Audit 387466

Criteria - Uniform Guidance (2 CFR §200.303) requires recipients of federal awards to establish and maintain effective internal controls over compliance. Specifically, 24 CFR §982.201 and related program requirements for the Section 8 Housing Choice Voucher Program (HCV) (Assistance Listing Number 14.871) mandate the Authority obtain and retain a signed lease agreement between the tenant and owner. Condition - Out of 21 tenant files tested, seven were missing signed lease agreements. Cause - The Authority did not maintain adequate documentation in tenant files, indicating a lack of effective internal controls over file management and compliance monitoring. Effect - The absence of required documentation increases the risk of non-compliance with HUD regulations, which may result in findings during HUD reviews or audits and possible loss of HUD funding or sanctions if deficiencies are not corrected. Questioned Costs - None. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This was not a repeat finding. Recommendation - We recommend that the Authority conduct a full review of all tenant files to identify and resolve missing documentation, using a standardized checklist to ensure all required documents are included in each file. Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action. (b) Action taken - The Authority will strengthen internal controls and training of staff to ensure compliance deadlines are met and immediately obtain the missing leases. (c) Planned implementation date - The Authority expects to complete the corrective actions by June 30, 2026.