Audit 413629

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: MO002VO - 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: The Authority must reexamine family income and composition at least once every 12 months and adjust the tenant rent and housing assistance payment as necessary using the documentation from third party verification (24 CFR section 982.516). Condition: The Authority was unable to demonstrate timely recertifications were performed. Questioned costs: $12,060 Context: Exceptions noted in 2 out of 60 files tested for eligibility requirements. The Authority was unable to provide supporting documentation that 2 tenants were recertified timely. Cause: The Authority did not complete recertifications timely in accordance with eligibility requirements. Effect: The Authority is not in compliance with eligibility requirements. Repeat Finding: Yes, finding 2024-001. Recommendation: We recommend the Authority review their internal controls over the eligibility requirements to ensure all recertifications are performed timely. Views of responsible officials: There is no disagreement with the audit finding.

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: MO002VO - 2025 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement: Reporting – PIH Information Center (PIC) Reporting Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Authority is required to submit the HUD-50058 electronically to HUD via the PIH Information Center (PIC) each time the Authority completes an admission, annual reexamination, interim reexamination, portability move-in, or other change of unit for a family (24 CFR Part 908). Condition: The Authority did not report complete and accurate information in the PIC system. Questioned costs: None identified. The Authority did not properly report 4 recertifications in the PIC system. While this represents noncompliance with program reporting requirements, we did not identify reportable questioned costs as a result of the noncompliance. Context: Exceptions noted in 4 out of 60 recertifications. In 2 instances, the Housing Assistance Payment per the HUD-50058 did not agree to the PIC system. In 2 instances, the recertification was not located in the PIC system. Cause: The Authority did not identify recertifications that failed to upload to the PIC system. Effect: The Authority is not in compliance with PIC reporting requirements. Repeat Finding: Yes, finding 2024-002. Recommendation: We recommend that the Authority implements controls to ensure HUD-50058 recertifications are uploaded to PIC. Views of responsible officials: There is no disagreement with the audit finding.

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: MO002VO - 2025 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement: Special Tests and Provisions – Housing Quality Standards – Annual Inspections Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The PHA must inspect the unit leased to a family at least biennially to determine if the unit meets Housing Quality Standards (HQS). The PHA must prepare a unit inspection report (24 CFR section 982.405(b)). Condition: The Authority was unable to demonstrate timely HQS inspections were performed on all units. Questioned costs: None identified. The Authority did not complete the annual HQS inspection within the required timeframe for 1 of the units tested. While this represents noncompliance with program requirements, we did not perform procedures to determine whether the unit failed to meet HQS. As a result, we did not determine whether HAP payments made during the period of noncompliance were unallowable. Accordingly, no questioned costs were identified. Context: Exception noted in 1 out of 60 units tested for HQS inspections. The annual HQS inspection was not completed timely. Cause: The Authority did not perform annual HQS inspections timely. Effect: The Authority is not in compliance with annual HQS inspection requirements. Repeat Finding: No. Recommendation: We recommend that the Authority completes HQS inspections on an annual basis and implements a control to ensure compliance with annual HQS inspection requirements. Views of responsible officials: There is no disagreement with the audit finding.

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: MO002VO - 2025 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement: Special Tests and Provisions – Housing Assistance Payment (HAP) Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The PHA must pay a monthly HAP on behalf of the family that corresponds with the amount on line 12u of the HUD-50058. This HAP amount must be reflected on the HAP contract and HAP register (24 CFR section 982.158 and 24 CFR Part 982, Subpart K). Condition: The Authority was unable to demonstrate HAP payments agreed to underlying supporting documentation. Questioned costs: $1,668 Context: Exceptions were noted in 1 out of 60 tenant files. 12u of the HUD-50058 did not agree to the HAP contract and HAP register. Cause: The Authority did not ensure that the HUD-50058, HAP contract, and HAP register agree. Effect: The Authority is not in compliance with HAP requirements. Repeat Finding: Yes, finding 2024-005. Recommendation: We recommend the Authority implements controls to ensure the HAP agrees between the HUD-50058, HAP contract, and HAP register. Views of responsible officials: There is no disagreement with the audit finding.

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: MO002VO - 2025 Award Period: January 1, 2025 – December 31, 2025 Compliance Requirement: Special Tests and Provisions – HQS Enforcement Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet HQS, the Authority 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 Authority-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the Authority 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 Authority must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority was unable to demonstrate HAP payments were abated for units that failed to meet HQS. Questioned costs: $1,630 Context: Exceptions were noted in 3 out of 60 failed inspections. The Authority did not properly abate HAP for 3 out of 60 failed inspections. Cause: The Authority did not abate units timely. Effect: The Authority is not in compliance with HQS enforcement requirements. Repeat Finding: Yes, finding 2024-004. Recommendation: We recommend the Authority implements controls to ensure abatement is timely for units that do not correct the cited HQS deficiencies within the required timeframe. Views of responsible officials: There is no disagreement with the audit finding.