Federal Authority: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Moving To Work Demonstration Assistance Listing Number: 14.881 Federal Award Identification Number and Year: DC001 - 2025 Award Period: October 1, 2024 – September 30, 2025 Type of Finding: • Material Noncompliance and Material Weakness in Internal Control over Compliance for Eligibility Criteria or specific requirement: Beneficiaries must be "low-income families," as defined in Section 3(b)(2) of the 1937 Housing Act (42 USC 1437a(b)(2)) (Section 204(b) of Pub. L. No. 104-134 (42 USC 1437f (note))). Condition: Housing Choice Vouchers - During testing, we identified the following eligibility issues in twenty separate files: • 6 out of 60 sampled tenant files lacked documentation supporting income eligibility. • 2 out of 60 sampled tenant files did not include evidence of annual inspections completed during the year. • 14 out of 60 sampled tenant files did not contain a QC checklist signed off by a specialist. • 1 out of 60 sampled tenant files did not have inspector signoff on the inspection performed during the year. • 4 out of 60 sampled tenant files did not follow the simplified recertification process. Public Housing Program - During testing, we identified the following eligibility issues in four separate files: • 1 out of 60 sampled tenant files lacked documentation supporting income eligibility. • 1 out of 60 sampled tenant files did not include evidence of annual reexaminations completed during the year. • 1 out of 60 sampled tenant files did not accurately reflect annual income obtained from the Enterprise Income Verification (EIV) system. • 1 out of 60 sampled tenant files did not verify that the tenant was under the low-income limit. Questioned costs: Unknown. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent or HAP may have been miscalculated due to using incorrect information in the calculations. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: Yes; 2024-021 Recommendation: We recommend that the Authority staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of responsible officials: Management agrees with the finding. Refer to the corrective action plan on current findings in this report.
Federal Authority: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: DC001 - 2025 Award Period: October 1, 2024 – September 30, 2025 Type of Finding: • Material Noncompliance and Material Weakness in Internal Control over Compliance for Eligibility Criteria or specific requirement: For both family income examinations and reexaminations, the PHA must obtain and document in the family file third party verification of (1) reported family annual income; (2) the value of assets; (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition: • For 3 out of 60 beneficiaries selected for eligibility, the expenses reported on the 50058 form were not supported. • For 4 out of 60 beneficiaries selected for eligibility, we did not observe 3rd party verification of reported income. • For 3 out of 60 beneficiaries selected for eligibility, we did not observe biennial reexaminations of Family income and composition • For 1 out of 60 beneficiaries selected for eligibility, we did not observe a signed Authorization for Release of Information/Privacy Notice Act(HUD-9886) form. • For 1 out of 60 beneficiaries selected for eligibility, we did not observe a General Release form signed by all members of the household over the age of 18. • For 1 out of 60 beneficiaries selected for eligibility, we did not observe a signed move-in or recertification checklist completed by a housing specialist. Questioned costs: Unknown. Cause: The Authority did not sufficiently monitor controls to ensure compliance with eligibility requirements. Effect: The Authority is not in compliance with federal regulations regarding eligibility. Tenant rent or HAP may have been miscalculated due to using incorrect information in the recalculations. Tenant recertifications were not shown to be performed on a timely basis. Repeat Finding: Yes: 2024-022 Recommendation: We recommend that Authority staff review the controls in place to ensure that required eligibility determination documentation is complete, accurate, and available for audit. Views of responsible officials: Management agrees with the finding. Refer to the corrective action plan on current findings in this report.
Federal Authority: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: DC001 - 2025 Award Period: October 1, 2024 – September 30, 2025 Type of Finding: • Material Noncompliance and Material Weakness in Internal Control over Compliance for Special Tests and Provisions – HQS Enforcement Criteria or specific requirement: When performing HQS inspections that result in an owner failed to correct cited HQS deficiencies within a specified time frame, the PHA must show that it properly stopped (abated) HAPs or terminated the HAP contract (24 CFR sections 982.158(d) and 982.404). Condition: • For 30 of 60 files tested, the reinspection was not completed within the required timeframe. Additionally, the Authority did not place the unit under abatement and stop HAP during this period. • For 11 of 60 files tested, the unit failed reinspection and there was no documentation that the deficiencies were corrected within the allowable correction period. • For 7 of 60 files tested, there was no evidence that the PHA took proper steps to properly enforce family obligations when the Unit failed inspection due to tenant responsibilities. • For 2 of 60 files tested, there was no evidence that the Landlord and tenant were notified about their scheduled inspection. • For 2 out of 60 files tested, there was no inspector signature on the original failed inspection Questioned costs: $333,801 Cause The Authority did not reinspect or abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: Yes; 2024-023 Recommendation: We recommend the Authority implements controls to ensure that the Authority requires HQS deficiencies to be corrected within the timeframe set forth by 2 CFR section 982.404(a). We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: Management agrees with the finding. Refer to the corrective action plan on current findings in this report.
Federal Authority: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: DC001 - 2025 Award Period: October 1, 2024 – September 30, 2025 Type of Finding: • Material Noncompliance and Material Weakness in Internal Control over Compliance for Special Tests and Provisions – Annual HQS Inspections Criteria or specific requirement: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). Condition: • For 22 of the 60 samples, we were unable to view biennial inspections being performed. • For 3 of 60 samples, we were unable to see Inspector signature on the inspection report provided. Questioned costs: $254,638 Cause: The Authority did not sufficiently monitor controls to ensure compliance with reporting requirements. Effect: The Authority is not in compliance with federal regulations regarding HQS inspections. Repeat Finding: Yes; 2024-024 Recommendation: We recommend the Authority implements controls to ensure that HQS inspections are completed in accordance with their administrative plan. Views of responsible officials: Management agrees with the finding. Refer to the corrective action plan on current findings in this report.
Federal Authority: U.S. Department of Housing and Urban Development (HUD) Federal Program Name: Housing Choice Voucher Program Assistance Listing Number: 14.871 and 14.879 Federal Award Identification Number and Year: DC001 - 2025 Award Period: October 1, 2024 – September 30, 2025 Type of Finding: • Noncompliance and Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions – Waiting List Criteria or specific requirement: The PHA must have written policies in its HCVP administrative plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants for admission from the waiting list. (24 CFR sections 5.410, 982.54(d), and 982.201 through 982.207). When a family has been selected from the waiting list, the PHA must notify the family (24 CFR 982.544(a)). Each family member, regardless of age, must submit the following evidence to the responsible entity: For U.S. citizens or U.S. nationals, the evidence consists of a signed declaration of U.S. citizenship or U.S. nationality. The responsible entity may request verification of the declaration by requiring presentation of a United States passport or other appropriate documentation, as specified in HUD guidance. (24 CFR 5.508) Condition: During testing, we identified the following eligibility issues in four separate files: • For 1 of the 60 files tested, there was no documentation indicating the reason why a tenant was not admitted to the program. • For 3 of the 60 files tested, there was no documentation indicating that the tenant was notified that they have reached the top of the waiting list. Questioned costs: Unknown Cause: The Authority did not sufficiently monitor controls to ensure compliance with waiting list requirements. Effect: The lack of internal controls over the waiting list requirements could result in individuals not being selected or housed in accordance with the Authority’s and HUD’s requirements. Repeat Finding: No Recommendation: We recommend the Authority implements controls over the waiting list process to ensure all documentation is maintained at the time of each applicant is selected from the waiting list. Views of responsible officials: Management agrees with the finding. Refer to the corrective action plan on current findings in this report.