Audit 407547

2025-002 U.S Department of Housing and Urban Development – ALN #14.871/14.879 Housing Choice Vouchers Cluster Applicable Federal Award Number and Year – HCV2025 Eligibility Material Weakness in Internal Control over Compliance and Immaterial Instance of Noncompliance Criteria: The program requires the Authority to complete certifications annually for individuals enrolled in the program. Condition: During our testing, we noted several instances of certifications being completed over one year after the previous certification. Cause: The Authority’s internal controls related to maintaining proper files were not operating as designed and was due to lack of proper levels of staffing. Effect: Weaknesses in internal control over compliance could result in the Authority failing to comply with eligibility requirements. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 certifications were selected for testing from a population of over 250. 10 out of the 60 certifications were not completed timely. Repeat Finding from Prior Year: Yes. Recommendation: We recommend that the Authority establish controls to ensure that all certifications are completed timely. Views of Responsible Officials: Management agrees with the finding.

2025-003 U.S Department of Housing and Urban Development – ALN #14.871/14.879 Housing Choice Vouchers Cluster Applicable Federal Award Number and Year – HCV2025 Special Tests and Provisions – Housing Assistance Payment Significant Deficiency in Internal Control over Compliance and Immaterial Instance of Noncompliance Criteria: The Authority is required to comply with U.S. Department of Housing and Urban Development (HUD) requirements for the Housing Choice Voucher program, including accurately determining tenant income in accordance with 24 CFR Part 5. Proper income determinations are essential to ensure housing assistance payments (HAP) are calculated correctly. Condition: The Authority did not accurately calculate tenant income in all instances tested, resulting in incorrect HAP disbursements. Cause: Internal controls over the income determination process, including verification and review of supporting documentation and calculations, were not operating effectively. Effect: As a result, HAP disbursements were improperly calculated. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 HAP disbursements were selected for testing from a population of over 250, which accounted for $103,540 of $48,444,177 of federal program expenditures. 3 out of the 60 disbursements tested contained errors related to incorrect income determinations. Repeat Finding from Prior Year: No. Recommendation: We recommend the Authority strengthen internal controls over the income determination process by enhancing review procedures, ensuring proper verification of income documentation, and providing additional training to personnel responsible for eligibility determinations. These procedures should include a documented secondary review to ensure compliance with HUD requirements prior to the calculation and approval of housing assistance payments. Views of Responsible Officials: Management agrees with the finding.