Audit 38348

2022-003 Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public and Indian Housing ALN #: 14.850 Award Period: 10/1/19-9/30/20 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Statement of Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: None Context: Testing of 25 tenant files identified an exception in 2 files as follows: ? 1 file had a lease agreement that was not signed by all adult household members. ? 5 files did not contain proper documentation of the Section 214 Declaration of Citizenship Status form. ? 1 file did not have documentation of any income verification by the housing authority. ? 4 files did not have a Release of Information that is required to obtain certain personal information, signed by all adult members of the household. ? 3 files did not contain documentation of the required access to the tenant?s EIV. Cause: The Authority did not follow their eligibility intake procedures properly. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: No Recommendation: I recommend that the Authority continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.

Section III ? Federal Award Findings and Questioned Costs Material Weakness Finding 2022-002 Reporting Criteria: Upon completion of a Capital Fund project year, the housing authority is required to submit and Actual Modernization Cost Certificate (AMCC) showing documentation to close out the project year. HUD uses this AMCC to determine if the Modernization grant is ready to be closed out. Statement of Condition: As of the date of this report, the housing authority has not submitted the Actual Modernization Cost Certificate for the modernization grant years of 2016-2019, all grants that have been spent as of June 30, 2022. Questioned Cost: None Cause: Unfamiliarity with the closeout process. Effect: The housing authority is not in compliance with reporting requirements for the Capital Fund grants. Identification of a repeat finding: Yes Recommendation: Immediately complete all Actual Modernization Cost Certificates for the grant years that have been spent. Views of responsible officials and planned corrective actions: We will prepare the Actual Modernization Cost Certificates for all grant years that have been completed.

2022-003 Federal Agency: U. S. Department of Housing and Urban Development Federal program: Public and Indian Housing ALN #: 14.850 Award Period: 10/1/19-9/30/20 Type of Finding: Material Weakness in Internal Control over Compliance Criteria: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Statement of Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: None Context: Testing of 25 tenant files identified an exception in 2 files as follows: ? 1 file had a lease agreement that was not signed by all adult household members. ? 5 files did not contain proper documentation of the Section 214 Declaration of Citizenship Status form. ? 1 file did not have documentation of any income verification by the housing authority. ? 4 files did not have a Release of Information that is required to obtain certain personal information, signed by all adult members of the household. ? 3 files did not contain documentation of the required access to the tenant?s EIV. Cause: The Authority did not follow their eligibility intake procedures properly. Effect: The Authority is not in compliance with requirements regarding eligibility. Identification of a repeat finding: No Recommendation: I recommend that the Authority continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements. Views of responsible officials and planned corrective actions: Management agrees with this finding. We have reviewed the intake procedure and will continue to review recertifications.

Section III ? Federal Award Findings and Questioned Costs Material Weakness Finding 2022-002 Reporting Criteria: Upon completion of a Capital Fund project year, the housing authority is required to submit and Actual Modernization Cost Certificate (AMCC) showing documentation to close out the project year. HUD uses this AMCC to determine if the Modernization grant is ready to be closed out. Statement of Condition: As of the date of this report, the housing authority has not submitted the Actual Modernization Cost Certificate for the modernization grant years of 2016-2019, all grants that have been spent as of June 30, 2022. Questioned Cost: None Cause: Unfamiliarity with the closeout process. Effect: The housing authority is not in compliance with reporting requirements for the Capital Fund grants. Identification of a repeat finding: Yes Recommendation: Immediately complete all Actual Modernization Cost Certificates for the grant years that have been spent. Views of responsible officials and planned corrective actions: We will prepare the Actual Modernization Cost Certificates for all grant years that have been completed.