Audit 378081

Finding 2025-001: 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, 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, inspections, and income verification. Context: Out of the 40 tenant files reviewed, we found the following exceptions: • 5 files did not have proper documentation supporting income calculation • 1 file did not have the annual inspection • 3 files did not have proper citizenship verification documentation Effect: The Authority was not in compliance with the eligibility 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: 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 2025-002: Missing Tenant Information (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Choice Voucher Cluster Federal Assistance Listing Number: 14.871 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. Context: Out of the 40 tenant files reviewed, we found the following exceptions: • 1 file did not have proper documentation supporting income calculation • 2 files did not have updated signed release forms • 15 HUD Form 50058s were not submitted on time • 3 files did not have proper utility allowance calculations • 1 files did not have a HUD Form 50058 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: 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.