Audit 44978

FY End
2022-12-31
Total Expended
$11.95M
Findings
24
Programs
7
Organization: Grand Forks Housing Authority (ND)
Year: 2022 Accepted: 2023-09-28

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
39973 2022-001 Significant Deficiency Yes E
39974 2022-002 Significant Deficiency Yes L
39975 2022-003 Significant Deficiency - N
39976 2022-001 Significant Deficiency Yes E
39977 2022-002 Significant Deficiency Yes L
39978 2022-003 Significant Deficiency - N
39979 2022-001 Significant Deficiency Yes E
39980 2022-002 Significant Deficiency Yes L
39981 2022-003 Significant Deficiency - N
39982 2022-001 Significant Deficiency Yes E
39983 2022-002 Significant Deficiency Yes L
39984 2022-003 Significant Deficiency - N
616415 2022-001 Significant Deficiency Yes E
616416 2022-002 Significant Deficiency Yes L
616417 2022-003 Significant Deficiency - N
616418 2022-001 Significant Deficiency Yes E
616419 2022-002 Significant Deficiency Yes L
616420 2022-003 Significant Deficiency - N
616421 2022-001 Significant Deficiency Yes E
616422 2022-002 Significant Deficiency Yes L
616423 2022-003 Significant Deficiency - N
616424 2022-001 Significant Deficiency Yes E
616425 2022-002 Significant Deficiency Yes L
616426 2022-003 Significant Deficiency - N

Contacts

Name Title Type
NAWPZJPHLRC3 Terry Hanson Auditee
7017462545 Brian Opsahl Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying Schedule includes the federal award activity of the Grand Forks Housing Authority under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Grand Forks Housing Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.

Finding Details

2022-001 Finding ? Eligibility Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to 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) for both family income examinations and reexaminations. Condition ? We tested forty files for eligibility and noted one file with annual income errors. We also noted the leasing and property manager did not have documentation of performing the historical internal control practice of reviewing a sample of tenant files. Cause ? Management oversight. Questioned Costs ? Undeterminable Context ? We tested compliance and internal controls on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The tenant could be receiving HAP that is either incorrect or possibly ineligible. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure all required documentation is available to support the tenant?s eligibility. Repeat Finding ? Yes, see 2021-001. Views of Responsible Officials ? Management will review their tenant file documentation procedures to ensure controls are in place to identify missing documentation within tenant files.
Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? Financial Reports (OMB No. 2535-0107) ? Financial Assessment Subsystem, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASS-PH system is one of HUD?s main monitoring and oversight systems for the HCVP. Condition ? We noted that the un-audited REAC was not submitted by the required deadline of February 28, 2023. Cause ? Time constraints on the Authority?s staff. Questioned Costs ? Not applicable Context ? We tested compliance and internal controls to see if the submission had been made. Effect ? The Authority is not in compliance with HUD reporting requirements. Recommendation ? We recommend that the Authority review the procedures and controls for submitting the un-audited REAC. Repeat Finding ? Yes ? see 2021-002. Views of Responsible Officials ? The Authority will publish time schedules internally for reporting and make sure staff are aware of deadlines.
2022-003 Special Tests and Provisions: Rent Reasonableness Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to determine that the rent to owner is reasonable at the time of initial leasing and during the term of the contract (a) before any increase in the rent to owner and (b) at the HAP contract anniversary if there is a 5 percent decreased in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. Condition ? We noted three tenant files that did not have documentation of rent reasonableness at the time of a change. Two of these have been updated by the Authority and now have proper documentation. Cause ? Management Oversight. Questioned Costs ? Not applicable Context ? We tested compliance on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The rent may not be reasonable. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure required documentation is available to support the rent to owner. Repeat Finding ? No Views of Responsible Officials ? The Authority will review its policies and procedures for ensuring rent reasonableness documentation is maintained within the files.
2022-001 Finding ? Eligibility Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to 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) for both family income examinations and reexaminations. Condition ? We tested forty files for eligibility and noted one file with annual income errors. We also noted the leasing and property manager did not have documentation of performing the historical internal control practice of reviewing a sample of tenant files. Cause ? Management oversight. Questioned Costs ? Undeterminable Context ? We tested compliance and internal controls on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The tenant could be receiving HAP that is either incorrect or possibly ineligible. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure all required documentation is available to support the tenant?s eligibility. Repeat Finding ? Yes, see 2021-001. Views of Responsible Officials ? Management will review their tenant file documentation procedures to ensure controls are in place to identify missing documentation within tenant files.
Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? Financial Reports (OMB No. 2535-0107) ? Financial Assessment Subsystem, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASS-PH system is one of HUD?s main monitoring and oversight systems for the HCVP. Condition ? We noted that the un-audited REAC was not submitted by the required deadline of February 28, 2023. Cause ? Time constraints on the Authority?s staff. Questioned Costs ? Not applicable Context ? We tested compliance and internal controls to see if the submission had been made. Effect ? The Authority is not in compliance with HUD reporting requirements. Recommendation ? We recommend that the Authority review the procedures and controls for submitting the un-audited REAC. Repeat Finding ? Yes ? see 2021-002. Views of Responsible Officials ? The Authority will publish time schedules internally for reporting and make sure staff are aware of deadlines.
2022-003 Special Tests and Provisions: Rent Reasonableness Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to determine that the rent to owner is reasonable at the time of initial leasing and during the term of the contract (a) before any increase in the rent to owner and (b) at the HAP contract anniversary if there is a 5 percent decreased in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. Condition ? We noted three tenant files that did not have documentation of rent reasonableness at the time of a change. Two of these have been updated by the Authority and now have proper documentation. Cause ? Management Oversight. Questioned Costs ? Not applicable Context ? We tested compliance on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The rent may not be reasonable. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure required documentation is available to support the rent to owner. Repeat Finding ? No Views of Responsible Officials ? The Authority will review its policies and procedures for ensuring rent reasonableness documentation is maintained within the files.
2022-001 Finding ? Eligibility Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to 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) for both family income examinations and reexaminations. Condition ? We tested forty files for eligibility and noted one file with annual income errors. We also noted the leasing and property manager did not have documentation of performing the historical internal control practice of reviewing a sample of tenant files. Cause ? Management oversight. Questioned Costs ? Undeterminable Context ? We tested compliance and internal controls on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The tenant could be receiving HAP that is either incorrect or possibly ineligible. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure all required documentation is available to support the tenant?s eligibility. Repeat Finding ? Yes, see 2021-001. Views of Responsible Officials ? Management will review their tenant file documentation procedures to ensure controls are in place to identify missing documentation within tenant files.
Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? Financial Reports (OMB No. 2535-0107) ? Financial Assessment Subsystem, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASS-PH system is one of HUD?s main monitoring and oversight systems for the HCVP. Condition ? We noted that the un-audited REAC was not submitted by the required deadline of February 28, 2023. Cause ? Time constraints on the Authority?s staff. Questioned Costs ? Not applicable Context ? We tested compliance and internal controls to see if the submission had been made. Effect ? The Authority is not in compliance with HUD reporting requirements. Recommendation ? We recommend that the Authority review the procedures and controls for submitting the un-audited REAC. Repeat Finding ? Yes ? see 2021-002. Views of Responsible Officials ? The Authority will publish time schedules internally for reporting and make sure staff are aware of deadlines.
2022-003 Special Tests and Provisions: Rent Reasonableness Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to determine that the rent to owner is reasonable at the time of initial leasing and during the term of the contract (a) before any increase in the rent to owner and (b) at the HAP contract anniversary if there is a 5 percent decreased in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. Condition ? We noted three tenant files that did not have documentation of rent reasonableness at the time of a change. Two of these have been updated by the Authority and now have proper documentation. Cause ? Management Oversight. Questioned Costs ? Not applicable Context ? We tested compliance on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The rent may not be reasonable. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure required documentation is available to support the rent to owner. Repeat Finding ? No Views of Responsible Officials ? The Authority will review its policies and procedures for ensuring rent reasonableness documentation is maintained within the files.
2022-001 Finding ? Eligibility Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to 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) for both family income examinations and reexaminations. Condition ? We tested forty files for eligibility and noted one file with annual income errors. We also noted the leasing and property manager did not have documentation of performing the historical internal control practice of reviewing a sample of tenant files. Cause ? Management oversight. Questioned Costs ? Undeterminable Context ? We tested compliance and internal controls on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The tenant could be receiving HAP that is either incorrect or possibly ineligible. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure all required documentation is available to support the tenant?s eligibility. Repeat Finding ? Yes, see 2021-001. Views of Responsible Officials ? Management will review their tenant file documentation procedures to ensure controls are in place to identify missing documentation within tenant files.
Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? Financial Reports (OMB No. 2535-0107) ? Financial Assessment Subsystem, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASS-PH system is one of HUD?s main monitoring and oversight systems for the HCVP. Condition ? We noted that the un-audited REAC was not submitted by the required deadline of February 28, 2023. Cause ? Time constraints on the Authority?s staff. Questioned Costs ? Not applicable Context ? We tested compliance and internal controls to see if the submission had been made. Effect ? The Authority is not in compliance with HUD reporting requirements. Recommendation ? We recommend that the Authority review the procedures and controls for submitting the un-audited REAC. Repeat Finding ? Yes ? see 2021-002. Views of Responsible Officials ? The Authority will publish time schedules internally for reporting and make sure staff are aware of deadlines.
2022-003 Special Tests and Provisions: Rent Reasonableness Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to determine that the rent to owner is reasonable at the time of initial leasing and during the term of the contract (a) before any increase in the rent to owner and (b) at the HAP contract anniversary if there is a 5 percent decreased in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. Condition ? We noted three tenant files that did not have documentation of rent reasonableness at the time of a change. Two of these have been updated by the Authority and now have proper documentation. Cause ? Management Oversight. Questioned Costs ? Not applicable Context ? We tested compliance on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The rent may not be reasonable. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure required documentation is available to support the rent to owner. Repeat Finding ? No Views of Responsible Officials ? The Authority will review its policies and procedures for ensuring rent reasonableness documentation is maintained within the files.
2022-001 Finding ? Eligibility Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to 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) for both family income examinations and reexaminations. Condition ? We tested forty files for eligibility and noted one file with annual income errors. We also noted the leasing and property manager did not have documentation of performing the historical internal control practice of reviewing a sample of tenant files. Cause ? Management oversight. Questioned Costs ? Undeterminable Context ? We tested compliance and internal controls on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The tenant could be receiving HAP that is either incorrect or possibly ineligible. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure all required documentation is available to support the tenant?s eligibility. Repeat Finding ? Yes, see 2021-001. Views of Responsible Officials ? Management will review their tenant file documentation procedures to ensure controls are in place to identify missing documentation within tenant files.
Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? Financial Reports (OMB No. 2535-0107) ? Financial Assessment Subsystem, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASS-PH system is one of HUD?s main monitoring and oversight systems for the HCVP. Condition ? We noted that the un-audited REAC was not submitted by the required deadline of February 28, 2023. Cause ? Time constraints on the Authority?s staff. Questioned Costs ? Not applicable Context ? We tested compliance and internal controls to see if the submission had been made. Effect ? The Authority is not in compliance with HUD reporting requirements. Recommendation ? We recommend that the Authority review the procedures and controls for submitting the un-audited REAC. Repeat Finding ? Yes ? see 2021-002. Views of Responsible Officials ? The Authority will publish time schedules internally for reporting and make sure staff are aware of deadlines.
2022-003 Special Tests and Provisions: Rent Reasonableness Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to determine that the rent to owner is reasonable at the time of initial leasing and during the term of the contract (a) before any increase in the rent to owner and (b) at the HAP contract anniversary if there is a 5 percent decreased in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. Condition ? We noted three tenant files that did not have documentation of rent reasonableness at the time of a change. Two of these have been updated by the Authority and now have proper documentation. Cause ? Management Oversight. Questioned Costs ? Not applicable Context ? We tested compliance on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The rent may not be reasonable. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure required documentation is available to support the rent to owner. Repeat Finding ? No Views of Responsible Officials ? The Authority will review its policies and procedures for ensuring rent reasonableness documentation is maintained within the files.
2022-001 Finding ? Eligibility Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to 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) for both family income examinations and reexaminations. Condition ? We tested forty files for eligibility and noted one file with annual income errors. We also noted the leasing and property manager did not have documentation of performing the historical internal control practice of reviewing a sample of tenant files. Cause ? Management oversight. Questioned Costs ? Undeterminable Context ? We tested compliance and internal controls on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The tenant could be receiving HAP that is either incorrect or possibly ineligible. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure all required documentation is available to support the tenant?s eligibility. Repeat Finding ? Yes, see 2021-001. Views of Responsible Officials ? Management will review their tenant file documentation procedures to ensure controls are in place to identify missing documentation within tenant files.
Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? Financial Reports (OMB No. 2535-0107) ? Financial Assessment Subsystem, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASS-PH system is one of HUD?s main monitoring and oversight systems for the HCVP. Condition ? We noted that the un-audited REAC was not submitted by the required deadline of February 28, 2023. Cause ? Time constraints on the Authority?s staff. Questioned Costs ? Not applicable Context ? We tested compliance and internal controls to see if the submission had been made. Effect ? The Authority is not in compliance with HUD reporting requirements. Recommendation ? We recommend that the Authority review the procedures and controls for submitting the un-audited REAC. Repeat Finding ? Yes ? see 2021-002. Views of Responsible Officials ? The Authority will publish time schedules internally for reporting and make sure staff are aware of deadlines.
2022-003 Special Tests and Provisions: Rent Reasonableness Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to determine that the rent to owner is reasonable at the time of initial leasing and during the term of the contract (a) before any increase in the rent to owner and (b) at the HAP contract anniversary if there is a 5 percent decreased in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. Condition ? We noted three tenant files that did not have documentation of rent reasonableness at the time of a change. Two of these have been updated by the Authority and now have proper documentation. Cause ? Management Oversight. Questioned Costs ? Not applicable Context ? We tested compliance on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The rent may not be reasonable. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure required documentation is available to support the rent to owner. Repeat Finding ? No Views of Responsible Officials ? The Authority will review its policies and procedures for ensuring rent reasonableness documentation is maintained within the files.
2022-001 Finding ? Eligibility Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to 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) for both family income examinations and reexaminations. Condition ? We tested forty files for eligibility and noted one file with annual income errors. We also noted the leasing and property manager did not have documentation of performing the historical internal control practice of reviewing a sample of tenant files. Cause ? Management oversight. Questioned Costs ? Undeterminable Context ? We tested compliance and internal controls on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The tenant could be receiving HAP that is either incorrect or possibly ineligible. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure all required documentation is available to support the tenant?s eligibility. Repeat Finding ? Yes, see 2021-001. Views of Responsible Officials ? Management will review their tenant file documentation procedures to ensure controls are in place to identify missing documentation within tenant files.
Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? Financial Reports (OMB No. 2535-0107) ? Financial Assessment Subsystem, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASS-PH system is one of HUD?s main monitoring and oversight systems for the HCVP. Condition ? We noted that the un-audited REAC was not submitted by the required deadline of February 28, 2023. Cause ? Time constraints on the Authority?s staff. Questioned Costs ? Not applicable Context ? We tested compliance and internal controls to see if the submission had been made. Effect ? The Authority is not in compliance with HUD reporting requirements. Recommendation ? We recommend that the Authority review the procedures and controls for submitting the un-audited REAC. Repeat Finding ? Yes ? see 2021-002. Views of Responsible Officials ? The Authority will publish time schedules internally for reporting and make sure staff are aware of deadlines.
2022-003 Special Tests and Provisions: Rent Reasonableness Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to determine that the rent to owner is reasonable at the time of initial leasing and during the term of the contract (a) before any increase in the rent to owner and (b) at the HAP contract anniversary if there is a 5 percent decreased in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. Condition ? We noted three tenant files that did not have documentation of rent reasonableness at the time of a change. Two of these have been updated by the Authority and now have proper documentation. Cause ? Management Oversight. Questioned Costs ? Not applicable Context ? We tested compliance on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The rent may not be reasonable. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure required documentation is available to support the rent to owner. Repeat Finding ? No Views of Responsible Officials ? The Authority will review its policies and procedures for ensuring rent reasonableness documentation is maintained within the files.
2022-001 Finding ? Eligibility Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to 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) for both family income examinations and reexaminations. Condition ? We tested forty files for eligibility and noted one file with annual income errors. We also noted the leasing and property manager did not have documentation of performing the historical internal control practice of reviewing a sample of tenant files. Cause ? Management oversight. Questioned Costs ? Undeterminable Context ? We tested compliance and internal controls on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The tenant could be receiving HAP that is either incorrect or possibly ineligible. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure all required documentation is available to support the tenant?s eligibility. Repeat Finding ? Yes, see 2021-001. Views of Responsible Officials ? Management will review their tenant file documentation procedures to ensure controls are in place to identify missing documentation within tenant files.
Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? Financial Reports (OMB No. 2535-0107) ? Financial Assessment Subsystem, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASS-PH system is one of HUD?s main monitoring and oversight systems for the HCVP. Condition ? We noted that the un-audited REAC was not submitted by the required deadline of February 28, 2023. Cause ? Time constraints on the Authority?s staff. Questioned Costs ? Not applicable Context ? We tested compliance and internal controls to see if the submission had been made. Effect ? The Authority is not in compliance with HUD reporting requirements. Recommendation ? We recommend that the Authority review the procedures and controls for submitting the un-audited REAC. Repeat Finding ? Yes ? see 2021-002. Views of Responsible Officials ? The Authority will publish time schedules internally for reporting and make sure staff are aware of deadlines.
2022-003 Special Tests and Provisions: Rent Reasonableness Federal Program ? Housing Voucher Cluster 14.871 & 14.879 ? Significant Deficiency Criteria or Specific Requirement ? The Program requires the Authority to determine that the rent to owner is reasonable at the time of initial leasing and during the term of the contract (a) before any increase in the rent to owner and (b) at the HAP contract anniversary if there is a 5 percent decreased in the published Fair Market Rent in effect 60 days before the HAP contract anniversary. Condition ? We noted three tenant files that did not have documentation of rent reasonableness at the time of a change. Two of these have been updated by the Authority and now have proper documentation. Cause ? Management Oversight. Questioned Costs ? Not applicable Context ? We tested compliance on a sample of 40 tenant files out of the population of approximately 1,552 total tenants. Effect ? The rent may not be reasonable. Recommendation ? We recommend that the Authority review the procedures for maintaining and reviewing tenant files to ensure required documentation is available to support the rent to owner. Repeat Finding ? No Views of Responsible Officials ? The Authority will review its policies and procedures for ensuring rent reasonableness documentation is maintained within the files.