Audit 405834

Eligibility Low Rent Public Housing - AL No. 14.850 Other Matter to be Reported Under the Uniform Guidance (Repeat of Finding 2024-002) Condition: Out of an approximate population of 442 Low Rent Public Housing tenants the following deficiencies were noted: • Two files did not have support necessary to verify income; and • One file did not use the correct income calculation. 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 and did not have the available staff to follow the established internal controls to ensure proper compliance regards to the collection of required HUD documentation to verify eligibility and calculate accurate rental income. 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 reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.

Eligibility Housing Voucher Cluster Material weakness in internal control over compliance Material noncompliance (Repeat of Finding 2024-001) Condition: Out of an approximate population of 2,154 Section 8 Housing Choice Voucher tenants the following deficiencies were noted: • Three files did not have support necessary to verify income, • Two files did not have quality control checklists for the current year recertification, • Two files did not have identification for an adult household member, • One file did not have a 9886 form, • One file used the incorrect utility allowance; and • One file did not use the correct income calculation. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 require the Authority to obtain and maintain documentation necessary to determine tenant eligibility, verify income and family composition, and calculate housing assistance payments accurately and timely. 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 the 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 reevaluate their established procedures and controls in place to ensure full compliance in regards to eligibility. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.