Audit 414202

Eligibility Housing Voucher Cluster Significant Deficiency in Internal Control Other matter required to be reported in accordance with Uniform Guidance (Repeated in part from prior year, Finding No. 2024-004) Condition: Out of an approximate population of 1,680 Housing Voucher Cluster tenants we tested 40 tenants and the following deficiencies were noted: • 3 files did not have a semi-annual inspection completed; • 1 file did not have a signed 9886 form available; • 1 file had the incorrect payment standard applied; • 1 file had incorrectly reported income on the annual recertification; and, • 1 file had incorrectly reported assets on the annual recertification. Context: The auditor haphazardly selected tenant files out of the population from each program as outlined, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Criteria: The Authority’s Administrative Plan and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to timely recertifications and collection of required HUD documentation to verify eligibility and calculate accurate housing assistance payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. Questioned Costs: Unknown. Auditor Recommendations: The Authority should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.

Eligibility Public Housing Operating Fund, ALN 14.850 Material Weakness in Internal Control Material Noncompliance (Repeated in part from prior year, Finding No. 2024-005) Condition: Out of an approximate population of 360 Public Housing tenants we tested 40 tenants and the following deficiencies were noted: • 30 files did not have an inspection performed within the required period; • 9 files did not have proper identification or birth certificates for members of the household; • 8 files did not have a flat rent option sheet available; • 8 files had the incorrect utility allowance utilized; • 7 files did not have 214 documentation available; • 5 files did not have internal quality control documentation available; • 4 files did not have a 9886 form signed within the required period; and, • 1 file did not have a prior year annual recertification available. Context: The auditor haphazardly selected tenant files out of the population from each program as outlined, which we consider to be a statistically valid sample size. The auditor reviewed the tenant files and support to ensure that proper procedures are being followed and that the Authority is in compliance with HUD requirements regarding timely, complete, and accurate tenant files and that the units are being properly inspected on an annual basis. Criteria: The Authority’s Admissions and Continued Occupancy Policy and 24 CFR 960.257 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding timely, complete, and accurate tenant files. 24 CFR 5.705 requires that the Authority annually inspect its units in accordance with HUD-prescribed physical inspection procedures. Cause: The Authority experienced staffing and operational challenges and did not have the available staff to follow the established internal controls to ensure proper compliance with regards to collection of required HUD documentation to verify eligibility and calculate accurate rental payments. Effect: The Authority is not in compliance with HUD requirements regarding eligibility which could result in the incorrect amount of rental assistance provided. The Authority’s Low Rent Public Housing units may not be decent, safe, sanitary and in good repair. Questioned Costs: Unknown. Auditor Recommendations: The Authority should consider reevaluating their established procedures and controls currently in place to ensure full compliance in regards to eligibility and the timeliness of recertifications. The Authority needs to correct the deficiencies noted in the tested files and consider the impact to the rest of the population of tenant files that were not selected as part of the auditor’s sample. Management Response: See Corrective Action Plan.