2022 ? 002: Segregation of Duties - Compliance Federal agency: All Programs Federal program title: All Programs Assistance Listing No.: All Programs Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance Criteria or specific requirement: It is the Authority?s responsibility to establish and maintain systems of internal control over compliance that includes proper segregation of duties. Condition: The Authority does not have a system of internal controls over compliance built into the Authority?s policies and procedures that appropriately reduces the risk of noncompliance to an appropriately low level. Context: While performing audit procedures, it was noted that the Authority does not have a system of internal controls over compliance built into the Authority?s policies and procedures that appropriately reduces the risk of noncompliance with respect to compliance requirements related to eligibility and special tests and provisions. Cause: The Authority has not taken the appropriate steps to construct internal controls within their policies and procedures related to compliance with the Federal programs to the extent that the risk of noncompliance is reduced to an appropriately low level. Effect: As a result of the lack of segregation of duties and internal control, there were several compliance findings noted that resulted in material noncompliance with respect to eligibility and special tests and provisions. Repeat Finding: Yes; 2021-003. Recommendation: We recommend that the Authority?s management reviews the accounting information which is the best means of preventing and detecting errors and irregularities. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003: Income and Asset Verification Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: Income reported on the tenant assistance application was verified by the housing specialist by obtaining 3rd party verification of annual income. (3rd party verification includes direct confirmation from an employer, at least 4 paystubs, EIV report (required for 10/09 and later), SS award letter, printouts from Dept of Social Services for TANF, child support, etc.) (24 CFR 985.516). Assets reported on the tenant assistance application were verified by the leasing specialist by obtaining 3rd party verification of assets. If the tenant listed bank accounts, the PHA must obtain account balances from the bank or copies of bank statements. If the tenant receives SS income or wages, look at these forms to see if there is any indication of direct deposit. If so, the PHA should have gotten bank statements). (24 CFR 985.516). HAP/TAP was properly calculated using all verified information from above and was inputted into the HUD 50058 calculation. If the income reported is not correct per #2 above or there was no 3rd party verification of assets, this is incorrect as well. Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - Unknow Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, four (4) tenant files did not contain an updated EIV form as a part of the annual re-examination and five (5) tenant files did not contain third party verification of assets. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the requirements of the 24 CFR sections 985.516. Repeat Finding: No Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004: Maintenance of Release Forms Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2021 ? December 31, 2021 Type of Finding: ? Internal Control, Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230). Condition: During our testing, we noted the Authority failed to maintain documentation of compliance with the requirements as stated in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, two (2) tenant files did not contain the required release of information form signed by the tenant. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria. Repeat Finding: Yes; 2021-007 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 005: Annual Inspections Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: Reviewed the tenant file to ensure that it documented the completion of an HQS inspection in accordance with the HCVP Admin Plan and 24 CFR 982.158(d) & 982.405(b) either on a paper inspection form or electronically. This includes the proper reinspection procedures. If the family was a participant in the Family Self Sufficiency (FSS) Program an inspection is not required. (Special Tests and Provisions- Housing Quality Standards Inspections). Per discussion with Roscely Santiago, there were no annual HQS Inspections performed in 2021. Instead, HARC sent a letter acquiring signature of landlord and tenant that there were no life threatening deficiencies. The most recent passed inspection occurred within 12 months of previous passed inspection. If HQS required reinspections, re-inspection was completed with required time period. Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, twenty-one (21) tenant files failed their annual inspection, repairs were not completed within the required timeframe and HAP was not abated. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria. Repeat Finding: No Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 006: Housing Quality Standards (HQS) Enforcement Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet (Housing Quality Standards (HQS), the PHA 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 PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA 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 PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of forty (40) program participant files selected for testing, we noted six (6) instances where the repairs were not completed timely in accordance with the stated criteria and the HAP was not held. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the requirements of the 24 CFR sections 982.158(d) and 982.404 related to the HQS enforcement. Repeat Finding: Yes; 2021-004 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of HQS enforcement. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002: Segregation of Duties - Compliance Federal agency: All Programs Federal program title: All Programs Assistance Listing No.: All Programs Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance Criteria or specific requirement: It is the Authority?s responsibility to establish and maintain systems of internal control over compliance that includes proper segregation of duties. Condition: The Authority does not have a system of internal controls over compliance built into the Authority?s policies and procedures that appropriately reduces the risk of noncompliance to an appropriately low level. Context: While performing audit procedures, it was noted that the Authority does not have a system of internal controls over compliance built into the Authority?s policies and procedures that appropriately reduces the risk of noncompliance with respect to compliance requirements related to eligibility and special tests and provisions. Cause: The Authority has not taken the appropriate steps to construct internal controls within their policies and procedures related to compliance with the Federal programs to the extent that the risk of noncompliance is reduced to an appropriately low level. Effect: As a result of the lack of segregation of duties and internal control, there were several compliance findings noted that resulted in material noncompliance with respect to eligibility and special tests and provisions. Repeat Finding: Yes; 2021-003. Recommendation: We recommend that the Authority?s management reviews the accounting information which is the best means of preventing and detecting errors and irregularities. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003: Income and Asset Verification Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: Income reported on the tenant assistance application was verified by the housing specialist by obtaining 3rd party verification of annual income. (3rd party verification includes direct confirmation from an employer, at least 4 paystubs, EIV report (required for 10/09 and later), SS award letter, printouts from Dept of Social Services for TANF, child support, etc.) (24 CFR 985.516). Assets reported on the tenant assistance application were verified by the leasing specialist by obtaining 3rd party verification of assets. If the tenant listed bank accounts, the PHA must obtain account balances from the bank or copies of bank statements. If the tenant receives SS income or wages, look at these forms to see if there is any indication of direct deposit. If so, the PHA should have gotten bank statements). (24 CFR 985.516). HAP/TAP was properly calculated using all verified information from above and was inputted into the HUD 50058 calculation. If the income reported is not correct per #2 above or there was no 3rd party verification of assets, this is incorrect as well. Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - Unknow Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, four (4) tenant files did not contain an updated EIV form as a part of the annual re-examination and five (5) tenant files did not contain third party verification of assets. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the requirements of the 24 CFR sections 985.516. Repeat Finding: No Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004: Maintenance of Release Forms Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2021 ? December 31, 2021 Type of Finding: ? Internal Control, Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230). Condition: During our testing, we noted the Authority failed to maintain documentation of compliance with the requirements as stated in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, two (2) tenant files did not contain the required release of information form signed by the tenant. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria. Repeat Finding: Yes; 2021-007 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 005: Annual Inspections Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: Reviewed the tenant file to ensure that it documented the completion of an HQS inspection in accordance with the HCVP Admin Plan and 24 CFR 982.158(d) & 982.405(b) either on a paper inspection form or electronically. This includes the proper reinspection procedures. If the family was a participant in the Family Self Sufficiency (FSS) Program an inspection is not required. (Special Tests and Provisions- Housing Quality Standards Inspections). Per discussion with Roscely Santiago, there were no annual HQS Inspections performed in 2021. Instead, HARC sent a letter acquiring signature of landlord and tenant that there were no life threatening deficiencies. The most recent passed inspection occurred within 12 months of previous passed inspection. If HQS required reinspections, re-inspection was completed with required time period. Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, twenty-one (21) tenant files failed their annual inspection, repairs were not completed within the required timeframe and HAP was not abated. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria. Repeat Finding: No Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 006: Housing Quality Standards (HQS) Enforcement Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet (Housing Quality Standards (HQS), the PHA 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 PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA 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 PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of forty (40) program participant files selected for testing, we noted six (6) instances where the repairs were not completed timely in accordance with the stated criteria and the HAP was not held. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the requirements of the 24 CFR sections 982.158(d) and 982.404 related to the HQS enforcement. Repeat Finding: Yes; 2021-004 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of HQS enforcement. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002: Segregation of Duties - Compliance Federal agency: All Programs Federal program title: All Programs Assistance Listing No.: All Programs Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance Criteria or specific requirement: It is the Authority?s responsibility to establish and maintain systems of internal control over compliance that includes proper segregation of duties. Condition: The Authority does not have a system of internal controls over compliance built into the Authority?s policies and procedures that appropriately reduces the risk of noncompliance to an appropriately low level. Context: While performing audit procedures, it was noted that the Authority does not have a system of internal controls over compliance built into the Authority?s policies and procedures that appropriately reduces the risk of noncompliance with respect to compliance requirements related to eligibility and special tests and provisions. Cause: The Authority has not taken the appropriate steps to construct internal controls within their policies and procedures related to compliance with the Federal programs to the extent that the risk of noncompliance is reduced to an appropriately low level. Effect: As a result of the lack of segregation of duties and internal control, there were several compliance findings noted that resulted in material noncompliance with respect to eligibility and special tests and provisions. Repeat Finding: Yes; 2021-003. Recommendation: We recommend that the Authority?s management reviews the accounting information which is the best means of preventing and detecting errors and irregularities. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003: Income and Asset Verification Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: Income reported on the tenant assistance application was verified by the housing specialist by obtaining 3rd party verification of annual income. (3rd party verification includes direct confirmation from an employer, at least 4 paystubs, EIV report (required for 10/09 and later), SS award letter, printouts from Dept of Social Services for TANF, child support, etc.) (24 CFR 985.516). Assets reported on the tenant assistance application were verified by the leasing specialist by obtaining 3rd party verification of assets. If the tenant listed bank accounts, the PHA must obtain account balances from the bank or copies of bank statements. If the tenant receives SS income or wages, look at these forms to see if there is any indication of direct deposit. If so, the PHA should have gotten bank statements). (24 CFR 985.516). HAP/TAP was properly calculated using all verified information from above and was inputted into the HUD 50058 calculation. If the income reported is not correct per #2 above or there was no 3rd party verification of assets, this is incorrect as well. Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - Unknow Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, four (4) tenant files did not contain an updated EIV form as a part of the annual re-examination and five (5) tenant files did not contain third party verification of assets. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the requirements of the 24 CFR sections 985.516. Repeat Finding: No Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004: Maintenance of Release Forms Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2021 ? December 31, 2021 Type of Finding: ? Internal Control, Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230). Condition: During our testing, we noted the Authority failed to maintain documentation of compliance with the requirements as stated in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, two (2) tenant files did not contain the required release of information form signed by the tenant. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria. Repeat Finding: Yes; 2021-007 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 005: Annual Inspections Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: Reviewed the tenant file to ensure that it documented the completion of an HQS inspection in accordance with the HCVP Admin Plan and 24 CFR 982.158(d) & 982.405(b) either on a paper inspection form or electronically. This includes the proper reinspection procedures. If the family was a participant in the Family Self Sufficiency (FSS) Program an inspection is not required. (Special Tests and Provisions- Housing Quality Standards Inspections). Per discussion with Roscely Santiago, there were no annual HQS Inspections performed in 2021. Instead, HARC sent a letter acquiring signature of landlord and tenant that there were no life threatening deficiencies. The most recent passed inspection occurred within 12 months of previous passed inspection. If HQS required reinspections, re-inspection was completed with required time period. Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, twenty-one (21) tenant files failed their annual inspection, repairs were not completed within the required timeframe and HAP was not abated. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria. Repeat Finding: No Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 006: Housing Quality Standards (HQS) Enforcement Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet (Housing Quality Standards (HQS), the PHA 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 PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA 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 PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of forty (40) program participant files selected for testing, we noted six (6) instances where the repairs were not completed timely in accordance with the stated criteria and the HAP was not held. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the requirements of the 24 CFR sections 982.158(d) and 982.404 related to the HQS enforcement. Repeat Finding: Yes; 2021-004 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of HQS enforcement. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 002: Segregation of Duties - Compliance Federal agency: All Programs Federal program title: All Programs Assistance Listing No.: All Programs Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance Criteria or specific requirement: It is the Authority?s responsibility to establish and maintain systems of internal control over compliance that includes proper segregation of duties. Condition: The Authority does not have a system of internal controls over compliance built into the Authority?s policies and procedures that appropriately reduces the risk of noncompliance to an appropriately low level. Context: While performing audit procedures, it was noted that the Authority does not have a system of internal controls over compliance built into the Authority?s policies and procedures that appropriately reduces the risk of noncompliance with respect to compliance requirements related to eligibility and special tests and provisions. Cause: The Authority has not taken the appropriate steps to construct internal controls within their policies and procedures related to compliance with the Federal programs to the extent that the risk of noncompliance is reduced to an appropriately low level. Effect: As a result of the lack of segregation of duties and internal control, there were several compliance findings noted that resulted in material noncompliance with respect to eligibility and special tests and provisions. Repeat Finding: Yes; 2021-003. Recommendation: We recommend that the Authority?s management reviews the accounting information which is the best means of preventing and detecting errors and irregularities. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 003: Income and Asset Verification Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: Income reported on the tenant assistance application was verified by the housing specialist by obtaining 3rd party verification of annual income. (3rd party verification includes direct confirmation from an employer, at least 4 paystubs, EIV report (required for 10/09 and later), SS award letter, printouts from Dept of Social Services for TANF, child support, etc.) (24 CFR 985.516). Assets reported on the tenant assistance application were verified by the leasing specialist by obtaining 3rd party verification of assets. If the tenant listed bank accounts, the PHA must obtain account balances from the bank or copies of bank statements. If the tenant receives SS income or wages, look at these forms to see if there is any indication of direct deposit. If so, the PHA should have gotten bank statements). (24 CFR 985.516). HAP/TAP was properly calculated using all verified information from above and was inputted into the HUD 50058 calculation. If the income reported is not correct per #2 above or there was no 3rd party verification of assets, this is incorrect as well. Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - Unknow Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, four (4) tenant files did not contain an updated EIV form as a part of the annual re-examination and five (5) tenant files did not contain third party verification of assets. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the requirements of the 24 CFR sections 985.516. Repeat Finding: No Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 004: Maintenance of Release Forms Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2021 ? December 31, 2021 Type of Finding: ? Internal Control, Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: Most PHAs devise their own application forms that are filled out by the PHA staff during an interview with the tenant. The head of the household signs (a) one or more release forms to allow the PHA to obtain information from third parties; (b) a federally prescribed general release form for employment information; and (c) a privacy notice. Under some circumstances, other members of the family are required to sign these forms (24 CFR sections 5.212 and 5.230). Condition: During our testing, we noted the Authority failed to maintain documentation of compliance with the requirements as stated in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, two (2) tenant files did not contain the required release of information form signed by the tenant. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria. Repeat Finding: Yes; 2021-007 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 005: Annual Inspections Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Material Weakness in Internal Control over Compliance ? Material Noncompliance Criteria or specific requirement: Reviewed the tenant file to ensure that it documented the completion of an HQS inspection in accordance with the HCVP Admin Plan and 24 CFR 982.158(d) & 982.405(b) either on a paper inspection form or electronically. This includes the proper reinspection procedures. If the family was a participant in the Family Self Sufficiency (FSS) Program an inspection is not required. (Special Tests and Provisions- Housing Quality Standards Inspections). Per discussion with Roscely Santiago, there were no annual HQS Inspections performed in 2021. Instead, HARC sent a letter acquiring signature of landlord and tenant that there were no life threatening deficiencies. The most recent passed inspection occurred within 12 months of previous passed inspection. If HQS required reinspections, re-inspection was completed with required time period. Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of sixty (60) program participant files selected for testing, twenty-one (21) tenant files failed their annual inspection, repairs were not completed within the required timeframe and HAP was not abated. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria. Repeat Finding: No Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.
2022 ? 006: Housing Quality Standards (HQS) Enforcement Federal agency: U.S. Department of Housing and Urban Development Federal program title: Housing Choice Voucher Cluster Assistance Listing Number: 14.871, 14.879 Award period: January 1, 2022 ? December 31, 2022 Type of Finding: ? Internal Control, Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: For units under HAP contract that fail to meet (Housing Quality Standards (HQS), the PHA 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 PHA-approved extension. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA 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 PHA must take prompt and vigorous action to enforce the family obligations (24 CFR sections 982.158(d) and 982.404). Condition: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the criteria section of this finding. Questioned Costs: Known - None Likely - Undeterminable Context: From a sample of forty (40) program participant files selected for testing, we noted six (6) instances where the repairs were not completed timely in accordance with the stated criteria and the HAP was not held. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding. Effect: The failure of the internal controls has resulted in noncompliance with the requirements of the 24 CFR sections 982.158(d) and 982.404 related to the HQS enforcement. Repeat Finding: Yes; 2021-004 Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of HQS enforcement. Views of responsible officials: There is no disagreement with the audit finding.