Audit 405213

Eligibility Housing Voucher Cluster Material Weakness in Internal Controls Material Non-compliance (Repeated from prior year, Finding No. 2024-001) Condition: Out of an approximate population of 7,800 of tenants, a total of 31 files were selected for testing and the following deficiencies were noted: • Twenty-one files were missing 9886 release of information documents performed for the FYE 2025 annual recertification, • Fifteen files were missing utility allowance calculation documents, • Nine files were missing a 214 declaration form for a member of the household, • Eight files were missing inspections covering the FYE 2025 annual recertification, • Six files had incorrect income calculation or missing documentation, • Four files had HAP payments that did not agree with the annual recertification 50058 document, • Four files were missing rent reasonableness documentation, • Two files were missing supporting documentation to accurately test the FYE 2025 annual recertification, • Two files had annual recertification performed greater than twelve months apart, and • Two files were missing the identification documentation for adult members of the household. 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 timely, complete and accurate tenant files. Context: The auditor randomly selected 31 tenant files out of the population, which we consider to be a statistically valid sample size. 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 and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.

Eligibility Low Rent Public Housing AL # 14.850 Significant deficiency in Internal Controls Other matter required to be reported in accordance with 2 CFR 200.516(a) (Repeated in part from prior year, Finding No. 2024-002) Condition: Out of an approximate population of 2,070 of tenants, a total of 40 files were selected for testing and the following deficiencies were noted: • One file was missing documents to support reported income, • Three files were missing 214 declaration documents performed for the FYE 2025 annual recertification, • One file did not have flat rent option documents for the FYE 2025 annual recertification, and • Two files were missing 9886 release of information documents during the FYE 2025 annual recertification process. 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 timely, complete and accurate tenant files. Context: The auditor randomly selected 40 tenant files out of the population, which we consider to be a statistically valid sample size. 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 and operational challenges, including unorganized file storage, which affected its ability to consistently follow established internal controls designed to ensure proper compliance with timely recertifications and the collection and retention of required HUD documentation necessary to verify participant eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the internal quality control sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.

Eligibility Section 8 Project Based Cluster Significant deficiency in Internal Controls Other matter required to be reported in accordance with 2 CFR 200.516(a) (Repeated in part from prior year, Finding No. 2024-003) Condition: Out of an approximate population of 450 of tenants, a total of 40 files were selected for testing and the following deficiencies were noted: • Two files were missing the 214 declaration documents performed for the FYE 2025 annual recertification, • Three files were missing 9886 release of information documents during the FYE 2025 annual recertification process, and • One file had incorrect calculation of income allowances. Criteria: 24 CFR 983.353 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Context: The auditor randomly selected 40 tenant files out of the population, which we consider to be a statistically valid sample size. 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 and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should evaluate and change their established procedures and controls in place to ensure full compliance in regards to eligibility of recertifications and should provide staff training on these procedures. The Authority needs to correct the deficiencies noted in the internal quality control sample and consider the impact to the rest of the population of tenant files that were not selected as part of the sample. Management Response: See Corrective Action Plan.