Audit 378323

Eligibility Public and Indian Housing Program - AL No. 14.850 Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 600 tenants, a total of 6 tenant files were selected for testing and the following deficiencies were noted: • Six files had an annual recertification completed over 12 months after the previous recertification, • One file was missing an annual inspection, and • One file was missing a QC checklist. Criteria: The Authority’s ACOP and 24 CFR 960.259 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files. Context: The auditor haphazardly selected 6 tenant files out of the population, which is considered to be a statistically valid sample. The auditor reviewed the tenant files and support to ensure that proper procedure are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority continued to experience staffing turnover and did not have the available staff to fully implement the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to complete the tenant files. Effect: The Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: None. Auditor Recommendations: The Authority should continue to train staff on the established procedures and controls in place to ensure full compliance in regard to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.

Eligibility Section 8 Housing Choice Vouchers Program - AL No. 14.871 Material Weakness in Internal Control Material Noncompliance Condition: Out of an approximate population of 2,200 tenants, a total of 37 tenant files were selected for testing and the following deficiencies were noted: • Thirteen files were missing rent reasonableness documentation, • Eleven files were missing 214 forms, • Eleven files were missing income support or had an income calculation error, • Eleven files were missing recertifications that agreed to the rent roll month tested, • Eight files were missing annual inspections, • Eight files had incorrect utility allowances, • Six files did not have a valid 9886 release of information form within 15 months of the annual recertification, • Five files were missing identification for tenants, • Four files had the incorrect payment standards used, and • One file had an annual recertification completed over 12 months after the previous recertification. Criteria: The Authority’s administrative plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files. Context: The auditor haphazardly selected 37 tenant files out of the population, which is considered to be a statistically valid sample. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing turnover and did not have the available staff to fully implement the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to complete the tenant files. Additionally, the implementation of online certifications and transitioning to paperless recordkeeping contributed to inconsistent electronic files being maintained. Effect: The Authority is not in full compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: None. Auditor Recommendations: The Authority should continue to train staff on the established procedures and controls in place to ensure full compliance in regard to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.