the recertifications are performed and the necessary documentation is adequately retained in the Authority’s files. Views of Responsible Officials: The Authority agrees with the finding.