Audit 412428

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: OR005 – 2025 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement: Special Tests and Provisions – Quality Control Re-inspections (QC) Type of Finding: • Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria or Specific Requirement: According to the OMB Compliance Supplement for HCVP program. "The PHA must inspect the unit leased to a family at least biennially 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 sections 982.158(d) and 982.405(b))." Condition: The Authority did not perform QC inspections in accordance with program compliance requirements. Context: During our discussions with management, it was determined that no quality control reinspections were performed during the fiscal year. Questioned costs: None Cause: The Authority did not perform QC inspections during the fiscal year. Effect: The Authority is not in compliance with program requirements over QC inspections. Repeat Finding: No Recommendation: We recommend that the Authority implement internal controls to ensure that required quality control re-inspections are completed on an annual basis. Views of responsible officials: There is no disagreement with the audit finding and the Authority has already begun the process of scheduling QC inspections for FY 2026.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: OR005 – 2025 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement: Special Tests and Provisions – Reasonable Rent Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: According to the OMB Compliance Supplement for HCVP program. "The PHA’s administrative plan must state the method used by the PHA to determine that the rent to owner is reasonable in comparison to rent for other comparable unassisted units. The PHA determination must consider unit attributes such as the location, quality, size, unit type, and age of the unit, and any amenities, housing services, maintenance, and utilities provided by the owner." Condition: The Authority did not have adequate internal controls designed to ensure that the rent determination date was before the effective date. Context: During our testing over rent reasonableness, auditor noted 1 of the 40 selections tested had rent determinations completed after the effective date. Questioned costs: None Cause: The Authority did not have adequate internal controls designed to ensure that rent determinations were completed prior to the effective date. Effect: The Authority is not in compliance with program requirements over reasonable rent. Repeat Finding: Yes. 2024-001 Recommendation: We recommend that the Authority implement internal controls to ensure that tenant reasonable rent are completed timely. View of Responsible Officials: There is no disagreement with the audit finding that Authority has implemented additional training to the Housing Program Administrators as well as increased auditing of tenant files for FY 2026.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: OR005 – 2025 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement:– Eligibility Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: (1) According to the Authority's internal procedures, case managers are to complete a checklist to keep in tenant file any time a new computation is created, be that for an annual, interim, or special reexamination. This must be signed and dated by the completing caseworker. (2) According to the compliance supplement for the Housing Voucher Cluster, "The PHA must do the following: (1) As a condition of admission or continued occupancy, require the tenant and other family members to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230). Condition: The Authority did not have adequate internal controls designed to ensure documentation was maintained in the tenant file and properly supported the Housing Assistance Payment in accordance with federal regulation and Authority policy. Context: During our testing, we identified the following eligibility issues in two separate files: • One of forty sampled tenant files did not have a previous or subsequent annual recertification available to review and determine the recertification was done annually. • One of forty sample tenant files did not have supporting documentation for the medical allowance. Questioned costs: None Cause: The Authority did not have adequate internal controls designed to ensure it is meeting eligibility requirements set by HUD. Effect: The Authority is not in compliance with program requirements over eligibility. Repeat Finding: Yes. 2024-003 Recommendation: We recommend the Authority implement processes to ensure that all proper documentation is being maintained during the process for every tenant. Views of Responsible Officials: There is no disagreement with the audit finding that Authority has implemented additional training to the Housing Program Administrators as well as increased auditing of tenant files for FY 2026.

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871/14.879 Federal Award Identification Number and Year: OR005 – 2025 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement: Special Tests and Provisions – Failed HQS Inspections Type of Finding: • Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: According to the OMB Compliance Supplement for HCVP program. "For units under HAP contract that fail to meet HQS, if the reported deficiency is life-threatening, the PHA must, within 24 hours of notification, both inspect the housing unit and notify the owner if the lifethreatening deficiency is confirmed. The owner must then make the repairs within 24 hours of PHA notification. If the reported deficiency is non-life-threatening, the PHA must, within 15 days of notification, both inspect the unit and notify the owner if the deficiency is confirmed. The owner must then make the repairs within 30 days of notification from the PHA or within any PHA-approved extension. (24 CFR section 982.405(d))." Condition: The Authority did not have adequate internal controls designed to ensure that the failed HQS re-inspections were completed timely. Context: During our testing over failed HQS inspections, auditor noted 6 of the 10 selections were not re-inspected timely. Questioned costs: None Cause: The Authority did not have adequate internal controls designed to ensure that inspections were completely timely. Effect: The Authority is not in compliance with program requirements over failed HQS inspections. Recommendation: We recommend that the Authority implement internal controls to ensure failed HQS inspections are completed timely. Repeat Finding: No. Recommendation: We recommend that the Authority implement internal controls to ensure failed HQS inspections are completed timely. View of responsible officials and planned corrective action: There is no disagreement with the audit finding and the Authority will be meeting with their outsourced vendor of HQS inspections and implement more oversight of this vendor.