Audit 410921

Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers, and Emergency Housing Vouchers Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance - N. Special Tests and Provisions - Selection from the Waiting List Non Compliance Material to the Financial Statements: Yes Material Weakness in Internal Control over Compliance for Special Tests and Provisions Criteria: Selections from the Waiting List. The PHA must have written policies in its Section 8 Administrative Plan for selecting applicants from the waiting list and PHA documentation must show that the PHA follows these policies when selecting applicants from the waiting list. Except for as provided in 24 CFR section 982.203 (Special admission (non-waiting list), all families admitted to the program must be selected from the waiting list. “Selection” from the waiting list generally occurs when the PHA notifies a family whose name reaches the top of the waiting list to come in to verify eligibility for admission (24CFR sections 5.410, 982.54(d), and 982.201 through 982.207). Condition: Based upon inspection of the waiting list provided to us during the time of audit, the new move-in list and discussions with management, it could not be determined with any certainty that certain new move-ins to the Housing Voucher Cluster were selected from the waiting list in an order that is in accordance with the Authority’s Section 8 Administrative Plan. Context: There were approximately one thousand thirty eight (1,038) newly leased Housing Voucher Cluster units. Of a sample size of twenty five (25) new move-ins, twenty (20) could not be determined to be housed in proper order from the Authority's waiting list. Our sample size is statistically valid. Known Questioned Costs: $307,180* * Represents HAP attributable to the twenty (20) tenant files for which the Authority could not demonstrate compliance with waiting list selection requirements. The questioned costs do not represent amounts determined to be ineligible but rather costs associated with participant admissions lacking sufficient documentation of compliance. Cause: There is a material weakness in internal controls over the compliance for the special tests and provisions type of compliance related to selection from the waiting list. The Authority has not properly housed applicants in compliance with program requirements. Effect: The Authority's inability to demonstrate compliance with waiting list selection requirements increases the risk that Housing Voucher Cluster assistance was provided to participants who were not selected in accordance with HUD regulations and the Authority's Administrative Plan. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.

Finding 2025-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers, Mainstream Vouchers, and Emergency Housing Vouchers Federal Assistance Listing Numbers: 14.871, 14.879, and 14.EHV Noncompliance – N. Special Tests and Provisions - Housing Quality Standards Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Housing Quality Standards Inspections. The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets the Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158(d) and 982.405(b)). For units that fail inspection the PHA must correct all life threatening HQS deficiencies within 24 hours and all other deficiencies within 30 days. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were units that failed inspections that did not pass reinspection within 30 days without penalty. Context: There were approximately eight hundred twenty four (824) Housing Voucher Cluster units with failed inspections. Of a sample size of twenty five (25) failed inspections, twelve (12) units did not pass reinspection within 30 days. Housing assistance payments were not abated nor was the tenant relocated. Our sample size is statistically valid. Known Questioned Costs: $61,478* *Represents HAP attributable to the twelve (12) tenant files for which the Authority could not demonstrate compliance with HQS reinspection and enforcement requirements. The questioned costs do not represent amounts determined to be ineligible but rather costs associated with units that remained in noncompliance beyond the required correction period without abatement of HAP. Cause: There is a significant deficiency in internal controls over the compliance for the special tests and provisions type of compliance related to HQS inspections. The Authority has not properly performed annual HQS inspections in compliance with program requirements. Effect: The Authority's failure to ensure timely correction of HQS deficiencies and enforce required abatement procedures increases the risk that federal funds were used to provide housing assistance for units that did not meet HUD Housing Quality Standards. As a result, the Authority cannot demonstrate that assisted units complied with program requirements during the period of noncompliance. Recommendation: We recommend the Authority design and implement internal control procedures that will reasonably assure compliance with the Uniform Guidance and the compliance supplement.