Audit 408260

Eligibility Moving to Work Demonstration Program AL No. 14.881 Significant deficiency in internal control Other Matter to be Reported Under the Uniform Guidance (Repeated from prior year finding 2024-001) Condition: Out of an approximate population of 2,396 of MTW Vouchers and 170 Low Rent Public Housing tenants the following deficiencies were noted: MTW Housing Choice Voucher (a total of 36 tenants selected for testing): • One file did not use the correct utility allowance, • Five files did not have documentation necessary to verify the reported income, and • One file did not have 9886 release of information from within 15 months of the annual recertification. Low Rent Public Housing (a total of 8 tenants selected for testing): • One file did not contain evidence of timely unit inspection being performed. • Three files did not have documentation necessary to verify the reported income, and • One file did not have 9886 release of information from within 15 months of the annual recertification, • Three files did not have documentation of tenant income-based vs flat-rent selection, and • Two files did not have documentation of other rent adjustments. Criteria: The Authority’s ACOP, Administrative Plan, 24 CFR 960.259, and 24 CFR 982.516 require 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. In addition, 24 CFR 5.705 requires each unit be periodically inspected. Context: The auditor randomly selected tenant files out of the population from each program as outlined, 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 Commission is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority does not have adequate systems and controls in place to ensure all eligibility requirements are being followed and units are being inspected timely Effect: The Authority is not in compliance with all of the HUD requirements regarding eligibility and tenant recertification which could result in incorrect amount of rental assistance being 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 and inspections performed. 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.