Finding 2025-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers and Emergency Housing Vouchers Federal Assistance Listing Numbers: 14.871 and 14.EV Noncompliance – E. Eligibility - Tenant Files Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Eligibility Criteria: Tenant Files. The PHA must do the following: As a condition of admission or continued occupancy, require the tenant and other family member to provide necessary information, documentation, and releases for the PHA to verify income eligibility (24 CFR sections 5.230, 5.609, and 982.516). These files are required to be maintained and available for examination at the time of audit. Condition: Based upon inspection of the Authority’s files and on discussion with management, there were documents that were unavailable for examination at the time of audit. Context: There are approximately one thousand ninety eight (1,798) Housing Voucher Cluster units. Of a sample size of thirty one (31) tenant files, one (1) tenant's HUD-50058 form included income that was miscalculated during their annual reexamination. Our sample size is statistically valid. Known Questioned Costs: Amount is below threshold of $25,000. Cause: There is a significant deficiency in internal controls over the compliance for the eligibility type of compliance related to the maintenance of tenant files. The Authority has not properly considered, designed, implemented, maintained and monitored a system of internal controls that reasonably assures the program is in compliance. Effect: As a result of the Authority's failure to properly design, implement, maintain, and monitor internal controls over tenant eligibility determinations and file maintenance, there is an increased risk that ineligible participants may be admitted to or retained in the program, eligible participants may receive incorrect assistance, and instances of noncompliance may not be detected or corrected in a timely manner. Consequently, federal funds may be expended for unsupported or ineligible purposes, resulting in potential questioned costs and noncompliance with HUD requirements. 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 and Emergency Housing Vouchers Federal Assistance Listing Numbers: 14.871 and 14.EHV Noncompliance - N. Special Tests and Provisions - Selection from the Waiting List Non Compliance Material to the Financial Statements: No Significant Deficiency 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 hundred fifteen (115) newly leased Housing Voucher Cluster units. Of a sample size of twelve (12) new move-ins, two (2) 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: Amount is below threshold of $25,000. Cause: There is a significant deficiency 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 2025-004 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers and Emergency Housing Vouchers Federal Assistance Listing Numbers: 14.871 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 two hundred six (206) Housing Voucher Cluster units with failed inspections. Of a sample size of twenty one (21) failed inspections, two (2) 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: Amount is below threshold of $25,000. 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. This may result in unsupported housing assistance payments, increased program costs, and reduced assurance that program funds were used in accordance with federal requirements. 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 2025-005 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Titles: Housing Voucher Cluster - Section 8 Housing Choice Vouchers and Emergency Housing Vouchers Federal Assistance Listing Numbers: 14.871 and 14.EHV Noncompliance - N. Special Tests and Provisions - Utility Allowance Schedule Non Compliance Material to the Financial Statements: No Significant Deficiency in Internal Control over Compliance for Special Tests and Provisions Criteria: Utility Allowance Schedule. The PHA must maintain an up-to-date utility allowance schedule. The PHA must review utility rate data for each utility category each year and must adjust its utility allowance schedule if there has been a rate change of 10 percent or more for a utility category or fuel type since the last time the utility allowance schedule was revised (24 CFR section 982.517). Condition: Based upon inspection of the Authority’s files and on discussion with management, the Authority did not perform the required annual review of utility rate data during the audit period. Management was unable to provide documentation evidencing that utility rates were evaluated to determine whether revisions to the utility allowance schedule were required. Context: During our compliance testing, we noted that the Authority did not perform the required annual review of utility rate information during the audit period. As a result, the Authority could not demonstrate compliance with the utility allowance schedule requirements applicable to the Housing Voucher Cluster. Known Questioned Costs: Unknown Cause: The Authority's procedures did not include a process to ensure the annual review of utility rate data was performed and documented, resulting in noncompliance with HUD's utility allowance schedule requirements. Effect: The Authority's failure to perform and document the required annual review of utility rate data resulted in noncompliance with HUD requirements and increased the risk that necessary revisions to the utility allowance schedule would not be identified and implemented timely. Recommendation: We recommend that the Authority implement procedures to ensure the required annual review of utility rate data is performed, documented, and used to determine whether revisions to the utility allowance schedule are necessary in accordance with HUD regulations.