Audit 411791

Criteria The PHA must inspect the unit leased to a family at least bi-annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR §§982.405, 983.103)). Additionally, for units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP contract. The owner is not responsible for a breach of HQS as a result of the family’s failure to pay for utilities for which the family is responsible under the lease or for tenant damage. For family-caused defects, if the family does not correct the cited HQS deficiencies within the specified correction period, the PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition During our audit, we identified four (4) failed HQS that did not receive a pass for several months and no rent abatement process was started or enforced during that time period. Context: The HQS population was 811 failed inspection during our audit period. We selected a sample of 40 inspection and identified of those 4 reviewed did not obtain a re-inspection pass within the Criteria noted above and no rent abatement process was enforce on landlord. Cause: Controls over compliance associated with the Authority’s grants of federal funds are inadequate. Effect: The Authority is non-compliant with the federal regulations over this federal program, this could potentially result in operating and financial penalties. Recommendations: We suggest the Authority properly oversee compliance with regulations and enforce rent abatements if necessary to adherence to federal compliance requirements. Questioned Costs: None. Management Views: Management acknowledges the audit findings and is committed to taking corrective actions.

2025-003 HUD Required Reporting Criteria Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end; FDS audited submissions are due 9 months after fiscal year end; and the Federal Audit Clearing House reporting package is due 30 days after receipt of the auditors reports or 9 months after the end of the fiscal year end (24 CFR section 5.801). Condition It was identified during the audit that the Authority did not meet the prescribed deadlines for submitting the FASSPHA unaudited submission before due of February 28, 2026. Context The Authority has been catching up on audits and unaudited filings since 2023. The 2024 audit submission was first submission completed within the 9 month time period in several years. Cause The Authority is still catching up on submission and was about 30 days late in submitting the unaudited submission to HUD. Effect The failure to submit these reports on time undermines the Authority’s compliance with federal regulations, potentially affecting its eligibility for future funding and leading to reputational damage. It may also delay financial and operational decisions by HUD that depend on the analysis of these reports. Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. Questioned Costs None. Management Views Management acknowledges the audit findings and is committed to taking corrective actions.

Criteria As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the Authority to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). Condition Incomplete documentation of tenant’s income eligibility for participation in the Housing Choice Voucher Program. During the sampling of forty (40) tenant files we noted: (A) nine (9) did not include utility allowance calculation that agreed to the HUD form 50058; (B) four (4) files did not have 50058s that tied to the HAP register for the period as management was unable to locate documentation. Additionally, five (5) tenants were not re-examined and re-certified annually. Context The Authority manages over 600 Housing Choice Vouchers and 600 Port-In Voucher during the year. We sampled 40 tenant files for multiple compliance requirements. Cause The failure to meet compliance requirements noted above can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and maintain the required documentation in tenant files. Effect Compliance with income limits and eligibility could not be demonstrated for sampled tenants. Therefore, ineligible individuals may be receiving HAP assistance and/or HAP is being incorrectly calculated based on unverified incomes. Recommendations It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well-versed in HUD requirements and (2) Revise and streamline internal processes to improve efficiency and reliability in meeting HUD's requirements for determining tenant eligibility. Questioned Costs The exact monetary impact needs further investigation to determine the amount for the period of non-compliance. Management Views Management agrees with this finding and have outlined a plan of action in the Corrective Action Plan.