Audit 408192

Criteria:In accordance with HUD guidelines, authorities are responsible for preparing and submitting an unaudited submission in REAC system withing two months after the year end. This Authority was required to submit this report by May 31, 2025. Statement of Condition: The REAC unaudited submission was not submitted until November 19, 2025. Cause: Due to the challenges of the Finance officer resigning during the year and operating short-staffed, the Authority did not provide all necessary documents to the fee accountant in a timely manner. Effect: HUD and REAC were not made aware of the financial condition of the Authority in a timely manner. Identification of a Repeat Finding: Yes Recommendation: The Board and management should make every effort to address the issues that caused this condition.The Authority agrees with this finding and will adhere to the correction action plan in this audit report.

Criteria: 24 CFR 982-516 requires internal controls to be in place to ensure compliance with HUD requirements, as well as complete and accurate tenant files. Statement of Condition: During my testing, I noted the Authority did not follow their internal controls designed to ensure compliance with tenant Eligibility requirements. Questioned Cost: $0. Context: Testing of 25 tenant files identified an exception in the files as follows:3 tenant files did not contain proper verification of tenant identification and 2 tenant files did not contain a release of information signed by all adult members of the household. Cause: The Agency did not obtain the required documents upon intake. The Agency also did not obtain all required signatures on certain forms. Effect:The Authority is not in compliance with requirements regarding eligibility.Identification of a Repeat Finding: None. Recommendation: I recommend that the Agency continue to review recertifications on a monthly basis to ensure the files meet eligibility and reporting requirements.Management agrees with this finding. Views of responsible officials and planned corrective action. We have reviewed the intake procedure and will continue to review recertifications.

Criteria: Capital Funds may only be drawn down to cover eligible costs that have been described in the PHA’s approved CFP Annual Statement/Performance and Evaluation Report or CFP 5-Year Action Plan. Drawdowns must be for expenses that have already been incurred (“paid for”) by the PHA. Drawdowns require proper, approved invoices. Statement of Condition: The PHA drew down funds for 3 separate Capital Fund years that did not have documentation for proper expenditure for Capital Fund purposes. Questioned Costs: $72,311. Context: The PHA was unable to provide invoices to support these drawdowns of Capital Fund Money. Cause: The former finance officer requested that Capital Funds be drawn down without proper documentation for the Capital Fund expenditure. Effect: An accounts payable to HUD has been set up at March 31, 2025 for the reimbursement of these funds to HUD. Identification of a Repeat Finding: No. Recommendation: Prior to requesting drawdowns of Capital Funds, all documentation should be reviewed to ensure that the Capital Funds will be used for the intended purpose. Views of responsible officials and planned corrective actions: The PHA agrees with this finding and will implement adequate checks and balances to ensure that this problem does not reoccur.