Audit 377991

2025-003 - Waiting List Procedures U.S. Department of Housing and Urban Development 14.871 - Housing Choice Voucher Cluster/Section 8 Housing Choice Vouchers N. Special Tests and Provisions - Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher ("HCV") program, RBT noted that the Authority did not establish waiting list procedures to admit tenants into the program. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have an Administrative Plan ("Plan") in place. The Plan should include policies governing the selection of HCV participants from the waiting list. Staff are unfamiliar with waiting list preferences and policies. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of the four new tenants admitted to the HCV program selected for testing, four did not have documents showing that waiting list selection procedures were followed. Repeat Finding: This is a repeat of finding 2024-004. Recommendation: RBT recommends that the Authority establish and follow a Housing Choice Voucher program Administrative Plan, including policies and procedures for waiting list selection processes. Auditee's Response: See corrective action plan.

2025-004 - Documentation of Controls U.S. Department of Housing and Urban Development 14.871 - Housing Choice Voucher Cluster/Section 8 Housing Choice Vouchers E. Eligibility, L. Reporting, and N. Special Tests and Provisions - Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher ("HCV") program, RBT noted that the Authority was not appropriately maintaining documentation of the controls over Eligibility, Reporting, Reasonable Rent, Utility Allowance, and HQS Inspections. RBT also noted that the Authority was not reporting failed inspections to landlords timely and in certain cases, payments to landlords were not stopped in accordance with the Authority's policy. Further, RBT noted that the Authority did not obtain the proper signatures on the form HUD-9886. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts (such as 24 CFR Section 982), and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central uniform location to document the controls in place over Eligibility, Reporting, Reasonable Rent, Utility Allowance, and HQS Inspections. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of the sixty tenant files selected for testing, three did not have the proper signatures on the form HUD-9886, and five lacked proper reporting of failed inspections to landlords. None of the sixty tenants files selected for testing contained documentation of the internal controls performed. Repeat Finding: This is a repeat of finding 2024-003. Recommendation: RBT recommends that the Authority maintain the checklist that the Tenant Housing Representatives use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant's file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee's Response: See corrective action plan.

2025-005 - Reporting U.S. Department of Housing and Urban Development 14.871 - Housing Choice Voucher Cluster/Section 8 Housing Choice Vouchers L. Reporting - Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher ("HCV") program, RBT noted that the Authority did not submit its GAAP-based March 31, 2024 audited financial information to HUD timely. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority did not have controls in place to ensure appropriate audit ready information/documentation was ready in order for the audit to be conducted in a timely manner. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: The submission of the annual audited report was not done within the required timeline, nine months after year-end. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority establish controls and prepare all required information/documentation to ensure that the Authority can submit the audited financial information to HUD timely. Auditee's Response: See corrective action plan.

2025-006 - Documentation of Controls U.S. Department of Housing and Urban Development 14.850 - Public Housing Operating Fund E. Eligibility - Significant Deficiency and Compliance Finding Condition: During review of the Public Housing Operating Fund program, RBT noted that the Authority was not appropriately maintaining documentation of the controls over Eligibility. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts (such as 24 CFR Section 982), and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority does not have a central, uniform location to document the controls in place over Eligibility. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: None of the sixty tenants files selected for testing contained documentation of the internal controls performed. Two files contained noncompliance exceptions. One tenant file did not include Form HUD-50058 for the period under audit. One file incorrectly reflected the tenant as eligible for reduced rent, although the tenant did not meet the eligibility criteria. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority maintain the checklist that the Tenant Housing Representatives use during the recertification process to ensure all compliance requirements are met. The checklist should be signed or initialed by the representative and maintained in the tenant's file. This checklist will serve as documentation that all compliance requirements were verified for the tenant. Auditee's Response: See corrective action plan.

2025-007 - Waiting List Procedures U.S. Department of Housing and Urban Development 14.850 - Public Housing Operating Fund N. Special Tests and Provisions - Significant Deficiency and Compliance Finding Condition: During review of the Public Housing Operating Fund program, RBT noted that the Authority did not select tenants in accordance with a tenant selection and assignment policy and staff are unfamiliar with waiting list preferences. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority did not establish an Admissions and Continued Occupancy Policy ("ACOP") and, thus, did not have a tenant selection and assignment policy. Staff are unfamiliar with waiting list preferences. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: Out of the four new tenants admitted to the program selected for testing, four were not in compliance as the Authority did not have a tenant selection and assignment policy. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority establish a Admission and Continued Occupancy Policy which includes a tenant selection and assignment policy detailing procedures for admitting tenants to the program. Staff should be trained on tenant selection procedures. Auditee's Response: See corrective action plan.