Audit 413592

Federal Program – Section 8 Housing Choice Voucher Program AL #14.871 – Allowable Costs/Cost Principles Federal Program Section 8 Housing Choice Vouchers AL #14.871 – Material Weakness Criteria Amounts paid under the Section 8 Vouchers Program must meet allowable costs/cost principles per HUD’s annual guidance. Condition During our testing of disbursements, we noted 26 instances of the Authority not having documentation to support an allocation of costs to the vouchers program. Questioned Costs Undeterminable. Context We reviewed a random sample of thirty disbursements from the Section 8 Vouchers Program. Effect The allocated costs to the Section 8 Vouchers Program were undeterminable due to the fact that no documentation support for the allocation was provided. Cause The Authority experienced turnover in the Section 8 program. As a result, allocation documentations were not saved as the previous year allocations were used. Repeat Finding This is a repeat of finding 2024-002. Recommendation We recommend that the Authority implement proper internal controls to ensure the Authority’s compliance with adequate documentation. Views of Responsible Officials We are aware of the issue and have taken subsequent steps to ensure compliance with this requirement.

Federal Program – Section 8 Housing Choice Voucher Program AL #14.871 – Eligibility for Individuals Federal Program Section 8 Housing Choice Vouchers AL #14.871 – Material Weakness Criteria The PHA must obtain and document in the family file third party verification of reported family annual income; the value of assets; expenses related to deductions from annual income; and other factors that affect the determination of adjusted income or income-based rent (24 CFR section 982.516). Condition During our testing of fifteen tenant files, we noted that four files had income calculation errors and one of those files used the incorrect payment standard and Utility allowance for the household. We also noted four files with checklists filled out but not signed and one file missing a checklist. Questioned Costs Undeterminable. Context We reviewed a random sample of fifteen out of 143 tenant files for a tenant’s HAP amount. Effect The income verified was not appropriately used for determining the tenant’s income. Cause The Authority experienced turnover in the Section 8 program. As a result, controls were not in place to ensure proper documentation. Repeat Finding This is a repeat of finding 2024-003. Recommendation We recommend that the Authority implement proper internal controls to ensure the Authority’s compliance with special tests requirements. Views of Responsible Officials We are aware of the issue and have taken subsequent steps to ensure compliance with this requirement.

Federal Program – Section 8 Housing Choice Voucher Program AL #14.871 – Reporting – Voucher for Payment of Annual Contributions and Operating Statement Federal Program Section 8 Housing Choice Vouchers AL #14.871 – Significant Deficiency Criteria The Authority is required to submit the Voucher for Payment of Annual Contributions and Operating Statement report monthly to HUD via the Voucher Management System (VMS). Condition During our testing of reporting, we noted that there were no processes in place that segregated duties of the individual preparing or submitting the Voucher for Payment of Annual Contribution and Operating Statement using VMS. Questioned Costs None. Context During testing, we reviewed all required reports. Effect Information reported was not appropriately reviewed by an additional individual. Cause The Authority experienced turnover in the Section 8 program. As a result, controls were not in place to ensure proper reporting. Repeat Finding This is a repeat of finding 2024-004. Recommendation We recommend that the Authority implement proper internal controls to ensure the Authority’s compliance with reporting requirements. Views of Responsible Officials We are aware of the issue and have taken subsequent steps to ensure compliance with this requirement.