Audit 400421

Section 8 Voucher 2025-009 Eligibility ALN No. 14.871 Statement of Condition: As part of our eligibility test for participant, we selected 22 participant’s files. The following deficiency was noted during our examination. - In 9 (41%) of participant files examined the program application was not present in files. - In 7 (32%) of participants files examined the birth certificates were not present in files. - In 4 (18%) of participants files examined the social security were not present in files. - In 22 (100%) of participants files examined the Rent Reasonableness Certification were not present in files. - In 6 (27%) of participants file examined the bank account and assets certification were not present on files. - In 7 (20%) of participants file examined the enterprise income verification (eiv) were not present on files. - In 2 (9%) of participant file examined the authorization for release of information were not present on file. NONE Criteria: The PHA must reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payments as necessary using the documentation from third-party verification. Except as provided in paragraph (a)(3) of this section, the PHA must obtain and document in the tenant file third-party verification of the following factors, or must document in the tenant file why third-party verification was not available: (i) Reported family annual income; (ii) The value of assets; (iii) Expenses related to deductions from annual income; and Program Findings/Noncompliance Recommendations Questioned Cost (iv) Other factors that affect the determination of adjusted income. (24 CFR section 982.516). A PHA that administers a Section 8 or public housing program under an Annual Contributions Contract with HUD must carry out background checks necessary to determine whether a member of a household applying for admission to any federally assisted housing program is subject to a lifetime sex offender registration requirement under a State sex offender registration program. This check must be carried out with respect to the State in which the housing is located and with respect to States where members of the applicant household are known to have resided. (24 CFR 5.905 Cause and Effect: This condition arose because the Municipality has not implemented specific internal controls and procedures designed to minimize the errors when performing the annual family reexaminations. Recommendation: The Project Administrator should improve existing procedures to ensure the completeness of the participants files. The Municipality should implement a checklist in order to verify participant files completeness of required documents and forms.

Section 8 Voucher 2025-010 FINANCIAL REPORTING NONE ALN 14.871 CONDITION: On our review of the Financial Assessment Sub-system (FASS-PH), the Municipality submitted the GAAP- based audited financial information electronically to HUD for fiscal years 2024 and unaudited for fiscal year 2025 after required submitting date. Fiscal Due Date Past Due Year Date Submitted Days 2024-Audited March 31, 2025 December 23, 2025 267 days 2025-Unaudited August 31, 2025 Not submitted Program Findings/Noncompliance Recommendations Questioned Cost CRITERIA: According to 24 CFR 902.33 “Financial Reporting Requirements”, the PHA must submit an audited Financial Data Schedule no later than 9 months after the PHA’s fiscal year ends. PHAs are required to submit their financial information through the FASS-PH system. According to HUD notice PIH-2008-9 “Financial Reporting Requirements for the Housing Choice Voucher Program Submitted through the Financial Assessment Subsystem for Public Housing and the Voucher Management System”, the PHA must submit an unaudited Financial Data Schedule no later than 2 months after the PHA’s fiscal year ends. CAUSE AND EFFECT: This condition occurred because the Project Administrator has not adopted adequate internal controls and procedures designed to ensure the timely submission of program reports and the lack of adequate training and supervision of the municipal employees in charge of the preparation of the aforementioned reports. This condition, if not corrected, may increase the risk of avoidable instances of material non-compliances with the laws and regulations applicable to the Program. RECOMMENDATION: The Project Administrator should improve existing procedures to ensure the timely submission of the financial reports in order to comply with Federal regulation. Also, the Project Administrator should consider implementing a reporting calendar to maintain all personnel aware of the reporting deadlines of each federal financial report. This will provide an additional tool to help the Municipality in complying with the federal regulation.

Section 8 Voucher 2025-011 FINANCIAL REPORTING ALN No. 14.871 Statement of Condition: Our review of the monthly Voucher Management System (VMS) Reports submitted to Housing and Urban Development offices, disclosed that they were submitted after the required submission date, as detailed below. NONE Due Date Past Due Month Date Submitted Days December 2024 January 22, 2025 February 27, 2025 36 days January 2025 February 22, 2025 March 10, 2025 16 days Criteria: According to HUD Financial Management Center, Electronic submission of form HUD-52681-B data is a monthly requirement. This notice announces the customary dates for submitting Housing Choice Voucher Data electronically through the Voucher Management System. The collection deadline for monthly submission is the 22nd of each month for submission of the prior month's data. Cause and Effect: This condition occurred because the Project Administrator has not adopted adequate internal controls and procedures designed to ensure the timely submission of program reports and the lack of adequate training and supervision of the municipal employees in charge of the preparation of the aforementioned reports. This condition, if not corrected, may increase the risk of avoidable instances of material non-compliances with the laws and regulations applicable to the Program. Recommendation: The Project Administrator should improve existing procedures to ensure the timely submission of the financial reports in order to comply with Federal regulation. Also, the Project Administrator should consider implementing a reporting calendar to maintain all personnel aware of the reporting deadlines of each federal financial report. This will provide an additional tool to help the Municipality in complying with the federal regulation.