Audit 413646

2025-002 – REPORTING Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development ALN #: 14.871 $ 14.879 – Housing Voucher Cluster CRITERIA The unaudited financial statements are due two months after the Authority’s fiscal year end and audited financial statements are due nine months after its fiscal year end (24 CFR section 5.801). CONDITION The required unaudited annual filing with HUD’s REAC Estate Assessment Center (REAC), for fiscal year 2025, was not made by the required deadline of September 15, 2025. This filing was submitted on March 2, 2026. The audited submission was not submitted by the March 31, 2026 deadline. CAUSE The Authority’s internal control processes were not sufficient to ensure timely filing of the unaudited FDS. EFFECT As a result of not submitting both the unaudited and audited FDS timely, HUD was limited in its ability to conduct proper monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority was required to submit unaudited financial information with HUD’s Real Estate Assessment Center (REAC), by September 15, 2025, and the audited submission by March 31, 2026. REPEAT FINDING Repeat Finding of 2024-002. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow for the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

2025-003 – ELIGIBILITY Material Weakness/Noncompliance U.S. Department of Housing and Urban Development ALN #: 14.871 & 14.879 – Housing Voucher Cluster CRITERIA For both family income examinations and reexamination, obtain and document in the family file third-party verification of (1) reported family annual income (2) the value of assets (3) expenses related to deductions from annual income; and (4) other factors that affect the determination of adjusted income or income-based rent (24 CFR Section 982.516). Determine income eligibility and calculate the tenant’s rent payment using the documentation from third-party verification in accordance with 24 CFR Part 5 subpart F (24 CFR section 5.601 et seq.) (24CFR sections 982.201, 982.515, 982.516). CONDITION As a result of audit procedures, we identified 10 instances of missing income verification and 8 instances of missing information release forms. CAUSE The Authority’s system of internal control over the participant recertification process was not sufficient to meet the requirements established by HUD. EFFECT Redetermination of tenant’s rent and the housing assistance payment was not performed in accordance with HUD regulations. As a result, tenants may have paid more or less in rent than they should have paid. QUESTIONED COSTS None identified. CONTEXT We selected a sample of 25 program participants from a population of 254 participants in the Housing Voucher Cluster. This was not a statistically valid sample. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority develop and implement a recertification checklist to accompany the tenant file to ensure all required documentation is obtained. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.