Missing Tenant Files Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: Brown County Housing Authority (BCHA) and Wisconsin Housing & Economic Development Authority (WHEDA) Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matter Criteria or specific requirement: The Organization is required to obtain various documents and retain these documents in the tenant file, including but not limited to the original application, supporting documentation for income, HAP contract, lease agreement, etc. (24 CFR section 982). Condition: During our testing, we noted that the Organization failed to have proper documentation of tenants' files in their online system. From a sample of 60 tenant files, four of tenants did not have complete files to support eligibility in the program. Questioned costs: None Context: From a sample of 60 program participant files selected for eligibility testing, four original complete files were missing within the Organization’s online system. Cause: The Housing Specialist did not scan in or obtain the original information required for a tenant’s file as part of the application process. Effect: File did not contain required information per 24 CFR section 982. A program participant could have been receiving HAP when not qualified or receiving the incorrect amount of HAP. Repeat finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialists to ensure tenant files are retained and scanned into the online system in a timely manner. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
Calculating Income / Retaining Supporting Documentation for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria or specific requirement: Per 24 CFR sections 5.230, 5.609, and 982.516., the tenant and other family members are required to provide necessary information, documentation, and releases for the Organization to verify income eligibility. Condition: During our testing, we noted that one tenant file did not have income documentation for a portion of income that was included in the eligibility calculation and HAP was incorrectly calculated. Questioned costs: None Context: From a sample of 60 program participant files selected for testing, one tenant file did not have income documentation for a portion of income that was included in the eligibility calculation. An incorrect amount was included as income for the tenant and HAP was underpaid. Cause: The Housing Specialist did not calculate the income correctly for one tenant. Effect: File did not contain required information per 24 CFR sections 5.230, 5.609, and 982.516. Additional HAP payments were made in 2025 to correct the underpaid HAP. Repeat finding: No Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
Calculating Expenses for Family Income Examinations Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria or specific requirement: The Organization incorrectly calculated expenses as part of family income examination or reexamination for one tenant based on the requirements of 24 CFR Section 982.516. Condition: During our testing, we noted that one tenant file was missing an expense deduction from its eligibility calculation. Questioned costs: None Context: During our testing, we noted that one tenant file was missing an expense deduction from its eligibility calculation. Cause: The Housing Specialist made an error in calculating the expenses for one tenant. Effect: One program participant received an incorrect amount of HAP payments. Additional HAP payments were made in 2025 to correct the underpaid HAP. Repeat finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure expenses are appropriately calculated in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
HAP Payments Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Allowable Costs, Special Tests – Housing Assistance Payment Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria or specific requirement: Per 24 CFR Section 982.158, the HAP payment must agree to the HAP contract and HAP register. Condition: During our testing, we noted that the Organization overpaid HAP for one file for part of 2024 due to human error. Questioned costs: $135 Context: From a sample of 60 program participant files selected for testing, 1 tenant had the above issue where HAP was overpaid due to human error. Cause: The Housing Specialist made an error in entering the data into the system. Effect: One program participant received an overpayment of HAP. Repeat finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate HAP is paid and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
Supporting Documentation for Family Size Repeat of Finding 2023-006 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Allowable Costs, Eligibility Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matter Criteria or specific requirement: Per 24 CFR Section 982.201, the tenant file must contain the completed and signed Declaration of Citizenship Form for each family member to document citizenship status. Condition: During our testing, we noted 4 files where one or more of the family members in the household were identified as an eligible citizens; however, there was no documentation of SSN cards or Declaration of Citizen Forms retained in the file. Questioned costs: None Context: From a sample of 60 program participant files selected for testing, four files did not contain the appropriate information to document that the individuals in the household were eligible citizens. Cause: The Housing Specialist did not obtain the appropriate form to document the dependents' citizenship. Effect: Files did not contain required information per 24 CFR 982.201. The program participants could have been receiving the incorrect amount of HAP. Repeat finding: Yes Recommendation: We recommend that Management creates an internal monitoring system to ensure that tenant files are scanned/saved appropriately, and the documentation meets all program guidelines. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
Rent Reasonableness Repeat of Finding 2023-007 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Special Tests – Rent Reasonableness Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Mater Criteria or specific requirement: Per 24 CFR 982.507, no HAP contract can be approved until the Organization has determined that the rent for the unit is reasonable. Condition: During our testing, we noted one file where the rent reasonableness form was not retained in the participant’s file. Questioned costs: None Context: From a sample of 60 program participant files selected for testing, one tenant file did not have the rent reasonableness form included in the participant’s file. Cause: The Housing Specialist did not obtain/retain proper documentation of the rent reasonableness form. Effect: File did not contain required information per 24 CFR 982.507. The program participant could have been receiving the incorrect amount of HAP. Repeat finding: No Recommendation: We recommend that Management review their current processes and create an internal monitoring system to ensure appropriate forms and supporting documentation are in the file in the future and/or consider additional training for housing specialist to ensure HAP is appropriately calculated based on information received. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.
Internal Controls Over HQS Failed Inspections Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2024 – December 31, 2024 Compliance Requirement: Special Tests – HQS Failed Inspections Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matter Criteria or specific requirement: Per CFR Sections 982.158(d) and 982.404, for units under HAP contract that fail to meet HQS, the Organization must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. Condition: During our testing, we noted six tenants who had failed inspections where HAP was not appropriately abated or the tenant was not terminated from the program. Questioned costs: $130 Context: From a sample of 60 failed HQS inspections selected for testing, six had issues where HAP was not appropriately abated or not terminated. One tenant was properly abated, but the tenant still received HAP payments after abatement. Two tenants were not terminated, but no passed inspections were available. One tenant did not have a re-inspection completed and the tenant still received HAP. Two tenants did not have fail letters sent and no re-inspections but still received HAP. Cause: Errors and miscommunication occurred by or between the housing inspectors and/or housing specialists. The Organization’s standard operating procedures that are listed in their administrative plan were not being followed. Effect: A program participant could receive HAP or the Utility Allowance when they were not qualified due to the unit not passing the HQS inspection. The units may not have the appropriate repairs completed in a timely manner. Repeat finding: Yes Recommendation: We recommend that Management review their current internal control process over failed HQS inspections and HAP/Utility Allowance abatements to ensure they have a process in place to identify errors before the payments go out. We recommend that additional training occur over the HQS process to ensure that all housing specialists and housing inspectors are following the administrative plan. Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.